FAT Brands (FAT) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 10, 2019
Document And Entity Information
Entity Registrant Name	Fat Brands, Inc
Entity Central Index Key	0001705012
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,826,765
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Current assets
Cash	$ 540	$ 653
Accounts receivable, net of allowance for doubtful accounts of $641 and $595, respectively	3,046	1,779
Notes receivable, net of allowance of $37	227	65
Assets classified as held for sale	5,226
Other current assets	367	1,042
Total current assets	9,406	3,539
Notes receivable - noncurrent, net of allowance for doubtful accounts of $86 and $112, respectively	1,930	212
Due from affiliates	20,275	15,514
Deferred income taxes	2,566	2,236
Operating lease right of use assets	1,147
Goodwill	11,992	10,391
Other intangible assets, net	30,199	23,289
Other assets	673	2,779
Total assets	78,188	57,960
Liabilities
Accounts payable	6,472	4,415
Accrued expenses	4,774	3,705
Accrued advertising	208	369
Accrued interest payable	1,066	2,250
Deferred income	1,020	1,076
Dividend payable on mandatorily redeemable preferred shares (includes amounts due to related parties of $74 and $42 as of June 30, 2019 and December 30, 2018, respectively)	768	391
Liabilities related to assets classified as held for sale	3,371
Current portion of operating lease liability	461
Current portion of long-term debt	23,836	15,400
Total current liabilities	41,976	27,606
Deferred income - noncurrent	6,151	6,621
Acquisition purchase price payable	4,291	3,497
Operating lease liability, net of current portion	706
Mandatorily redeemable preferred shares, net	14,223	14,191
Deferred dividend payable on mandatorily redeemable preferred shares (includes amounts due to related parties of $30 and $17 as of June 30, 2019 and December 30, 2018, respectively)	428	228
Long-term debt, net of current portion	5,555
Other liabilities		78
Total liabilities	73,330	52,221
Commitments and contingencies (Note 18)
Stockholders' equity
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,826,765 and 11,546,589 shares issued and outstanding at June 30, 2019 and December 30, 2018, respectively	11,094	10,757
Accumulated deficit	(6,236)	(5,018)
Total stockholders' equity	4,858	5,739
Total liabilities and stockholders' equity	$ 78,188	$ 57,960

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Statement of Financial Position [Abstract]
Dividends payable to related parties, current	$ 74	$ 42
Dividends payable to related parties, noncurrent	30	17
Accounts receivable, net of allowance for doubtful accounts	641	595
Notes receivable, net of allowance	37	37
Notes receivable - noncurrent, net of allowance for doubtful accounts	$ 86	$ 112
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	11,826,765	11,546,589
Common stock, shares outstanding	11,826,765	11,546,589

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Revenue
Royalties	$ 3,663	$ 2,860	$ 7,127	$ 5,432
Franchise fees	994	299	1,306	698
Store opening fees	184	105	289	105
Advertising fees	1,031	630	2,008	1,226
Management fees and other income	23	14	38	32
Total revenue	5,895	3,908	10,768	7,493
Costs and expenses
Compensation expense	1,675	1,459	3,222	2,790
Professional fees expense	580	348	1,047	558
Public company expense	266	261	549	481
Advertising expense	1,031	630	2,008	1,226
Refranchising restaurant costs and expenses, net of revenue	503		1,021
Other	438	383	724	670
Total costs and expenses	4,493	3,081	8,571	5,725
Income from operations	1,402	827	2,197	1,768
Other income (expense), net
Interest expense, net	(834)	(222)	(2,520)	(436)
Interest expense related to mandatorily redeemable preferred shares	(431)	(78)	(862)	(78)
Depreciation and amortization	(147)	(40)	(278)	(73)
Other income (expense), net	846	(2)	870	(3)
Total other expense, net	(566)	(342)	(2,790)	(590)
Income (loss) before income tax expense	836	485	(593)	1,178
Income tax expense	1,344	112	625	296
Net (loss) income	$ (508)	$ 373	$ (1,218)	$ 882
Basic (loss) income per common share	$ (0.04)	$ 0.04	$ (0.10)	$ 0.09
Basic weighted average shares outstanding	11,726	10,395	11,726	10,304
Diluted (loss) income per common share	$ (0.04)	$ 0.04	$ (0.10)	$ 0.09
Diluted weighted average shares outstanding	11,726	10,395	11,726	10,304
Cash dividends declared per common share		$ 0.12		$ 0.24

