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<SEC-DOCUMENT>0000825324-09-000015.txt : 20090814
<SEC-HEADER>0000825324-09-000015.hdr.sgml : 20090814
<ACCEPTANCE-DATETIME>20090814171422
ACCESSION NUMBER:		0000825324-09-000015
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20090630
FILED AS OF DATE:		20090814
DATE AS OF CHANGE:		20090814

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		091017038

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>qthirdquarter11.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>UNITED STATES</title>



</head>

<body lang=EN-US vlink=purple>

















<p class=MsoNormal align=center style='text-align:center'>UNITED
STATES</p>

<p class=MsoNormal align=center style='text-align:center'>SECURITIES
 AND EXCHANGE COMMISSION</p>

<p class=MsoNormal align=center style='text-align:center'>WASHINGTON, D.C. 20549</p>



<p class=MsoNormal align=center style='text-align:center'>FORM 10-Q</p>



<p class=MsoNormal>(Mark One)</p>



<p class=MsoNormal align=center style='text-align:center'>x&nbsp;QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE</p>

<p class=MsoNormal align=center style='text-align:center'>ACT OF
1934</p>



<p class=MsoNormal align=center style='text-align:center'>For the
quarterly period ended June 30, 2009</p>



<p class=MsoNormal align=center style='text-align:center'>OR</p>



<p class=MsoNormal align=center style='text-align:center'>[&nbsp; ]&nbsp;TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</p>

<p class=MsoNormal align=center style='text-align:center'>EXCHANGE
ACT OF 1934</p>

<p class=MsoNormal align=center style='text-align:center'>Commission
File Number: 0-18590</p>



<p class=MsoNormal align=center style='text-align:center'>GOOD
TIMES RESTAURANTS, INC.</p>

<p class=MsoNormal align=center style='text-align:center'>(Exact
Name of Registrant as Specified in Its Charter)</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='height:15.45pt'>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;NEVADA &nbsp;</p>
  </td>
  <td width=14 style='width:10.75pt;padding:0in 0in 0in 0in;height:15.45pt'>

  </td>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;84-1133368</p>
  </td>
 </tr>
 <tr style='height:30.95pt'>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:30.95pt'>
  <p class=MsoNormal align=center style='text-align:center'>(State
  or Other Jurisdiction of &nbsp;</p>
  <p class=MsoNormal align=center style='text-align:center'>Incorporation
  or Organization)</p>
  </td>
  <td width=14 style='width:10.75pt;padding:0in 0in 0in 0in;height:30.95pt'>

  </td>
  <td width=353 valign=top style='width:264.6pt;padding:0in 0in 0in 0in;
  height:30.95pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;&nbsp;
  (I.R.S. Employer Identification Number)</p>
  </td>
 </tr>
</table>



<p class=MsoNormal align=center style='text-align:center'>601
CORPORATE CIRCLE, GOLDEN, CO 80401</p>

<p class=MsoNormal align=center style='text-align:center'>(Address
of Principal Executive Offices, Including Zip Code)</p>

<p class=MsoNormal align=center style='text-align:center'>(303) 384-1400</p>

<p class=MsoNormal align=center style='text-align:center'>(Registrant's
Telephone Number, Including Area Code)</p>



<p class=MsoNormal>Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.</p>

<p class=MsoNormal>Yes &nbsp; x&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No &nbsp; [&nbsp; ]</p>



<p class=MsoNormal>Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company, as defined in Rule&nbsp;12b-2 of the Exchange Act<a
name="v122293_10q_htm_bm_______"></a> .</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='height:15.45pt'>
  <td width=356 style='width:266.85pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal style='margin-left:.55in'>Large accelerated filer [&nbsp; ]</p>
  </td>
  <td width=106 style='width:79.85pt;padding:0in 0in 0in 0in;height:15.45pt'>

  </td>
  <td width=258 style='width:193.25pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal>Accelerated filer&nbsp;&nbsp; [&nbsp; ]</p>
  </td>
 </tr>
 <tr style='height:16.65pt'>
  <td width=356 style='width:266.85pt;padding:0in 0in 0in 0in;height:16.65pt'>
  <p class=MsoNormal style='margin-left:.55in'>Non-accelerated filer [&nbsp; ]</p>
  </td>
  <td width=106 style='width:79.85pt;padding:0in 0in 0in 0in;height:16.65pt'>

  </td>
  <td width=258 style='width:193.25pt;padding:0in 0in 0in 0in;height:16.65pt'>
  <p class=MsoNormal>Smaller reporting company&nbsp;&nbsp;&nbsp; x</p>
  </td>
 </tr>
</table>



<p class=MsoNormal>Indicate by check mark whether the registrant is a shell company
(as defined in Rule&nbsp;12b-2 of the Exchange Act).</p>

<p class=MsoNormal>Yes  [&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp; No &nbsp; x</p>



<p class=MsoFooter align=center style='text-align:center'>As of August
14, 2009, there were 3,898,559 shares of the Registrant's common stock, par
value $0.001 per share, issued and outstanding.<a name=pgbrk></a> </p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>




<p class=MsoNormal style='line-height:1.0pt'><a name=ftr></a><a name=glftr></a><a
name=pn></a><a name=hdr></a><a name=glhdr></a>&nbsp;</p>







<p class=MsoNormal><b>Form
10-Q</b></p>

<p class=MsoNormal><b>Quarter
Ended June 30, 2009</b></p>



<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b><u>INDEX</u></b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><b><u>PAGE</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  I - FINANCIAL INFORMATION</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Financial Statements</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Condensed Consolidated Balance Sheets -</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>June 30, 2009
  (unaudited) and September 30, 2008</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>3 - 4</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Condensed
  Consolidated Statements of Operations (unaudited)&nbsp; </p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three and nine
  months ended June 30, 2009 and 2008</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>5</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>Condensed
  Consolidated Statements of Cash Flow (unaudited) </p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the nine months
  ended June 30, 2009 and 2008</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>6</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Notes
  to Condensed Consolidated Financial Statements</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7 - 12</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Management's
  Discussion and Analysis of Financial Condition and Results of Operations</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>12 - 21</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Quantitative
  and Qualitative Disclosures About Market Risk</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.1in'>Item 4T.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controls
  and Procedures</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  II - OTHER INFORMATION</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><a name="OLE_LINK3">Item 1.</a></p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Legal
  Proceedings</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-5.4pt'>Item 1A.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Risk
  Factors</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Unregistered
  Sales of Equity Securities and Use of Proceeds</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Defaults
  Upon Senior Securities</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Submission
  of Matters to a Vote of Security Holders</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  5.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Other
  Information.</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>22</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  6.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exhibits
  </p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>23</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>SIGNATURES</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>23</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>CERTIFICATIONS</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 31.1</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 31.2</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 32.1</p>
  </td>
 </tr>
</table>

</div>



<p class=MsoFooter align=center style='text-align:center'>2</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>PART I - FINANCIAL
INFORMATION</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>ASSETS</b></p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=627
 style='margin-left:1.5pt;border-collapse:collapse'>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:-.9pt;text-align:center'><b>Unaudited</b></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:-.9pt;text-align:center'>June 30,</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2008</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CURRENT
  ASSETS:</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>$671,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>$1,414,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables,
  net of allowance for doubtful</p>
  <p class=MsoNormal style='margin-left:18.85pt'>accounts of $0</p>
  </td>
  <td width=117 valign=bottom style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>140,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=bottom style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>160,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>94,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>79,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>221,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>240,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 40,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current assets</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>1,166,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>1,928,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>PROPERTY
  AND EQUIPMENT, at cost:</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land
  and building</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>6,594,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>6,566,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold
  improvements</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>4,107,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>4,017,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixtures
  and equipment</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp; 8,441,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'><u>&nbsp; 8,303,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>19,142,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>18,886,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  11.05pt;margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  -.9pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  13.55pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less
  accumulated depreciation and amortization</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  11.05pt;margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:
  right'><u>(11,544,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  -.9pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  13.55pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(10,602,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>7,598,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>8,284,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:11.05pt;margin-bottom:
  0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:-.9pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:13.55pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets
  held for sale</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:11.05pt;margin-bottom:
  0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>1,595,000</h3>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>1,574,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:11.05pt;margin-bottom:
  0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:-.9pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:13.55pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>OTHER
  ASSETS:</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:11.05pt;margin-bottom:
  0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:-.9pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:13.55pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable, net of current portion</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'>83,000</p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'>83,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other assets</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp; 61,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'><u>&nbsp; 51,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:11.05pt;
  margin-bottom:0in;margin-left:2.8pt;margin-bottom:.0001pt;text-align:right'><u>144,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'><u>&nbsp;134,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>TOTAL
  ASSETS</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:11.05pt;text-align:right'><u>$10,503,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><u>&nbsp;</u></p>
  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.55pt;text-align:right'><u>$11,920,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=130 valign=top style='width:97.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
</table>

</div>

<h3>LIABILITIES AND STOCKHOLDERS' EQUITY</h3>

<p class=MsoFooter align=center style='text-align:center'>3</p>

<p class=MsoFooter align=center style='text-align:center'>See accompanying
notes to condensed consolidated financial statements</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>












<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>&nbsp;CURRENT
  LIABILITIES:</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current
  maturities of long-term debt</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$879,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  13.05pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$2,304,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>365,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'>628,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  income</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>158,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'>139,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
  accrued liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp; 851,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'><u>&nbsp;&nbsp; 939,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,253,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'>4,010,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>LONG-TERM
  LIABILITIES:</h3>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:12.6pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:13.05pt;margin-bottom:
  0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:17.55pt;margin-bottom:.0001pt;text-indent:-17.55pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, net of
  current portion and net of discount of $35,000 and $0, respectively</p>
  </td>
  <td width=119 valign=bottom style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>2,650,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=bottom style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  13.05pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>846,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 980,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'><u>1,071,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  long-term liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>3,630,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:13.05pt;text-align:right'>1,917,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
</table>

</div>

<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><a name="OLE_LINK2">&nbsp;</a></p>

<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)</b></p>



<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=648
 style='margin-left:-17.1pt;border-collapse:collapse'>
 <tr style='height:16.65pt'>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:center'><b>Unaudited</b></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'>June 30,</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:12.6pt;margin-bottom:
  0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:.05in;margin-bottom:.0001pt;text-align:center'><u>2008</u></h3>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>

  <p class=MsoNormal style='page-break-after:avoid'>MINORITY INTERESTS IN PARTNERSHIPS</p>
  </td>
  <td width=126 style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right;
  page-break-after:avoid'>470,000</p>
  </td>
  <td width=18 style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right;
  page-break-after:avoid'>584,000</p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>

