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Franchise Growth Acceleration Initiative

3 Months Ended

Mar. 30, 2025

Franchise Growth Acceleration Initiative

The following is a summary of the refranchising activities recorded as a result of the Franchise Growth Acceleration Initiative during the quarter ended March 30, 2025 and March 31, 2024 (amounts in thousands, except number of shops):


	For the Quarter Ended
	March 30, 2025		March 31, 2024
Number of shops sold to franchisees	4		—

Proceeds from sale of company-operated shops	$	148	$	—
Net assets sold	(171)		—
Goodwill related to the company-operated shops sold to franchisee	(4)		—
Loss on sale of company-operated shops, net	(27)		—

Adjustment to recognize held-for-sale assets at fair value	—		(30)
Other expenses (a)	(8)		(103)
Loss on Franchise Growth Acceleration Initiative activities	$	(35)	$	(133)

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(a)These costs primarily include professional service fees, repairs and maintenance and travel expenses incurred to execute the refranchise transaction.

All gains and losses recognized on sales of shops and other expenses incurred to execute a refranchising transaction are included in Loss on Franchising Growth Acceleration Initiative activities in the condensed consolidated statements of operations. Development agreement fees received are recorded in the consolidated balance sheets as accrued expenses or other long-term liabilities, and amortized over the term of the franchise agreement once the shops are opened.