Commitments and Contingencies

12 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

Commitments and Contingencies:

The Company's office space, and the land and buildings related to the Drive Thru and Bad Daddy's restaurant facilities are classified as operating leases and expire over the next 20 years. Some leases contain escalation clauses over the lives of the leases. Most of the leases contain one to three five-year renewal options at the end of the initial term. Certain leases include provisions for additional contingent rent payments if sales volumes exceed specified levels. The Company paid no material contingent rentals during fiscal 2015 and 2014.

Following is a summary of operating lease activity for the fiscal years ended September 30, 2015 and 2014:


	2015				2014
Minimum rentals	$	2,944		$	2,382
Less sublease rentals		(375	)		(436	)
Net rent paid	$	2,569		$	1,946

As of September 30, 2015, future minimum rental commitments required under the Company's operating leases that have initial or remaining non-cancellable lease terms in excess of one year are as follows:


Years Ending September 30,
2016	$	4,091
2017		4,233
2018		4,157
2019		3,865
2020		3,364
Thereafter		14,595
		34,305
Less sublease rentals		(1,918	)
	$	32,387

The Company is contingently liable on the sublease rentals disclosed above. The subleased and assigned leases expire between 2018 and 2024. In the past the Company has never been required to pay any significant amount in connection with its guarantees and currently we have not been notified nor are we aware of any leases in default by the franchisees, however there can be no assurance that there will not be such defaults in the future which could have a material effect on our future operating results.