v3.26.1
Revenue Disclosures
 3 Months Ended
Mar. 22, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Disclosures

7. Revenue Disclosures

 

Contract Liabilities

 

Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $4.8 million were included in current other accrued liabilities as of both March 22, 2026 and December 28, 2025. Deferred franchise fees and deferred development fees of $11.4 million and $12.5 million were included in long-term other accrued liabilities as of March 22, 2026 and December 28, 2025, respectively.

 

Changes in deferred franchise fees and deferred development fees for the first quarters of 2026 and 2025 were as follows:

 

 

 

Fiscal Quarter Ended

 

 

 

March 22,

 

 

March 23,

 

 

 

2026

 

 

2025

 

Deferred franchise fees and deferred development fees, beginning of period

 

$

17,318

 

 

$

20,946

 

Revenue recognized during the period

 

 

(1,686

)

 

 

(1,668

)

New deferrals due to cash received and other

 

 

592

 

 

 

726

 

Deferred franchise fees and deferred development fees, end of period

 

$

16,224

 

 

$

20,004

 

Advertising Fund Assets

 

As of March 22, 2026, advertising fund assets, restricted of $115.8 million consisted of $82.8 million of cash and cash equivalents, $20.6 million of accounts receivable and $12.4 million of prepaid expenses. As of March 22, 2026, advertising fund cash and cash equivalents included $2.4 million of cash contributed from U.S. Company-owned stores that had not yet been expended.

 

As of December 28, 2025, advertising fund assets, restricted of $117.5 million consisted of $92.2 million of cash and cash equivalents, $18.4 million of accounts receivable and $6.9 million of prepaid expenses. As of December 28, 2025, advertising fund cash and cash equivalents included $2.1 million of cash contributed from U.S. Company-owned stores that had not yet been expended.