Commitments and Contingencies

12 Months Ended

Dec. 29, 2021

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position.

Purchase Obligations

We have commitments related to company and franchised restaurants under purchase contracts for food and non-food products. Many of these agreements do not obligate us to purchase any specific volumes and include provisions that would allow us to cancel such agreements with appropriate notice. Our future purchase obligation payments due by period for both company and franchised restaurants at December 29, 2021 consist of the following:


	(In thousands)
Less than 1 year	$	202,183
1-2 years	—
3-4 years	—
5 years and thereafter	—
Total	$	202,183

For agreements with cancellation provisions, amounts included in the table above represent our estimate of purchase obligations during the periods presented if we were to cancel these contracts with appropriate notice. We would likely take delivery of goods under such circumstances.

During the year ended December 29, 2021, the Company entered into equipment purchase contracts of approximately $18.1 million related to the rollout of kitchen equipment for franchise restaurants, which we will bill to franchisees and recognize as revenue as the equipment is installed, less approximately $5.7 million in incentive commitments from the Company. At December 29, 2021, our remaining obligation under these contracts was approximately $16.2 million, $1.8 million of which is included in accounts payable. The remaining balance is expected to be billed and paid in 2022. These commitments are included in the table above.