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Par Value [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance, Beginning at Dec. 31, 2017	$ 2,622	$ 1	$ 2,621	$ (613)	$ 2,009
Balance, Beginning, shares at Dec. 31, 2017	10,000,000
Cumulative-effect adjustment from adoption of ASU 2014-09, Revenue from Contracts with Customers				(2,672)	(2,672)
Net income (loss)				882	882
Common stock dividend	(2,551)		(2,551)		(2,551)
Issuance of common stock in lieu of director fees payable	$ 330		330		330
Issuance of common stock in lieu of director fees payable, shares	41,772
Issuance of common stock in payment of related party note	$ 7,272		7,272		7,272
Issuance of common stock in payment of related party note, shares	989,395
Issuance of stock in lieu of dividend payable to FCCG	$ 960		960		960
Issuance of stock in lieu of dividend payable to FCCG, shares	153,600
Issuance of warrants to purchase common stock	$ 112		112		112
Share-based compensation	245		245		245
Balance, Ending at Jul. 01, 2018	$ 8,990	1	8,989	(2,403)	6,587
Balance, Ending, shares at Jul. 01, 2018	11,184,767
Balance, Beginning at Apr. 01, 2018	$ 1,547	1	1,546	(2,776)	(1,229)
Balance, Beginning, shares at Apr. 01, 2018	10,000,000
Net income (loss)				373	373
Common stock dividend	(1,351)		(1,351)		(1,351)
Issuance of common stock in lieu of director fees payable	$ 330		330		330
Issuance of common stock in lieu of director fees payable, shares	41,772
Issuance of common stock in payment of related party note	$ 7,272		7,272		7,272
Issuance of common stock in payment of related party note, shares	989,395
Issuance of stock in lieu of dividend payable to FCCG	$ 960		960		960
Issuance of stock in lieu of dividend payable to FCCG, shares	153,600
Issuance of warrants to purchase common stock	$ 112		112		112
Share-based compensation	120		120		120
Balance, Ending at Jul. 01, 2018	$ 8,990	1	8,989	(2,403)	6,587
Balance, Ending, shares at Jul. 01, 2018	11,184,767
Balance, Beginning at Dec. 30, 2018	$ 10,757	1	10,756	(5,018)	5,739
Balance, Beginning, shares at Dec. 30, 2018	11,546,589
Net income (loss)				(1,218)	(1,218)
Common stock dividend
Common stock dividend, shares	245,376
Cash paid in lieu of fractional shares	$ (2)		(2)		(2)
Issuance of common stock in lieu of director fees payable	$ 180		180		180
Issuance of common stock in lieu of director fees payable, shares	34,800
Share-based compensation	$ 159		159		159
Balance, Ending at Jun. 30, 2019	$ 11,094	1	11,093	(6,236)	4,858
Balance, Ending, shares at Jun. 30, 2019	11,826,765
Balance, Beginning at Mar. 31, 2019	$ 10,926	1	10,925	(5,728)	5,198
Balance, Beginning, shares at Mar. 31, 2019	11,807,349
Net income (loss)				(508)	(508)
Issuance of common stock in lieu of director fees payable	$ 90		90		90
Issuance of common stock in lieu of director fees payable, shares	19,416
Share-based compensation	$ 78		78		78
Balance, Ending at Jun. 30, 2019	$ 11,094	$ 1	$ 11,093	$ (6,236)	$ 4,858
Balance, Ending, shares at Jun. 30, 2019	11,826,765

