Contract Liabilities:

6 Months Ended

Jun. 27, 2026

3. Contract Liabilities:

The Company’s contract liabilities for its franchise revenues consist of deferred revenue associated with franchise fees and software license fees. The table below presents the activity of the current and noncurrent deferred franchise revenue during the first six months of 2026 and 2025, respectively:


		June 27, 2026			June 28, 2025
Balance at beginning of period		$	10,017,400		$	9,687,300
Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period			1,013,700			1,078,200
Fees earned that were included in the balance at the beginning of the period			(944,600)			(762,500)
Balance at end of period		$	10,086,500		$	10,003,000

The following table illustrates future estimated revenue to be recognized for the remainder of 2026 and full fiscal years thereafter related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 27, 2026.


Contract Liabilities expected to be recognized in	Amount
2026	$	786,800
2027		1,581,400
2028		1,412,000
2029		1,263,600
2030		1,150,000
Thereafter		3,892,700
	$	10,086,500