SUMMARY OF REFRANCHISINGS, FRANCHISEE DEVELOPMENT AND ACQUISITIONS

Refranchisings and franchisee development — The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period (dollars in thousands):



	Quarter						Year-to-date
	April 16, 2017			April 10, 2016			April 16, 2017			April 10, 2016
Restaurants sold to Jack in the Box franchisees	60			—			60			1
New restaurants opened by franchisees:
Jack in the Box	6			—			13			5
Qdoba	4			4			12			10

Initial franchise fees	$	2,577		$	120		$	3,002		$	505

Proceeds from the sale of company-operated restaurants (1)	$	31,251		$	—		$	31,389		$	1,021
Net assets sold (primarily property and equipment)	(10,306		)	(3		)	(10,306		)	(196		)
Lease commitment charges (2)	(7,651		)	—			(7,651		)	—
Goodwill related to the sale of company-operated restaurants	(341		)	—			(342		)	(10		)
Other (3)	(5,174		)	—			(5,174		)	—
Gains (losses) on the sale of company-operated restaurants	$	7,779		$	(3	)	$	7,916		$	815

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(1)	Year-to-date, amounts in 2017 and 2016 include additional proceeds related to restaurants sold in a prior year of $0.1 million and $1.0 million, respectively. An immaterial amount of additional proceeds, and no additional proceeds, were recognized during the quarter in 2017 and 2016, respectively.


(2)	Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income.


(3)	Amounts in 2017 primarily represent impairment of $3.1 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets. As of April 16, 2017, there was $8.8 million of property related to these closed restaurants classified as assets held for sale on our condensed consolidated balance sheet.

Prior to the end of the quarter in 2017, we signed non-binding letters of intent with franchisees to sell 59 company-operated restaurants. Pre-tax gross proceeds related to these sales are estimated at $30.0 million to $33.0 million. Equipment of $9.4 million related to these sales has been classified as assets held for sale in our April 16, 2017 condensed consolidated balance sheet.

Franchise acquisitions — We acquired 19 and one Jack in the Box franchise restaurants in the second quarter of 2017 and the first quarter of 2016, respectively, and we plan to sell the 19 restaurants acquired in 2017 as part of our refranchising strategy. The 2017 acquisition was the result of a legal action filed in September 2013 against a franchisee in which we obtained a judgment in January 2017 granting us possession of the restaurants. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The goodwill recorded primarily relates to the sales growth potential of the markets acquired and is expected to be deductible for income tax purposes.

Total consideration in each year is non-cash, and in 2017 is comprised of $7.9 million of receivables due from the franchisee that were eliminated in the acquisition accounting, and $3.8 million of accounts payable recorded in the acquisition accounting that is due to the franchisee’s bank to waive its liens and security interests on certain assets acquired. Total consideration in 2016 is primarily the value of equipment transferred to the franchisee in the transaction. The following table provides detail of the acquisitions in each fiscal year (dollars in thousands):



	2017			2016
Restaurants acquired from franchisees	19			1

Goodwill (gain on bargain purchase)	$	9,821		$	(289	)
Property and equipment	2,238			58
Intangible assets	467			37
Cash	—			324
Liabilities assumed	(814		)	—
Total consideration	$	11,712		$	130