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Royalties
6 Months Ended
Jun. 30, 2011
Royalties

Royalties and fees include $74,985 and $127,485 for the three-month and six-month periods ended June 30, 2011, respectively, and $55,500 and $119,500 for the three-month and six-month periods ended June 30, 2010, respectively, of initial franchise fees. Royalties and fees included $8,354 and $18,478 for the three-month and six-month periods ended June 30, 2011 and $27,908 and $87,592 for the three-month and six-month periods ended June 30, 2010, respectively, of equipment commissions. Royalties and fees, less initial franchise fees and equipment commissions were $1,648,462 and $3,260,626 for the three-month and six-month periods ended June 30, 2011 and $1,595,367 and $3,107,339 for the three-month and six-month periods ended June 30, 2010, respectively. The breakdown of royalties and fees less upfront fees are royalties and fees from non-traditional franchises other than grocery stores were $1,111,428 and $2,162,306 for the three-month and six-month periods ended June 30, 2011, respectively, and $1,060,879 and $2,056,528 for the three-month and six-month periods ended June 30, 2010, respectively; royalties and fees from the grocery store take-n-bake were $264,739 and $547,600 for the three-month and six-month periods ended June 30, 2011, respectively, and $68,385 and $113,025 for the three-month and six-month periods ended June 30, 2010, respectively; and royalties and fees from traditional locations were $272,296 and $550,720 for the three-month and six-month periods ended June 30, 2011, respectively, and $466,103 and $937,786 for the three-month and six-month periods ended June 30, 2010, respectively. The Company has no material amount of past due royalties.

 

There were 1,112 franchises in operation on December 31, 2010 and 1,331 franchises in operation on June 30, 2011. During the six-month period ended June 30, 2011 there were 227 new outlets opened and 8 outlets closed. The breakdown of the 1,331 franchises at June 30, 2011 was 752 non-traditional franchises other than grocery stores, 537 grocery stores and 42 traditional franchises.