Notes Receivable

6 Months Ended

Apr. 01, 2025

Notes Receivable [Abstract]

Notes receivable

Note 5. Notes receivable

The Company is the holder of a promissory note in connection with the termination of an agreement in connection with the Company’s management services, and lease negotiations on behalf of a former franchisee, related to real estate previously subleased to a third party by the former franchisee. The former subtenant to that sublease, who is now the owner of the real estate, is the maker of the note. The three-year note carries an interest rate of 8.00% and amortizes over 25 years and 3-year initial maturity, with the full remaining principal balance due at maturity on October 16, 2027. As of April 1, 2025, the outstanding balance on the note was $144,000    , with the $2,000 current maturities portion included in receivables. We have recognized $140,000 of income related to the agreement termination which has been classified as Other Income in the two fiscal quarters ended April 1, 2025.