SUMMARY OF REFRANCHISINGS AND FRANCHISEE DEVELOPMENT

Refranchisings and franchisee development — The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains recognized in each period (dollars in thousands):



	Quarter						Year-to-date
	April 15, 2018			April 16, 2017			April 15, 2018			April 16, 2017
Restaurants sold to franchisees	63			60			85			60
New restaurants opened by franchisees	3			6			8			13

Initial franchise fees	$	2,735		$	2,538		$	3,730		$	2,828

Proceeds from the sale of company-operated restaurants:
Cash (1)	$	11,253		$	31,251		$	16,844		$	31,389
Short-term notes receivable (2)	22,422			—			31,506			—
	33,675			31,251			48,350			31,389

Net assets sold (primarily property and equipment)	(9,509		)	(10,306		)	(13,146		)	(10,306		)
Lease commitment charges (3)	(863		)	(7,651		)	(863		)	(7,651		)
Goodwill related to the sale of company-operated restaurants	(3,807		)	(341		)	(3,960		)	(342		)
Other (4)	(14,024		)	(5,174		)	(15,969		)	(5,174		)
Gains on the sale of company-operated restaurants	$	5,472		$	7,779		$	14,412		$	7,916

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(1)	Year-to-date, amounts in 2018 and 2017 include additional proceeds of $1.2 million and $0.1 million, respectively, related to restaurants sold in prior years. There were no additional proceeds and an immaterial amount of additional proceeds recognized during the quarter in 2018 and 2017, respectively.


(2)	We collected payments of $9.1 million related to notes due from franchisees in the first quarter of 2018.


(3)	Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income from franchisees.

(4)

Amounts in 2018 include an $8.8 million reduction of gains related to the modification of certain 2017 refranchising transactions. The quarter and year-to-date amounts in 2018 also include $3.7 million and $5.2 million, respectively, of costs related to franchise remodel incentives. Amounts in 2017 primarily represent impairment of $3.1 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets.

As of the end of the second 2018 quarter, we had signed non-binding letters of intent with franchisees to sell an additional 21 company-operated restaurants. Pre-tax gross proceeds related to these sales are estimated at $16.0 million to $18.0 million. Equipment of $3.3 million related to these sales has been classified as assets held for sale on our April 15, 2018 condensed consolidated balance sheet.