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018
Cash flows from operating activities
Net (loss) income	$ (1,218)	$ 882
Adjustments to reconcile net (loss) income to net cash provided by operations:
Deferred income taxes	(330)	(66)
Depreciation and amortization	278	73
Share-based compensation	159	245
Accretion of debt discount	1,093
Change in operating right of use assets and lease liabilities	194
Gain on sale refranchised restaurants	(970)
Accretion of mandatorily redeemable preferred shares	32
Accretion of purchase price liability	263
Recovery of bad debts	(91)	(8)
Change in:
Accounts receivable	(456)	(264)
Trade notes receivable	22	27
Other current assets	681	(201)
Accounts payable and accrued expense	2,337	(410)
Accrued advertising	(352)	(176)
Accrued interest payable	(1,185)	(405)
Deferred income	(1,335)	(290)
Dividend payable on mandatorily redeemable preferred shares	577	78
Other	(183)
Total adjustments	727	(1,385)
Net cash used in operating activities	(491)	(503)
Cash flows from investing activities
Additions to property and equipment	(34)	(88)
Proceeds from sale of refranchised restaurants	870
Acquisition of Elevation Burger, net of cash acquired	(2,332)
Net cash used in investing activities	(1,496)	(88)
Cash flows from financing activities
Proceeds from borrowings and associated warrants, net of issuance costs	23,053	1,882
Issuance of mandatorily redeemable preferred shares and associated warrants		8,000
Repayments of borrowings	(16,417)
Repayments of loans from FCCG		(7,903)
Change in due from affiliates	(4,760)	(218)
Dividends paid in cash	(2)	(240)
Other		(7)
Net cash provided by financing activities	1,874	1,514
Net (decrease) increase in cash	(113)	923
Cash at beginning of period	653	32
Cash at end of period	540	955
Supplemental disclosures of cash flow information:
Cash paid for interest	3,436	1,319
Cash paid for income taxes	135	116
Supplemental disclosure of non-cash financing and investing activities:
Assets acquired under capital lease		121
Dividends declared and payable		1,352
Note payable to FCCG converted to common and preferred stock		9,272
Dividends reinvested in common stock		960
Director fees converted to common stock	180	330
Income taxes payable adjusting amounts due from affiliates	$ 46	$ 204

Organization and Relationships

Organization and Relationships	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Relationships	NOTE 1. ORGANIZATION AND RELATIONSHIPS Organization and Nature of Business FAT Brands Inc. (the “Company”) was formed on March 21, 2017 as a wholly owned subsidiary of Fog Cutter Capital Group Inc. (“FCCG”). On October 20, 2017, the Company completed an initial public offering and issued additional shares of common stock representing 20 percent of its ownership (the “Offering”). The Company’s common stock trades on the Nasdaq Capital Market under the symbol “FAT.” As of June 30, 2019, FCCG continues to control a significant voting majority of the Company. The Company is a multi-brand franchisor specializing in fast casual and casual dining restaurant concepts around the world. As of June 30, 2019, the Company owns and franchises eight restaurant brands: Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Ponderosa Steakhouses, Bonanza Steakhouses, Yalla Mediterranean and Elevation Burger. Combined, these brands have over 380 locations open and more than 200 under development. The Company licenses the right to use its brand names and provides franchisees with operating procedures and methods of merchandising. Upon signing a franchise agreement, the franchisor is committed to provide training, some supervision and assistance, and access to operations manuals. As needed, the franchisor will also provide advice and written materials concerning techniques of managing and operating the restaurants. Liquidity The Company recognized income from operations of $1,402,000 and $827,000 during the thirteen weeks ended June 30, 2019 and July 1, 2018, respectively, and $2,197,000 and $1,768,000 during the twenty-six weeks ended June 30, 2019 and July 1, 2018, respectively. Despite the profitability of the brands and their operations, the Company recognized net losses of $508,000 and $1,218,000 during the thirteen weeks and the twenty-six weeks ended June 30, 2019, respectively. These losses are primarily due to: · Higher net interest expense during 2019 as compared to the prior year periods related to higher debt balances which include our term loan debt that matures on June 30, 2020 (See Note 11); and · Higher interim period income tax expense during 2019 as compared to the prior year periods which will not be satisfied in cash but rather through a reduction in the inter-company receivable (See Note 9). While the Company anticipates refinancing the term loan debt at a lower cost of capital prior to its maturity, if the Company is unable to obtain acceptable financing, its ability to fund the organic growth of the Company or to acquire additional restaurant concepts may be negatively impacted.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations Principles of consolidation The accounts of Hurricane have been consolidated since its acquisition by the Company on July 3, 2018. The accounts of the Yalla Business have been consolidated since December 3, 2018. The accounts of Elevation Burger have been consolidated since its acquisition on June 19, 2019. Intercompany accounts have been eliminated in consolidation. Use of estimates in the preparation of the consolidated financial statements Financial statement reclassification Cash - Accounts receivable Trade notes receivable – Assets classified as held for sale – Goodwill and other intangible assets Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A two-step approach is utilized to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement. Royalties: Franchise Fees: The franchise fee may be adjusted at management’s discretion or in a situation involving store transfers. Deposits are non-refundable upon acceptance of the franchise application. In the event a franchisee does not comply with their development timeline for opening franchise stores, the franchise rights may be terminated, and franchise fee revenue is recognized for non-refundable deposits. Store opening fees – Advertising – Share-based compensation Earnings per share The Company declared a stock dividend on February 7, 2019 and issued 245,376 shares of common stock in satisfaction of the dividend (See Note 17). Unless otherwise noted, earnings per share and other share-based information for 2019 and 2018 have been adjusted retrospectively to reflect the impact of the stock dividend. Recently Adopted Accounting Standards In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In July 2018, the FASB issued ASU 2018-09, Codification Improvements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Adopting the new accounting standard for leases affected various financial statement line items for the thirteen and twenty-six weeks ended June 30, 2019. The following table provides the affected amounts as reported in these unaudited consolidated financial statements compared with what they would have been if the previous accounting guidance had remained in effect. As of June 30, 2019 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Operating lease right of use assets $ 1,147 $ - Operating lease right of use assets classified as held for sale $ 3,312 $ - Operating lease liabilities $ 1,167 $ - Operating lease liabilities associated with operating lease right of use assets classified as held for sale $ 3,371 $ - Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).

