BBQ (BBQ) 10-K 5 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Feb. 20, 2018	Jun. 30, 2017
Document and entity information [Abstract]
Document type	10-K
Document period end date	Dec. 31, 2017
Document Period Focus	FY
Amendment flag	false
Document Fiscal Year Focus	2,017
Entity registrant name	FAMOUS DAVES OF AMERICA INC
Entity central index key	1,021,270
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--12-31
Entity filer category	Smaller Reporting Company
Entity well known seasoned issuer	No
Entity common stock shares outstanding		7,391,315
Entity public float			$ 15.8
TradingSymbol	DAVE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Current assets:
Cash and cash equivalents	$ 8,836	$ 4,450
Restricted cash	1,590	1,714
Accounts receivable, net	3,768	5,257
Inventories	633	1,499
Prepaid income taxes and income taxes receivable	689	2,168
Prepaid expenses and other current assets	793	1,326
Assets held for sale	475	1
Total current assets	16,784	16,415
Property, equipment and leasehold improvements, net	11,442	25,912
Other assets:
Intangible assets, net	1,840	2,602
Deferred tax asset	5,823	4,633
Other assets	1,018	1,383
Total assets	36,907	50,945
Current liabilities:
Current portion of long-term debt and financing lease obligation	1,307	1,371
Accounts payable	4,365	5,311
Accrued compensation and benefits	1,545	1,321
Other current liabilities	3,118	3,140
Total current liabilities	10,335	11,143
Long-term liabilities:
Long-term debt, less current portion	7,932	8,849
Financing lease obligations, less current portion	1,196	2,280
Other liabilities	3,963	8,705
Total liabilities	23,426	30,977
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 7,376 and 6,958 shares issued and outstanding at December 31, 2017 and January 1, 2017, respectively	70	66
Additional paid-in capital	1,460
Retained earnings	11,951	19,902
Total shareholders' equity	13,481	19,968
Total liabilities and shareholders' equity	$ 36,907	$ 50,945

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 592	$ 271
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000	100,000
Common stock issued (in shares)	7,376	6,958
Common Stock, Shares, Outstanding	7,376	6,958

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Revenue:
Restaurant sales, net	$ 48,874	$ 58,956
Franchise royalty revenue	14,732	16,375
Franchise fee revenue	35	290
Licensing and other revenue	954	1,003
Total Revenue	64,595	76,624
Costs and expenses:
Food and beverage costs	14,782	18,299
Labor and benefits costs	17,653	21,008
Operating expenses	14,658	18,729
Depreciation and amortization	2,785	2,873
General and administrative expenses	14,634	16,569
Asset impairment, estimated lease termination and other closing costs	6,816	4,788
Pre-opening expenses	0	0
Net loss (gain) on disposal of property	70	(149)
Total costs and expenses	71,398	82,117
Loss from operations	(6,803)	(5,493)
Other expense:
Interest expense	(661)	(886)
Interest income	22	2
Other expense, net	(82)
Total other expense	(721)	(884)
Loss before income taxes	(7,524)	(6,377)
Continuing operations	858	2,272
Net loss from continuing operations	(6,666)	(4,105)
Net income (loss) from discontinued operations, net of tax	(1,457)	1,674
Net loss	$ (8,123)	$ (2,431)
Income (loss) from continuing operations per basic share	$ (0.95)	$ (0.59)
Income loss from discontinued operations per basic share	(0.21)	0.24
Basic net income per common share	(1.16)	(0.35)
Income loss from continuing operations per diluted share	(0.95)	(0.59)
Income loss from discontinued operations per diluted share	(0.21)	0.24
Diluted net income per common share	$ (1.16)	$ (0.35)
Weighted average common of shares outstanding - basic	7,015	6,950
Weighted average common shares outstanding - diluted	7,015	6,950

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in Shares) at Jan. 03, 2016	6,958
Balance at Jan. 03, 2016	$ 66		$ 21,995	$ 22,061
Exercise of stock options (in shares)				6
Exercise of stock options			(1)	$ (1)
Stock-based compensation			312	312
Deferred compensation			27	27
Reclassification of additional-paid-in-capital to payroll taxes payable for performance shares issued				215
Net loss			(2,431)	(2,431)
Balance (in Shares) at Jan. 01, 2017	6,958
Balance at Jan. 01, 2017	$ 66		19,902	19,968
Common stock issued (in shares)	418
Common stock issued	$ 4	$ 1,460		1,464
Tax benefit for equity awards issued			(55)	$ (55)
Exercise of stock options (in shares)				3
Stock-based compensation			227	$ 227
Net loss			(8,123)	(8,123)
Balance (in Shares) at Dec. 31, 2017	7,376
Balance at Dec. 31, 2017	$ 70	$ 1,460	$ 11,951	$ 13,481

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Cash flows from operating activities:
Net income from continuing operations	$ (6,666)	$ (4,105)
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	2,785	2,873
Noncash Asset Impairment, Estimated Lease Termination and Other Closing Closts	4,012	1,956
Net loss (gain) on disposal of property	70	(149)
Amortization of deferred financing costs	36	115
Amortization of lease interest assets	37	45
Deferred income taxes	(1,245)	(142)
Deferred rent	48	583
Bad debts expense	1,172	24
Stock-based compensation	313	339
Restricted cash	124	(627)
Accounts receivable, net	141	(538)
Inventories	467	564
Prepaid income taxes and income taxes receivable	1,479	(1,942)
Prepaid expenses and other current assets	473	125
Other assets	312	(673)
Accounts payable	(946)	(374)
Accrued compensation and benefits	(3)	(69)
Other current liabilities	(567)	(231)
Other liabilities	(139)	(190)
Cash flows provided by continuing operating activities	1,903	(2,416)
Cash flows provided by discontinued operating activities	1,350	2,760
Cash flows provided by operating activities	3,253	344
Cash flows from investing activities:
Proceeds from the sale of assets		1,068
Purchases of property, equipment and leasehold improvements	(378)	(647)
Cash flows (used for) provided by continuing investing activities	(378)	421
Cash flows provided by discontinued investing activities	1,600	1,039
Cash flows provided by investing activities	1,222	1,460
Cash flows from financing activities:
Proceeds from long-term debt		103
Proceeds from line of credit		1,855
Payments for debt issuance costs	(15)	(259)
Payments on long-term debt and financing lease obligations	(1,538)	(4,352)
Proceeds from sale of common stock	1,464
Payments from exercise of stock options		(1)
Cash flows used for financing activities	(89)	(2,654)
Increase (decrease) in cash and cash equivalents	4,386	(850)
Cash and cash equivalents, beginning of year	4,450	5,300
Cash and cash equivalents, end of year	8,836	4,450
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	617	975
Cash paid (refunds received) for income taxes, net	(1,842)	398
Performance shares surrendered to cover payroll taxes incurred		215
Change in deferred taxes, recognized in additional paid-in capital	55
Accrued property and equipment purchases	$ 14	$ 10