  <p class=MsoNormal>Preferred
  stock, $.01 par value;</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.3in;text-indent:-.3in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000,000
  shares authorized, none issued</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and
  outstanding as of September 30, 2008 and</p>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June
  30, 2009</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Common
  stock, $.001 par value; 50,000,000 shares</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized,
  3,898,559 shares issued and</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outstanding
  as of September 30, 2008 and</p>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June
  30, 2009</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  other comprehensive loss</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>(68,000)</p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital
  contributed in excess of par value</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  17.1pt;margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:
  right'>17,732,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>17,633,000</p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  deficit</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  17.1pt;margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:
  right'><u>(13,586,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(12,160,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  stockholders' equity</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp; 4,150,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 5,409,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=384 valign=top style='width:4.0in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>TOTAL
  LIABILITIES AND STOCKHOLDERS' EQUITY</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:17.1pt;
  margin-bottom:0in;margin-left:.05in;margin-bottom:.0001pt;text-align:right'><u>$10,503,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>$ 11,920,000</u></p>
  </td>
 </tr>
</table>

</div>

<p class=MsoFooter align=center style='text-align:center'>4</p>

<p class=MsoFooter align=center style='text-align:center'>See accompanying
notes to condensed consolidated financial statements</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=948
 style='margin-left:9.9pt;border-collapse:collapse'>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</h3>
  </td>
  <td width=234 colspan=3 valign=top style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Three Months Ended June 30,</b></h3>
  </td>
  <td width=264 colspan=4 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:0in;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><b>Nine Months Ended June 30,</b></h3>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:5.85pt;text-align:center;
  line-height:94%'><b><u>2009</u></b></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:5.85pt;text-align:center;
  line-height:94%'><b><u>2008</u></b></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:3.75pt;text-align:center;
  line-height:94%'><b><u>2009</u></b></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:3.75pt;text-align:center;
  line-height:94%'><b><u>2008</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>NET
  REVENUES:</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Restaurant sales, net</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>$6,193,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>$6,827,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>$17,120,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>$18,745,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Franchise revenues</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; 138,000</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; 169,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:-.9pt;text-align:center;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp;&nbsp; 412,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:right;
  text-indent:-.25in;line-height:94%'>&#64976;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;&nbsp;&nbsp;&nbsp;
  491,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total revenues</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>6,331,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>6,996,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>17,532,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>19,236,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>RESTAURANT
  OPERATING COSTS:</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Food and packaging costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>2,115,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>2,156,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>5,774,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>5,832,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Payroll and other employee benefit costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>2,072,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>2,266,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>6,099,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>6,543,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Occupancy and other operating costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>1,234,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>1,261,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>3,625,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>3,558,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Accretion of deferred rent</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>-</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>9,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>24,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Opening costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>-</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>7,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>15,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>7,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Depreciation and amortization</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; 317,000</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; 332,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; &nbsp;944,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;&nbsp;&nbsp;&nbsp;
  955,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total restaurant operating costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>5,738,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>6,031,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>16,457,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>16,919,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  General and administrative costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>346,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>540,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>1,238,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>1,580,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Advertising costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>347,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>403,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>969,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>1,134,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Franchise costs</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>35,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>88,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>108,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>275,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  (Gain) loss on sale of restaurant building and equipment</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; (7,000)</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp;&nbsp; (9,000)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; (22,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:.05in;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;(28,000)</u></p>
  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.5pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>LOSS
  FROM OPERATIONS</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>(128,000)</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>(57,000)</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>(1,218,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>(644,000)</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>OTHER
  INCOME AND (EXPENSES):</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Minority income (expense), net</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>(3,000)</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'>(56,000)</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>60,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>(97,000)</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Unrealized
  gain (loss) on interest rate swap</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>29,000</p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right;
  line-height:94%'>-</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>(87,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>-</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Interest income (expense), net</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>(78,000)</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>(8,000)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; &nbsp;(182,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:.05in;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; (5,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total other expenses</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>(52,000)</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp; (64,000)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; &nbsp;(209,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:.05in;text-align:right;
  line-height:94%'><u>(102,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>NET
  LOSS</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>($180,000)</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.35pt;
  margin-bottom:0in;margin-left:11.5pt;margin-bottom:.0001pt;text-align:right;
  line-height:94%'><u>($ 121,000)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>($1,427,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:.05in;text-align:right;
  line-height:94%'><u>(746,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.35pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>BASIC
  AND DILUTED NET LOSS PER COMMON SHARE</p>
  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'><u>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .05)</u></p>
  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:2.5pt;margin-bottom:.0001pt;text-align:right;
  line-height:94%'><u>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .03)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:14.3pt;text-align:right;
  line-height:94%'><u>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .37)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'><u>($&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  .19)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=96 valign=top style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=31 valign=top style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=top style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>WEIGHTED
  AVERAGE COMMON SHARES AND EQUIVALENTS</p>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>USED
  IN PER SHARE CALCULATION: BASIC AND DILUTED</p>
  </td>
  <td width=96 valign=bottom style='width:1.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.15pt;text-align:right;
  line-height:94%'>3,898,559</p>
  </td>
  <td width=31 valign=bottom style='width:23.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=bottom style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right;
  line-height:94%'>3,895,745</p>
  </td>
  <td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=116 valign=bottom style='width:87.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right;line-height:94%'>3,898,559</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right;
  line-height:94%'>3,882,758</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>&nbsp;&nbsp;&nbsp; 5</p>

<p class=MsoFooter align=center style='text-align:center'>See accompanying
notes to condensed consolidated financial statements</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><b>GOOD
TIMES RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>(Unaudited)</b></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=726
 style='margin-left:.9pt;border-collapse:collapse'>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=246 colspan=3 valign=top style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>For the Nine Months
  Ended</p>
  <p class=MsoNormal align=center style='text-align:center'>June 30,</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  <p class=MsoNormal>CASH FLOWS FROM
  OPERATING ACTIVITIES:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><u>2008</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  loss</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>($1,427,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>($746,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Adjustments
  to reconcile net loss to net cash</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided
  by (used in) operating activities:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>944,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>955,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization
  of discount on notes payable</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock
  based compensation expense</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>58,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>69,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
  loss on interest rate swap</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>87,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion
  of deferred rent</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>24,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority
  interest</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(60,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>97,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses
  associated with exit activity</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>95,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognition
  of deferred (gain) on sale of restaurant building</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(22,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(23,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss
  (gain) on sale of assets</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>- </p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(5,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in operating assets and liabilities:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)
  decrease in:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables
  and other assets</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='text-align:right'>(130,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>19,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(20,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)
  increase in:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(263,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>55,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
  liabilities and deferred income</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>(164,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:17.1pt;text-align:right'><u>(58,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by (used in) operating activities</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(821,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>313,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH FLOWS USED IN
  INVESTING ACTIVITIES</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  for the purchase of property and equipment</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(277,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(729,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from sale of fixed assets</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>747,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Purchase
  of franchisee assets</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(273,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Loans
  made to franchisees and to others</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(31,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  received on loans to franchisees and to others</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp; 26,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>59,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash used in investing activities</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(282,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(196,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH FLOWS FROM
  FINANCING ACTIVITIES:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Principal
  payments on notes payable, and long-term debt</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(91,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(89,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  Proceeds (repayments) on revolving lines of credit</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>320,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(750,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from notes payable</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>185,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from exercise of options</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>103,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Distributions
  paid to minority interests in partnerships</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;(54,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:17.1pt;text-align:right'><u>(219,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by (used in) financing activities</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>360,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:17.1pt;text-align:right'><u>(955,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>NET CHANGE IN CASH AND CASH EQUIVALENTS</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(743,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(838,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, beginning of period</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>$ 1,414,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>$2,465,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, end of period</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp; 671,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>$1,627,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>SUPPLEMENTAL
  DISCLOSURES OF CASH FLOW INFORMATION:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Cash
  paid for interest</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>$207,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>$&nbsp; 64,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Non-cash
  deferred hedging losses</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>$&nbsp; 55,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Non-cash
  acquisition price of franchise stores (notes receivable)</p>
  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=bottom style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.6pt;text-align:right'><u>$250,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>6</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<b><br clear=all style='page-break-before:always'>
</b>











<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>(Unaudited)</b></p>

<p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
line-height:normal'><b>Note 1.
Basis of Presentation</b></p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>In the opinion of management, the
accompanying unaudited condensed consolidated financial statements contain all
of the normal recurring adjustments necessary to present fairly the financial
position of the Company as of June 30, 2009, the results of its operations and
its cash flows for the three and nine month periods ended June, 2009. Operating
results for the three and nine month periods ended June 30, 2009 are not
necessarily indicative of the results that may be expected for the year ending
September 30, 2009. The condensed consolidated balance sheet as of September
30, 2008 is derived from the audited financial statements, but does not include
all disclosures required by generally accepted accounting principles.&nbsp; As a
result, these financial statements should be read in conjunction with the
Company's Form 10-KSB for the fiscal year ended September 30, 2008.</p>

<p class=MsoNormal style='margin-top:6.0pt'><strong>Note 2. Recent Developments</strong></p>

<p class=BodyText1 style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>After several years of same store sales
growth, including several months of double digit growth in fiscal 2007 and
early fiscal 2008, we experienced a dramatic change in our sales trends,
beginning in early calendar 2008 and continuing through June 2009, as the
economy slowed and competitive pricing pressures intensified.&nbsp; Due to the
dramatic decline in consumer spending, the unprecedented rise in commodity
costs and the upheaval in the credit markets, we suspended most of our
restaurant development.</p>



<p class=BodyText1 style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>On April 20, 2009 as reported on form 8-K,
Good Times Restaurants Inc. (the &quot;Company&quot;) and Good Times Drive Thru Inc.
(&quot;GTDT&quot;), a wholly owned subsidiary of the Company, entered
into a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to
which Golden Bridge made a loan of $185,000 (the &quot;Loan&quot;) to GTDT to be used for
restaurant marketing and other working capital costs. The Loan is evidenced by
a promissory note dated April 20, 2009 (the &quot;Note&quot;) made by the Company and
GTDT, as co-makers, and shall bear interest at a rate of 10% per annum on the
unpaid principal balance.&nbsp; The Note provides for monthly interest payments and
will mature and be due and payable in full on July 10, 2010.</p>



<p class=BodyText1 style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>The Loan Agreement and the Note are subject
to the terms of an intercreditor agreement dated April 20, 2009 (the
&quot;Intercreditor Agreement&quot;), among the Company, GTDT, Golden Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the Company, GTDT currently has a
$2,500,000 revolving line of credit with PFGI (the &quot;PFGI Loan&quot;), which was
scheduled to mature on July 10, 2009, under which $2,500,000 was outstanding as
of April 20, 2009. In connection with PFGI's entry into the Intercreditor
Agreement, GTDT and the Company entered into a first amendment to the amended
and restated promissory note dated April 20, 2009 (the &quot;PFGI Note Amendment&quot;),
which extended the maturity date of the PFGI Loan until July 10, 2010 and
eliminated a loan balance threshold for release of the collateral securing the
PFGI Loan.</p>