Acquisitions and Significant Tr

Acquisitions and Significant Transactions	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Acquisitions and Significant Transactions	NOTE 3. ACQUISITIONS AND SIGNIFICANT TRANSACTIONS Acquisition of Elevation Burger On June 19, 2019, the Company completed the acquisition of EB Franchises, LLC, a Virginia limited liability company, and its related companies (collectively, “Elevation Burger”) for a purchase price of up to $10,050,000. Elevation Burger is the franchisor of Elevation Burger restaurants, with 44 locations in the U.S. and internationally. The purchase price consists of $50,000 in cash, a contingent warrant to purchase 46,875 shares of the Company’s common stock at $8.00 per share (the “Elevation Warrant”), and the issuance to the Seller of a convertible subordinated promissory note (the “Elevation Note”) with a principal amount of $7,509,816.24, bearing interest at 6.0% per year and maturing in July 2026. The Elevation Warrant is only exercisable in the event that the Company merges with FCCG. The Seller Note is convertible under certain circumstances into shares of the Company’s common stock at $12.00 per share. In addition, the Seller will be entitled to receive earn-out payments of up to $2,500,000 if Elevation Burger realizes royalty fee revenue in excess of certain amounts. In connection with the purchase, the Company also loaned $2,300,000 in cash to the Seller under a subordinated promissory note (the “Elevation Buyer Note”) bearing interest at 6.0% per year and maturing in August 2026. The balance owing to the Company under the Elevation Buyer Note may be used by the Company to offset amounts owing to the Seller under the Elevation Note under certain circumstances. The purchase documents contain customary representations and warranties of the Seller and provides that the Seller will, subject to certain limitations, indemnify the Company against claims and losses incurred or suffered by the Company as a result of, among other things, any inaccuracy of any representation or warranty of the Seller contained in the purchase documents. The preliminary assessment of the fair value of the net consideration incurred by the Company for the acquisition of Elevation Burger was estimated at $7,193,000. The allocation of the consideration to the preliminary valuation of net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 18 Accounts receivable 50 Other assets 446 Intangible assets 7,140 Goodwill 1,601 Amounts payable to franchising agent (1,065 ) Deferred franchise fees (758 ) Other liabilities (239 ) Total net identifiable assets $ 7,193 The assessment of fair value is preliminary and is based on information that was available to management at the time these unaudited consolidated financial statements were prepared. If additional information becomes available to management related to assets acquired or liabilities assumed subsequent to this preliminary assessment of fair value but not later than one year after the date of the acquisition, measurement period adjustments will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. Yalla Mediterranean Transactions On December 3, 2018, the Company entered into an Intellectual Property Purchase Agreement and License (the “IP Agreement”), and Master Transaction Agreement (the “Master Agreement”) with Yalla Mediterranean, LLC (“Yalla Med”), under which the Company agreed to acquire the intellectual property of the restaurant business of Yalla Mediterranean, LLC (the “Yalla Business”) and to acquire in the future seven restaurants currently owned by Yalla Med. Yalla Med owns and operates a fast-casual restaurant business under the brand name “Yalla Mediterranean,” specializing in fresh and healthy Mediterranean menu items, with seven upscale fast casual restaurants located in Northern and Southern California. The Company, through a subsidiary, acquired the intellectual property used in connection with the Yalla Business pursuant to the IP Agreement. Under the terms of the