NATURE OF BUSINESS AND SIGNIFIC

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES 10K	12 Months Ended
	Dec. 31, 2017
Nature Of Business And Significant Accounting Policies [Abstract]
Nature Of Business And Significant Accounting Policies [Text Block]	(1) NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of business We, Famous Dave’s of America, Inc. (“Famous Dave’s” or the “Company”), were incorporated in Minnesota on March 14, 1994. We develop, own, operate and franchise restaurants under the name "Famous Dave’s.” As of December 31, 2017, there were 150 Famous Dave’s restaurants operating in 32 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates, including 16 Company-owned restaurants and 134 franchise-operated restaurants. An additional 61 franchise restaurants were committed to be developed through signed area development agreements as of December 31, 2017. Seasonality Our restaurants typically generate higher revenue in the second and third quarters of our fiscal year as a result of seasonal traffic increases and high catering sales experienced during the summer months, and lower revenue in the first and fourth quarters of our fiscal year, due to possible adverse weather which can disrupt customer and team member transportation to our restaurants. Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year’s presentation of discontinued operations. Financial instruments Due to their short-term nature, the carrying value of our current financial assets and liabilities approximates their fair value. The fair value of long-term debt approximates the carrying amount based upon our expected borrowing rate for debt with similar remaining maturities and comparable risk. Segment reporting We have Company-owned and franchise-operated restaurants in the United States, the Commonwealth of Puerto Rico, Canada and the United Arab Emirates, and operate within the single industry segment of foodservice. We make operating decisions on behalf of the Famous Dave’s brand which includes both Company-owned and franchise-operated restaurants. In addition, all operating expenses are reported in total and are not allocated to franchising operations for either external or internal reporting. As a result, we have concluded that we have a single reporting segment. Fiscal year Our fiscal year ends on the Sunday nearest to December 31 of each year. Our fiscal year is generally 52 weeks; however, it periodically consists of 53 weeks. The fiscal years ended December 31, 2017 (fiscal 2017) and January 1, 2017 (fiscal 2016) consisted of 52 weeks. Cash and cash equivalents Cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000, while the remaining balances are uninsured. As of December 31, 2017 and January 1, 2017, our uninsured cash and restricted cash balances were $9.0 million and $7.1 million, respectively. There have been no losses of uninsured amounts. Restricted cash and marketing fund We have a system-wide Marketing Development Fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, currently 1.0%, for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, we reflect the cash related to this fund within restricted cash and reflect the liability within accounts payable on our consolidated balance sheets. We had approximately $1.3 million and $946,000 in this fund as of December 31, 2017 and January 1, 2017, respectively. In conjunction with our credit agreements, we have deposited amounts for undrawn letters of credit in cash collateral accounts. We had approximately $298,000 and $768,000 in restricted cash as of December 31, 2017 and January 1, 2017, respectively, related to these undrawn letters of credit. Accounts receivable, net We provide an allowance for uncollectible accounts on accounts receivable based on historical losses and existing economic conditions, when relevant. We provide for a general bad debt reserve for franchise receivables due to increases in days sales outstanding and deterioration in general economic market conditions. This general reserve is based on the aging of receivables meeting specified criteria and is adjusted each quarter based on past due receivable balances. Additionally, we have periodically established a specific reserve on certain receivables as necessary. In assessing recoverability of these receivables, we make judgments regarding the financial condition of the franchisees based primarily on past and current payment trends, as well as other variables, including annual financial information, which our franchisees are required to submit to us. Any changes to the reserve are recorded in general and administrative expenses. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Accounts receivable balances written off have not exceeded allowances provided and we believe all accounts receivable in excess of allowances provided are fully collectible. If accounts receivable in excess of provided allowances are determined uncollectible, they are charged to expense in the period that determination is made. As of December 31, 2017, we had a receivable from one franchisee in the amount of $509,000, of which a portion is reserved in accordance with our standard policies. Inventories Inventories consist principally of small wares and supplies, food and beverages, and retail goods, and are recorded at the lower of cost (first-in, first-out) or net realizable value. Property, equipment and leasehold improvements, net Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation. We recognize depreciation expense utilizing the straight-line method once an asset has been placed into service. The following table outlines the useful lives of our major classes of property, equipment and leasehold improvements: Land N/A Buildings 30 years Leasehold improvements 0 - 30 years Furniture, fixtures, and equipment (excluding restaurant signage) 3 - 7 years Restaurant signage 10 - 15 years Decor 7 years We capitalize labor costs associated with the implementation of significant information technology infrastructure projects based on actual labor rates per person including benefits, for all time spent on the implementation of software and are depreciated over 5 years. We capitalize construction overhead costs until the time a building is turned over to operations, which is approximately two weeks prior to opening and depreciate these items over the same useful life as leasehold improvements. We evaluate restaurant sites and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of restaurant sites to be held and used is measured by a comparison of the carrying amount of the restaurant site to the undiscounted future net cash flows expected to be generated on a restaurant-by-restaurant basis. If a restaurant site is determined to be impaired, the loss is measured as the amount by which the carrying amount of the restaurant site exceeds its fair value. Fair value is estimated based on the best information available including estimated future cash flows, expected growth rates in comparable restaurant sales, remaining lease terms and other factors. Intangible Assets We have transferable liquor licenses in jurisdictions with a limited number of authorized liquor licenses. These licenses were capitalized as indefinite-lived intangible assets and are included in intangible assets, net in our consolidated balance sheets. We review annually the liquor licenses for impairment. The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. Annual liquor license renewal fees are expensed over the renewal term. We have lease interest assets that are reflected within intangible assets, net on our consolidated balance sheets. The current and long-term portion of lease interest liabilities are reflected within the other current liabilities and other liabilities line items on our consolidated balance sheets, respectively. Lease interest assets and liabilities are amortized to rent expense over the term of the leases to which they relate. Advertising Advertising costs are charged to expense as incurred. Advertising costs were approximately $2.2 million and $2.0 million for the years ended December 31, 2017 and January 1, 2017, respectively, and are included in operating expenses for local store marketing in the consolidated statements of operations. Advertising costs incurred related to our national advertising fund are netted with contributions from our Company-owned stores and certain of our franchisees. Research and development costs Research and development costs represent all expenses incurred in relation to the creation of new menu and promotional offerings, recipe enhancements and documentation activities. Research and development costs were approximately $382,000 and $510,000 for the years ended December 31, 2017 and January 1, 2017, respectively, and are included in general and administrative expenses in the consolidated statements of operations. Pre-opening expenses All start-up and pre-opening costs are expensed as incurred. Pre-opening rent during the build-out period is included in pre-opening expense. We did not incur any pre-opening expenses during the years ended December 31, 2017 and January 1, 2017. Leases We recognize rent expense on a straight-line basis for our operating leases over the entire lease term, including lease renewal options and build-out periods where the renewal is reasonably assured and the build-out period takes place prior to the restaurant opening or lease commencement date. Rent expense recorded during the build-out period is reported as pre-opening expense. We account for construction allowances by recording a receivable when collectability is considered to be probable, and relieve the receivable once the cash is obtained from the landlord for the construction allowance. Construction allowances are amortized as a credit to rent expense over the full term of the lease, including reasonably assured renewal options and build-out periods. Exit and disposal costs Exit or disposal activities, including restaurant closures, include the cost of disposing of the assets and other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same caption as the original impairment within our consolidated statements of operations. We recognize a liability for the fair value of a required asset retirement obligation (“ARO”) when such obligation is incurred. Our AROs are primarily associated with leasehold improvements which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. Costs incurred for restaurants that have been closed, after the date of their closure, are presented within the asset impairment, estimated lease termination and other closing costs line item of our consolidated statements of operations. Net (loss) income per common share Basic net (loss) income per common share (“EPS”) is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net (loss) income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. The following table is a reconciliation of basic and diluted net (loss) income per common share: Year Ended (in thousands, except per share data) December 31, 2017 January 1, 2017 Net (loss) income per share – basic: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - basic 7,015 6,950 Basic net loss per share - continuing operations $ (0.95) $ (0.59) Basic net (loss) income per share - discontinued operations (0.21) 0.24 Basic net loss per share $ (1.16) $ (0.35) Net (loss) income per share – diluted: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - diluted 7,015 6,950 Diluted net loss per share - continuing operations $ (0.95) $ (0.59) Diluted net (loss) income per share - discontinued operations (0.21) 0.24 Diluted net loss per share $ (1.16) $ (0.35) There were approximately 539,000 and 683,000 stock options as of December 31, 2017 and January 1, 2017, respectively that were not included in the computation of diluted EPS because they were anti-dilutive. Stock-based compensation We recognize compensation cost for share-based awards granted to team members and board members based on their fair values at the time of grant over the requisite service period. Stock options granted to non-employees are marked to market as they vest. The bonus compensation of our Chief Executive Officer is issued in the form of unrestricted, freely tradable shares of our common stock and is expensed in full when earned. Our pre-tax compensation cost for stock options and other incentive awards is included in general and administrative expenses in our consolidated statements of operations. See Note 9 “Stock-based compensation.” Income Taxes We provide for income taxes based on our estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. Our estimates are based on the information available to us at the time that we prepare the income tax provision. We generally file our annual income tax returns several months after our fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws. Revenue recognition In fiscal 2018, we will be required to adopt ASC 606 – Revenue from Contracts with Customers, which will materially impact the way that we recognize revenue. See “Recent Accounting Guidance Not Yet Adopted” below for more information. We record restaurant sales at the time food and beverages are served. We record sales of merchandise items at the time items are delivered to the Guest. All sales taxes are excluded from revenue. We have detailed below our revenue recognition policies for franchise and licensing agreements. Initial franchise fee revenue is recognized when we have performed substantially all of our obligations as franchisor. Franchise royalties are recognized when earned. Our franchise-related revenue is comprised of three separate and distinct earnings processes: area development fees, initial franchise fees and continuing royalty payments. Our area development fee for domestic growth consists of a one-time, non-refundable payment in consideration for the services we perform in preparation of executing each area development agreement. Area development fees are recognized in full upon receipt. We recognize a portion of franchise fees as revenue when the agreement is signed, reflecting expenses incurred related to the sale. The remaining non-refundable fee is included in deferred franchise fees and is recognized as revenue when we have performed substantially all of our obligations, which generally occurs upon the franchise entering into a lease agreement for the restaurant. Franchisees are also required to pay us a monthly royalty equal to a percentage of their net sales. We have a licensing agreement for our retail products, the current term of which expires in April 2020 with renewal options of five years, subject to the licensee’s attainment of identified minimum product sales levels. Licensing revenue is recorded based on royalties earned by us in accordance with our agreement. Periodically, we provide additional services, beyond the general franchise agreement, to our franchise operations, such as new restaurant training, information technology setup and décor installation services. The cost of these services is recognized upon completion and is billed to the respective franchisee and is generally payable on net 30‑day terms. Gift cards We record a liability in the period in which a gift card is issued and proceeds are received. As gift cards are redeemed, this liability is reduced and revenue is recognized. We recognize gift card breakage income as an offset to operating expense based on a stratified breakage rate per year. This breakage rate is based on a percentage of sales when the likelihood of the redemption of the gift card becomes remote. In fiscal 2018, we will be required to adopt ASC 606 – Revenue from Contracts with Customers , which will change the method in which we recognize breakage income in the future. See “Recent Accounting Guidance Not Yet Adopted” below for more information. Recent Accounting Guidance Recent accounting guidance not yet adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers. The FASB issued ASU No. 2016‑08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” in March 2016, ASU 2016‑10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” in April 2016, ASU 2016‑11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014‑09 and 2014‑16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” in May 2016 and ASU 2016‑12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” in May 2016. These new standards provide for a single, principles-based model for revenue recognition that replaces the existing revenue recognition guidance. In July 2015, the FASB deferred the effective date of ASU 2014‑09 until annual and interim periods beginning on or after December 15, 2017. It will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a full retrospective or modified retrospective transition method and early adoption is permitted. We plan to adopt this standard as of the effective date utilizing the modified retrospective transition method. We have reviewed a representative sample of our franchise agreements as a basis for determining the impact of the new standard on our consolidated financial statements. We have not yet finalized our conclusions; however, we believe that the new guidance will not impact the timing of revenue recognition on franchise royalty revenues, restaurant and merchandise sales or licensing and other revenue. The new guidance will require that we defer previously recognized and future revenue related to franchise fees and area development fees. Franchise fees have historically been recognized in full when a new restaurant opens, but under the new guidance, these fees will be amortized over the life of the related franchise agreements and related extension periods, which generally range from 10-25 years. Area development fees have historically been recognized in full upon execution of an area development agreement, but under the new guidance, these fees will be recognized over the life of a future franchise agreement when each new restaurant pursuant to an area development agreement opens or upon the expiration of such agreements. We expect to report these revenues within the franchise fee revenue line item of our consolidated statements of operations. We expect to defer revenues of $2.4 million related to franchise and area development agreements and recognize additional annual revenue of approximately $224,000 on current franchise agreements. As we open new stores pursuant to area development agreements, we will recognize additional revenue of approximately $1,000 per year per store. Pursuant to the new guidance, the timing of revenue recognition related to gift card breakage will also be impacted. Historically, we have recognized gift card breakage in full upon the sale of gift cards due to the Company’s historical experience related to gift card sales, but under the new guidance, gift card breakage will be recognized ratably as gift cards are redeemed. The Company will report revenue related to gift card breakage within the licensing and other revenue line of its consolidated statements of operations. We do not expect to defer any previously recognized gift card breakage due to materiality. The new revenue guidance will also impact the presentation of the Company’s consolidated statements of operations as it relates to the Company’s system-wide Public Relations and Marketing Development Fund (the “NAF”). Historically, the Company has netted revenues received pursuant to NAF billings with the related expenses, but under the new guidance, revenues recognized related to the NAF will be presented gross as a separate line item within total revenues, with the corresponding expense presented gross as a separate line item within operating expenses. The new guidance will not impact the timing of revenue recognition as it relates to the NAF. In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016‑02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. ASU 2016‑02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company expects to adopt this new standard as of the effective date and is currently evaluating the impact of this new standard on its consolidated financial statements, but expects that it will have a material impact because of the Company’s significant leasing activity. In May 2017, the FASB issued ASU 2017-05, Compensation – Stock Compensation (Topic 718), to provide clarity and reduce both diversity in practice and cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The updated standard clarifies when an entity should account for the effects of a modification. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company does not believe that adoption of the new standard will have a material impact on its consolidated financial statements.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories [Text Block]	(2) INVENTORIES Inventories consisted approximately of the following at: (in thousands) December 31, 2017 January 1, 2017 Food and beverage $ 324 $ 711 Other 58 58 Small wares and supplies 251 730 $ 633 $ 1,499

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	(3) INTANGIBLE ASSETS The Company has intangible assets that consist of liquor licenses and lease interest assets. The liquor licenses are indefinite-lived assets and are not subject to amortization. The lease interest assets are amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease. A reconciliation of the Company’s intangible assets as of December 31, 2017 and January 1, 2017, respectively, are presented in the table below: (in thousands) December 31, 2017 January 1, 2017 Lease interest assets, gross carrying amount $ 1,091 $ 1,091 Lease interest assets, accumulated amortization (286) (249) Lease interest assets, net carrying amount 805 842 Liquor licenses 1,035 1,760 Intangible assets, net $ 1,840 $ 2,602 The following table provides the projected future amortization of lease interest assets for the next five years, as of December 31, 2017: (in thousands) December 31, 2017 Fiscal 2018 $ 36 Fiscal 2019 36 Fiscal 2020 36 Fiscal 2021 36 Fiscal 2022 36 Thereafter 625 $ 805

PROPERY, EQUIPMENT, AND LEASEHO

PROPERY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET 10K	12 Months Ended
	Dec. 31, 2017
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Equipment, And Leasehold Improvements, Net Disclosure [Text Block]	(4) PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET As of December 31, 2017, we had assets held for sale of $475,000 related to one of our stores’ liquor licenses. During the year ended December 31, 2017, we entered into an agreement to sell the liquor license for a contract purchase price of $575,000. Property, equipment and leasehold improvements, net, consisted approximately of the following at: (in thousands) December 31, 2017 January 1, 2017 Land, buildings, and improvements $ 26,234 $ 50,851 Furniture, fixtures, and equipment 19,884 35,609 Décor 764 1,553 Construction in progress 187 181 Accumulated depreciation and amortization (35,627) (62,282) Property, equipment and leasehold improvements, net $ 11,442 $ 25,912

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Other Current Liabilities Disclosure [Text Block]	(5) OTHER CURRENT LIABILITIES Other current liabilities consisted of the following at: (in thousands) December 31, 2017 January 1, 2017 Gift cards payable $ 1,000 $ 1,448 Miscellaneous other current liabilities 668 810 Lease reserves, current 1,165 330 Sales tax payable 242 454 Accrued real estate tax 26 79 Deferred franchise fees — 16 Accrued property and equipment purchases 17 3 Other current liabilities $ 3,118 $ 3,140

OTHER LIABILITIES

OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2017
Other Liabilities [Abstract]
Other Liabilities Disclosure [Text Block]	(6) OTHER LIABILITIES Other liabilities consisted of the following at: (in thousands) December 31, 2017 January 1, 2017 Deferred rent $ 2,463 $ 7,802 Miscellaneous other liabilities 730 358 Asset retirement obligations 119 119 Accrual for uncertain tax position 15 139 Long term lease reserve 514 145 Long term deferred compensation 122 142 Other liabilities $ 3,963 $ 8,705

LONG-TERM DEBT AND FINANCING LE

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-term Debt and Financing Lease Obligations [Text Block]	(7) LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS Long-term debt On December 2, 2016, we entered into two loan agreements (the “Loan Agreements”) with Venture Bank (“Venture”) for a total initial principal amount of $10.0 million as well as a revolving line of credit (the “Line of Credit”) for up to $1.0 million. The first loan (the “Real Estate Loan”) was for a principal amount of $3.7 million and has a maturity date of December 2, 2026. The Real Estate Loan is paid in monthly installments of principal and interest, with a balloon payment at maturity. Interest is payable at a rate of 4.25% for the first five years and LIBOR plus 3.75% thereafter until maturity. The loan may be prepaid, subject to prepayment premiums as outlined in the Loan Agreements. The second loan (the “Term Loan”) was for a principal amount of $6.3 million and has a maturity date of December 2, 2023. The Term Loan is paid in monthly installments of principal and interest with a balloon payment at maturity. Interest is payable at a rate of LIBOR plus 3.25%. The Term Loan may be prepaid at any time without penalty. The Line of Credit has a maturity date of December 2, 2019 provides for interest to be paid monthly on outstanding balances with the principal amount due at maturity. Interest is payable at a rate of LIBOR plus 3.25% and the Line of Credit may be prepaid at any time without penalty. There was no balance on the Line of Credit as of December 31, 2017 or January 1, 2017. As of December 31, 2017 and January 1, 2017, the weighted average interest rate on our long-term debt was 4.27% and 4.00%, respectively. The notes pursuant to the Loan Agreements are secured by substantially all of our assets and we are subject to various financial and non-financial covenants. As of December 31, 2017, we were in compliance with all of our covenants. In the event of a default, Venture has the right to terminate its obligations under the Loan Agreements and to accelerate the payment on any unpaid principal amounts then outstanding. Long-term debt consisted of approximately the following as of the periods presented: (in thousands) December 31, 2017 January 1, 2017 Real Estate Loan $ 3,581 $ 3,700 Term Loan 5,515 6,300 Less: deferred financing costs (224) (234) Less: current portion of long-term debt (940) (917) Long-term debt, less current portion $ 7,932 $ 8,849 Future minimum principal payments on long-term debt, as of December 31, 2017, were as follows: (in thousands) Fiscal Year 2018 $ 940 2019 981 2020 1,023 2021 1,069 2022 1,116 Thereafter 3,967 Total $ 9,096 Financing Lease Obligation On March 31, 1999, we completed a sale leaseback transaction for three properties which provides us with the option to repurchase the properties at the end of the lease term. Because of our continuing involvement in the properties, the transaction is being accounted for as a financing arrangement. In March 2017, we amended the lease agreement to remove one of the properties from the arrangement. As of December 31, 2017, the weighted-average interest rate of our financing lease obligations was approximately 7.78%. Financing lease obligation consisted of approximately the following as of the periods presented: ( in thousands ) December 31, 2017 January 1, 2017 Financing lease obligation $ 1,576 $ 2,757 Less: deferred financing costs (13) (23) Less: current portion of financing lease obligation (367) (454) Financing lease obligation, less current portion $ 1,196 $ 2,280 Future minimum principal payments on financing lease obligations, as of December 31, 2017, were as follows: (in thousands) Fiscal Year 2018 $ 480 2019 1,232 Total minimum payments 1,712 Less: amounts representing interest (136) Total financing lease payable $ 1,576

