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Related Parties
12 Months Ended
Sep. 30, 2011
Related Parties

9.             Related Parties:

 

The Erie County Investment Company (owner of 99% of The Bailey Company) is a holder of our common stock and has certain contractual rights to elect members of the Company’s Board of Directors under the Series B Convertible Preferred Stock Agreements entered into in February, 2005.

 

The Company leases office space from The Bailey Company under a lease agreement which expired in September 2011 and is currently leasing the space on a month to month basis.  Rent paid to them in fiscal 2011 and 2010 for office space was $55,000 and $55,000, respectively.

 

The Bailey Company is also the owner of one franchised Good Times Drive Thru restaurant which is located in Loveland, Colorado and was the owner of one franchised restaurant in Thornton, Colorado which was closed in October 2009. The Bailey Company has entered into two franchise and management agreements with us. Franchise royalties and management fees paid under those agreements totaled approximately $53,000 and $50,000 for the fiscal years ending September 30, 2011 and 2010, respectively. Amounts due from The Bailey Company related to these agreements at September 30, 2011 and 2010 were $16,000 and $12,000, respectively.

 

Total interest and commitment fees paid to Golden Bridge, LLC under their agreement were approximately $4,000 and $18,000 for the fiscal years ending September 30, 2011 and 2010, respectively. See Note 8 above for the terms of the loan.