IP Agreement, the purchase price for the intellectual property will be paid in the form of an earn-out, calculated as the greater of $1,500,000 or 400% of Yalla Income, which includes gross franchise royalties as well as other items, as defined in the IP Agreement. The seller can require the Company to pay the purchase price in up to two installments during the ten-year period following the acquisition. At the time of the acquisition, the purchase price recorded for the intellectual property was $1,790,000. As of June 30, 2019, the purchase price payable totaled $1,985,000 which includes the accretion of interest expense at an effective interest rate of 19%. Additionally, pursuant to the Master Agreement, the Company agreed to acquire the assets, agreements and other properties of each of the seven existing Yalla Mediterranean restaurants during a marketing period specified in the Master Agreement (the “Marketing Period”). The purchase price will be the greater of $1,000,000 or the sum of (i) the first $1,750,000 of gross sale proceeds received from the sale of the Yalla Mediterranean restaurants to franchisee/purchasers, plus (ii) the amount, if any, by which fifty percent (50%) of the net proceeds (after taking into consideration operating income or loss and transaction costs and expenses) from the sale of the Yalla Mediterranean restaurants exceeds $1,750,000. At the time of the acquisition, the purchase price recorded for the net tangible assets relating to the seven existing Yalla Mediterranean restaurants was $1,700,000. As of June 30, 2019, the purchase price payable totaled $1,722,000 which includes the accretion of interest expense at an effective interest rate of 5.4%. The Company also entered into a Management Agreement under which its subsidiary will manage the operations of the seven Yalla Mediterranean restaurants and market them for sale to franchisees during the Marketing Period. Once a franchisee/purchaser has been identified, Yalla Med will transfer legal ownership of the specific restaurant to the Company’s subsidiary, which will then transfer the restaurant to the ultimate franchisee/purchaser who will own and operate the location. During the term of the Management Agreement, the Company’s subsidiary is responsible for operating expenses and has the right to receive operating income from the restaurants. Based on the structure of the transactions outlined in the Master Agreement, the IP Agreement, and the Management Agreement, the Company has accounted for the transactions as a business combination under ASC 805. The allocation of the total consideration recognized of $3,490,000 to the net tangible and intangible assets acquired in the Yalla Business is presented in the table below (in thousands): Cash $ 82 Accounts receivable 77 Inventory 95 Other assets 90 Property and equipment 2,521 Intangible assets 1,530 Goodwill 263 Accounts payable and accrued expenses (1,168 ) Total net identifiable assets $ 3,490 Acquisition of Hurricane AMT, LLC On July 3, 2018, the Company completed the acquisition of Hurricane AMT, LLC, a Florida limited liability company (“Hurricane”), for a purchase price of $12,500,000. Hurricane is the franchisor of Hurricane Grill & Wings and Hurricane BTW Restaurants. The purchase price of $12,500,000 was delivered through the payment of $8,000,000 in cash and the issuance to the Sellers of $4,500,000 of equity units of the Company valued at $10,000 per unit, or a total of 450 units. Each unit consists of (i) 100 shares of the Company’s newly designated Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Preferred Stock”) and (ii) a warrant to purchase 125 shares of the Company’s Common Stock at $8.00 per share (the “Hurricane Warrants”). The allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 358 Accounts receivable 352 Other assets 883 Intangible assets 11,020 Goodwill 2,772 Accounts payable and accrued expenses (643 ) Deferred franchise fees (1,885 ) Other liabilities (357 ) Total net identifiable assets $ 12,500