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	(8) COMMITMENTS AND CONTINGENCIES Operating Leases We lease our Company-owned restaurants and office facilities under non-cancelable operating leases with remaining minimum terms ranging from one month to 14 years. Our lease agreements generally contain base rent escalations that are either fixed pursuant to the lease agreement or based on the consumer price index. We are also required to pay contingent rentals on certain of our leases in amounts between 5% and 8% of gross sales above a minimum threshold. The following table sets forth certain information related to our rental activities as of the periods presented: Year Ended (in thousands) December 31, 2017 January 1, 2017 Rent expense $ 2,950 $ 4,282 Cash rental payments 3,024 3,737 Sublease income (264) (386) Future minimum lease payments under non-cancelable operating leases, as of December 31, 2017, are as follows: (in thousands) Fiscal Year 2018 $ 1,892 2019 1,702 2020 1,587 2021 1,575 2022 1,308 Thereafter 3,424 Total operating lease obligations 11,488 Sublease income (1,230) Total $ 10,258 Litigation In the normal course of business, we are involved in a number of litigation matters that are incidental to the operation of our business. These matters generally include, among other things, matters with regard to employment and general business-related issues. We currently believe that the resolution of any of these pending matters will not have a material adverse effect on our financial position or liquidity, but an adverse decision in one or more of these matters could be material to our financial position or results of operations. We filed a complaint on July 14, 2015, against a group of former franchisees in California seeking injunctive relief and damages for: (1) Federal Trademark Infringement; (2) Federal Trademark Dilution; (3) Federal Unfair Competition; (4) Federal Trade Dress Dilution; (5) Trademark Infringement under California Business and Professions Code § 14200; (6) Trademark Dilution under California Business and Professions Code §14200; (7) Common Law Trademark Infringement; (8) Unfair Competition under California Business and Professions Code § 17200; (9) False Advertising; (10) Breach of Contract; (11) Breach of Implied Covenant of Good Faith and Fair Dealing; and (12) Intentional Interference with Contract. The claims stem from the former franchisees’ breaches of their franchise agreements, including the failure to pay franchise fees and their continued operation of five restaurants utilizing Famous Dave’s intellectual property without authorization. After two defendants in the case, Kurt Schneiter and M Mart 1, filed a demurrer to the Complaint, Famous Dave’s filed an Amended Complaint on October 9, 2015, reasserting the same claims. The case is captioned Famous Dave’s of America, Inc., v. SR El Centro FD, Inc., et al., Case No. BC589329, and is currently pending before the Honorable Elihu M. Berle in the Superior Court of Los Angeles. By court order, dated June 6, 2016, Famous Dave’s successfully obtained a preliminary injunction, enjoining the former franchisee defendants from using Famous Dave’s intellectual property, including its trademarks and restaurant system. The preliminary injunction was the subject of an interlocutory appeal. The appeal was fully briefed and oral argument took place on August 10, 2017. On October 23, 2017, the California Court of Appeal rendered its decision in the appeal in Famous Dave’s favor, affirming and upholding in full the trial court’s preliminary injunction order. Famous Dave’s intends to vigorously pursue all remaining claims in the trial court. Trial is set for November 5, 2018. On July 28, 2015, this group of former franchisees (the “Plaintiffs”) filed a complaint against Famous Dave’s in the South Judicial District of the Superior Court of the County of Los Angeles. On March 10, 2016, Plaintiffs re-filed this Complaint as a First Amended Cross-Complaint Famous Dave’s of America, Inc. v. SR El Centro, Inc., et al., Superior Court of the State of California, County of Los Angeles, Central Division, Case No. BC589329 alleging that Famous Dave’s breached the Franchise Agreements for these restaurants by failing to provide certain marketing support and access to customer contact data, vendors, internet reporting and support to Plaintiffs, and failing to provide operations and preferred practices training to Plaintiffs’ designated representative. Plaintiffs further allege that such conduct by Famous Dave’s is a breach of the covenant of good faith and fair dealing. Plaintiffs also allege that Famous Dave’s aided and abetted John and Allan Gantes in breach of their fiduciary duty to Plaintiffs. Plaintiffs are seeking compensatory damages in amount not less than $20 million, punitive damages, costs and attorneys’ fees. We have not recognized a liability with respect to the Plaintiffs’ claim because we do not believe that it is probable that we will incur a related material loss. Famous Dave’s intends to vigorously defend against these claims. Trial is set for November 5, 2018.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation [Abstract]
Stock-Based Compensation	(9) STOCK-BASED COMPENSATION Effective May 5, 2015, we adopted the 2015 Equity Plan (the “2015 Plan”), pursuant to which we may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. We also maintain an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). The 2005 Plan prohibits the granting of options pursuant to the 2005 plan after May 12, 2015, the tenth anniversary of the date the 2005 Plan was approved by the Company’s shareholders. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of December 31, 2017, there were no shares available for grant pursuant to the 2015 Plan. Stock options granted to employees and directors generally vest over two to five years, in monthly or annual installments, as outlined in each agreement. Options generally expire ten years from the date of grant. Compensation expense equal to the grant date fair value of the options is recognized in general and administrative expense over the applicable service period. Stock options granted to certain non-employees either vest immediately or monthly over a period of two years. Options generally expire ten years from the date of grant. Compensation expense is recognized in general and administrative expense over the applicable service period, and is marked-to-market each period. The incentive compensation of our Chief Executive Officer is tied to increases in our share price and calls for the issuance of freely tradable shares of our common stock upon the achievement of certain milestones. We utilize the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: · Stock price – Published trading market values of our common stock as of the date of grant. · Exercise price – The stated exercise price of the stock option. · Expected life – The simplified method as outlined in ASC 718. · Expected dividend – The rate of dividends that we expect to pay over the term of the stock option. · Volatility – Our actual volatility over the most recent historical period equivalent to the expected life of the option. · Risk-free interest rate – The daily United States Treasury yield curve rate. The following table outlines stock-based compensation expense, by award type, for the periods presented: Year Ended (in thousands) December 31, 2017 January 1, 2017 Stock options $ 218 $ 311 Shares of common stock 85 — Restricted stock 10 28 $ 313 $ 339 The following is a roll-forward of our stock option activity for the periods presented: Weighted Average Number of Remaining Aggregate Options Weighted Average Contractual Intrinsic Value (in thousands) Exercise Price Life in Years (in thousands) Options outstanding at January 3, 2016 507 16.66 5.3 $ — Granted 416 5.55 — Exercised (6) 5.90 Canceled, forfeited or expired (231) 19.44 — Options outstanding at January 1, 2017 686 9.15 5.7 Granted 165 4.20 — Exercised (3) 5.42 Canceled, forfeited or expired (309) 11.04 — Options outstanding at December 31, 2017 539 $ 6.60 6.6 $ Options Exercisable at December 31, 2017 266 $ 8.09 4.2 $ The following table discloses the weighted-average values of significant assumptions that we made in valuing option grants for the periods presented: Year Ended December 31, 2017 January 1, 2017 Weighted-average fair value of options granted during the period $ 1.78 $ 1.97 Expected life (in years) 5.3 5.2 Expected dividend $ — $ — Expected stock volatility 43.47 % 39.98 % Risk-free interest rate 2.0 % 1.2 % As of December 31, 2017, the total compensation cost related to unvested stock option awards was approximately $542,000, which is expected to be recognized over a period of approximately 2.58 years.

RETIREMENT SAVINGS PLANS

RETIREMENT SAVINGS PLANS	12 Months Ended
	Dec. 31, 2017
Retirement Savings Plans [Abstract]
Retirement Savings Plans Disclosure [Text Block]	(10) RETIREMENT SAVINGS PLANS 401(k) Plan We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section 401(k) of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. The following table outlines certain information about our 401(k) plan: Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Employer contribution rate, percent of employee contributions 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings 4.0 % 4.0 % Employee contributions $ 529 $ 338 Employer match $ 87 $ 54 Discretionary contributions $ — $ — Non-Qualified Deferred Compensation Plan We maintain a non-qualified deferred compensation plan, effective as of February 25, 2005 (the “DCP”) for eligible participants, as defined in the DCP. The DCP allows participating employees to defer a portion of their compensation (salary, bonus and commissions). The assets of the DCP are maintained in an unsecured account that has no trust fund. In the event of bankruptcy, participants entitled to future payments under the DCP would have no greater rights than that of an unsecured general creditor and the DCP confers no legal rights for interest or claim on any of our assets. The benefits provided by the DCP are not, nor are they required to be, insured. The following table outlines certain information about the DCP: Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Employer contribution rate, percent of employee contributions 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings 4.0 % 4.0 % Declared interest rate 6.0 % 6.0 % Employee contributions $ 41 $ 64 Employer match and interest $ 7 $ 35 Distributions $ 43 $ 368

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	12 Months Ended
	Dec. 31, 2017
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups Including Discontinued Operations Disclosure [Text Block]	(11) DISCONTINUED OPERATIONS On December 14, 2015, we entered into an agreement to sell seven Chicago-area restaurants (the “Chicago Restaurants”) to Windy City Restaurant Holdings LLC and its affiliate. The transaction closed on March 1, 2016 and resulted in our complete exit from the Chicago market. On November 1, 2017, we entered into agreements to sell eight restaurants in Maryland and Virginia (the “Mid-Atlantic Restaurants”) to Commonwealth Blue Ribbon Restaurants LLC and Capital Blue Ribbon Restaurants LLC (the “Mid-Atlantic Purchasers”). Pursuant to the first agreement (“Seven Restaurants Agreement”), the contract purchase price was $2,350,000 and included a repairs and maintenance credit of $750,000, which must be exhausted within one year. Also pursuant to the Seven Restaurants Agreement, we and the Mid-Atlantic Purchasers entered into a line of credit agreement in the amount of $750,000 (the “LOC Agreement”) on which the Mid-Atlantic Purchasers can draw funds to pay for necessary repairs and maintenance work. The LOC Agreement has a four year term with interest payable at a rate of 4.25% per annum. Pursuant to the second agreement (the “Frederick Agreement”) to effect the sale of our Frederick, Maryland (“Frederick”) restaurant to Capital Blue Ribbon Restaurants, LLC, the contract purchase price for Frederick shall be an amount equal to (i) 50% of the rent, fees, charges, taxes and other amounts payable to the landlord or another third party pursuant to the lease agreement, plus (ii) 50% of that portion of Frederick’s EBITDA (as defined in the Frederick APA) attributable to Frederick that exceeds $25,000 in any 12-month period and $37,500 in any 18-month period; however, the Company has guaranteed the 12-month and 18-month EBITDA performance of Frederick. We expect to recognize a liability and corresponding expense related to this guarantee based on the amount that we would owe to the Mid-Atlantic Purchasers in the event that the restaurant was closed. As of December 31, 2017, we had reserved $21,000 related to this guarantee. The Mid-Atlantic Purchasers also purchased the inventory and petty cash on hand of the Mid-Atlantic Restaurants as of the closing date. The transaction resulted in our complete exit from the Mid-Atlantic market. The following table provides certain information from our consolidated statements of operations related to the Chicago Restaurants and the Mid-Atlantic Restaurants: Year Ended (in thousands) December 31, 2017 January 1, 2017 Restaurant sales, net $ 18,831 $ 24,920 Cost of sales (16,998) (22,662) General and administrative expenses (149) (222) Depreciation and amortization (611) (819) Operating income 1,073 1,217 Gain (loss) on disposal attributable to discontinued operations (3,419) 1,170 Income (loss) attributable to discontinued operations, before tax (2,346) 2,387 Income (loss) attributable to discontinued operations, tax effect 889 (713) Income (loss) attributable to discontinued operations, net of tax $ (1,457) $ 1,674 The following table provides certain information from our consolidated balance sheets related to discontinued operations: (in thousands) December 31, 2017 January 1, 2017 Accounts receivable, net $ — $ 176 Inventories — 399 Prepaid expenses and other current assets — 60 Total current assets — 635 Other assets — 52 Property, equipment and leasehold improvements, net — 6,663 Total assets $ — $ 7,350 Accrued compensation and benefits (current) — 142 Other current liabilities — 139 Other liabilities (non-current) — 2,371 Total liabilities $ — $ 2,652

