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Contingencies
9 Months Ended
May 31, 2013
Contingencies [Abstract]  
Contingencies

8.   Contingencies

 

The Company is involved in various legal proceedings and has certain unresolved claims pending.  Based on the information currently available, management believes that all claims currently pending are either covered by insurance or would not have a material adverse effect on the Company’s business, operating results or financial condition.

 

The Company has obligations under various operating lease agreements with third-party lessors related to the real estate for certain Company Drive-In operations that were sold to franchisees.  During the second quarter of fiscal year 2013, the amount remaining under these guaranteed lease obligations increased as a result of the franchisee-exercised option discussed in note 7 – Other Operating Income.  Under these agreements, which expire through 2029, the Company remains secondarily liable for the lease payments for which it was responsible as the original lessee.  As of May 31, 2013, the amount remaining under these guaranteed lease obligations totaled $12.2 million.  At this time, the Company does not anticipate any material defaults under the foregoing leases; therefore, no liability has been provided.