Contract Liabilities:

9 Months Ended

Sep. 26, 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 nine months of 2026 and 2025, respectively:


		September 26, 2026			September 27, 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			1,432,300			1,567,200
Fees earned that were included in the balance at the beginning of the period			(1,335,400)			(1,235,700)
Balance at end of period		$	10,114,300		$	10,018,800

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 September 26, 2026.


Contract Liabilities expected to be recognized in	Amount
2026	$	412,900
2027		1,622,700
2028		1,453,300
2029		1,304,900
2030		1,191,300
Thereafter		4,129,200
	$	10,114,300