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	(12) INCOME TAXES For financial reporting purposes, loss before income taxes consists of the following components for the periods presented: Year Ended (in thousands) December 31, 2017 January 1, 2017 United States $ (7,807) $ (6,699) Foreign 283 322 Total $ (7,524) $ (6,377) The following table summarizes the income tax (expense) benefit for the periods presented: Year Ended (in thousands) December 31, 2017 January 1, 2017 Current: Federal $ (418) $ 1,178 State — (85) Foreign (69) (99) (487) 994 Deferred: Federal 1,228 889 State 117 389 1,345 1,278 Total income tax benefit $ 858 $ 2,272 For financial reporting purposes, total income tax benefit (expense) includes the following components for the periods presented: Year Ended (in thousands) December 31, 2017 January 1, 2017 Continuing operations $ 858 $ 2,272 Discontinued operations 889 (713) Total income tax benefit $ 1,747 $ 1,559 The impact of uncertain tax positions taken or expected to be taken on income tax returns must be recognized in the financial statements at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained. The following is a reconciliation of the beginning and ending amounts of gross unrecognized tax benefit for the periods presented: (in thousands) Balance at January 3, 2016 47 Increases attributable to tax positions taken during prior periods 142 Audit settlements (41) Decreases due to lapses of statutes of limitations (33) Balance at January 1, 2017 115 Audit settlements (89) Decreases due to lapses of statutes of limitations (13) Balance at December 31, 2017 $ 13 We recognized interest and penalties of approximately ($22,000) and $20,000, respectively during the years ended December 31, 2017 and January 1, 2017. Substantially all of our unrecognized tax benefits, if recognized, would impact our effective tax rate. As of December 31, 2017 and January 1, 2017, we had recorded a liability of approximately $2,000 and $25,000, respectively related to accrued interest and penalties. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The preparation of these income tax returns requires us to interpret and apply relevant federal and state income tax laws. It is common for federal and state taxing authorities to periodically examine filed tax returns. During these examinations, it is possible for taxing authorities to interpret facts or tax law differently than we do. As a result, we may be required to adjust tax liabilities affecting our effective tax rate. Tax years 2014 and forward remain subject to federal examination. Tax years 2013 and forward remain subject to state examination. It is possible that the liability associated with the unrecognized tax benefits will increase or decrease within the next 12 months. The expiration of statutes of limitations would decrease our unrecognized tax benefits by approximately $14,000. We have significant net deferred tax assets (“DTA”), which results from the net temporary timing differences between amounts recorded within our consolidated financial statements in accordance with GAAP and such amounts measured in accordance with the laws of various taxing jurisdictions and as reported in our tax returns. A DTA generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes, when net operating loss carry forwards are applied against future taxable income, or when tax credit carry forwards are utilized on our tax returns. As of December 31, 2017, the majority of our DTA resulted from net operating loss and tax credit carryforwards, which will not be realized unless we generate taxable income in the future. We evaluate our net deferred tax asset on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable and we provide for valuation allowances on those portions of the DTA that we don’t expect to realize. Significant judgment is required in determining the realizability of our DTA. The assessment of whether valuation allowances are required considers, among other matters, the nature, frequency and severity of any current and cumulative losses, forecasts of future profitability, the duration of statutory carry forward periods, our experience with loss carry forwards not expiring unused and tax planning alternatives. In analyzing the need for valuation allowances, we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions in which we operate, our financial performance in recent quarters, statutory carry forward periods and tax planning alternatives. Finally, we considered both our near and long-term financial outlook. After considering all available evidence both positive and negative, we concluded that recognition of valuation allowances for substantially all of our DTA was not required. The following is a summary of the components of our net deferred tax assets as of the periods presented: (in thousands) December 31, 2017 January 1, 2017 Deferred tax asset: Deferred rent $ 567 $ 3,184 Federal net operating loss carry-forwards 2,486 — State net operating loss carry-forwards 3,573 2,325 Intangible property basis difference 138 — Financing lease obligation 393 1,028 Tax credit carryover 1,761 910 Accrued expenses 74 585 Stock-based compensation 141 472 Deferred revenue 257 452 Lease reserve 449 222 Accrued and deferred compensation 38 67 Contribution carryover 36 18 Inventories 5 9 Total deferred tax asset $ 9,918 $ 9,272 Deferred tax liability: Property and equipment basis difference $ (1,060) $ (1,671) Inventories (60) (295) Prepaid expenses (139) (269) Intangible property basis difference — (56) Total deferred tax liability $ (1,259) $ (2,291) Net deferred tax assets 8,659 6,981 Valuation allowance (2,836) (2,348) Deferred tax asset $ 5,823 $ 4,633 During the year ended December 31, 2017, the net change in our DTA valuation allowance was approximately $488,000. As of December 31, 2017, we had cumulative state net operating loss carry-forwards for tax reporting purposes of approximately $53.9 million and federal net operating loss carry-forwards for tax reporting purposes of $11.8 million which, if not used, will begin to expire in fiscal 2018 and 2037, respectively. The following is a reconciliation from our statutory tax rate to our effective tax rate for the periods presented: Year Ended December 31, 2017 January 1, 2017 Federal statutory tax rate 34.0 % 34.0 % State taxes, net of valuation allowance and federal benefit 2.4 4.0 Federal rate change and impact on state benefit (24.1) — Foreign taxes (0.9) (1.6) Tax effect of permanent differences (2.0) (4.5) Tax effect of general business credits 3.7 5.0 Tax effect of foreign tax credit 0.9 1.6 Uncertain tax positions 1.7 (2.1) Stock-based compensation (4.4) — Other 0.2 (0.8) Effective tax rate 11.5 % 35.6 %

ASSET IMPAIRMENT AND ESTIMATED

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS	12 Months Ended
	Dec. 31, 2017
Asset Impairment Charges [Abstract]
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Text Block]	(13) ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS Beginning in fiscal 2016, we initiated a restaurant optimization and refranchising initiative whereby we reviewed our restaurant portfolio for locations that were slow to respond to several initiatives to improve operating performance. We continued this initiative into fiscal 2017 and identified certain restaurants that were to be closed significantly before the end of the previously estimated useful lives. As a result of the reassessment of the useful lives of these restaurants, we recognized accelerated depreciation expense of approximately $870,000. We closed 13 restaurants during the year ended December 31, 2017 in accordance with this restaurant optimization and refranchising initiative. The following is a summary of asset impairment, estimated lease termination and other closing costs for the periods presented: Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Restaurant Optimization Asset impairments, net $ 3,154 $ 4,426 Lease termination charges and related costs 3,403 — Restaurant closure expenses 259 206 Software — 156 Asset impairment, estimated lease termination and other closing costs $ 6,816 $ 4,788 Below reflects the change in our reserve for lease termination costs for the periods presented: Deductions Credits to Additions Costs and Balance at Charged to Expenses Balance at Beginning of Costs and and Other End of (in thousands) Period Expenses Accounts Period Year Ended December 31, 2017 Reserve for lease termination costs $ 594 3,150 (1,945) $ 1,799 Year Ended January 1, 2017 Reserve for lease termination costs $ 609 89 (104) $ 594 These amounts were recorded in other current liabilities or other liabilities depending on when we expected the amounts to be paid.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(14) FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement framework establishes a three-tier hierarchy. The three levels, in order of priority, are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 1 measurements are determined by observable inputs which include data sources and market prices available and visible outside of the entity. Level 2: Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. Level 3: Inputs that are used to estimate the fair value of the asset or liability. Level 3 measurements are determined by unobservable inputs, which include data and analyses developed within the entity to assess the fair value. For assets and liabilities falling within Level 3 of the fair value hierarchy, a change in the input assumptions used could result in a change in the estimated fair value of the asset or liability. Transfers in and out of levels will be based on our judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximates fair value based on current interest rates and short-term maturities. The carrying amount of accounts receivable approximates fair value due to the short-term nature of accounts receivable. We believe that the carrying amount of long-term debt approximates fair value due to the variable interest rates charged on long-term debt or as a result of the proximity of the refinancing to the end of the fiscal year. The following table (in thousands) summarizes the assets held for sale and property and equipment, net, measured at fair value in our consolidated balance sheet as of December 31, 2017 and January 1, 2017: (in thousands) Level 1 Level 2 Level 3 Total Balance at December 31, 2017 Assets Property and Equipment, net $ — $ — $ 828 $ 828 Balance at January 1, 2017 Assets Assets Held for Sale $ — $ 1 $ — $ 1 Property and Equipment, net $ — $ — $ 1,742 $ 1,742 Property and Equipment, net, is recorded at fair upon broker’s estimate of value or estimated discounted future cash flows (Level 3). These assets have been adjusted to net realizable value based upon the decision to dispose of the property. The Company completed its sale of assets held for sale recorded in Level 3 during fiscal 2016. The fair value of amounts disclosed as property and equipment, net, reported in the table above within Level 3 changed during fiscal 2016 as a result of the Company’s impairment analysis surrounding certain of its property and equipment assets.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	12 Months Ended
	Dec. 31, 2017
Variable interest entity not primary beneficiary abstract
Variable interest entity disclosure [Text Block]	(15) VARIABLE INTEREST ENTITIES A variable interest holder is considered to be the primary beneficiary of a variable interest entity (“VIE”) if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Once an entity is determined to be a VIE, the primary beneficiary is required to consolidate the entity. We have an installment agreement with one of our franchisees as the result of refranchising our Lincoln, Nebraska restaurant. This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities; therefore, the franchise operations are not required to be consolidated in our consolidated financial statements. On August 11, 2015, we consummated the sale of our Greenwood, Indiana restaurant. In conjunction with that agreement, we entered into a lease assignment agreement with the purchaser and landlord, releasing us of our obligations except in the event of default by the purchasers. As of December 31, 2017, the amount of the future lease payments for which we would be liable in the event of a default are approximately $106,000. An accrual related to a future obligation was not considered necessary as of December 31, 2017. This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities; therefore, the franchise operations are not required to be consolidated in our consolidated financial statements. On March 1, 2016, we consummated the sale of our Chicago, Illinois-area restaurants. In conjunction with that agreement, we entered into lease assignment agreements with the respective purchasers and two of the landlords, releasing us from our obligations except in the event of default by the purchasers. In 2017, the franchisee closed the restaurants and ceased to pay the lease payments. As of December 31, 2017, the remaining future minimum lease payments for which we are responsible totaled $1.5 million and we had recorded lease reserves totaling $1.0 million. See Note 13 “Asset Impairment, Estimated Lease Termination and Other Closing Costs.” This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities; therefore, the franchise operations are not required to be consolidated in our consolidated financial statements. On November 1, 2017, we sold our Frederick, Maryland restaurant. Pursuant to the terms of the Frederick Agreement, we remained the primary obligor of the lease. As of December 31, 2017, the amount of future lease payments for which we would be liable in the event of a default are approximately $756,000. An accrual related to the future lease obligation was not considered necessary as of December 31, 2017. See Note 11 “Discontinued Operations.”

