Gain on Sale of Assets and Lease Termination

3 Months Ended

Dec. 28, 2021

Discontinued Operations and Disposal Groups [Abstract]

Gain on Sale of Assets and Lease Termination

Note 6.Gain on Sale of Assets and Lease Termination

The Company had previously entered into an agreement with the landlord for one of its Good Times restaurants which provided the landlord an option to terminate the lease with a six-month notice in exchange for a specific termination penalty. During the fiscal quarter ended December 28, 2021 the landlord for this location exercised the termination option and we recognized a $607,000 gain in connection with the lease termination. The Company will continue to operate this location through the majority of the notice period ending March 31, 2022 and will vacate the leased premises on or prior to that date. The remainder of the gain recognized during the period is the periodic recognition of deferred gains resulting from prior sale-leaseback transactions associated with certain Good Times restaurants.