Royalties and Fees	3 Months Ended
Mar. 31, 2023
Royalties and Fees
Royalties And Fees	Note 2 – Royalties and fees included initial franchise fees of $60,000 for the three-month period ended March 31, 2023, and $83,000 for the three-month period ended March 31, 2022. Royalties and fees included equipment commissions of $24,000 for the three-month period ended March 31, 2023, and $8,007 for the three-month period ended March 31, 2022. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $987,000 for the three-month period ended March 31, 2023, and $934,000 for the three-month period ended March 31, 2022. Most of the cost for the services required to be performed by the Company are incurred prior to the franchise fee income being recorded, which is based on a contractual liability of the franchisee. The effect on comparable period amounts within the financial statements by recording franchise fees and cost of opening the units as deferred contract costs and deferred contract income is not material as the initial franchise fee for the non-traditional franchise is intended to defray the initial contract costs, and the franchise fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods. The deferred contract income and deferred costs were $943,000 on March 31, 2023. At December 31, 2022 and March 31, 2023, the carrying values of the Company’s franchise receivables have been reduced to anticipated realizable value. After considering this reduction of carrying value, the Company anticipates that substantially all of its accounts receivable reflected on the consolidated balance sheet as of March 31, 2023, will be collected. During the three-month period ended March 31, 2023 there were no company-operated or franchised Craft Pizza & Pub restaurants opened or closed. During the same three-month period 10 new non-traditional outlets opened and 0 non-traditional outlets closed.

Royalties and Fees

3 Months Ended

Mar. 31, 2023

Note 2 – Royalties and fees included initial franchise fees of $60,000 for the three-month period ended March 31, 2023, and $83,000 for the three-month period ended March 31, 2022. Royalties and fees included equipment commissions of $24,000 for the three-month period ended March 31, 2023, and $8,007 for the three-month period ended March 31, 2022. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $987,000 for the three-month period ended March 31, 2023, and $934,000 for the three-month period ended March 31, 2022. Most of the cost for the services required to be performed by the Company are incurred prior to the franchise fee income being recorded, which is based on a contractual liability of the franchisee.

The effect on comparable period amounts within the financial statements by recording franchise fees and cost of opening the units as deferred contract costs and deferred contract income is not material as the initial franchise fee for the non-traditional franchise is intended to defray the initial contract costs, and the franchise fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods.

The deferred contract income and deferred costs were $943,000 on March 31, 2023.

At December 31, 2022 and March 31, 2023, the carrying values of the Company’s franchise receivables have been reduced to anticipated realizable value. After considering this reduction of carrying value, the Company anticipates that substantially all of its accounts receivable reflected on the consolidated balance sheet as of March 31, 2023, will be collected.

During the three-month period ended March 31, 2023 there were no company-operated or franchised Craft Pizza & Pub restaurants opened or closed. During the same three-month period 10 new non-traditional outlets opened and 0 non-traditional outlets closed.