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	(16) RELATED PARTY TRANSACTIONS Michael Lister served as our Chief Executive Officer and Chief Operating Officer from October 2016 to November 2017. Doug Renegar served as our Senior Vice President of Franchise Operations from October 2016 to November 2017. Messrs. Lister and Renegar manage Famous Five Dining, a corporation that owns four franchised Famous Dave’s restaurants. Anand D. Gala is a franchisee and currently serves as one of our directors. Mr. Gala is the Founder, President and Chief Executive Officer of Gala Holdings International, a diversified holding company that conducts consulting, restaurant development and management operations. Mr. Gala’s brother owns Altametrics, LLC, a software company to which we paid approximately $127,000 during the year ended January 1, 2017. In December 2017, due to significant negative cash flow and risk of restaurant closure, Mr. Gala requested and we approved a royalty abatement on two of his restaurants for three years, beginning in fiscal 2018. These restaurants will have an effective royalty rate of 2.5% for fiscal 2018, 3.5% for fiscal 2019, 4.0% for fiscal 2020 and return to 5.0% thereafter. On November 10, 2017, we entered into a Stock Purchase Agreement (the “Purchase Agreement”) by and between us and PW Partners, LLC (“PW Partners”). Pursuant to the Purchase Agreement, we sold to PW Partners on behalf of its designated client, FS Special Opportunities I, L.P. (the “Purchaser’s Designee”), 418,169 shares of our common stock (the “Private Placement”). The Purchase Agreement provides further that PW Partners has assigned its rights under the Purchase Agreement to the Purchaser’s Designee; provided, however, that PW Partners retains its obligations under the Purchase Agreement. On January 29, 2018, we entered into a Standby Purchase Agreement (the “Standby Purchase Agreement”) with PW Partners, in connection with the previously announced proposed non-transferable rights offering (the “Rights Offering”). The Standby Purchase Agreement provides that PW Partners will (a) exercise its non-transferable rights to subscribe for and purchase its pro rata amount of newly-issued shares of our common stock, at a price per share, which our board of directors has set at $3.50 per share (the “Subscription Price”), and (b) purchase in a private placement separate from the Rights Offering, at the Subscription Price and subject to the terms and conditions of the Standby Purchase Agreement, any shares of our common stock that are not subscribed for in the Rights Offering pursuant to our stockholders’ exercise of their rights. Notwithstanding the foregoing, the Standby Purchase Agreement also provides that PW Partners will not purchase shares of our common stock in an amount that would result in the Standby Purchaser beneficially owning 20% or more of the outstanding common stock after such purchase. PW Partners is affiliated with PW Capital Management, LLC (“PW Capital”). Pursuant to the Purchase Agreement, Jeffery Crivello, the Chief Financial Officer of PW Capital, became our Chief Executive Officer, effective November 14, 2017. On December 8, 2017, as a part of settlement of a legal dispute and distressed situation, we approved the transfer of seven franchise restaurants in Utah and Washington (the “Transferred Restaurants”) to an entity (the “Acquirer”) controlled by Charles Davidson, who is the beneficial owner of 19.2% of the Company as a result of his positions as the Co-founder, Chairman and Chief Investment Officer of Wexford Capital LP. The previous franchisee of these seven restaurants experienced financial difficulties for more than one year and, at the time of the sale to the Acquirer, was more than one year in arrears with royalty, miscellaneous and national advertising fund payments that totaled approximately $1.4 million. The previous franchisee engaged a broker who marketed the franchise for several months, which resulted in two potential buyers, one of whom dropped out of the process. These stores were severely neglected, and this was determined to be the best path to economic recovery. In connection with settling the dispute with the previous franchisee, the Company collected $350,000 in cash from the previous franchisee. Pursuant to the settlement, we wrote off accounts receivable of approximately $1.0 million. As part of the transaction, we agreed to certain concessions in order to facilitate the transfer of the Transferred Restaurants to the Acquirer and to incentivize the Acquirer to invest the funds necessary to improve the operations of the Transferred Restaurants and to provide innovation to the Famous Dave’s concept. The economic concessions consisted of the following: · A $500,000 repairs and maintenance credit (the “R&M Credit”), payable through a 50% reduction in required royalty payments until the credit is exhausted; · Royalty relief, in addition to the R&M Credit, of 2.0% in months one through 12 for an effective royalty rate of 3.0% and 1.0% in months 13 through 24 for an effective royalty rate of 4.0%, and a full royalty of 5.0% to be paid thereafter (“Royalty Relief”); · Development rights in the states of Utah and Washington in exchange for a commitment to open three restaurants before May 1, 2027; and, · Waiver of initial and future franchise fees and area development fees. In addition to these economic concessions, we modified our standard franchise agreement to eliminate or limit certain obligations of Acquirer as a franchisee, including: · Waiver of reacquisition fees for two additional ten-year terms; · Acquirer will spend 1.0% of net sales on local marketing, as opposed to the standard 1.5%. The following table outlines amounts received from related parties during the years ended December 31, 2017 and January 1, 2017: Year Ended (in thousands) December 31, 2017 January 1, 2017 Revenues and NAF contributions - Anand Gala $ 1,935 $ 2,135 Revenues and NAF contributions - Michael Lister and Doug Renegar 493 500 Revenues and NAF contributions - Charles Davidson 54 — The following table outlines accounts receivable, net from related parties as of December 31, 2017 and January 1, 2017: (in thousands) December 31, 2017 January 1, 2017 Accounts receivable, net - Anand Gala $ 301 $ 370 Accounts receivable, net - Michael Lister and Doug Renegar 48 50 Accounts receivable, net - Charles Davidson 32 —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Jan. 01, 2017
Subsequent Events [Abstract]
Subsequent Events Disclosure [Text Block]	(17) SUBSEQUENT EVENTS The Company evaluated for the occurrence of subsequent events through the issuance date of the Company’s financial statements. No other recognized or non-recognized subsequent events occurred that require recognition or disclosure in the consolidated financial statements except as noted below. On January 30, 2018, we entered into a purchase and sale agreement to sell a vacant restaurant site in Glen Allen, Virginia for $765,000. The restaurant site was previously written down to net realizable value during the year ended December 31, 2017. Also on January 30, 2018, we completed the sale of the liquor license referenced in Note 4 “Property, Equipment and Leasehold Improvements.

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2017
Valuation and Qualifying Accounts [Abstract]
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS [Text Block]	Financial Statement Schedule SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Credits to Costs and Balance at Charged to Expenses Balance at Beginning of Costs and and Other End of (in thousands) Period Expenses Accounts Period Year ended January 1, 2017: Allowance for doubtful accounts $ 246 $ 87 $ (62) $ 271 Reserve for lease termination costs 609 89 (104) 594 Reserve for corporate severance 20 170 (190) — Year ended December 31, 2017: Allowance for doubtful accounts $ 271 $ 1,599 $ (1,278) $ 592 Reserve for lease termination costs 594 3,150 (1,945) 1,799 Reserve for corporate severance — 796 (441) 355

NATURE OF BUSINESS AND SIGNIF25

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Nature Of Business And Significant Accounting Policies [Abstract]
Nature Of Business [Policy Text Block]	Nature of business We, Famous Dave’s of America, Inc. (“Famous Dave’s” or the “Company”), were incorporated in Minnesota on March 14, 1994. We develop, own, operate and franchise restaurants under the name "Famous Dave’s.” As of December 31, 2017, there were 150 Famous Dave’s restaurants operating in 32 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates, including 16 Company-owned restaurants and 134 franchise-operated restaurants. An additional 61 franchise restaurants were committed to be developed through signed area development agreements as of December 31, 2017. Seasonality Our restaurants typically generate higher revenue in the second and third quarters of our fiscal year as a result of seasonal traffic increases and high catering sales experienced during the summer months, and lower revenue in the first and fourth quarters of our fiscal year, due to possible adverse weather which can disrupt customer and team member transportation to our restaurants.
Principles Of Consolidation Policy [Policy Text Block]	Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.
Management's Use Of Estimates [Policy Text Block]	Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.
Reclassification [Policy Text Block]	Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year’s presentation of discontinued operations.
Financial Instruments [Policy Text Block]	Financial instruments Due to their short-term nature, the carrying value of our current financial assets and liabilities approximates their fair value. The fair value of long-term debt approximates the carrying amount based upon our expected borrowing rate for debt with similar remaining maturities and comparable risk.
Segment Reporting [Policy Text Block]	Segment reporting We have Company-owned and franchise-operated restaurants in the United States, the Commonwealth of Puerto Rico, Canada and the United Arab Emirates, and operate within the single industry segment of foodservice. We make operating decisions on behalf of the Famous Dave’s brand which includes both Company-owned and franchise-operated restaurants. In addition, all operating expenses are reported in total and are not allocated to franchising operations for either external or internal reporting. As a result, we have concluded that we have a single reporting segment.
Fiscal Year [Policy Text Block]	Fiscal year Our fiscal year ends on the Sunday nearest to December 31 of each year. Our fiscal year is generally 52 weeks; however, it periodically consists of 53 weeks. The fiscal years ended December 31, 2017 (fiscal 2017) and January 1, 2017 (fiscal 2016) consisted of 52 weeks
Cash And Cash Equivalents [Policy Text Block]	Cash and cash equivalents Cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000, while the remaining balances are uninsured. As of December 31, 2017 and January 1, 2017, our uninsured cash and restricted cash balances were $9.0 million and $7.1 million, respectively. There have been no losses of uninsured amounts.
Restricted Cash and Marketing Fund [Policy Text Block]	Restricted cash and marketing fund We have a system-wide Marketing Development Fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, currently 1.0%, for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, we reflect the cash related to this fund within restricted cash and reflect the liability within accounts payable on our consolidated balance sheets. We had approximately $1.3 million and $946,000 in this fund as of December 31, 2017 and January 1, 2017, respectively. In conjunction with our credit agreements, we have deposited amounts for undrawn letters of credit in cash collateral accounts. We had approximately $298,000 and $768,000 in restricted cash as of December 31, 2017 and January 1, 2017, respectively, related to these undrawn letters of credit.
Accounts Receivable, Net [Policy Text Block]	Accounts receivable, net We provide an allowance for uncollectible accounts on accounts receivable based on historical losses and existing economic conditions, when relevant. We provide for a general bad debt reserve for franchise receivables due to increases in days sales outstanding and deterioration in general economic market conditions. This general reserve is based on the aging of receivables meeting specified criteria and is adjusted each quarter based on past due receivable balances. Additionally, we have periodically established a specific reserve on certain receivables as necessary. In assessing recoverability of these receivables, we make judgments regarding the financial condition of the franchisees based primarily on past and current payment trends, as well as other variables, including annual financial information, which our franchisees are required to submit to us. Any changes to the reserve are recorded in general and administrative expenses. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Accounts receivable balances written off have not exceeded allowances provided and we believe all accounts receivable in excess of allowances provided are fully collectible. If accounts receivable in excess of provided allowances are determined uncollectible, they are charged to expense in the period that determination is made. As of December 31, 2017, we had a receivable from one franchisee in the amount of $509,000, of which a portion is reserved in accordance with our standard policies.
Inventories [Policy Text Block]	Inventories Inventories consist principally of small wares and supplies, food and beverages, and retail goods, and are recorded at the lower of cost (first-in, first-out) or net realizable value.
Property, Equipment And Leasehold Improvements, Net [Policy Text Block]	Property, equipment and leasehold improvements, net Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation. We recognize depreciation expense utilizing the straight-line method once an asset has been placed into service. The following table outlines the useful lives of our major classes of property, equipment and leasehold improvements: Land N/A Buildings 30 years Leasehold improvements 0 - 30 years Furniture, fixtures, and equipment (excluding restaurant signage) 3 - 7 years Restaurant signage 10 - 15 years Decor 7 years We capitalize labor costs associated with the implementation of significant information technology infrastructure projects based on actual labor rates per person including benefits, for all time spent on the implementation of software and are depreciated over 5 years. We capitalize construction overhead costs until the time a building is turned over to operations, which is approximately two weeks prior to opening and depreciate these items over the same useful life as leasehold improvements. We evaluate restaurant sites and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of restaurant sites to be held and used is measured by a comparison of the carrying amount of the restaurant site to the undiscounted future net cash flows expected to be generated on a restaurant-by-restaurant basis. If a restaurant site is determined to be impaired, the loss is measured as the amount by which the carrying amount of the restaurant site exceeds its fair value. Fair value is estimated based on the best information available including estimated future cash flows, expected growth rates in comparable restaurant sales, remaining lease terms and other factors.
Intangible Assets [Policy Text Block]	Intangible Assets We have transferable liquor licenses in jurisdictions with a limited number of authorized liquor licenses. These licenses were capitalized as indefinite-lived intangible assets and are included in intangible assets, net in our consolidated balance sheets. We review annually the liquor licenses for impairment. The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. Annual liquor license renewal fees are expensed over the renewal term. We have lease interest assets that are reflected within intangible assets, net on our consolidated balance sheets. The current and long-term portion of lease interest liabilities are reflected within the other current liabilities and other liabilities line items on our consolidated balance sheets, respectively. Lease interest assets and liabilities are amortized to rent expense over the term of the leases to which they relate.
Advertising Costs [Policy Text Block]	Advertising Advertising costs are charged to expense as incurred. Advertising costs were approximately $2.2 million and $2.0 million for the years ended December 31, 2017 and January 1, 2017, respectively, and are included in operating expenses for local store marketing in the consolidated statements of operations. Advertising costs incurred related to our national advertising fund are netted with contributions from our Company-owned stores and certain of our franchisees.
Research And Development Expense Policy Text Block	Research and development costs Research and development costs represent all expenses incurred in relation to the creation of new menu and promotional offerings, recipe enhancements and documentation activities. Research and development costs were approximately $382,000 and $510,000 for the years ended December 31, 2017 and January 1, 2017, respectively, and are included in general and administrative expenses in the consolidated statements of operations.
Pre-opening Expenses [Policy Text Block]	Pre-opening expenses All start-up and pre-opening costs are expensed as incurred. Pre-opening rent during the build-out period is included in pre-opening expense. We did not incur any pre-opening expenses during the years ended December 31, 2017 and January 1, 2017.
Lease Accounting [Policy Text Block]	Leases We recognize rent expense on a straight-line basis for our operating leases over the entire lease term, including lease renewal options and build-out periods where the renewal is reasonably assured and the build-out period takes place prior to the restaurant opening or lease commencement date. Rent expense recorded during the build-out period is reported as pre-opening expense. We account for construction allowances by recording a receivable when collectability is considered to be probable, and relieve the receivable once the cash is obtained from the landlord for the construction allowance. Construction allowances are amortized as a credit to rent expense over the full term of the lease, including reasonably assured renewal options and build-out periods.
Exit and Disposal Costs [Policy Text Block]	Exit and disposal costs Exit or disposal activities, including restaurant closures, include the cost of disposing of the assets and other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same caption as the original impairment within our consolidated statements of operations. We recognize a liability for the fair value of a required asset retirement obligation (“ARO”) when such obligation is incurred. Our AROs are primarily associated with leasehold improvements which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. Costs incurred for restaurants that have been closed, after the date of their closure, are presented within the asset impairment, estimated lease termination and other closing costs line item of our consolidated statements of operations.
Net (Loss) Income Per Common Share [Policy Text Block]	Net (loss) income per common share Basic net (loss) income per common share (“EPS”) is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net (loss) income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. The following table is a reconciliation of basic and diluted net (loss) income per common share: Year Ended (in thousands, except per share data) December 31, 2017 January 1, 2017 Net (loss) income per share – basic: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - basic 7,015 6,950 Basic net loss per share - continuing operations $ (0.95) $ (0.59) Basic net (loss) income per share - discontinued operations (0.21) 0.24 Basic net loss per share $ (1.16) $ (0.35) Net (loss) income per share – diluted: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - diluted 7,015 6,950 Diluted net loss per share - continuing operations $ (0.95) $ (0.59) Diluted net (loss) income per share - discontinued operations (0.21) 0.24 Diluted net loss per share $ (1.16) $ (0.35) There were approximately 539,000 and 683,000 stock options as of December 31, 2017 and January 1, 2017, respectively that were not included in the computation of diluted EPS because they were anti-dilutive.
Stock-based Compensation [Policy Text Block]	Stock-based compensation We recognize compensation cost for share-based awards granted to team members and board members based on their fair values at the time of grant over the requisite service period. Stock options granted to non-employees are marked to market as they vest. The bonus compensation of our Chief Executive Officer is issued in the form of unrestricted, freely tradable shares of our common stock and is expensed in full when earned. Our pre-tax compensation cost for stock options and other incentive awards is included in general and administrative expenses in our consolidated statements of operations. See Note 9 “Stock-based compensation.”
Income Taxes [Policy Text Block]	Income Taxes We provide for income taxes based on our estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. Our estimates are based on the information available to us at the time that we prepare the income tax provision. We generally file our annual income tax returns several months after our fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws.
Revenue Recognition [Policy Text Block]	Revenue recognition In fiscal 2018, we will be required to adopt ASC 606 – Revenue from Contracts with Customers, which will materially impact the way that we recognize revenue. See “Recent Accounting Guidance Not Yet Adopted” below for more information. We record restaurant sales at the time food and beverages are served. We record sales of merchandise items at the time items are delivered to the Guest. All sales taxes are excluded from revenue. We have detailed below our revenue recognition policies for franchise and licensing agreements. Initial franchise fee revenue is recognized when we have performed substantially all of our obligations as franchisor. Franchise royalties are recognized when earned. Our franchise-related revenue is comprised of three separate and distinct earnings processes: area development fees, initial franchise fees and continuing royalty payments. Our area development fee for domestic growth consists of a one-time, non-refundable payment in consideration for the services we perform in preparation of executing each area development agreement. Area development fees are recognized in full upon receipt. We recognize a portion of franchise fees as revenue when the agreement is signed, reflecting expenses incurred related to the sale. The remaining non-refundable fee is included in deferred franchise fees and is recognized as revenue when we have performed substantially all of our obligations, which generally occurs upon the franchise entering into a lease agreement for the restaurant. Franchisees are also required to pay us a monthly royalty equal to a percentage of their net sales. We have a licensing agreement for our retail products, the current term of which expires in April 2020 with renewal options of five years, subject to the licensee’s attainment of identified minimum product sales levels. Licensing revenue is recorded based on royalties earned by us in accordance with our agreement. Periodically, we provide additional services, beyond the general franchise agreement, to our franchise operations, such as new restaurant training, information technology setup and décor installation services. The cost of these services is recognized upon completion and is billed to the respective franchisee and is generally payable on net 30‑day terms. Gift cards We record a liability in the period in which a gift card is issued and proceeds are received. As gift cards are redeemed, this liability is reduced and revenue is recognized. We recognize gift card breakage income as an offset to operating expense based on a stratified breakage rate per year. This breakage rate is based on a percentage of sales when the likelihood of the redemption of the gift card becomes remote. In fiscal 2018, we will be required to adopt ASC 606 – Revenue from Contracts with Customers , which will change the method in which we recognize breakage income in the future. See “Recent Accounting Guidance Not Yet Adopted” below for more information.