<p class=MsoNormal style='text-align:justify'>In connection with the Loan, the Company
issued a three-year warrant dated April 20, 2009 (the &quot;Warrant&quot;) to Golden
Bridge which provides that Golden Bridge may at any time from April 20, 2009
until April 20, 2012 purchase up to 92,500 shares of the Company's common stock
(the &quot;Warrant Shares&quot;) at an exercise price of $1.15 per share. The fair value
of the warrants issued was determined to be $42,000 with the following
assumptions; 1) risk free interest rate of 1.27%, 2) an expected life of 3
years, and 3) an expected dividend yield of zero. The fair value of $42,000 was
charged to the note discount and credited to Additional Paid in Capital. The
note discount will be amortized over fourteen months and charged to interest
expense.</p>



<p class=MsoNormal style='text-align:justify'>See <i>Financing Activities </i>under the <i>Liquidity
and Capital Resources</i> section of Item 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations below for further
details of the above transaction.</p>

<p class=MsoNormal style='margin-top:6.0pt'><strong>&nbsp;</strong></p>

<p class=MsoFooter align=center style='text-align:center'>7</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>

<p class=MsoNormal style='line-height:1.0pt'><strong>&nbsp;</strong></p>

<strong><br clear=all style='page-break-before:always'>
</strong>

<p class=MsoNormal style='line-height:1.0pt'><strong>&nbsp;</strong></p>

<p class=MsoNormal style='line-height:1.0pt'><strong>&nbsp;</strong></p>



<p class=MsoNormal style='line-height:1.0pt'><strong>&nbsp;</strong></p>

<p class=MsoNormal style='margin-top:6.0pt'><strong>Note 3. Debt Covenant Compliance</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As reported on the
form 8-K filed on January 23, 2009, we are in default of certain technical loan
covenants on our note payable to Wells Fargo Bank, N.A. (&quot;the Bank&quot;). Therefore
all amounts owing under this facility are reflected as current in the
accompanying Condensed Consolidated Balance Sheet as of June 30, 2009. We have
never been in payment default on the note and expect to be able to remain
current on payments in fiscal 2009, depending on our sales trends and cash flow
from operations.&nbsp; On February 9, 2009 we received a Reservation of Rights
letter from the Bank formally notifying us of the default of the Earnings
Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) Coverage Ratio of not less
than 1.5 to 1.0 and the Tangible Net Worth of not less than $5,000,000 as set
forth in the Credit Agreement for the period ending December 31, 2008. The
letter serves as notice that notwithstanding the foregoing events of default,
the Bank is reserving all of its rights and remedies under the Credit Agreement
and related agreements.</p>

<p class=MsoNormal style='text-align:justify'>The Bank is not accelerating the Loan at this
time and is continuing to accept regularly scheduled payments of principal and
interest under the Loan, however the acceptance of payments under the Loan does
not constitute a modification of the Credit Agreement or a waiver of any of the
covenants or of the Bank's rights or remedies under the Credit Agreement,
including the right to accelerate the loan in the future after the giving of
notice.&nbsp; We will continue to work with the Bank on a Required Corrective Action
for compliance with existing or modified loan covenants.&nbsp; There can be no assurance
that the Bank will agree to modify or waive any of the loan covenants or waive
any of its rights or remedies under the Credit Agreement and we would require
additional financing to repay the loan balance.&nbsp; The loan is secured by
security agreements in the equipment of four restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt'><strong>Note 4. Stock-Based Compensation</strong></p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>The Company measures the compensation
cost associated with share-based payments by estimating the fair value of stock
options as of the grant date using the Black-Scholes option pricing model. The
Company believes that the valuation technique and the approach utilized to
develop the underlying assumptions are appropriate in calculating the fair
values of the Company's stock options granted during all years presented.
Estimates of fair value are not intended to predict actual future events or the
value ultimately realized by the employees who receive equity awards.</p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>Our net loss for the nine months ended
June 30, 2009 and June 30, 2008 includes $58,000 and $69,000, respectively, of
compensation costs related to our stock-based compensation arrangements.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>During the nine months ended June 30, 2009, we granted
12,000 non-statutory stock options and 68,400 incentive stock options both with
exercise prices of $1.47. The per share weighted average fair value was $.97 for
both non-statutory stock option grants and incentive stock option grants.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In addition to the exercise and grant date prices of the
awards, certain weighted average assumptions that were used to estimate the
fair value of stock option grants are listed in the following table:</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=168 valign=top style='width:1.75in;padding:0in 0in 0in 0in'>

  </td>
  <td width=192 valign=top style='width:2.0in;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>Incentive Stock
  Options</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>Non-Statutory Stock
  Options</strong></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>Expected term (years)</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>6.5&nbsp;</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>6.7&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>Expected volatility</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>69.7%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>69.2%</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>Risk-free interest rate</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>2.79%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>2.84%</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>Expected dividends</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><strong>0</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>0</p>
  </td>
 </tr>
</table>

</div>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>We estimate expected volatility based on
historical weekly price changes of our common stock for a period equal to the
current expected term of the options. The risk-free interest rate is based on
the United States treasury yields in effect at the time of grant corresponding
with the expected term of the options. The expected option term is the number
of years we estimate that options will be outstanding prior to exercise
considering vesting schedules and our historical exercise patterns.</p>

<p class=MsoBodyText2 style='margin-top:0in;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>SFAS
123(R) requires the cash flows resulting from the tax benefits for tax
deductions in excess of the compensation expense recorded for those options
(excess tax benefits) to be classified as financing cash flows. These excess
tax benefits were $0 for the three and nine months ended June 30, 2009.</p>

<p class=MsoFooter align=center style='text-align:center'>8</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

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<p class=MsoBodyText2 style='margin-top:0in;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>A
summary of stock option activity under our share-based compensation plan for
the nine months ended June 30, 2009 is presented in the following table:</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'><a
  name="OLE_LINK1"></a>
  <p class=MsoNormal style='margin-right:4.5pt'><b>&nbsp;</b></p>
  </td>
  <td width=91 valign=bottom style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b><u>Options</u></b></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Weighted Average <u>Exercise
  Price</u></b></p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Weighted Average
  Remaining Contractual</b></p>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b><u>Life (Yrs.)</u></b></p>
  </td>
  <td width=97 valign=bottom style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Aggregate Intrinsic
  <u>Value</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Outstanding-beg of year</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'>&nbsp;353,942</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'>$4.04</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Granted</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'>&nbsp;80,400</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'>$1.47</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Exercised</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'>-</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Forfeited </p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'>&nbsp;(14,760)</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'>$4.91</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Expired</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'>&nbsp;<u> (39,951)</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'><a name="OLE_LINK4"><u>$3.21</u></a></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Outstanding Jun 30, 2009</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'><u>379,631</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'><u>$3.55</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>5.8</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>$0</u></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Exercisable Jun 30, 2009</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:4.5pt;text-align:right'><u>271,356</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:.3in'><u>$3.68</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>4.6</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>$0</u></p>
  </td>
 </tr>
</table>

</div>

<p class=MsoBodyText2 style='margin-top:6.0pt;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>As
of June 30, 2009, the total remaining unrecognized compensation cost related to
unvested stock-based arrangements was $125,000 and is expected to be recognized
over a period of 2.33 years.</p>

<p class=MsoBodyText2 style='margin-right:4.3pt;text-align:justify'>There were no stock options exercised
during the nine months ended June 30, 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:4.3pt;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'><strong>Note 5. Comprehensive
Income (Loss)</strong></p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>Comprehensive income includes net income or loss, changes
in certain assets and liabilities that are reported directly in equity such as
adjustments resulting from unrealized gains or losses on held-to-maturity
investments and certain hedging transactions.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.5pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In May 2007, the Company entered into an interest rate
swap agreement, designated as a cash flow hedge, which hedges the Company's
exposure to interest rate fluctuations on the Company's floating rate $1,100,000
term loan. The contract requires monthly settlements of the difference between
the amounts to be received and paid under the agreement, the amount of which is
recognized in current earnings as interest expense.</p>

<p class=MsoNormal style='text-align:justify'>As of December 31, 2008 and continuing
through June 30, 2009 we are in default of certain technical covenants on the
underlying term loan (see note 3 above) and we have therefore recognized an
unrealized loss of $87,000 for the nine months ended June 30, 2009 in the
accompanying Condensed Consolidated Statement of Operations. As long as the
underlying loan is in covenant default we will adjust the unrealized gain or
loss through the statement of operations as non-cash income or expense.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal'><b>Note 6. Contingent Liabilities</b></p>

<p class=MsoNormal style='text-align:justify'>We remain contingently liable on various land
leases underlying restaurants that were previously sold to franchisees.&nbsp; We
have never experienced any losses related to these contingent lease
liabilities, however if a franchisee defaults on the payments under the leases,
we would be liable for the lease payments as the assignor or sublessor of the
lease.&nbsp; Currently we have not been notified nor are we aware of any leases in
default by the franchisees, however there can be no assurance that there will
not be in the future which could have a material effect on our future operating
results.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal'><b>Note 7. Related Party Transactions</b></p>

<p class=MsoNormal style='text-align:justify'>The Company entered into a loan agreement
with Golden Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to which Golden Bridge made a loan of $185,000 to the Company.&nbsp; Eric Reinhard, Ron Goodson, David
Grissen, Richard Stark, and Alan Teran, who are all members of the Company's
Board of Directors and stockholders of the Company, are the sole members of Golden Bridge.&nbsp; Eric Reinhard is the sole manager of Golden Bridge.&nbsp; The Company's and
GTDT's obtaining of the Loan
from Golden Bridge and related transactions were duly approved in advance by
the Company's Board of Directors by the affirmative vote of members thereof who
did not have an interest in the transaction.&nbsp;&nbsp; See Note 2 above for the
terms of the loan.&nbsp; Amounts due to related parties that are included in notes
payable are $185,000 and $0 at June 30, 2009 and 2008, respectively.</p>

<p class=MsoFooter align=center style='text-align:center'>9</p>

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<p class=MsoNormal style='margin-top:6.0pt'><b>Note 8. Assets Held for Sale</b></p>

<p class=MsoNormal style='text-align:justify'>We have classified $1,595,000 as assets held
for sale in the accompanying condensed consolidated balance sheet. These costs
are related to a site in Firestone, Colorado which has been fully developed.&nbsp;&nbsp;
A sale and leaseback agreement that was under contract in the first quarter of
fiscal 2009 was terminated and the restaurant is being marketed for sale and
leaseback.&nbsp; The proceeds of a sale leaseback transaction, if consummated, are
required to be used for the reduction of the line of credit payable to PFGI II, LLC. The effect on our operating cash flow is not material as the interest expense on
the line of credit is approximately equal to the proposed rental rate on a sale
leaseback transaction.</p>

