Franchise arrangements (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of revenues from franchised restaurants

Revenues from franchised restaurants for fiscal years 2020, 2019 and 2018 consisted of:


	2020		2019		2018
Rent (i)	$	89,123	$	145,860	$	148,094
Initial fees (ii) (iii)	203		287		195
Royalty fees (iv)	275		643		673
Total	$	89,601	$	146,790	$	148,962

(i)Includes rental income of own buildings and subleases. As of December 31, 2020 and 2019 the subleases rental income amounted to $74,723 and $114,459, respectively.

(ii)Presented net of initial fees owed to McDonald’s Corporation for $493, $1,456 and $1,323 in 2020, 2019 and 2018, respectively.

(iii)On January 1, 2018, the Company adopted ASC 606 “Revenue Recognition - Revenue from Contracts with Customers”. As such, initial franchise fees received are deferred over the term of the franchise agreement. See Note 3 Revenue Recognition, for details.

(iv)Presented net of royalties fees owed to McDonald’s Corporation for $36,554, $57,709 and $57,733 in 2020, 2019 and 2018, respectively. As a consequence of the negative impacts of the spread of COVID-19 in the operations, McDonald’s granted a deferral of all the royalties payments due to sales in March, April, May, June and July 2020 until the first half of 2021.

Schedule of future minimum rental payments for operating leases

At December 31, 2020, future minimum rent payments due to the Company under existing franchised agreements are:


	Owned sites		Leased sites		Total
2021	$	3,312	$	47,661	$	50,973
2022	2,648		42,458		45,106
2023	2,413		36,985		39,398
2024	2,321		31,915		34,236
2025	2,315		28,547		30,862
Thereafter	9,754		135,349		145,103
Total	$	22,763	$	322,915	$	345,678