COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases — The Company leases several restaurants, bar facilities, and administrative headquarters through its subsidiaries under terms expiring at various dates through 2032. Most of the leases provide for the payment of base rents plus real estate taxes, insurance and other expenses and, in certain instances, for the payment of a percentage of the restaurant’s sales in excess of stipulated amounts at such facility and in one instance based on profits.

LegalProceedings — In the ordinary course of its business, the Company is a party to various lawsuits arising from accidents at its restaurants and worker’s compensation claims, which are generally handled by the Company’s insurance carriers. The employment by the Company of management personnel, waiters, waitresses and kitchen staff at a number of different restaurants has resulted, from time to time, in litigation alleging violation by the Company of employment discrimination laws. Management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Other - On February 21, 2019, the Company, through a wholly subsidiary, entered into an agreement to purchase the assets of a restaurant and bar in Deerfield Beach, Florida for $7,000,000. The purchase will be financed with borrowings from BHBM and is subject to, amount other things, entering into a lease with the property owner satisfactory to Ark as well as the consent of the current mortgage holders of the property. The transaction is expected to close during the third fiscal quarter of 2019.