<p class=MsoNormal style='margin-top:6.0pt'><b>Note 9. Impairment of Long-Lived Assets</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The
Company reviews its long-lived assets in accordance with SFAS No. 144,
including land, property and equipment for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable. Recoverability of assets to be held and used is measured by a
comparison of the capitalized costs of the assets to the future undiscounted
net cash flows expected to be generated by the assets and the expected cash
flows are based on recent historical cash flows at the restaurant level (the
lowest level that cash flows can be determined).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The
analysis is performed on a restaurant by restaurant basis. Assumptions used in
preparing expected cash flows were as follows: 1) beginning in fiscal 2010 restaurant
sales are projected to increase at the rate of 3% annually and 2) restaurant
level costs are projected to increase at the rate of 1% annually. </p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>To date
we have not written down any assets due to impairment, however projecting the
cash flows for the impairment analysis involves significant estimates with
regard to the performance of each restaurant, and it is reasonably possible
that the estimates of cash flows may change in the near term resulting in the
need to write down operating assets to fair value. If the assets are determined
to be impaired, the amount of impairment recognized is the amount by which the
carrying amount of the assets exceeds their fair value. Fair value would be
determined using forecasted cash flows discounted using an estimated average
cost of capital and the impairment charge would be recognized at the restaurant
level.</p>

<p class=MsoNormal style='text-align:justify'><b>Note 10. Fair Value Measurements</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In
September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 157, &quot;Fair Value
Measurements&quot; (&quot;SFAS 157&quot;). SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Effective October 1, 2008, the Company adopted the provisions of SFAS 157 related to financial assets and liabilities, as well as
other assets and liabilities carried at fair value on a recurring basis. These
provisions, which have been applied prospectively, did not have a material
impact on the Company's consolidated financial statements. Certain other
provisions of SFAS 157 related to other non-financial assets and liabilities
will be effective for the Company on July 1, 2009, and will be applied prospectively. The adoption of the provisions of SFAS 157 related to other
non-financial assets and liabilities is not expected to have a material impact
on the consolidated financial statements of the Company.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>SFAS 157
defines three levels of inputs that may be used to measure fair value and
requires that the assets or liabilities carried at fair value be disclosed by
the input level under which they were valued. The input levels defined under
SFAS 157 are as follows:</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Level 1:
Quoted market prices in active markets for identical assets and liabilities.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Level 2:
Observable inputs other than defined in Level 1, such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or
other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities.</p>

<p class=MsoNormal style='text-align:justify'>Level 3: Unobservable inputs that
are not corroborated by observable market data.</p>

<p class=MsoNormal style='text-align:justify'>The following table summarizes
financial assets and liabilities that are measured at fair value on a recurring
basis as of June 30, 2009:</p>

<p class=MsoFooter align=center style='text-align:center'>10</p>

<div class=MsoNormal align=center style='text-align:center'>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:2.0in;margin-bottom:.0001pt;text-align:justify'><u>Level 2</u></p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:2.0in;text-align:justify'>Interest Rate Swap liability&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $87,000</p>

<p class=MsoNormal><b>Note
11. Accounting Policies</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In June 2006, the
FASB issued FIN 48, &quot;Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement 109,&quot; which clarifies the accounting for
uncertainty in income taxes recognized in an enterprise's financial statements
in accordance with FAS 109, &quot;Accounting for Income Taxes.&quot;&nbsp; FIN
48 provides interpretive guidance for the financial statement recognition and
measurement of a tax position taken, or expected to be taken, in a tax return.
FIN 48 requires the affirmative evaluation that it is more-likely-than-not,
based on the technical merits of a tax position, that an enterprise is entitled
to economic benefits resulting from positions taken in income tax returns. If a
tax position does not meet the &quot;more-likely-than-not&quot; recognition threshold,
the benefit of that position is not recognized in the financial statements.&nbsp;
FIN 48 was effective for the fiscal year beginning October&nbsp;1, 2007 and there is no cumulative effect of applying FIN 48.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In February 2007, the
Financial Accounting Standards Board (&quot;FASB&quot;) issued SFAS No. 159.&nbsp; &quot;The Fair
Value Option for Financial Assets and Financial Liabilities - including an
amendment of FASB Statement No. 115&quot; (&quot;SFAS 159&quot;). SFAS 159 provides companies
with an option to report selected financial assets and financial liabilities at
fair value.&nbsp; Unrealized gains and losses on items for which the fair value
option has been elected are reported in earnings at each subsequent reporting
date.&nbsp; SFAS 159 was effective for the fiscal year beginning October 1, 2008. The adoption of SFAS 159 did not have any effect on the Company's
financial position, results of operations or cash flows.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In March 2008, the
FASB issued SFAS No. 161, &quot;Disclosures about Derivative instruments and Hedging
Activities&quot; (&quot;SFAS 161&quot;).&nbsp; SFAS 161 amends and expands the disclosure
requirements in SFAS 133, &quot;Accounting for Derivative Instruments and Hedging
Activities&quot;.&nbsp; SFAS 161 is effective for fiscal years and interim periods
beginning after November 15, 2008, which became effective for our interim
period beginning January 1, 2009.&nbsp; The adoption of SFAS 161 did not have any
effect on the Company's financial position, results of operations or cash
flows.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In May 2009, the FASB
issued SFAS No. 165, &quot;Subsequent Events&quot; (&quot;SFAS 165&quot;).&nbsp;&nbsp;SFAS 165
establishes general standards of accounting for and disclosure of events that
occur after the balance sheet date but before financial statements are issued or
are available to be issued. SFAS 165 was effective for interim or annual
financial periods ending after June 15, 2009, the quarter ending June 30, 2009
for the Company. The adoption of SFAS 165 did not have any effect on the
Company's financial position, results of operations or cash flows.</p>

<p class=MsoNormal style='text-align:justify'><b>Note 12. Income Taxes</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On October 1, 2007, the Company adopted the provisions of FIN 48. There were no material tax
positions not meeting the &quot;more-likely-than-not&quot; recognition threshold and
therefore there is no cumulative effect of applying FIN 48.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Although the Company
has not incurred interest and penalties associated with unrecognized tax
benefits; future interest and penalties associated with unrecognized tax
benefits, if any, will be recognized in income tax expense in the Consolidated
Statements of Operations and the corresponding liability in&nbsp;income taxes
payable or income taxes receivable, net on the Consolidated Balance Sheets.</p>

<p class=MsoNormal style='text-align:justify'>The Company is currently not undergoing any
examinations by any taxing jurisdictions, with the tax years for the Fiscal
Years Ending September 30, 2004 through 2008 remaining open to examination.</p>

<p class=MsoNormal style='margin-top:6.0pt'><b>Note 13. New Accounting Pronouncements</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December 2007, the
FASB issued FASB Statement No. 141 (revised 2007), &quot;Business Combinations&quot;
(&quot;FAS 141 (R)&quot;), which establishes accounting principles and disclosure
requirements for all transactions in which a company obtains control over
another business.&nbsp; This accounting pronouncement is effective for fiscal years
beginning after December 15, 2008, which will effective for our fiscal year
beginning October 1, 2009.&nbsp; The requirements of FAS 141 will only impact future
business combination transactions into which we may enter.</p>

<p class=MsoFooter align=center style='text-align:center'>11</p>

<div class=MsoNormal align=center style='text-align:center'>

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<br clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December 2007, the
FASB issued FASB Statement No. 160, &quot;Noncontrolling Interests in Consolidated
Financial Statements and amendment to ARB No. 51&quot; (&quot;FAS 160&quot;).&nbsp; This standard
prescribes the accounting by a parent company for minority interests held by
other parties in a subsidiary of the parent company.&nbsp; FAS 160 is effective for
fiscal years beginning after December 15, 2008, which will be effective for our
fiscal year beginning October 1, 2009.&nbsp; We are currently evaluating the
requirements of FAS 160 and have not yet determined the impact on our financial
statements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In June 2009, the
FASB issued SFAS No. 168, &quot;The FASB Accounting Standards Codification and the
Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB
Statement No. 162&quot; (&quot;SFAS 168&quot;).&nbsp;&nbsp;SFAS 168 provides for the FASB
Accounting Standards Codification (the &quot;Codification&quot;) to become the single
official source of authoritative, nongovernmental U.S. generally accepted
accounting principles (GAAP).&nbsp;&nbsp;The Codification did not change GAAP
but reorganizes the literature.&nbsp;&nbsp;SFAS 168 is effective for interim
and annual periods ending after September 15, 2009, which will be effective for
our fiscal year ending September 30, 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt'><b>Note 14. Stock Transactions</b></p>

<p class=MsoBodyText2 style='margin-bottom:12.0pt'>None.</p>

<p class=MsoBodyText2><b>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND RESULTS OF OPERATIONS</b></p>

<h3><u>General</u></h3>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>This
Form 10-Q contains or incorporates by reference forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended and
the disclosure of risk factors in the Company's form 10-KSB for the fiscal year
ended September 30, 2008.&nbsp; Also, documents subsequently filed by us with the
SEC and incorporated herein by reference may contain forward-looking
statements.&nbsp; We caution investors that any forward-looking statements made by
us are not guarantees of future performance and actual results could differ
materially from those in the forward-looking statements as a result of various
factors, including but not limited to the following:</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-indent:-.5in;line-height:normal'>(I)&nbsp;&nbsp;&nbsp;
We compete with
numerous well established competitors who have substantially greater financial
resources and longer operating histories than we do.&nbsp; Competitors have
increasingly offered selected food items and combination meals, including
hamburgers, at discounted prices, and continued discounting by competitors may
adversely affect revenues and profitability of Company restaurants.</p>

<p class=MsoBlockText style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in;text-align:justify;text-indent:-.5in'>(II)&nbsp; We may be
negatively impacted if we continue to experience consistent same store sales
declines.&nbsp; Same store sales comparisons will be dependent, among other things,
on the success of our advertising and promotion of new and existing menu
items.&nbsp; No assurances can be given that such advertising and promotions will in
fact be successful.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
may also be negatively impacted by other factors common to the restaurant
industry such as: changes in consumer tastes away from red meat and fried
foods; increases in the cost of food, paper, labor, health care, workers'
compensation or energy; inadequate number of hourly paid employees; and/or decreases
in the availability of affordable capital resources.&nbsp; We caution the reader
that such risk factors are not exhaustive, particularly with respect to future
filings.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'><i>Restaurant
Locations</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>We
currently operate and franchise a total of fifty-two Good Times restaurants, of
which forty-eight are in Colorado, with forty-three in the Denver greater
metropolitan area, three in Colorado Springs, one in Grand Junction and one in
Silverthorne. Eight of these restaurants are &quot;dual brand&quot;, operated pursuant to
a Dual Brand Test Agreement with Taco John's International, of which there is one
in North Dakota, two in Wyoming, and five in Colorado.</p>





