MANAGEMENT FEE INCOME

12 Months Ended

Oct. 01, 2011

Management Fee Income [Text Block]

12. MANAGEMENT FEE INCOME

The Company provides management services to two fast food courts and one fast food unit. Prior to fiscal 2011, the Company did not consolidate these operations. In accordance with the contractual arrangements, the Company earns management fees based on gross sales or cash flow as defined by the agreements. Management fee income, included in Revenues – Other Revenue, relating to these services was approximately $2,902,000 for the year ended October 2, 2010 and included approximately $743,000 for management fees and $2,159,000 for profit distributions. Such fees have been eliminated for the year ended October 1, 2011 due to the consolidation of these entities as discussed in Notes 1 and 2.

Receivables from managed restaurants, included in Related Party Receivables, were approximately $1,000,000 at October 2, 2010 and included approximately $827,000 for management fees and profit distributions and $173,000 for expense advances. Such receivables have been eliminated at October 1, 2011 due to the consolidation of these entities as discussed in Notes 1 and 2.

Managed restaurants had sales of approximately $17,470,000 for the year ended October 2, 2010 which are not included in consolidated net sales of the Company.