<SEC-DOCUMENT>0000825324-12-000009.txt : 20120716
<SEC-HEADER>0000825324-12-000009.hdr.sgml : 20120716
<ACCEPTANCE-DATETIME>20120504112728
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000825324-12-000009
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20120504

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:		CORRESP

	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
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<title>March 9, 2009</title>


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<p class=MsoNoSpacing align=center style='margin-bottom:24.0pt;text-align:center'>May 4, 2012</p>

<p class=MsoNoSpacing style='text-align:justify'>United
States Securities and Exchange Commission</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Washington, D.C. 20549</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Submitted Electronically with
Copy to Staff</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
-.5in'><b>Re: &nbsp;&nbsp;&nbsp;&nbsp; Good
Times Restaurants, Inc.</b></p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
-.5in'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form
10-K for the year ended September 30, 2011</b></p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
-.5in'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filed
December 29, 2011</b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; File No. 0-18590</b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>Good Times Restaurants, Inc. (the
&quot;Company&quot;, &quot;we&quot;, &quot;our&quot; or &quot;us&quot;) has received your letter dated April 13, 2012
containing comments on the Company's response to your initial comments in your
letter dated February 27, 2012 regarding the above referenced Form 10-K (the
&quot;Form 10-K&quot;), filed by the Company with the Securities and Exchange Commission
(the &quot;Commission&quot;) on December 29, 2011. This letter on behalf of the Company
responds to each of the comments set forth in your letter of April 13, 2012.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>For convenience of reference, we
have set forth the Commission's comments in bold below, with the Company's
response following each comment.</p>

<p class=MsoNoSpacing style='text-align:justify'><b><u>Form 10-K for the Fiscal Year Ended September 30,
2011</u></b></p>

<p class=MsoNoSpacing style='text-align:justify'><b><u>Audited Financial Statements</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>Statements of Stockholders'
Equity, page F-5</u></b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.25in'><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>We
note from your response to our prior comment one that the change in the equity
attributable to the non-controlling interest includes a reduction in 16 St Mall
equity in both 2010 and 2011 described as &quot;removal.&quot;&nbsp; Please tell us, and
revise the notes to the financial statements to disclose the nature of this
amount and to explain your accounting policy related to such &quot;removal&quot; amounts.</b></p>

<p class=MsoNoSpacing style='text-align:justify'>In
2010 the Company sold its interest in its 16<sup>th</sup> St. Mall restaurant
and the partnership was terminated.&nbsp;&nbsp; During the Company's final reconciliation
of accounts in 2011 the Company discovered there was an error in 2010 of
$70,000 in the elimination of the non-controlling interest related to this
partnership and corrected this oversight. The $70,000 adjustment had no effect
on net earnings or net equity of the Company in either 2010 or 2011 and was
therefore deemed immaterial for further disclosure.</p>



<p class=MsoNoSpacing style='text-align:justify'>The
accounting for the termination of the partnership by eliminating the related
non-controlling interest is appropriate and we believe no additional disclosure
is required.</p>





<p class=MsoNoSpacing style='text-align:justify'><b><u>Notes to the Financial Statements</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>Note 3. Discontinued Operations,
page F-11</u></b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.25in'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>We
note from your response to our prior comment two that you do not believe that
additional disclosure is required in the notes to the financial statements due
to the relative immateriality and the change to a preferential analysis of
operations along with the fact that substantive disclosure is provided in
MD&amp;A as to the operations on a restaurant level.&nbsp; However, because the gain
on sale of restaurant assets in 2011 is 25% of operating income and relates to
the sale of restaurants that prior to 2011 may have been considered
discontinued operations under your previous policy, we believe that disclosure
should be included in MD&amp;A and the notes to the financial statements
discussing how you evaluate the sale or closure of a restaurant for treatment
as discontinued operations versus presentation in continuing operations.&nbsp;
Please revise accordingly.</b></p>



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<p class=MsoHeader>United States
Securities and Exchange Commission</p>

<p class=MsoHeader>May 4, 2012</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Page
2
of 2</p>



<p class=MsoNormal><i>In our current 2<sup>nd</sup> quarter Form 10-Q, which we
expect to file on May 15, 2012, we will include, and in our subsequent filings
include the following policy in our financial statements, updated where
appropriate.</i></p>



<p class=MsoNormal style='text-align:justify'>Commencing in 2011, the Company
began analyzing it operations on a regional basis, when evaluating closed restaurant
operations for consideration as to the classification between continuing
operations and discontinued operations.&nbsp; During 2011 the Company closed
two restaurants and in 2012, the Company has closed one restaurant.&nbsp; The operations
related to these restaurants are reflected as part of continuing operations as
they were within one continuing operating region. The Company had minimal gains
in connection with the sales of each of these restaurants and their combined
operating losses were approximately $80,000 in 2011 and very insignificant in
2012. &nbsp;Prior to 2010 the Company evaluated operations at the restaurant
level. In its reevaluation the Company determined that as most of the Company's
restaurants are within the Denver metropolitan region and share common
advertising, distribution, supervision, and to a certain extent even customers,
it would be more appropriate to perform its analysis on a regional basis. </p>



<p class=MsoNormal style='text-align:justify'>During the six month periods
ended March 31, 2012 and 2011 the Company incurred expenses of $12,000 and income
of $24,000, respectively, and has a remaining lease liability of $80,000 as of
March 31, 2012, related to a restaurant that was closed prior to 2011 and was previously
classified as discontinued operations. Due to the insignificance of the
amounts, the Company has reclassified such amounts as other expense in
operations and as other liabilities on the condensed consolidated balance
sheet. </p>



<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>In connection with our response
to your comments, we acknowledge that:</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
and its management &nbsp;is responsible for the adequacy and accuracy of the
disclosure in our filings;</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Staff
comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking action with respect to the filing; and</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.5in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
may not assert Staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United
States.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>If you have any additional
questions or comments, please feel free to contact me directly at 303-384-1411
or Sue Knutson at 303-384-1424.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Sincerely,</p>

<p class=MsoNoSpacing style='text-align:justify'><i><u>/s/ Boyd E. Hoback</u></i></p>

<p class=MsoNoSpacing style='text-align:justify'>Boyd
E. Hoback</p>

<p class=MsoNoSpacing style='text-align:justify'>President
and CEO</p>

<p class=MsoNoSpacing style='text-align:justify'>Good
Times Restaurants Inc.</p>



<p class=MsoNoSpacing style='text-align:justify'>cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linda
Cvrkel, Branch Chief</p>

<p class=MsoNoSpacing style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Claire
Erlanger</p>



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