<p class=MsoFooter align=center style='text-align:center'>12</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>












<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=720
 style='margin-left:-35.65pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>

  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Total</b></p>
  </td>
  <td width=102 valign=bottom style='width:76.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Denver</b><b>, CO</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Greater Metro</b></p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Colorado</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Other</b></p>
  </td>
  <td width=54 valign=bottom style='width:40.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Idaho</b></p>
  </td>
  <td width=84 valign=bottom style='width:63.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Wyoming</b></p>
  </td>
  <td width=84 valign=bottom style='width:63.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>North Dakota</b></p>
  </td>
 </tr>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times co-owned &amp; co-developed</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>27</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>24</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times franchised</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>17</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>14</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand co-owned</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand franchised</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>5</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
 <tr>
  <td width=270 valign=top style='width:202.5pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total</b></p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>52</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>43</b></p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>5</b></p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2</b></p>
  </td>
  <td width=84 valign=top style='width:63.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
 </tr>
</table>



<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:22.5pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'><br clear=all style='page-break-before:always'>


  </td>
  <td width=213 colspan=2 valign=top style='width:159.6pt;border:none;
  border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>As of July</b></p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2008</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2009</b></p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Company-owned restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>20</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>21</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Co-developed restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.5pt;border-right:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Franchise operated restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>22</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>22</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total restaurants</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>51</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>52</b></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><i>Fiscal 2008:</i> In January 2008 a North Dakota franchise terminated their Good Times franchise agreement in the dual brand
concept and stopped selling Good Times products in their two locations.&nbsp; In
March 2008 we purchased two Good Times restaurants from an existing
franchisee.&nbsp; In June 2008 the Good Times franchisee operating at the University of Wyoming Food Court ceased operations when the contract to operate in the food
court expired.&nbsp; There are no plans for this franchisee to operate in another
location.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Fiscal 2009:</i> In October 2008 we
opened one new company-owned restaurant in Firestone, Colorado. In December
2008 a Wyoming franchisee terminated their Good Times franchise agreement in
the dual brand concept and has stopped selling Good Times products in one
location. Also in December 2008 a franchisee opened a new dual brand restaurant
in Sheridan, Wyoming.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
following presents certain historical financial information of our operations.&nbsp;
This financial information includes results for the three and nine months ended
June 30, 2008 and results for the three and nine months ended June 30, 2009.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b><u>Results
of Operations</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Net
Revenues</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
revenues for the three months ended June 30, 2009 decreased $665,000 (9.5%) to
$6,331,000 from $6,996,000 for the three months ended June 30, 2008.&nbsp; Same
store restaurant sales decreased $699,000 (12.5%) during the three months ended
June 30, 2009 for the restaurants that were open for the full periods ending June
30, 2009 and June 30, 2008.&nbsp; Restaurants are included in same store sales after
they have been open a full fifteen months and only Good Times restaurants are
included with dual branded restaurants excluded.&nbsp; Restaurant sales had a net increase
of $119,000 due to six company-owned restaurants not included in same store
sales. Three are dual branded restaurants, two were purchased from a franchisee
in March 2008 and one opened in October 2008. Restaurant sales decreased $54,000
due to one non-traditional company-owned restaurant not included in same store
sales.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
revenues for the nine months ended June 30, 2009 decreased $1,704,000 (8.9%) to
$17,532,000 from $19,236,000 for the nine months ended June 30, 2008.&nbsp; Same
store restaurant sales decreased $2,141,000 (13.8%) during the nine months
ended June 30, 2009 for the restaurants that were open for the full periods
ending June 30, 2009 and June 30, 2008.&nbsp; Restaurants are included in same store
sales after they have been open a full fifteen months and only Good Times
restaurants are included with dual branded restaurants excluded.&nbsp; Restaurant sales
had a net increase of $761,000 due to six company-owned restaurants not
included in same store sales. Three are dual branded restaurants, two were
purchased from a franchisee in March 2008 and one opened in October 2008.&nbsp;
Restaurant sales decreased $235,000 due to one non-traditional company-owned
restaurant not included in same store sales.</p>

<p class=MsoFooter align=center style='text-align:center'>13</p>

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<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Our
same store restaurant sales declines of 14.8%, 13.5% and 12.5% for the first,
second and third fiscal quarters, respectively, reflect the adverse impact the
macroeconomic environment is having on consumers' discretionary spending and
the proliferation of heavy promotion of $1 value menus and discounting by
competitors. We are comparing the 2009 sales declines to same store sales
increases of 11.6% and 7.6% in the first and second quarters of fiscal 2008,
respectively, and a sales decline of 5.7% in the third quarter of fiscal 2008. We
experienced severe snow storms in March and April 2009, and we estimate that we
lost approximately $250,000 in sales due to the storms. Our outlook for fiscal
2009 remains cautious as the economic pressures may continue to impact consumer
spending and we anticipate that we will continue to face increased competitive
pricing pressure. </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>While
we are implementing several broad product and brand initiatives during fiscal
2009 to improve our core value proposition, we are not planning to implement a
broader $1 menu and our sales may continue to be adversely affected during the
economic recession.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Franchise
revenues decreased $31,000 to $138,000 from $169,000 for the three months ended
June 30, 2009 due to a decrease in franchise royalties. Same store Good Times franchise
restaurant sales decreased 14.6% during the three months ended June 30, 2009
for the franchise restaurants that were open for the full periods ending June
30, 2009 and June 30, 2008.&nbsp; Total dual branded franchise restaurant sales decreased
2.4% during the three months ended June 30, 2009, compared to the same prior
year period.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>Franchise revenues decreased $79,000
to $412,000 from $491,000 for the nine months ended June 30, 2009 due to a
decrease in franchise royalties of $92,000 offset by an increase in franchise
fee income of $12,000. Same store Good Times franchise restaurant sales decreased
15.7% during the nine months ended June 30, 2009 for the franchise restaurants
that were open for the full periods ending June 30, 2009 and June 30, 2008.&nbsp; Total
dual branded franchise restaurant sales decreased 3.5% during the nine months
ended June 30, 2009, compared to the same prior year period, primarily due to
the closure of two restaurants in January 2008, offset by the opening of one
new dual branded restaurant in December 2008.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Restaurant
Operating Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Restaurant
operating costs as a percent of restaurant sales were 92.7% during the three
months ended June 30, 2009 compared to 88.3% in the same
prior year period and were 96.1% during nine month period ended June 30, 2009 compared to 90.3% in the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
changes in restaurant-level costs are explained as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=714
 style='margin-left:-17.1pt;border-collapse:collapse'>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'>Three
  Months Ended</p>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'><u>June 30,
  2009</u></p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'>Nine
  Months Ended</p>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'><u>June 30,
  2009</u></p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'><br clear=all style='page-break-before:always'>
  <br clear=all style='page-break-before:always'>

  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended June
  30, 2008</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>88.3%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>90.3%</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase
  in food and packaging costs</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.3in;text-align:left;
  line-height:normal'>2.5%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>2.6%</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase in
  payroll and other employee benefit costs</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>.3%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>.7%</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase
  in occupancy and other operating costs</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>1.5%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>2.2%</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase in
  depreciation and amortization</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>.3%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>.4%</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease
  in opening costs and deferred rent</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>(.2%)</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>(.1%)</p>
  </td>
 </tr>
 <tr>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended June
  30, 2009</p>
  </td>
  <td width=162 valign=top style='width:121.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>92.7%</p>
  </td>
  <td width=156 valign=top style='width:117.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>96.1%</p>
  </td>
 </tr>
</table>

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Food and Packaging Costs</i></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>For the three months
ended June 30, 2009 our food and paper costs, decreased $41,000 to $2,115,000
(34.1% of restaurant sales) from $2,156,000 (31.6% of restaurant sales)
compared to the same prior year period.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>For the nine months
ended June 30, 2009 our food and paper costs, decreased $58,000 to $5,774,000
(33.7% of restaurant sales) from $5,832,000 (31.1% of restaurant sales)
compared to the same prior year period.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We have implemented
significant product portion and ingredient changes in the first nine months of
the current fiscal year to improve our overall value to the customer which has
resulted in an approximate 1.25% increase in our food and paper costs as a
percentage of restaurant sales.</p>

<p class=MsoFooter align=center style='text-align:center'>14</p>

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<p class=MsoNormal style='text-align:justify'>We experienced unprecedented increases in
commodity costs during fiscal 2008 including beef, bakery, soft drinks, dairy
and packaging costs with the majority of those increases occurring in May
through July 2008. Our weighted food and packaging costs increased
approximately 12% in the fiscal 2008 year. During the first nine months of
fiscal 2009 we experienced a moderation in food and packaging cost increases. We
took cumulative weighted menu price increases during fiscal 2008 of
approximately 4.8% and have taken cumulative weighted increases in fiscal 2009
of approximately 2.6%.&nbsp; We do not anticipate any additional price increases for
the balance of fiscal 2009 with more stable commodity costs.</p>

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Payroll and Other Employee Benefit
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June
30, 2009 our payroll and
other employee benefit costs decreased $194,000 to $2,072,000 (33.5% of
restaurant sales) from $2,266,000 (33.2% of restaurant sales) compared to the
same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June
30, 2009 our payroll and
other employee benefit costs decreased $444,000 to $6,099,000 (35.6% of
restaurant sales) from $6,543,000 (34.9% of restaurant sales) compared to the
same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
increase in payroll and other employee benefit expenses as a percent of
restaurant sales for the three and nine months ended June 30, 2009 is primarily the result of lower restaurant sales.
Because payroll costs are
semi-variable in nature they increase as a percentage of restaurant sales when
there is a decrease in restaurant sales. &nbsp;Additionally,
our new restaurant that opened in October 2008 operated at a higher labor cost
as a percent of sales due to higher initial labor costs until it reached mature
staffing levels in January 2009.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Beginning
in December 2008 we reduced our labor hours allocation through increased
efficiencies and improved our sales per employee hour efficiencies on service
hours, thereby eliminating approximately $190,000 of annual payroll costs. In
addition, beginning in March 2009 we implemented further reductions in our employee
and other benefit costs totaling approximately $300,000 in annual costs through
the restructuring of regional supervision personnel along with other reductions
in fixed employee benefit costs.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>The current nine month period ending June 30, 2009 includes two additional company-owned restaurants
purchased from a franchisee in March 2008 and one new company-owned restaurant
opened in October 2008 that represents $322,000 of the total payroll and other
employee benefit costs in the current period.</p>

