Company controls and in which the Company holds a 52.5% ownership interest. The Company believes
that allowing certain Named Executive Officers to have ownership interests in restaurants provides an
ongoing benefit to the Company by making these persons more invested in the overall success of the
brand. As of the end of the 2019 fiscal year, Mr. Thompson held a 35.5% ownership interest in the
Gilbert-East, AZ restaurant, which entity paid $260,055 to us for management and supervision fees.
Additionally, for the 2019 fiscal year, the total amount of distributions received by Mr. Thompson relating
to his ownership interest in the Gilbert-East, AZ restaurant was $476,090. These amounts do not reflect
compensation paid by the Company to Mr. Thompson during the 2019 fiscal year; rather, these amounts
were paid by the applicable entity and reflect a return on investment in this restaurant location.
Other Related Transactions
We entered into real estate lease agreements for franchise restaurants located in Everett, MA, of
which Mr. Taylor beneficially owns 28.75%, and Fargo, ND, of which Mr. Colosi owns 5.05%, before our
granting franchise rights for those restaurants. We have subsequently assigned the leases to the
franchisees, but we remain contingently liable if a franchisee defaults under the terms of a lease. The
Everett lease expires in February 2023, and the Fargo lease expires in July 2021.
We previously entered into real estate lease agreements for the Company restaurants located in
Gilbert-East, AZ. We subsequently assigned the lease to a joint venture operating entity, but we remain
contingently liable if the entity defaults under the terms of the lease. The Gilbert-East lease expires in
July 2023.