Gain on Sale of Assets and Lease Termination

9 Months Ended

Jun. 28, 2022

Gain on Sale of Assets and Lease Termination [Abstract]

Gain on Sale of Assets and Lease Termination

Note 6.  Gain on Sale of Assets and Lease Termination

The Company had previously entered into an agreement with the landlord for one of its Good Times restaurants which provided the landlord an option to terminate the lease with a six-month notice in exchange for a specific termination penalty. During the fiscal quarter ended December 28, 2021 the landlord for this location exercised the termination option. The Company continued to operate this location through the majority of the notice period ending March 31, 2022. During the quarter ended March 29, 2022, we recognized a $642,000 gain in connection with the lease termination. The remainder of the gain recognized during the three quarters ended June 28, 2022 is the periodic recognition of deferred gains resulting from prior sale-leaseback transactions associated with certain Good Times restaurants.