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Occupancy and Other Operating Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June
30, 2009 our occupancy
and other operating costs decreased $27,000 to $1,234,000 (19.9% of restaurant
sales) from $1,261,000 (18.4% of restaurant sales) compared to the same prior
year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June
30, 2009 our occupancy
and other operating costs increased $67,000 to $3,625,000 (21.2% of restaurant
sales) from $3,558,000 (19% of restaurant sales) compared to the same prior
year period.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>The current nine month period ending June 30, 2009 includes two additional company-owned restaurants purchased
from a franchisee in March 2008
and one new company-owned restaurant opened in October 2008 that represents $168,000 of the
increase compared to the same prior year period. Additionally we experienced
reductions in common area maintenance fees, repairs and maintenance, utilities
and personal property taxes compared to the same prior year period. Occupancy
and other operating costs may increase as a percent of sales as new company-owned
restaurants are developed due to higher rent associated with sale-leaseback
operating leases, as well as higher property taxes at those locations.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Opening
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2009 our new store opening costs <a
name="OLE_LINK9">were $0 compared to $7,000 for the same prior year period.</a></p>



<p class=MsoFooter align=center style='text-align:center'>15</p>

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<p class=MsoBodyText style='margin-right:0in;line-height:normal'>For the nine months ended June, 2009
our new store opening costs were $15,000 compared to $7,000 for the same prior
year period. The current and prior year costs are related to one new
company-owned restaurant that opened in October 2008.</p>

<p class=MsoHeader style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><i>Depreciation
and Amortization</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2009, our depreciation and amortization decreased
$15,000 to $317,000 (5.1% of restaurant sales) from $332,000 (4.8% of
restaurant sales) compared to the same prior year period. The $15,000 decrease
in depreciation and amortization for the three months ended June 30, 2009 is
due to $11,000 of depreciation expense in the new company-owned restaurant that
opened in October 2008, offset by declining depreciation expense in our aging
company-owned restaurants.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>For the nine months ended June 30,
2009, our depreciation and amortization decreased $11,000 to $944,000 (5.5% of
restaurant sales) from $955,000 (5.1% of restaurant sales) compared to the same
prior year period. The $11,000 decrease in depreciation and amortization for
the nine months ended June 30, 2009 is due to $62,000 of depreciation expense
in the three acquired and new company-owned restaurants, offset by declining
depreciation expense in our aging company-owned restaurants.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>General
and Administrative Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2009, general and administrative costs decreased
$194,000 to $346,000 (5.5% of total revenues) from $540,000 (7.7% of total
revenues) for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2009, general and administrative costs decreased
$342,000 to $1,238,000 (7.1% of total revenues) from $1,580,000 (8.2% of total
revenues) for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
decrease in general and administrative costs for the three months ended June 30,
2009 compared to the same prior year period is primarily attributable to decreases
in: 1) payroll and employee benefit costs of $58,000, 2) training and
recruiting expenses of $30,000, 3) costs
associated with the exit from the Omaha planned expansion of $81,000, 4) professional services
of $11,000 and 5) net reductions in various other fixed expenses of $14,000.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>The decrease in general and
administrative costs for the nine months ended June 30, 2009 compared to the
same prior year period is primarily attributable to decreases in: 1) payroll
and employee benefit costs of $147,000, 2) training and recruiting expenses of
$52,000, 3) costs
associated with the exit from the Omaha planned expansion of $81,000, 4) professional services
of $30,000 and 5) net reductions in various other fixed expenses of $32,000.</p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>We have reduced annualized
selling, general and administrative and franchise costs by approximately $475,000
for fiscal 2009, compared to fiscal 2008, through the elimination of executive
management positions, salary reductions and professional service cost
reductions.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Advertising Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2009 advertising costs decreased $56,000 to $347,000
(5.6% of restaurant sales) from $403,000 (5.9% of restaurant sales) for the
same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2009 advertising costs decreased $165,000 to $969,000
(5.7% of restaurant sales) from $1,134,000 (6% of restaurant sales) for the
same prior year period.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>The decrease in advertising costs for
both the three and nine month periods is primarily due to the decrease in
restaurant sales, as contributions
are made to the advertising materials fund and regional advertising cooperative
based on a percentage of sales. In addition, $75,000 of payroll and employee
benefit costs have been eliminated in the current nine month period due to the
retirement of our Vice President of Marketing in November 2008. We currently
have no plans to fill the position in the immediate future.</p>

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>&nbsp;</i></p>

<p class=MsoFooter align=center style='text-align:center'>16</p>

<div class=MsoNormal align=center style='text-align:center'>

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<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Franchise Costs</i></p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.7pt;text-align:justify'>For the three months ended June 30, 2009, franchise costs
decreased $53,000 to $35,000 (.6% of total revenues) from $88,000 (1.3% of
total revenues) for the same prior year period.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.7pt;text-align:justify'>For the nine months ended June 30, 2009, franchise costs
decreased $167,000 to $108,000 (.6% of total revenues) from $275,000 (1.4% of
total revenues) for the same prior year period.</p>

<p class=MsoNormal style='margin-left:-.7pt;text-align:justify'>The decrease in
franchise costs for both the three and nine month periods is primarily
attributable to the reduction in payroll and employee benefit costs related to the
Vice President of Franchise Development position that was eliminated in July
2008 in conjunction with Good Times' exit from the planned Midwest expansion. We
also incurred $12,000 in legal costs in the prior nine month period ended June
30, 2008 related to franchise registration filings.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Loss
from Operations</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had a loss from operations of ($128,000) in the three months ended June 30, 2009
compared to a loss from operations of ($57,000) for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had a loss from operations of ($1,218,000) in the nine months ended June 30,
2009 compared to a loss from operations of ($644,000) for the same prior year
period.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>The increase in loss from operations for
both the three and nine month periods is due primarily to the decrease in net
revenues and by other matters discussed in the &quot;Restaurant Operating
Costs&quot;, &quot;General and Administrative Costs&quot; and &quot;Franchise Costs&quot;
sections of Item 2.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Net
Loss</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
net loss was ($180,000) for the three months ended June 30, 2009 compared to a
net loss of ($121,000) for the same prior year period. The change from the
three month period ended June 30, 2008 to June 30, 2009 was primarily
attributable to the increase in loss from operations for the three months ended
June 30, 2009, as well as: 1) a decrease in minority interest expense of $53,000
compared to the same prior year period, 2) an increase in net interest expense
of $70,000 compared to the same prior year period, which is primarily related
to the $2,500,000 PFGI II line of credit and 3) a $29,000 unrealized gain in
the current period related to our interest rate swap liability.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
net loss was ($1,427,000) for the nine months ended June 30, 2009 compared to a
net loss of ($746,000) for the same prior year period. The change from the nine
month period ended June 30, 2008 to June 30, 2009 was primarily attributable to
the increase in loss from operations for the nine months ended June 30, 2009,
as well as: 1) a decrease in minority interest expense of $157,000 compared to
the same prior year period; 2) an increase in net interest expense of $177,000
compared to the same prior year period; and 3) an $87,000 unrealized loss in
the current period related to our interest rate swap liability.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b><u>Liquidity
and Capital Resources</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Cash
and Working Capital</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>As
of June 30, 2009, we had $671,000 cash and cash equivalents on hand. We
currently plan to use the cash balance and any cash generated from operations
for our working capital needs in fiscal 2009. If we continue to experience
significant declines in our sales trends we will require additional working
capital. As reported on form 8-K filed on April 20, 2009 we raised $185,000 of
financing for additional working capital and extended the maturity of our
$2,500,000 line of credit with PFGI II, LLC to July, 2010 (see &quot;Financing
Activities&quot; below).&nbsp; As a result, we currently do not anticipate the need for
additional working capital during fiscal 2009, however there is no assurance
that our sales and cash flow from operating activities will meet our projections.
However, our cash flow from operating activities is largely dependent on our
sales trends and if our same store sales trends do not improve we may require
additional working capital in fiscal 2010.</p>

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<p class=MsoNormal style='text-align:justify'>As of June 30, 2009, we had a working capital
deficit of $1,087,000 primarily because the entire note payable to Wells Fargo
Bank, N.A. of $876,000 is shown as a current liability due to certain technical
loan covenant defaults that exist as of June 30, 2009, which are described in
Note 3 of the Condensed Consolidated Financial Statements. As noted in Note 3
to the Condensed Consolidated Financial Statements, we have received a
Forbearance and Reservation of Rights letter from Wells Fargo Bank stating that
they are accepting current principal and interest payments and are not
currently accelerating the note, subject to agreeing to an acceptable Required
Corrective Action for the covenant defaults.&nbsp; It is unlikely that we will have
an acceptable Required Corrective Action until our Earnings Before Interest
Taxes and Depreciation (&quot;EBITDA&quot;) improves. &nbsp;If Wells Fargo were to accelerate
the note payable, we would need additional financing and we do not currently
have a source for such financing.&nbsp; Additionally, we have recorded an $87,000 current
liability related to the unrealized loss on our interest rate swap, as noted in
Note 5 to the Condensed Consolidated Financial Statements.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:97%'><i>Financing
Activities</i></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In May 2007 we
borrowed $1,100,000 from Wells Fargo Bank under a note payable with an eight
year term with a floating interest rate at .50% below prime.&nbsp; We simultaneously
entered into an interest rate swap transaction with Wells Fargo Bank for the
full $1,100,000 with a fixed interest rate of 7.77% for the full eight year
term coinciding with the note payable (see note 5 in item I. above). As
discussed above we are in default of certain technical loan covenants as of June
30, 2009 on this Wells Fargo note, however we are not currently, and have never
been, in payment default under the note.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On March 1, 2008, we
acquired the assets of two restaurants from an existing franchisee for a total
purchase price of $1,330,000, including the land, site improvements, building
and equipment for one restaurant and site improvements, building and equipment
on one restaurant.&nbsp; The purchase price was funded primarily from cash on hand
of $272,000 and $849,000 in net proceeds from a simultaneous sale-leaseback
transaction to a third party investor involving the land, building and
improvements of one of the restaurants acquired.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As additional
consideration and accounting in the acquisition, notes receivable from the
franchisee of $250,000 were forgiven, and a deferred gain of $26,000 was
written off. The deferred gain was related to a prior sale to the franchisee of
one of the restaurants acquired. We did not record a gain or loss related to
this acquisition. The financial results of the two restaurants have been
included in our financial results from the acquisition date forward.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The acquisition of
the two restaurants was accounted for using the purchase method as defined in
SFAS No. 141, Business Combinations, (SFAS 141). The purchase price was
allocated as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:41.4pt;border-collapse:collapse'>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Current assets net of current liabilities</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='margin-right:17.1pt'>&nbsp;&nbsp; $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14,000</p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Property and equipment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing align=center style='margin-right:17.1pt;text-align:
  center'><u>&nbsp;&nbsp;&nbsp;&nbsp; 1,316,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing style='text-align:justify'>Total purchase price</p>
  </td>
  <td width=138 valign=top style='width:103.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNoSpacing align=center style='margin-right:17.1pt;text-align:
  center'><u>$ 1,330,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>The sale-leaseback transaction was entered
into simultaneously with the acquisition and involved selling the land,
building and improvements of one of the acquired restaurants for net proceeds
of $849,000. The sale-leaseback was the funding vehicle for the purchase of the
two restaurants and was not used to raise cash for the Company or increase our
liquidity. The assets sold in the sale-leaseback transaction were never
recorded in our financial statements as the long term lease entered into does
not meet any of the criteria for a capital lease and therefore qualifies as an
operating lease, as defined in SFAS No. 13, Accounting for Leases. After the
sale-leaseback transaction was accounted for, it resulted in $476,000 in fixed
assets and $14,000 in current assets recorded on our financial statements. We
believe the $476,000 represents the fair value of the net assets acquired
(after completion of the simultaneous sale-leaseback transaction) consisting of
furniture, fixtures and equipment in two restaurants and the site improvements
and building in one restaurant.</p>

