(7) INSURANCE PREMIUMS:

During the first quarter of our fiscal year 2026, for the policy year commencing December 30, 2025, we obtained coverage on the following general liability, auto, property, excess liability, terrorism and cyber security policies with premiums totaling approximately $3,855,000, of which general liability, property, excess liability, terrorism and cyber security insurance includes coverage for our franchises (of approximately $848,000), which are not included in our condensed consolidated financial statements:

(i) For the policy year beginning December 30, 2025, our general liability insurance, excluding limited partnerships, is a one-year policy with our insurance carriers. For the policy commencing December 30, 2025, the self-insured retention per occurrence is $50,000. The one-year general liability insurance premium is in the amount of $548,000;

(ii) For the policy year beginning December 30, 2025, the general liability insurance for our limited partnerships, including franchisees and the managed restaurant is a one-year policy with our insurance carriers. For the policy commencing December 30, 2025, the self-insured retention per occurrence is $10,000. The one-year general liability insurance premium is in the amount of $1,052,000;

(iii) For the policy year beginning December 30, 2025, our automobile insurance is a one-year policy. The one-year automobile insurance premium is in the amount of $223,000;

(iv) For the policy year beginning December 30, 2025, our property insurance is a one-year policy. The one-year property insurance premium is in the amount of $1,079,000;

(v) For the policy year beginning December 30, 2025, our excess liability insurance is a one-year policy. The one-year excess liability insurance premium is in the amount of $903,000;

(vi) For the policy year beginning December 30, 2025, our terrorism insurance is a one-year policy. The one-year terrorism insurance premium is in the amount of $19,000; and

(vii) For the policy year beginning December 30, 2025, our cyber security insurance is a one-year policy. The one-year cyber security insurance premium is in the amount of $31,000.

We paid the $3,855,000 annual premium amounts on January 15, 2026, which includes coverage for our franchises which are not included in our condensed consolidated financial statements.