Note H - Accounts and Other Receivables, Net

9 Months Ended

Dec. 26, 2021

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE H – ACCOUNTS AND OTHER RECEIVABLES, NET                  

Accounts and other receivables, net, consist of the following (in thousands):

	December 26,		March 28,
	2021		2021
Branded product sales	$	10,185	$	6,480
Franchise and license royalties		2,992		5,224
Other		1,183		293
		14,360		11,997
Less: allowance for doubtful accounts		185		345
Accounts and other receivables, net	$	14,175	$	11,652

Accounts receivable are due within 30 days and are stated at amounts due from franchisees, including virtual or “ghost” kitchens, retail licensees and Branded Product Program customers, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are generally considered past due. The Company does not recognize franchise and license royalties that are not deemed to be realizable.

The Company individually reviews each past due account and determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the customer’s current and expected future ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings. After the Company has used reasonable collection efforts, it writes off accounts receivable through a charge to the allowance for doubtful accounts.

Changes in the Company’s allowance for doubtful accounts for the thirty-nine week period ended December 26, 2021 and the fiscal year ended March 28, 2021 are as follows (in thousands):          

	December 26, 2021			March 28, 2021
Beginning balance	$	345		$	237
Bad debt expense		112			101
Write-offs and other		(272	)		7
Ending balance	$	185		$	345