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<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>In July 2008, we entered into a $2,500,000 promissory
note with an unrelated third party (PFGI II, LLC) and amended that note on
April 20, 2009.&nbsp; The promissory note constitutes a revolving line-of-credit for
the development of new restaurants which may be advanced and repaid on a
monthly basis from time to time.&nbsp; Prior to maturity, no principal payments are
required and monthly payments of interest only at the prime rate plus 2% (with
a minimum rate of 8%) are due, with all unpaid principal due in July 2010.&nbsp; The
loan is secured by separate leasehold deeds of trust and security agreements
related to six company-owned restaurants and first deeds of trust on two real
properties funded by the line of credit. The total outstanding balance on the
line of credit was $2,500,000 at June 30, 2009.&nbsp; Of the $2,500,000 outstanding
balance, $1,595,000 is related to the construction of one company-owned
restaurant in Firestone, Colorado that opened in October 2008. The fully
developed restaurant is currently being marketed in the sale-leaseback market.&nbsp;
The remaining balance is related to the purchase, entitlement and other
development fees on a parcel of land in Aurora, Colorado that will be either
developed into a company-owned restaurant or sold.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On April 20, 2009 as
reported on form 8-K, Good Times Restaurants Inc. (the &quot;Company&quot;) and Good
Times Drive Thru Inc. (&quot;GTDT&quot;), a wholly owned subsidiary of the Company, entered into a loan agreement with Golden
Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to which Golden Bridge made a loan of
$185,000 (the &quot;Loan&quot;) to GTDT to be used for restaurant marketing and other
working capital costs.&nbsp; Eric Reinhard, Ron Goodson, David Grissen, Richard
Stark, and Alan Teran, who are all members of the Company's Board of Directors
and stockholders of the Company, are the sole members of Golden Bridge.&nbsp; Eric Reinhard is the sole manager of Golden Bridge.&nbsp; The Company's and GTDT's obtaining of the Loan from Golden Bridge and
related transactions were duly approved in advance by the Company's Board of
Directors by the affirmative vote of members thereof who did not have an
interest in the transaction.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Loan is evidenced
by a promissory note dated April 20, 2009 (the &quot;Note&quot;) made by the Company and
GTDT, as co-makers, and shall bear interest at a rate of 10% per annum on the
unpaid principal balance.&nbsp; The Note provides for monthly interest payments and
will mature and be due and payable in full on July 10, 2010.&nbsp; The commitment
fee for the Loan is $3,700.&nbsp; The Loan Agreement contains customary event of
default provisions and a cross-default provision with respect to the loan
agreement for the PFGI II, LLC loan (as described above).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Loan Agreement
and the Note are subject to the terms of an intercreditor agreement dated April
20, 2009 (the &quot;Intercreditor Agreement&quot;), among the Company, GTDT, Golden Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the Company, GTDT
currently has a $2,500,000 revolving line of credit with PFGI (the &quot;PFGI
Loan&quot;), which was scheduled to mature on July 10, 2009, under which $2,500,000
was outstanding as of April 20, 2009.&nbsp; Under the Intercreditor Agreement, PFGI
and Golden Bridge agreed that, upon any payments of principal or interest on
the Loan or the PFGI Loan by GTDT, PFGI and Golden Bridge shall each be
entitled to its pro rata share of such payments in the amount of 93.1% for PFGI
and 6.9% for Golden Bridge.&nbsp; The Intercreditor Agreement also provides that
GTDT and the Company may prepay the Loan in whole or in part with the prior
consent of PFGI, and that any other indebtedness of the Company or GTDT to PFGI
or Golden Bridge shall be subordinate in payment and lien priority to the Loan
and the PFGI Loan to the extent of the proceeds of the collateral.&nbsp; Under the
Intercreditor Agreement, all money received from any foreclosure on the
collateral securing the PFGI Loan shall be applied to PFGI and Golden Bridge
for their expenses related to such event and then on a pari passu basis to PFGI
and Golden Bridge in accordance with their respective pro rata shares.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Prior to the closing
of the Loan, borrowings under the PFGI Loan were secured by GTDT's leasehold
estates and business assets with respect to certain of GTDT's restaurants
located in Boulder, Adams, Jefferson and Larimer counties in Colorado and first
deeds of trust on real property in Arapahoe and Weld counties in Colorado
developed under the PFGI Loan.&nbsp; In connection with PFGI's entry into the
Intercreditor Agreement, GTDT and the Company entered into a first amendment to
the amended and restated promissory note dated April 20, 2009 (the &quot;PFGI Note
Amendment&quot;), which extended the maturity date of the PFGI Loan until July 10,
2010 and eliminated a loan balance threshold for release of the collateral
securing the PFGI Loan.</p>

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<p class=MsoNormal style='text-align:justify'>In connection with the Loan, the Company
issued a three-year warrant dated April 20, 2009 (the &quot;Warrant&quot;) to Golden
Bridge which provides that Golden Bridge may at any time from April 20, 2009
until April 20, 2012 purchase up to 92,500 shares of the Company's common stock
(the &quot;Warrant Shares&quot;) at an exercise price of $1.15 per share.&nbsp; The number of
Warrant Shares and the exercise price are subject to customary antidilution
adjustments upon the occurrence of any stock dividends, stock splits, reverse
stock splits, recapitalizations, reclassifications, stock combinations or
similar events. The fair value of the warrants issued was determined to be $42,000
with the following assumptions; 1) risk free interest rate of 1.27%, 2) an expected
life of 3 years, and 3) an expected dividend yield of zero. The fair value of
$42,000 was charged to the note discount and credited to Additional Paid in
Capital. The note discount will be amortized over fourteen months and charged
to interest expense.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Capital
Expenditures</i></p>

<p class=MsoNormal style='text-align:justify'>We do not have any plans for any significant
capital expenditures for the balance of fiscal 2009, other than normal
recurring capital expenditures for existing restaurants. Additional commitments
for the development of new restaurants in fiscal 2009 and beyond will depend on
the Company's sales trends, cash generated from operations and our access to additional
capital.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Cash Flows</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in operating activities was $821,000 for the nine months ended June
30, 2009. The net cash used in operating activities for the nine months ended June
30, 2009 was the result of a net loss of ($1,427,000) as well as cash and
non-cash reconciling items totaling $606,000 (comprised of depreciation and
amortization of $944,000, an unrealized loss of $87,000 related to our interest
rate swap liability, minority interest of $60,000, an accounts payable decrease
of $263,000 and a net increase in other operating assets and liabilities of $102,000).</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by operating activities was $313,000 for the nine months ended June 30, 2008.&nbsp; The net cash provided by operating activities for the nine months ended June
30, 2008 was the result of a net loss of ($746,000) and non-cash reconciling
items totaling $1,059,000 (comprised of depreciation and amortization of $955,000,
minority interest of $97,000, stock based compensation expense of $69,000,
$95,000 in costs associated with the Omaha exit activity and a net decrease in
other operating assets and liabilities of $157,000).</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the nine months ended June 30, 2009 was $282,000
which reflects payments of $277,000 for the purchase of property and equipment
(including $217,000 for new store development and $60,000 for miscellaneous
restaurant and corporate office related capital expenditures), $31,000 in loans
made to franchisees and $26,000 in principal payments received on loans to
franchisees.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the nine months ended June 30, 2008 was $196,000
which reflects payments of $729,000 for the purchase of property and equipment
(including $302,000 for new store development, $289,000 for restaurant
remodeling costs and $138,000 for miscellaneous restaurant related capital
expenditures), $273,000 for the purchase of two existing franchise restaurants,
$747,000 from the sale of fixed assets and $59,000 in principal payments
received on loans to franchisees.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by financing activities for the nine months ended June 30, 2009
was $360,000, which includes principal payments on notes payable and long term
debt of $91,000; borrowings on notes payable of $185,000; an advance on our
revolving line of credit of $320,000; and distributions to minority interests
in partnerships of $54,000.</p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>Net cash used in financing activities
for the nine months ended June 30, 2008 was $955,000, which includes principal
payments on notes payable and long term debt of $89,000, a repayment on our
revolving line of credit of $750,000, distributions to minority interests in
partnerships of $219,000 and paid in capital activity of $103,000 related to
the exercise of stock options.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Contingencies</i></p>

<p class=MsoNormal style='text-align:justify'>We remain contingently liable on various land
leases underlying restaurants that were previously sold to franchisees.&nbsp; We
have never experienced any losses related to these contingent lease
liabilities, however if a franchisee defaults on the payments under the leases,
we would be liable for the lease payments as the assignor or sublessor of the
lease.&nbsp; Currently we have not been notified nor are we aware of any leases in
default under which we are contingently liable, however there can be no
assurance that there will not be in the future, which could have a material
effect on our future operating results.</p>





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<p class=MsoNormal style='text-align:justify'><i>Subsequent Events</i></p>

<p class=MsoNormal style='text-align:justify'><i>&nbsp;</i></p>

<p class=MsoNormal style='text-align:justify'>On August 14, 2009 we announced that our
Board of Directors has formed a Special Committee comprised of directors
Richard Stark, Alan Teran and Geoff Bailey to explore and evaluate strategic
alternatives aimed at enhancing shareholder value and explore alternatives to
reduce the cost burdens of being a publicly held entity. The Company has hired
Mastodon Ventures, Inc. to provide strategic advisory services and explore
other strategic alternatives that will further the long-term&nbsp;business
prospects of the Company and provide incremental value to its shareholders.</p>



