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Royalties and Fees	3 Months Ended
Mar. 31, 2024
Royalties and Fees
Royalties And Fees	Note 4 – Royalties and fees included initial franchise fees of $63,779 (after deferring initial fees of $52,500 and amortizing $43,779 of previously deferred fees and receiving $20,000 in transfer fees) for the three-month period ended March 31, 2024, and $60,000 for the three-month period ended March 31, 2023. Royalties and fees included equipment commissions of $66,585 for the three-month period ended March 31, 2024, and $24,000 for the three-month period ended March 31, 2023. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $1,456,000 for the three-month period ended March 31, 2024, and $987,000 for the three-month period ended March 31, 2023. 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 deferred contract income was $1,557,000 and deferred costs were $1,407,000 as of March 31, 2024. At December 31, 2023 and March 31, 2024, 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, 2024, will be collected. During the three-month period ended March 31, 2024 there were no Company-operated or franchised Craft Pizza & Pub restaurants opened or closed. During the same three-month period 24 new non-traditional outlets opened and two non-traditional outlets closed.

Royalties and Fees

3 Months Ended

Mar. 31, 2024

Note 4 – Royalties and fees included initial franchise fees of $63,779 (after deferring initial fees of $52,500 and amortizing $43,779 of previously deferred fees and receiving $20,000 in transfer fees) for the three-month period ended March 31, 2024, and $60,000 for the three-month period ended March 31, 2023. Royalties and fees included equipment commissions of $66,585 for the three-month period ended March 31, 2024, and $24,000 for the three-month period ended March 31, 2023. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $1,456,000 for the three-month period ended March 31, 2024, and $987,000 for the three-month period ended March 31, 2023. 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 deferred contract income was $1,557,000 and deferred costs were $1,407,000 as of March 31, 2024.

At December 31, 2023 and March 31, 2024, 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, 2024, will be collected.

During the three-month period ended March 31, 2024 there were no Company-operated or franchised Craft Pizza & Pub restaurants opened or closed. During the same three-month period 24 new non-traditional outlets opened and two non-traditional outlets closed.