Assets Classified as Held for S

Assets Classified as Held for Sale	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Assets Classified as Held for Sale	nOTE 4. ASSETS CLASSIFIED AS HELD FOR SALE As part of its ongoing franchising efforts, the Company will, from time to time, make opportunistic acquisitions of operating restaurants in order to convert them to franchise locations. During the first quarter of 2019, the Company met all of the criteria requiring that certain assets used in the operation of certain restaurants be classified as held for sale. It is the intention of the Company to sell the restaurant assets to owners who will operate them as franchises. During the twenty-six weeks ended June 30, 2019, the Company sold two of the restaurants and recognized a gain on the sales of $970,000. As a result, the following remaining assets have been classified as held for sale on the accompanying consolidated balance sheet as of June 30, 2019 (in thousands): June 30, 2019 Property, plant and equipment $ 1,914 Operating lease right of use assets 3,312 Total $ 5,226 Operating lease liabilities related to the assets classified as held for sale in the amount of $3,371,000, have been classified as current liabilities on the accompanying balance sheet as of June 30, 2019. During the refranchising period, the Company is operating these restaurants. During the thirteen and twenty-six weeks ended June 30, 2019, the restaurants incurred refranchising restaurant costs and expenses, net of revenue of $503,000 and $1,021,000, respectively, as follows, with no comparable activity in the prior periods (in thousands): Thirteen Weeks Ended Twenty-six Weeks Ended Restaurant sales $ 1,598 $ 3,430 Cost of restaurant sales (520 ) (1,150 ) Other restaurant operating costs (1,581 ) (3,301 ) $ (503 ) $ (1,021 )

Notes Receivable

Notes Receivable	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Notes Receivable	Note 5. NOTES RECEIVABLE Notes receivable consist of trade notes receivable and the Elevation Buyer Note. Trade notes receivable are created when the settlement of a delinquent franchisee receivable account is reached, and the entire balance is not immediately paid. Trade notes receivable generally include personal guarantees from the franchisee. The notes are made for the shortest time frame negotiable and will generally carry an interest rate of 6% to 7.5%. Reserve amounts, on the notes, are established based on the likelihood of collection. As of June 30, 2019, these trade notes receivable totaled $377,000, which was net of reserves of $123,000. The Elevation Buyer Note was funded in connection with the purchase of Elevation Burger. The Company loaned $2,300,000 in cash to the Seller under a subordinated promissory note bearing interest at 6.0% per year and maturing in August 2026. This Note is subordinated in right of payment to all indebtedness of the Seller arising under any agreement or instrument to which the Seller or any of its affiliates is a party that evidences indebtedness for borrowed money that is senior in right of payment to the Elevation Buyer Note, whether existing on the effective date of the Elevation Buyer Note or arising thereafter. The balance owing to the Company under the Elevation Buyer Note may be used by the Company to offset amounts owing to the Seller under the Elevation Note under certain circumstances. As part of the total consideration for the Elevation acquisition, the Elevation Buyer Note was recorded at a net carrying value of $1,903,000, net of a discount of $397,000. During the thirteen and twenty-six weeks ended June 30, 2019, the Company recognized $4,200 in interest income, with no comparable activity in 2018.

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 6. GOODWILL Goodwill consists of the following (in thousands): June 30, 2019 December 30, 2018 Goodwill: Fatburger $ 529 $ 529 Buffalo’s 5,365 5,365 Hurricane 2,772 2,772 Ponderosa 1,462 1,462 Yalla 263 263 Elevation Burger 1,601 - Total Goodwill $ 11,992 $ 10,391

Other Intangible Assets

Other Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 7. OTHER INTANGIBLE ASSETS Intangible assets consist of the following (in thousands): June 30, 2019 December 30, 2018 Trademarks: Fatburger $ 2,135 $ 2,135 Buffalo’s 27 27 Hurricane 6,840 6,840 Ponderosa 7,230 7,230 Yalla 1,530 1,530 Elevation Burger 4,690 - Total trademarks 22,452 17,762 Franchise agreements: Hurricane – cost 4,180 4,180 Hurricane – accumulated amortization (322 ) (161 ) Ponderosa – cost 1,640 1,640 Ponderosa – accumulated amortization (187 ) (132 ) Elevation Burger – cost 2,450 - Elevation Burger – accumulated amortization (14 ) - Total franchise agreements 7,747 5,527 Total Other Intangible Assets $ 30,199 $ 23,289 The expected future amortization of the Company’s capitalized franchise agreements is as follows (in thousands): Fiscal year: 2019 $ 466 2020 932 2021 932 2022 932 2023 932 Thereafter 3,553 Total $ 7,747