NATURE OF BUSINESS AND SIGNIF26

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Nature Of Business And Significant Accounting Policies [Abstract]
Schedule of Earnings Per Share Reconciliation [Table Text Block]	Year Ended (in thousands, except per share data) December 31, 2017 January 1, 2017 Net (loss) income per share – basic: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - basic 7,015 6,950 Basic net loss per share - continuing operations $ (0.95) $ (0.59) Basic net (loss) income per share - discontinued operations (0.21) 0.24 Basic net loss per share $ (1.16) $ (0.35) Net (loss) income per share – diluted: Net loss from continuing operations $ (6,666) $ (4,105) Net (loss) income from discontinued operations, net of tax (1,457) 1,674 Net loss (8,123) (2,431) Weighted average shares outstanding - diluted 7,015 6,950 Diluted net loss per share - continuing operations $ (0.95) $ (0.59) Diluted net (loss) income per share - discontinued operations (0.21) 0.24 Diluted net loss per share $ (1.16) $ (0.35)
Schedule of Property, Plant and Equipment, Useful Lives [Table Text Block]	Land N/A Buildings 30 years Leasehold improvements 0 - 30 years Furniture, fixtures, and equipment (excluding restaurant signage) 3 - 7 years Restaurant signage 10 - 15 years Decor 7 years

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule Of Inventory Current [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Food and beverage $ 324 $ 711 Other 58 58 Small wares and supplies 251 730 $ 633 $ 1,499

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2017
Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Lease interest assets, gross carrying amount $ 1,091 $ 1,091 Lease interest assets, accumulated amortization (286) (249) Lease interest assets, net carrying amount 805 842 Liquor licenses 1,035 1,760 Intangible assets, net $ 1,840 $ 2,602
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	(in thousands) December 31, 2017 Fiscal 2018 $ 36 Fiscal 2019 36 Fiscal 2020 36 Fiscal 2021 36 Fiscal 2022 36 Thereafter 625 $ 805

PROPERTY, EQUIPMENT, AND LEASEH

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Equipment, And Leasehold Improvements, Net [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Land, buildings, and improvements $ 26,234 $ 50,851 Furniture, fixtures, and equipment 19,884 35,609 Décor 764 1,553 Construction in progress 187 181 Accumulated depreciation and amortization (35,627) (62,282) Property, equipment and leasehold improvements, net $ 11,442 $ 25,912

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Other Current Liabilities [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Gift cards payable $ 1,000 $ 1,448 Miscellaneous other current liabilities 668 810 Lease reserves, current 1,165 330 Sales tax payable 242 454 Accrued real estate tax 26 79 Deferred franchise fees — 16 Accrued property and equipment purchases 17 3 Other current liabilities $ 3,118 $ 3,140

OTHER LIABILITES (Tables)

OTHER LIABILITES (Tables)	12 Months Ended
	Dec. 31, 2017
Other Liabilities [Abstract]
Schedule Of Other Liabilities [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Deferred rent $ 2,463 $ 7,802 Miscellaneous other liabilities 730 358 Asset retirement obligations 119 119 Accrual for uncertain tax position 15 139 Long term lease reserve 514 145 Long term deferred compensation 122 142 Other liabilities $ 3,963 $ 8,705

LONG-TERM DEBT AND FINANCING 32

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule Of Debt [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Real Estate Loan $ 3,581 $ 3,700 Term Loan 5,515 6,300 Less: deferred financing costs (224) (234) Less: current portion of long-term debt (940) (917) Long-term debt, less current portion $ 7,932 $ 8,849
Schedule Of Maturities Of Long Term Debt Table [Table Text Block]	(in thousands) Fiscal Year 2018 $ 940 2019 981 2020 1,023 2021 1,069 2022 1,116 Thereafter 3,967 Total $ 9,096
Schedule Of Financing Lease Obligations [Table Text Block]	( in thousands ) December 31, 2017 January 1, 2017 Financing lease obligation $ 1,576 $ 2,757 Less: deferred financing costs (13) (23) Less: current portion of financing lease obligation (367) (454) Financing lease obligation, less current portion $ 1,196 $ 2,280
Schedule Of Future Minimum Lease Payments For Financing Lease Obligation [Table Text Block]	(in thousands) Fiscal Year 2018 $ 480 2019 1,232 Total minimum payments 1,712 Less: amounts representing interest (136) Total financing lease payable $ 1,576

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Occpuancy Cost Information [Table Text Block]	Year Ended (in thousands) December 31, 2017 January 1, 2017 Rent expense $ 2,950 $ 4,282 Cash rental payments 3,024 3,737 Sublease income (264) (386)
Schedule Of Future Minimum Rental Payments For Operating Leases [Table Text Block]	(in thousands) Fiscal Year 2018 $ 1,892 2019 1,702 2020 1,587 2021 1,575 2022 1,308 Thereafter 3,424 Total operating lease obligations 11,488 Sublease income (1,230) Total $ 10,258

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation [Abstract]
Schedule of Share-Based Compensation [Table Text Block]	Year Ended (in thousands) December 31, 2017 January 1, 2017 Stock options $ 218 $ 311 Shares of common stock 85 — Restricted stock 10 28 $ 313 $ 339
Schedule of Stock Options Roll Forward [Table Text Block]	Weighted Average Number of Remaining Aggregate Options Weighted Average Contractual Intrinsic Value (in thousands) Exercise Price Life in Years (in thousands) Options outstanding at January 3, 2016 507 16.66 5.3 $ — Granted 416 5.55 — Exercised (6) 5.90 Canceled, forfeited or expired (231) 19.44 — Options outstanding at January 1, 2017 686 9.15 5.7 Granted 165 4.20 — Exercised (3) 5.42 Canceled, forfeited or expired (309) 11.04 — Options outstanding at December 31, 2017 539 $ 6.60 6.6 $ Options Exercisable at December 31, 2017 266 $ 8.09 4.2 $
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	Year Ended December 31, 2017 January 1, 2017 Weighted-average fair value of options granted during the period $ 1.78 $ 1.97 Expected life (in years) 5.3 5.2 Expected dividend $ — $ — Expected stock volatility 43.47 % 39.98 % Risk-free interest rate 2.0 % 1.2 %

RETIREMENT SAVINGS PLANS (Table

RETIREMENT SAVINGS PLANS (Tables)	12 Months Ended
	Dec. 31, 2017
Retirement Savings Plans [Abstract]
Schedule of 401(k) Information [Table Text Block]	Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Employer contribution rate, percent of employee contributions 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings 4.0 % 4.0 % Employee contributions $ 529 $ 338 Employer match $ 87 $ 54 Discretionary contributions $ — $ —
Schedule of Deferred Compensation Plan Information [Table Text Block]	Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Employer contribution rate, percent of employee contributions 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings 4.0 % 4.0 % Declared interest rate 6.0 % 6.0 % Employee contributions $ 41 $ 64 Employer match and interest $ 7 $ 35 Distributions $ 43 $ 368

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations [Table Text Block]	The following table provides certain information from our consolidated statements of operations related to the Chicago Restaurants and the Mid-Atlantic Restaurants: Year Ended (in thousands) December 31, 2017 January 1, 2017 Restaurant sales, net $ 18,831 $ 24,920 Cost of sales (16,998) (22,662) General and administrative expenses (149) (222) Depreciation and amortization (611) (819) Operating income 1,073 1,217 Gain (loss) on disposal attributable to discontinued operations (3,419) 1,170 Income (loss) attributable to discontinued operations, before tax (2,346) 2,387 Income (loss) attributable to discontinued operations, tax effect 889 (713) Income (loss) attributable to discontinued operations, net of tax $ (1,457) $ 1,674 The following table provides certain information from our consolidated balance sheets related to discontinued operations: (in thousands) December 31, 2017 January 1, 2017 Accounts receivable, net $ — $ 176 Inventories — 399 Prepaid expenses and other current assets — 60 Total current assets — 635 Other assets — 52 Property, equipment and leasehold improvements, net — 6,663 Total assets $ — $ 7,350 Accrued compensation and benefits (current) — 142 Other current liabilities — 139 Other liabilities (non-current) — 2,371 Total liabilities $ — $ 2,652

