Acquisition of Restaurants

9 Months Ended

Sep. 28, 2014

Acquisition of Restaurants

Acquisition of Restaurants

5. Acquisition of Restaurants

For the nine-month period ended September 28, 2014, we completed the acquisition of 12 franchised Papa John’s restaurants located in various markets as part of four separate transactions. The aggregate purchase price for these four transactions was $5.0 million, which was comprised of cash payments of approximately $4.3 million, amounts withheld in escrow of approximately $300,000, and the cancellation of approximately $400,000 in accounts and notes receivable due to us. These acquisitions were accounted for by the purchase method of accounting, whereby operating results subsequent to the acquisition date are included in our consolidated financial results.

The aggregate purchase price of the acquisitions has been allocated based on initial fair value estimates as follows (in thousands):

Property and equipment	$	453
Reacquired franchise right	844
Goodwill	3,568
Other, including cash	117
Total purchase price	$	4,982

The excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill, all of which is expected to be deductible for tax purposes.