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Note N - Commitments and Contingencies | 12 Months Ended
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Mar. 29, 2020
Notes to Financial Statements |
Commitments and Contingencies Disclosure [Text Block] | NOTE N - COMMITMENTS AND CONTINGENCIES
| 1. | Commitments
The Company’s operations are principally conducted in leased premises. The leases generally have initial terms ranging from 5 to 20 years and usually provide for renewal options ranging from 5 to 20 years. Most of the leases contain escalation clauses and common area maintenance charges (including taxes and insurance). Revenue from sub-leasing properties is recognized in income as the revenue is earned and deemed collectible. Sub-lease rental income is presented net of associated lease costs in the accompanying consolidated Statements of Earnings. Aggregate rental expense, net of sublease income, under all current leases amounted to $1,647 and $1,579 of which, $1,310 and $1,287 were a component of restaurant operating expenses, for the fiscal years ended March 29, 2020 and March 31, 2019, respectively. The remaining rents of $423 and $378 were included in general and administrative expenses for the fiscal years ended March 29, 2020 and March 31, 2019, respectively. Sublease rental income of $86 was included in Other income, net for the fiscal years ended March 29, 2020 and March 31, 2019, respectively. Contingent rental payments on building leases are typically made based on the percentage of gross sales of the individual restaurants that exceed predetermined levels. The percentage of gross sales to be paid and related gross sales level vary by unit. Contingent rental expense, which is inclusive of common area maintenance charges, was approximately $511 and $480 for the fiscal years ended March 29, 2020 and March 31, 2019, respectively. At March 29, 2020, the Company leases one site which it in turn subleases to a franchisee, which expires in April 2027 exclusive of renewal options. The Company remains liable for all lease costs when property is subleased to a franchisee.
| 2. | Legal Proceeding s
The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. Nevertheless, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include money damages and, in such event, could result in a material adverse impact on the Company’s results of operations for the period in which the ruling occurs.
| 3. | Guaran ty
On February 27, 2017, a wholly-owned subsidiary of the Company executed a Guaranty of Lease (the “Brooklyn Guaranty”) in connection with its re-franchising of a restaurant located in Brooklyn, New York. The Company is obligated to make payments under the Brooklyn Guaranty in the event of a default by the tenant/franchisee. The Brooklyn Guaranty has an initial term of 10 years and one 5 -year option and is limited to 24 months of rent for the first three years of the term. Nathan’s has recorded a liability of $110 in connection with the Brooklyn Guaranty which does not include potential percentage rent, real estate tax increases, attorney’s fees and other costs as these amounts are not reasonably determinable at this time. Nathan’s has received a personal guaranty from the franchisee for all obligations under the Brooklyn Guaranty. For the remainder of the term, the Brooklyn Guaranty is limited to 12 months of rent plus reasonable costs of collection and attorney’s fees.

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