Contingent Liabilities for Leased Facilities

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Contingent Liabilities for Leased Facilities

Note 5: Contingent Liabilities for Leased Facilities

The Company leased its former restaurant facilities under non-cancelable lease agreements which generally had initial terms ranging from five to 20 years with extended renewal terms. These leases have been terminated or assigned to franchisees who operate them pursuant to a Noble Roman’s, Inc. Franchise Agreement. The assignment passes all liability for future lease payments to the assignees, however, the Company remains contingently liable on a portion of the leases to the landlords in the event of default by the assignees. The leases generally required the Company or its assignees to pay all real estate taxes, insurance and maintenance costs. At December 31, 2011, contingent obligations under non-cancelable operating leases for 2012, 2013, 2014, 2015, 2016 and after 2016 were approximately $89,763, $90,663, $91,563, $71,343, $24,675 and $0, respectively.

The Company has future obligations under current operating leases of $820,561 as follows: due in less than one year $229,178, due in one to three years $461,830, due in three to five years $129,553 and due in more than five years $0.