Deferred Income

Deferred Income	6 Months Ended
	Jun. 30, 2019
Contract with Customer, Liability [Abstract]
Deferred Income	Note 8. DEFERRED INCOME Deferred income is as follows (in thousands): June 30, 2019 December 30, 2018 Deferred franchise fees $ 6,253 $ 6,711 Deferred royalties 534 653 Deferred advertising revenue 384 333 Total $ 7,171 $ 7,697

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes Effective October 20, 2017, the Company entered into a Tax Sharing Agreement with FCCG that provides that FCCG will, to the extent permitted by applicable law, file consolidated federal and California (and possibly other jurisdictions where revenue is generated, at FCCG’s election) income tax returns with the Company and its subsidiaries. The Company will pay FCCG the amount that its current tax liability would have been had it filed a separate return. To the extent the Company’s required payment exceeds its share of the actual combined income tax liability (which may occur, for example, due to the application of FCCG’s net operating loss carryforwards), the Company will be permitted, in the discretion of a committee of its board of directors comprised solely of directors not affiliated with or having an interest in FCCG, to pay such excess to FCCG by issuing an equivalent amount of its common stock in lieu of cash, valued at the fair market value at the time of the payment. An inter-company receivable of approximately $20,275,000 due from FCCG and its affiliates will be applied first to reduce excess income tax payment obligations to FCCG under the Tax Sharing Agreement. As of June 30, 2019, FCCG had a federal net operating loss carryforward (the “NOL”) of approximately $88,913,000, which may be used to offset future consolidated taxable income. The NOL expires if not used within twenty years of origination. The following schedule reflects the timing and amount of the NOL that is subject to potential expiration if unused by the end of the indicated fiscal year (in thousands): Fiscal year: 2019 $ 12,654 2020 25,045 2021 2,844 2022 46 2023 76 Thereafter 48,248 Total $ 88,913 For financial reporting purposes, the Company has recorded a tax provision calculated as if the Company files its tax returns on a stand-alone basis. The amount payable to FCCG determined by this calculation of $46,000 was subtracted from amounts due from FCCG as of June 30, 2019 (See Note 13). Deferred taxes reflect the net effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for calculating taxes payable on a stand-alone basis. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): June 30, 2019 December 30, 2018 Deferred tax assets (liabilities) Deferred income $ 3,066 $ 1,779 Reserves and accruals 455 346 Intangibles (806 ) (532 ) Deferred state income tax (122 ) (72 ) Tax credits (53 ) 126 Share-based compensation 132 131 NOL carryforward 267 - Interest expense (347 ) 439 Other (26 ) 19 Total $ 2,566 $ 2,236 Components of the income tax expense are as follows (in thousands): Twenty-six Weeks Ended Twenty-six Weeks Ended Current Federal $ 318 $ 204 State 262 49 Foreign 375 109 955 362 Deferred Federal (89 ) (46 ) State (241 ) (20 ) (330 ) (66 ) Total income tax expense $ 625 $ 296 Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate to pretax income as follows (in thousands): Twenty-six Weeks Ended Twenty-six Weeks Ended June 30, 2019 July 1, 2018 Tax benefit at statutory rate $ (124 ) $ 247 State and local income taxes 14 24 Foreign taxes 375 - Tax credits (375 ) - Dividends on mandatorily redeemable preferred stock 643 - Other 92 25 Total income tax (benefit) expense $ 625 $ 296 As of June 30, 2019, the Company’s annual tax filings for the prior three years are open for audit by Federal and for the prior four years for state tax agencies. The Company is the beneficiary of indemnification agreements from the prior owners of the subsidiaries for tax liabilities related to periods prior to its ownership of the subsidiaries. Management evaluated the Company’s overall tax positions and has determined that no provision for uncertain income tax positions is necessary as of June 30, 2019.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	NOTE 10. LEASES The Company records nine operating leases for corporate offices and for certain restaurant properties that are being refranchised. The leases have remaining lease terms ranging from 1.1 years to 8.3 years. Five of the leases also have options to extend the term for 5 to 10 years. The Company recognized lease expense of $702,000 and $112,000 for the twenty-six weeks ended June 30, 2019 and July 1, 2018, respectively. The Company recognized lease expense of $355,000 and $59,000 for the thirteen weeks ended June 30, 2019 and July 1, 2018, respectively. The weighted average remaining lease term of the operating leases (not including optional lease extensions) at June 30, 2019 was 6.0 years. Operating lease right of use assets and operating lease liabilities relating to the operating leases as of June 30, 2019 are as follows (in thousands): June 30, 2019 December 30, 2018 Right of use assets $ 4,459 $ - Lease liabilities $ 4,538 $ - The operating lease right of use assets and operating lease liabilities include obligations relating to the optional term extensions available on five of the leases based on management’s intention to exercise the options. The weighted average discount rate used to calculate the carrying value of the right of use assets and lease liabilities was 15.9%. The contractual future maturities of the Company’s operating lease liabilities as of June 30, 2019, including anticipated lease extensions, are as follows (in thousands): Fiscal year: 2019 $ 653 2020 1,126 2021 887 2022 899 2023 924 Thereafter 5,565 Total lease payments 10,054 Less imputed interest 5,516 Total $ 4,538 Supplemental cash flow information for the twenty-six weeks ended June 30, 2019 related to leases is as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 584 Operating lease right of use assets obtained in exchange for new lease obligations: Operating lease liabilities $ 187

