Note 2 - Franchise Programs

12 Months Ended

Jun. 02, 2015

Franchise Programs [Abstract]

Franchise Programs [Text Block]

2.  Franchise Programs

As of June 2, 2015, our franchise programs included arrangements with 30 domestic and international Ruby Tuesday concept franchisees and six domestic Lime Fresh franchisees. At the end of fiscal year 2015, our franchisees collectively operated 78 Ruby Tuesday and seven Lime Fresh restaurants. We do not own any equity interest in our existing franchisees.

We enter into development agreements with our franchisees that require them to open varying numbers of Ruby Tuesday or Lime Fresh restaurants. As of June 2, 2015, eight of our 30 Ruby Tuesday concept franchisees had agreements to develop new franchised Ruby Tuesday restaurants. None of our six Lime Fresh concept domestic franchisees had an agreement to develop new Lime Fresh restaurants as of June 2, 2015. During fiscal 2015, 2014, and 2013, our Ruby Tuesday franchisees opened six, seven, and two restaurants, respectively, pursuant to development agreements, as follows:

	Ruby Tuesday						Lime Fresh
Fiscal Year	Domestic		International		Total
2015		–		6		6		2
2014		1		6		7		2*
2013		–		2		2		2*

*One of the Lime Fresh franchise restaurant openings in each of fiscal year 2014 and 2013 was opened in Chile by an international franchisee. Both of these restaurants closed during the fourth quarter of fiscal year 2014.

In conjunction with these openings, we recognized development and licensing fee income totaling $0.2 million in each of fiscal 2015, 2014, and 2013.

Deferred development and licensing fees associated with all franchisees, which are reported as a component of Other deferred liabilities in our Consolidated Balance Sheets, totaled $0.6 million and $0.8 million as of June 2, 2015 and June 3, 2014, respectively. We will recognize these fees as income when we have substantially performed all material services and the restaurant has opened for business.