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax Table Text Block	Year Ended (in thousands) December 31, 2017 January 1, 2017 United States $ (7,807) $ (6,699) Foreign 283 322 Total $ (7,524) $ (6,377)
Schedule Of Components Of Income Tax Expense Benefit [Table Text Block]	Year Ended (in thousands) December 31, 2017 January 1, 2017 Current: Federal $ (418) $ 1,178 State — (85) Foreign (69) (99) (487) 994 Deferred: Federal 1,228 889 State 117 389 1,345 1,278 Total income tax benefit $ 858 $ 2,272
Schedule of Intraperiod Tax Allocation [Table Text Block]	Year Ended (in thousands) December 31, 2017 January 1, 2017 Continuing operations $ 858 $ 2,272 Discontinued operations 889 (713) Total income tax benefit $ 1,747 $ 1,559
Schedule Of Unrecognized Tax Benefits Roll Forward [Table Text Block]	(in thousands) Balance at January 3, 2016 47 Increases attributable to tax positions taken during prior periods 142 Audit settlements (41) Decreases due to lapses of statutes of limitations (33) Balance at January 1, 2017 115 Audit settlements (89) Decreases due to lapses of statutes of limitations (13) Balance at December 31, 2017 $ 13
Schedule Of Deferred Tax Assets And Liabilities [Table Text Block]	(in thousands) December 31, 2017 January 1, 2017 Deferred tax asset: Deferred rent $ 567 $ 3,184 Federal net operating loss carry-forwards 2,486 — State net operating loss carry-forwards 3,573 2,325 Intangible property basis difference 138 — Financing lease obligation 393 1,028 Tax credit carryover 1,761 910 Accrued expenses 74 585 Stock-based compensation 141 472 Deferred revenue 257 452 Lease reserve 449 222 Accrued and deferred compensation 38 67 Contribution carryover 36 18 Inventories 5 9 Total deferred tax asset $ 9,918 $ 9,272 Deferred tax liability: Property and equipment basis difference $ (1,060) $ (1,671) Inventories (60) (295) Prepaid expenses (139) (269) Intangible property basis difference — (56) Total deferred tax liability $ (1,259) $ (2,291) Net deferred tax assets 8,659 6,981 Valuation allowance (2,836) (2,348) Deferred tax asset $ 5,823 $ 4,633
Schedule Of Effective Income Tax Rate Reconciliation [Table Text Block]	Year Ended December 31, 2017 January 1, 2017 Federal statutory tax rate 34.0 % 34.0 % State taxes, net of valuation allowance and federal benefit 2.4 4.0 Federal rate change and impact on state benefit (24.1) — Foreign taxes (0.9) (1.6) Tax effect of permanent differences (2.0) (4.5) Tax effect of general business credits 3.7 5.0 Tax effect of foreign tax credit 0.9 1.6 Uncertain tax positions 1.7 (2.1) Stock-based compensation (4.4) — Other 0.2 (0.8) Effective tax rate 11.5 % 35.6 %

ASSET IMPAIRMENT AND ESTIMATE38

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables)	12 Months Ended
	Dec. 31, 2017
Asset Impairment Charges [Abstract]
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Table Text Block]	Year Ended (dollars in thousands) December 31, 2017 January 1, 2017 Restaurant Optimization Asset impairments, net $ 3,154 $ 4,426 Lease termination charges and related costs 3,403 — Restaurant closure expenses 259 206 Software — 156 Asset impairment, estimated lease termination and other closing costs $ 6,816 $ 4,788
Schedule Of Restructuring Reserve By Type Of Cost [Table Text Block]	Deductions Credits to Additions Costs and Balance at Charged to Expenses Balance at Beginning of Costs and and Other End of (in thousands) Period Expenses Accounts Period Year Ended December 31, 2017 Reserve for lease termination costs $ 594 3,150 (1,945) $ 1,799 Year Ended January 1, 2017 Reserve for lease termination costs $ 609 89 (104) $ 594

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	(in thousands) Level 1 Level 2 Level 3 Total Balance at December 31, 2017 Assets Property and Equipment, net $ — $ — $ 828 $ 828 Balance at January 1, 2017 Assets Assets Held for Sale $ — $ 1 $ — $ 1 Property and Equipment, net $ — $ — $ 1,742 $ 1,742

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions [Table Text Block]	The following table outlines amounts received from related parties during the years ended December 31, 2017 and January 1, 2017: Year Ended (in thousands) December 31, 2017 January 1, 2017 Revenues and NAF contributions - Anand Gala $ 1,935 $ 2,135 Revenues and NAF contributions - Michael Lister and Doug Renegar 493 500 Revenues and NAF contributions - Charles Davidson 54 — The following table outlines accounts receivable, net from related parties as of December 31, 2017 and January 1, 2017: (in thousands) December 31, 2017 January 1, 2017 Accounts receivable, net - Anand Gala $ 301 $ 370 Accounts receivable, net - Michael Lister and Doug Renegar 48 50 Accounts receivable, net - Charles Davidson 32 —

NATURE OF BUSINESS AND SIGNIF41

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)itemrestaurant$ / sharesshares	Jan. 01, 2017USD ($)restaurant$ / sharesshares
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	150
Number of States in which Entity Operates | item	32
Cash, FDIC Insured Amount	$ 250,000
Cash, Uninsured Amount	$ 9,000,000	$ 7,100,000
Franchisee Marketing Fund Contribution Rate	1.00%
Restricted Cash And Cash Equivalents	$ 1,590,000	1,714,000
Accounts receivable, net	3,768,000	5,257,000
Deferred Finance Costs Net	224,000	234,000
Advertising Expense	2,200,000	2,000,000
Research and Development Expense	382,000	510,000
Pre-opening expenses	$ 0	$ 0
License Agreement, Renewal Option Period	5 years
Basic net income per common share Abstract
Weighted average common shares outstanding basic | shares	7,015	6,950
Basic net income per common share | $ / shares	$ (1.16)	$ (0.35)
Weighted average common shares outstanding diluted | shares	7,015	6,950
Diluted net income per common share | $ / shares	$ (1.16)	$ (0.35)
Net income from continuing operations	$ (6,666,000)	$ (4,105,000)
Net income (loss) from discontinued operations, net of tax	(1,457,000)	1,674,000
Net income	$ (8,123,000)	$ (2,431,000)
Income (loss) from continuing operations per basic share | $ / shares	$ (0.95)	$ (0.59)
Income loss from discontinued operations per basic share | $ / shares	(0.21)	0.24
Income loss from continuing operations per diluted share | $ / shares	(0.95)	(0.59)
Income loss from discontinued operations per diluted share | $ / shares	$ (0.21)	$ 0.24
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | shares	539	683
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Revenue, Remaining Performance Obligation	$ 2,400,000
Area Development Agreements [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	1,000
Franchise Agreements [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	224,000
Customer Concentration Risk [Member]
Franchisor Disclosure Line Items
Accounts receivable, net	509,000
Cash Restricted for Letters of Credit [Member]
Franchisor Disclosure Line Items
Restricted Cash And Cash Equivalents	298,000	$ 768,000
Public Relations and Marketing Development Fund [Member]
Franchisor Disclosure Line Items
Restricted Cash And Cash Equivalents	$ 1,300,000	$ 946,000
Franchised Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	134
Committed Restaurants | restaurant	61
Entity Operated Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	16	16
Building [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	30 years
Decor [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	7 years
Software [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member]
Franchisor Disclosure Line Items
Franchise Agreement, Term	10 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] | Leasehold Improvements [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	0 years
Minimum [Member] | Restaurant Signage [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	10 years
Maximum [Member]
Franchisor Disclosure Line Items
Franchise Agreement, Term	25 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	7 years
Maximum [Member] | Leasehold Improvements [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	30 years
Maximum [Member] | Restaurant Signage [Member]
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Property, Plant and Equipment, Useful Life	15 years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Inventory Disclosure [Abstract]
Small Wares And Supplies	$ 251	$ 730
Food And Beverage	324	711
Other	58	58
Inventories	$ 633	$ 1,499

INTANGIBLE ASSETS, NET (Carryin

INTANGIBLE ASSETS, NET (Carrying Amounts) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Intangible Assets Disclosure [Abstract]
Lease interest assets, gross carrying amount	$ 1,091	$ 1,091
Lease interest assets, accumulated amortization	(286)	(249)
Lease interest assets, net carrying amount	805	842
Liquor licenses	1,035	1,760
Intangible assets, net	$ 1,840	$ 2,602

INTANGIBLE ASSETS, NET (Amortiz

INTANGIBLE ASSETS, NET (Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Intangible Assets Disclosure [Abstract]
Fiscal 2,018	$ 36
Fiscal 2,019	36
Fiscal 2,020	36
Fiscal 2,021	36
Fiscal 2,022	36
Thereafter	625
Lease interest assets, net carrying amount	$ 805	$ 842

PROPERTY, EQUIPMENT, AND LEAS45

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Property, Equipment, And Leasehold Improvements, Net [Abstract]
Land Buildings Improvements	$ 26,234	$ 50,851
Furniture Fixtures Equipment	19,884	35,609
Decor	764	1,553
Construction In Progress Gross	187	181
Accumulated depreciation and amortization	(35,627)	(62,282)
Property, equipment and leasehold improvements, net	11,442	25,912
Assets Of Disposal Group Including Discontinued Operation Current	475	$ 1
Disposal Group, Including Discontinued Operation, Consideration	$ 575

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Accrued Liabilities, Current [Abstract]
Gift cards payable	$ 1,000	$ 1,448
Miscellaneous other current liabilities	668	810
Lease reserves, current	1,165	330
Sales tax payable	242	454
Accrued real estate taxes	26	79
Deferred franchise fees		16
Accrued property and equipment purchases	17	3
Total other current liabilities	$ 3,118	$ 3,140

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Other Liabilities [Abstract]
Deferred rent	$ 2,463	$ 7,802
Miscellaneous other liabilities	730	358
Asset retirement obligations	119	119
Accrual for uncertain tax position	15	139
Long term lease reserve	514	145
Long term deferred compensation	122	142
Total other liabilities	$ 3,963	$ 8,705

LONG-TERM DEBT AND FINANCING 48

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 10
Line of Credit Facility, Maximum Borrowing Capacity	$ 1
Line of Credit [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Spirit Financing Lease [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	7.78%
Long-term Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	4.27%	4.00%
Second Loan Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 6.3
Debt Instrument, Basis Spread on Variable Rate	3.25%
First Loan Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 3.7
Debt Instrument, Years until Interest Rate Change	5 years
Debt Instrument, Basis Spread on Variable Rate	3.75%
Debt Instrument Interest Rate Stated Percentage	4.25%

LONG-TERM DEBT AND FINANCING 49

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Long-Term Debt and Financing Lease) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Debt Instrument Carrying Amount	$ 9,096
Less: deferred financing fees	(224)	$ (234)
Less: current maturities	(1,307)	(1,371)
Long-term debt, less current portion	7,932	8,849
Financing Lease Obligations Total	1,576	2,757
Financing lease obligations, less current portion	1,196	2,280
First Loan Agreement [Member]
Debt Instrument Carrying Amount	3,581	3,700
Second Loan Agreement [Member]
Debt Instrument Carrying Amount	5,515	6,300
Long-term Debt [Member]
Less: current maturities	(940)	(917)
Financing Lease Obligations [Member]
Less: deferred financing fees	(13)	(23)
Less: current maturities	$ (367)	$ (454)

LONG-TERM DEBT AND FINANCING 50

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Future Maturities) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Debt Disclosure [Abstract]
Long-term Debt, Maturities, Repayments of Principal in 2018	$ 940
Long-term Debt, Maturities, Repayments of Principal in 2019	981
Long-term Debt, Maturities, Repayments of Principal in 2020	1,023
Long-term Debt, Maturities, Repayments of Principal in 2021	1,069
Long-term Debt, Maturities, Repayments of Principal in 2022	1,116
Long-term Debt, Maturities, Repayments of Principal Thereafter	3,967
Debt Instrument Carrying Amount	9,096
Financing Lease Obligations, Future Minimum Payments Due in 2018	480
Financing Lease Obligations, Future Minimum Payments Due in 2019	1,232
Financing Lease Obligations, Future Minimum Payments Due, Total	1,712
Financing Lease Obligations, Amounts Representing Interest	(136)
Financing Lease Obligations Total	$ 1,576	$ 2,757

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Loss Contingency, Damages Sought, Value	$ 20
Maximum [Member]
Lessee, Operating Lease, Term of Contract	14 years
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	8.00%
Minimum [Member]
Lessee, Operating Lease, Term of Contract	1 month
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	5.00%

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Rent Info) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 2,950	$ 4,282
Cash rental payments	3,024	3,737
Sublease income	$ (264)	$ (386)

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES (Future Minimum) (Details) $ in Thousands	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Future Minimum Payments Due in 2018	$ 1,892
Operating Leases, Future Minimum Payments, Due in 2019	1,702
Operating Leases, Future Minimum Payments, Due in 2020	1,587
Operating Leases, Future Minimum Payments, Due in 2021	1,575
Operating Leases, Future Minimum Payments, Due in 2022	1,308
Operating Leases, Future Minimum Payments, Due Thereafter	3,424
Operating Leases Future Minimum Payments Due	11,488
Operating Leases Future Minimum Payments Due Sublease Revenue	(1,230)
Net Operating Lease Obligations	$ 10,258

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 313	$ 339
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized	$ 542
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 6 months 29 days
Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Non-Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Maximum [Member] | Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Minimum [Member] | Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Stock Option [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 218	311
Restricted Stock [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	10	$ 28
Performance Shares [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 85