<p class=MsoNormal style='text-align:justify'>There can be no assurance
regarding the timing of or whether the Board will elect to pursue any of the
strategic alternatives it may consider, or that any such alternatives will
result in changes to the Company's plans or will be consummated and there is no
certainty that any&nbsp;strategic alternative will involve a transaction for
shareholders at a share price&nbsp;equal to&nbsp;or above the
current&nbsp;trading&nbsp;price of the Company's shares, bearing in mind that
the trading market for the Company's shares is relatively inactive and that the
Company has&nbsp;realized losses from operations during recent
periods.&nbsp;&nbsp;The Company does not intend to provide updates or make any
further comment until the outcome of the process is determined or until there
are significant developments.&nbsp; </p>



<p class=MsoNormal style='text-autospace:none'>The strategic advisory services
agreement (the &quot;Agreement&quot;) with Mastodon Ventures, Inc. (&quot;Mastodon&quot;), provides
that Mastodon will provide the Company with exclusive advisory services related
to the possible restructuring of certain lease and debt agreements of the
Company and the identification of possible additional sources of capital for
the Company.&nbsp; The services include but are not limited to assistance with the
preparation of information, structuring of a plan, negotiations with potential
investors, preparation of any documents required to be filed with federal and
state agencies relating to a Restructuring Plan and analyzing other strategic
alternatives.&nbsp;&nbsp; </p>



<p class=MsoNormal style='text-autospace:none'>The term of the Agreement is for
six months and terminable by the Company or Mastodon upon thirty days written
notice.&nbsp; Mastodon will receive an initial retainer fee of $25,000 together with
three monthly payments of $7,500 each in October, November and December 2009
and a Success Fee of up to $250,000 upon the completion of a Restructuring
Event.&nbsp; The Maximum Aggregate Fees to Mastodon shall not exceed $297,500 and
the Agreement includes provisions for the payment of lesser fees based upon the
amount and type of capital raised, type of Restructuring Plan implemented or if
the Company enters into an agreement with&nbsp; persons or entities identified by
the Company within forty five days of the Agreement. </p>



<p class=MsoNormal style='text-align:justify'>While the Agreement provides that Mastodon is
being engaged by the Company as an advisor to the Company&nbsp;to explore
strategic options, Mastodon understands that the Board of Directors of the
Company has appointed a Special Committee to consider certain of&nbsp;such
options on behalf of the shareholders of the Company.&nbsp; Mastodon agrees
that its services shall include&nbsp;communicating with such Special Committee
as it may reasonably request&nbsp;and, if&nbsp;directed by such committee,
Mastodon shall hold such communications in confidence</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:97%'><b><u>Impact
of Inflation</u></b></p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>We experienced moderation in commodity
costs during fiscal 2005 and 2006 and significant increases in fiscal 2007 and
fiscal 2008.&nbsp; State increases in the minimum wage resulted in an increase in
our average hourly wage of $.60 per employee hour during fiscal 2007,
approximately $.23 per employee hour in fiscal 2008 and $.07 per employee hour
in January 2009. We have taken moderate price increases during fiscal 2009,
which may or may not be sufficient to recover increased commodity costs or
increases in other operating expenses.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><b><u>Seasonality</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Revenues
of the Company are subject to seasonal fluctuation based primarily on weather
conditions adversely affecting restaurant sales in December, January, February
and March.</p>



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<p class=MsoNormal style='margin-bottom:6.0pt'><b>ITEM 3.&nbsp;&nbsp;&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:.25in;text-align:left;text-indent:-.25in;
line-height:97%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not
required.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>ITEM 4T.&nbsp; CONTROLS AND PROCEDURES</b></p>

<p class=MsoNormal style='text-align:justify;background:white'><b>Conclusion Regarding
the Effectiveness of Disclosure Controls and Procedures </b></p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify'>Based on an
evaluation of the Company's disclosure controls and procedures (as defined in
Rules&nbsp;13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as
amended), as of the end of the period covered by this report on form 10Q, the
Company's Chief Executive Officer and Controller (its principal executive
officer and principal financial officer, respectively) have concluded that the
Company's disclosure controls and procedures were effective.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;background:white'><b>Changes in Internal Control over
Financial Reporting</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify;background:
white'>There
have been no significant changes in the Company's internal control over
financial reporting that occurred during the Company's fiscal quarter ended June&nbsp;30,
2009 that have materially affected, or are reasonably likely to materially
affect, the Company's internal control over financial reporting.</p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center;
background:white'><b>PART
II - OTHER INFORMATION</b></p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>ITEM 1.&nbsp;&nbsp; LEGAL PROCEEDINGS</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Good Times Restaurants is subject to
legal proceedings which are incidental to its business.&nbsp; These legal proceedings
are not expected to have a material impact on the Company.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b>ITEM 1A. RISK FACTORS</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:.25in;text-align:left;line-height:normal'>Not required.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'><b>ITEM 2.&nbsp;&nbsp; UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</b></p>

<p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'><b>ITEM 3.&nbsp;&nbsp; DEFAULTS
UPON SENIOR SECURITIES</b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
are in default of certain technical loan covenants as of June 30, 2009 on our $876,000
note payable to Wells Fargo Bank, N.A. (&quot;the Bank&quot;). We have never been in
payment default on the note. On February 9, 2009 we received a Reservation of
Rights letter from the Bank formally notifying us of the default of the
Earnings Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) Coverage Ratio of
not less than 1.5 to 1.0 and the Tangible Net Worth of not less than $5,000,000
as set forth in the Credit Agreement for the period ending December 31, 2008. The
letter serves as notice that notwithstanding the foregoing events of default,
the Bank is reserving all of its rights and remedies under the Credit Agreement
and related agreements. The Bank is not now accelerating the Loan and is
willing to continue to accept regularly scheduled payments of principal and
interest under the Loan.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b>ITEM
4.&nbsp;&nbsp; SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></p>

<p class=MsoList2 style='margin-bottom:12.0pt'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'><b>ITEM 5.&nbsp;&nbsp; OTHER
INFORMATION</b></p>

<p class=MsoList2 style='margin-bottom:12.0pt'>None.</p>



<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>&nbsp;</b></p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>&nbsp;</b></p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>&nbsp;</b></p>

<p class=MsoFooter align=center style='text-align:center'>22</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>ITEM 6.&nbsp;&nbsp; EXHIBITS</b></p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.&nbsp;
The following exhibits are furnished as part of this report:</p>

<p class=MsoNormal style='margin-bottom:6.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibit No.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Description</u></p>

<p class=MsoHeader style='margin-left:31.5pt'>*31.1&nbsp;&nbsp;&nbsp;&nbsp; Certification of Chief Executive
Officer pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoHeader style='margin-left:31.7pt'>*31.2&nbsp;&nbsp;&nbsp;&nbsp; Certification of Controller
pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.7pt'>*32.1&nbsp;&nbsp;&nbsp;&nbsp; Certification
of Chief Executive Officer and Controller pursuant to Section 906</p>

<p class=MsoNormal style='margin-bottom:.25in'>*filed herewith</p>

<p class=MsoNormal style='margin-bottom:.25in'><b>SIGNATURES</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>In accordance with the requirements of
the Exchange Act, the registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3>&nbsp;</h3>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3><b>GOOD TIMES RESTAURANTS INC.</b></h3>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>DATE:
  August 14, 2009</p>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'><u>/s/ Boyd E. Hoback</u></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader style='margin-left:26.1pt'>Boyd E. Hoback</p>
  <p class=MsoHeader style='margin-left:26.1pt'>President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader style='margin-left:.3in'><i>&nbsp;</i></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'><u>/s/ Susan M. Knutson</u></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:26.1pt;margin-bottom:.0001pt'>Susan M. Knutson</p>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:26.1pt;margin-bottom:.0001pt'>Controller</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>23</p>

<div class=MsoNormal align=center style='text-align:center'>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>exhibit311certceo1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>_</title>


</head>

<body lang=EN-US>



<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>









<p class=MsoNormal align=center style='text-align:center'><b>Exhibit 31.1</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CERTIFICATION OF
THE CHIEF EXECUTIVE OFFICER</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>RULE 13a-14(a)
CERTIFICATION</b></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'>I, Boyd E. Hoback, certify that:</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this quarterly report on Form 10-Q of Good Times Restaurants
Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>



<div class=MsoNormal align=center style='text-align:center'>

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</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; August 14, 2009</p>



<p class=MsoNormal><u>/s/ Boyd E. Hoback</u></p>

<p class=MsoNormal><u>&nbsp;</u></p>

<p class=MsoNormal>Boyd E. Hoback</p>

<p class=MsoFooter>President and Chief Executive Officer</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>exhibit312certofcontroller1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>_</title>


</head>

<body lang=EN-US>



<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>









<p class=MsoNormal align=center style='text-align:center'><b>Exhibit 31.2</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CERTIFICATION OF
THE CONTROLLER</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>RULE 13a-14(a)
CERTIFICATION</b></p>



<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'>I, Susan M. Knutson, certify that:</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this annual report on Form 10-Q of Good Times Restaurants Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>



<div class=MsoNormal align=center style='text-align:center'>

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</div>



<br
clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; August 14, 2009</p>



<p class=MsoNormal><u>/s/ Susan M. Knutson</u></p>

<p class=MsoNormal><u>&nbsp;</u></p>

<p class=MsoNormal>Susan M. Knutson</p>

<p class=MsoFooter>Controller</p>

<div class=MsoNormal align=center style='text-align:center'>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>4
<FILENAME>exhibit321certceocont1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>_</title>


</head>

<body lang=EN-US>



<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>









<p class=MsoNormal align=center style='text-align:center'><b>Exhibit 32.1</b></p>

<p class=titlec align=center style='text-align:center'><b>CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,</b></p>

<p class=titlec align=center style='text-align:center'><b>AS ADOPTED PURSUANT
TO</b></p>

<p class=titlec align=center style='text-align:center'><b>SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</b></p>

<p class=bodytext5 style='text-align:justify'>In connection with the Quarterly
Report on Form 10-Q of Good Times Restaurants Inc. (the &quot;Company&quot;) for the period
ended June 30, 2009 as filed with the Securities and Exchange Commission on the
date hereof (the &quot;Report&quot;), I, Boyd E. Hoback, as Chief Executive Officer of
the Company, and Susan M. Knutson, as Controller of the Company, each hereby
certifies, pursuant to and solely for the purpose of 18 U.S.C. 1350, as adopted
pursuant to 906 of the Sarbanes-Oxley Act of 2002, that to the best of my
knowledge and belief:</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.</p>

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  <p class=MsoNormal><i>/s/ Boyd E. Hoback</i></p>
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  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i>/s/ Susan M. Knutson</i></p>
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  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
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  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Boyd E. Hoback</p>
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  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Susan M. Knutson</p>
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  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Chief Executive Officer</p>
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  <p class=MsoNormal>Controller (principal financial officer)</p>
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  <p class=MsoNormal>August 14, 2009</p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>August 14, 2009</p>
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