STOCK-BASED COMPENSATION (Optio

STOCK-BASED COMPENSATION (Options Rollforward) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017	Jan. 03, 2016
Stock-Based Compensation [Abstract]
Outstanding options at beginning of period (in shares)	686	507
Options granted	165	416
Exercise of stock options (in shares)	(3)	(6)
Options forfeited or expired (in shares)	(309)	(231)
Outstanding options at end of period (in shares)	539	686	507
Options Exercisable	266
Exercisable Weighted Average Exercise Price	$ 8.09
Options Exercisable Weighted Average Remaining Contractual Term	4 years 2 months 12 days
Outstanding Weighted Average Price at beginning of period	$ 9.15	$ 16.66
Granted Weighted Average Exercise Price	4.20	5.55
Exercised Weighted Average Exercise Price	5.42	5.90
Forfeited or Expired Weighted Average Exercise Price	11.04	19.44
Outstanding Weighted Average Price at end of period	$ 6.60	$ 9.15	$ 16.66
Options Outstanding Weighted Average Remaining Contractual Term	6 years 7 months 6 days	5 years 8 months 12 days	5 years 3 months 18 days
Stock Options Exercisable Intrinsic Value	$ 187
Stock Options Exercised In Period Total Intrinsic Value	5	$ 4
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 598	$ 1

STOCK-BASED COMPENSATION (Valua

STOCK-BASED COMPENSATION (Valuation Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Stock-Based Compensation [Abstract]
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value	$ 1.78	$ 1.97
Fair Value Assumptions Expected Term	5 years 3 months 18 days	5 years 2 months 12 days
Expected stock volatility	43.47%	39.98%
Risk-free interest rate	2.00%	1.20%

RETIREMENT SAVINGS PLANS (Detai

RETIREMENT SAVINGS PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%	25.00%
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	4.00%	4.00%
Defined Contribution Plan, Employee Contribution	$ 529	$ 338
Defined Contribution Plan, Employer Match	$ 87	$ 54
Deferred Compensation Arrangements [Abstract]
Deferred Compensation Arrangement with Individual, Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%	25.00%
Deferred Compensation Arrangements, Maximum Annual Contribution Per Employee, Percent	4.00%	4.00%
Deferred Compensation Arrangements, Interest Paid, Percent	6.00%	6.00%
Deferred Compensation Arrangement with Individual, Employee Contribution	$ 41	$ 64
Deferred Compensation Arrangement with Individual, Employer Contribution	7	35
Deferred Compensation Arrangement with Individual, Distributions Paid	$ 43	$ 368

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details)	12 Months Ended
	Dec. 31, 2017USD ($)restaurant	Jan. 01, 2017USD ($)restaurant
Impaired Long-Lived Assets Held for Sale [Line Items]
Restaurants Sold, Line of Credit Agreement, Term	4 years
Accounts receivable, net		$ 176,000
Inventories		399,000
Prepaid expenses and other current assets		60,000
Total current assets		635,000
Other assets		52,000
Property, equipment and leasehold improvements, net		6,663,000
Total assets		7,350,000
Accrued compensation and benefits		142,000
Other current liabilities		139,000
Other liabilities		2,371,000
Total liabilities		2,652,000
Restaurant sales, net	$ 18,831,000	24,920,000
Cost of sales	(16,998,000)	(22,662,000)
General and administrative expenses	(149,000)	(222,000)
Depreciation and amortization	(611,000)	(819,000)
Operating income	1,073,000	1,217,000
Gain (loss) on disposal attributable to discontinued operations	(3,419,000)	1,170,000
Income (loss) attributable to discontinued operations, before tax	(2,346,000)	2,387,000
Discontinued operations	889,000	(713,000)
Income (loss) attributable to discontinued operations, net of tax	$ (1,457,000)	$ 1,674,000
Chicago Area Restaurants [Member]
Impaired Long-Lived Assets Held for Sale [Line Items]
Number of Locations Sold | restaurant		7
Mid-Atlantic Restaurants [Member]
Impaired Long-Lived Assets Held for Sale [Line Items]
Number of Locations Sold | restaurant	8
Restaurants sold, contract purchase price, gross	$ 2,350,000
Restaurants sold, contract purchase price, credits	$ 750,000
Restaurants sold, duration of time to utilize credit	1 year
Restaurants sold, line of credit, maximum amount	$ 750,000
Restaurants sold, percentage of rent to be paid by purchaser	50.00%
Restaurants sold, Line of Credit Agreement, Interest Rate	4.25%
Restaurants Sold, EBITDA Guarantee Percentage	50.00%
Restaurants Sold, EBITDA Guarantee, Twelve Month Threshold Amount	$ 25,000
Restaurants Sold, EBITDA Guarantee, Eighteen Month Threshold Amount	37,500
Discontinued Operation, Amounts of Material Contingent Liabilities Remaining	$ 21,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2017
Income Tax Examination Penalties And Interest Expense		$ (22,000)	$ 20,000
Income Tax Examination, Penalties and Interest Accrued		2,000	$ 25,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible		$ 14,000
Federal statutory tax rate		34.00%	34.00%
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change In Tax Rate, Provisional Income Tax Expense (Benefit)		$ 1,800,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		$ 488,000
Scenario, Forecast [Member]
Federal statutory tax rate	21.00%
Domestic Tax Authority [Member]
Open Tax Year		2,014
Operating Loss Carryforwards		$ 11,800,000
Operating Loss Carryforwards, Expiration Dates		Dec. 31, 2037
State and Local Jurisdiction [Member]
Open Tax Year		2,013
Operating Loss Carryforwards		$ 53,900,000
Operating Loss Carryforwards, Expiration Dates		Dec. 30, 2018

INCOME TAXES (Income Before Inc

INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]
United States	$ (7,807)	$ (6,699)
Foreign	283	322
Total	$ (7,524)	$ (6,377)

INCOME TAXES (Components of Inc

INCOME TAXES (Components of Income Tax) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Income Tax Disclosure [Abstract]
Federal	$ (418)	$ 1,178
State		(85)
Foreign	(69)	(99)
Current Income Tax Expense (Benefit), Total	(487)	994
Federal	1,228	889
State	117	389
Deferred Income Tax Expense (Benefit), Total	1,345	1,278
Income tax benefit	$ 858	$ 2,272

INCOME TAXES (Intraperiod Tax A

INCOME TAXES (Intraperiod Tax Allocation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Income Tax Disclosure [Abstract]
Continuing operations	$ 858	$ 2,272
Discontinued operations	889	(713)
Total income tax benefit	$ 1,747	$ 1,559

INCOME TAXES (Unrecognized Tax

INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Beginning Balance	$ 115	$ 47
Increases attributable to tax positions taken during prior periods		142
Audit settlements	(89)	(41)
Decreases due to lapses of statutes of limitations	(13)	(33)
Unrecognized Tax Benefits, Ending Balance	$ 13	$ 115

INCOME TAXES (Deferred Tax Asse

INCOME TAXES (Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Income Tax Disclosure [Abstract]
Deferred rent	$ 567	$ 3,184
Federal net operating loss carry-forwards	2,486
State net operating loss carry-forwards	3,573	2,325
Intangible property basis difference	138
Financing lease obligation	393	1,028
Tax credit carryover	1,761	910
Accrued expenses	74	585
Stock-based compensation	141	472
Deferred revenue	257	452
Lease reserve	449	222
Accrued and deferred compensation	38	67
Contribution carryover	36	18
Inventories	5	9
Total deferred tax assets	9,918	9,272
Property and equipment basis difference	(1,060)	(1,671)
Inventories	(60)	(295)
Prepaid expenses	(139)	(269)
Intangible property basis difference		(56)
Deferred Tax Liabilities, Gross	(1,259)	(2,291)
Net deferred tax assets	8,659	6,981
Valuation allowance	(2,836)	(2,348)
Deferred tax asset	$ 5,823	$ 4,633

INCOME TAXES (Effective Tax Rat

INCOME TAXES (Effective Tax Rate Reconciliation) (Details)	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Accounting Changes and Error Corrections [Abstract]
Federal statutory tax rate	34.00%	34.00%
State taxes, net of valuation allowance and federal benefit	2.40%	4.00%
Federal rate change and impact on state benefit	(24.10%)
Foreign taxes	(0.90%)	(1.60%)
Tax effect of permanent differences	(2.00%)	(4.50%)
Tax effect of general business credits	3.70%	5.00%
Tax effect of foreign tax credit	0.90%	1.60%
Uncertain tax positions	1.70%	(2.10%)
Stock-based compensation	(4.40%)
Other	0.20%	(0.80%)
Effective tax rate	11.50%	35.60%

ASSET IMPAIRMENT, ESTIMATED LEA

ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)restaurant	Jan. 01, 2017USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]
Restaurants Closed | restaurant	13
Depreciation and amortization	$ 2,785	$ 2,873
Asset impairments, net	3,154	4,426
Asset impairment, estimated lease termination and other closing costs	6,816	4,788
Balance at Beginning of Period	594	609
Additions Charged To Cost And Expense		89
Valuation Allowances And Reserves Deductions		(104)
Balance at End of Period		594
Service Life [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Depreciation and amortization	870
Lease Termination Charges [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Business exit costs	3,403
Balance at Beginning of Period	594
Additions Charged To Cost And Expense	3,150
Valuation Allowances And Reserves Deductions	(1,945)
Balance at End of Period	1,799	594
Restaurant Closure Expenses [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Business exit costs	$ 259	206
Software [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Business exit costs		$ 156

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jan. 01, 2017
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		$ 1
Property and Equipment, Net Fair Value Disclosure	$ 828	1,742
Fair Value Inputs, Level 2 [Member]
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		1
Fair Value Inputs, Level 3 [Member]
Assets Fair Value Disclosure [Abstract]
Property and Equipment, Net Fair Value Disclosure	$ 828	$ 1,742

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) $ in Thousands	Dec. 31, 2017USD ($)
Kentucky Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	$ 106
Chicago Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	1,500
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	1,000
Mid-Atlantic Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	$ 756

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, $ in Thousands	Nov. 10, 2017shares	Dec. 31, 2017USD ($)restaurant$ / shares	Jan. 01, 2017USD ($)
Related Party Transaction [Line Items]
Standby Purchaser, Maximum Percentage Owned		20.00%
Rights Offering, Purchase Price Per Share | $ / shares		$ 3.50
PW Partners [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues | shares	418,169
Immediate Family Member of Management or Principal Owner [Member]
Related Party Transaction [Line Items]
Standard Royalty Rate		5.00%
Restaurants Granted Royalty Relief | restaurant		2
Royalty Relief, Percent, Year Three		4.00%
Royalty Relief, Percent, Year Two		3.50%
Royalty Relief, Percent, Year One		2.50%
Software purchases from related party		$ 127
Director [Member]
Related Party Transaction [Line Items]
Revenues and NAF contributions		1,935	$ 2,135
Accounts receivable from related parties		301	370
Struggling Franchisee Arrears Balance		1,400
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Revenues and NAF contributions		493	500
Accounts receivable from related parties		48	$ 50
Investor [Member]
Related Party Transaction [Line Items]
Revenues and NAF contributions		54
Accounts receivable from related parties		$ 32
Restaurants Transferred | restaurant		7
Wexford Capital Ownership Percentage		19.20%
Restaurants Transferred, Cash Received		$ 350
Restaurants Transferred, Accounts Receivable Written Off		1,000
Restaurants Transferred, Repairs and Maintenance Credit		$ 500
Restaurants Transferred, Percentage of Royalty Reduction to Repay		50.00%
Royalty Relief Credit, Year One		2.00%
Royalty Relief Credit, Year Two		1.00%
Effective Royalty, Year One		3.00%
Effective Royalty, Year Two		4.00%
Effective Royalty, Year Three		5.00%
Restaurants Transferred, Local Marketing Rate		1.00%
Standard Local Marketing Rate		1.50%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Jan. 30, 2018	Dec. 31, 2017
Subsequent event line items
Disposal Group, Including Discontinued Operation, Consideration		$ 575
Subsequent Event [Member] | Virginia Commons [Member]
Subsequent event line items
Disposal Group, Including Discontinued Operation, Consideration	$ 765

VALUATION AND QUALIFYING ACCO71

VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
Valuation And Qualifying Accounts Disclosure Line Items
Balance at Beginning of Period	$ 594	$ 609
Additions Charged To Cost And Expense		89
Valuation Allowances And Reserves Deductions		(104)
Balance at End of Period		594
Allowance For Doubtful Accounts [Member]
Valuation And Qualifying Accounts Disclosure Line Items
Balance at Beginning of Period	271	246
Additions Charged To Cost And Expense	1,599	87
Valuation Allowances And Reserves Deductions	(1,278)	(62)
Balance at End of Period	592	271
Business Restructuring Reserves [Member]
Valuation And Qualifying Accounts Disclosure Line Items
Balance at Beginning of Period	594	609
Additions Charged To Cost And Expense	3,150	89
Valuation Allowances And Reserves Deductions	(1,945)	(104)
Balance at End of Period	1,799	594
Employee Severance [Member]
Valuation And Qualifying Accounts Disclosure Line Items
Balance at Beginning of Period		20
Additions Charged To Cost And Expense	796	170
Valuation Allowances And Reserves Deductions	(441)	$ (190)
Balance at End of Period	$ 355