Debt

Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Debt	Note 11. DEBT Term Loan On July 3, 2018, the Company as borrower, and certain of the Company’s direct and indirect subsidiaries and affiliates as guarantors, entered into a new Loan and Security Agreement (the “Loan Agreement”) with FB Lending, LLC (the “Lender”). Pursuant to the Loan Agreement, the Company borrowed $16.0 million in a term loan (“Term Loan”) from the Lender. The Company used a portion of the loan proceeds to fund (i) the cash payment of $8.0 million to the members of Hurricane and closing costs in connection with the acquisition of Hurricane, and (ii) to repay borrowings of $2.0 million plus interest and fees owing under the Company’s existing loan facility with TCA Global Credit Master Fund, LP. The Company used the remaining proceeds for general working capital purposes. In connection with the Loan Agreement, the Company also issued warrants to purchase up to 509,604 shares of the Company’s Common Stock at $7.20 per share to the Lender (the “Lender Warrant”). Warrants were also issued to certain loan placement agents to purchase 66,691 shares of the Company’s common stock at $7.20 per share (the “Placement Agent Warrants”) (See Note 16). As security for its obligations under the Loan Agreement, the Company granted a lien on substantially all of its assets to the Lender. In addition, certain of the Company’s direct and indirect subsidiaries and affiliates entered into a Guaranty (the “Guaranty”) in favor of the Lender, pursuant to which they guaranteed the obligations of the Company under the Loan Agreement and granted as security for their guaranty obligations a lien on substantially all of their assets. On January 29, 2019, the Company refinanced the FB Lending term loan. The payoff amount was $18,095,000 which included principal in the amount of $16,400,000 and accrued interest and prepayment fees of $1,695,000. During the thirteen and twenty-six weeks ended June 30, 2019, the Company recorded interest expense of $0 and $1,337,000, respectively, primarily relating to the charge off of unaccreted debt discount of $349,000 and unamortized debt offering costs of $651,000, with no comparable activity in the prior period. The effective interest rate for the Term Loan was 29.8%. Loan and Security Agreement On January 29, 2019, the Company as borrower, and its subsidiaries and affiliates as guarantors, entered into a new Loan and Security Agreement (the “Loan and Security Agreement”) with The Lion Fund, L.P. and The Lion Fund II, L.P. (“Lion”). Pursuant to the Loan and Security Agreement, the Company borrowed $20.0 million from Lion, and utilized the proceeds to repay the existing $16.0 million term loan from FB Lending, LLC plus accrued interest and fees, and provide additional general working capital to the Company. The term loan under the Loan and Security Agreement matures on June 30, 2020. Interest on the term loan accrues at an annual fixed rate of 20.0% and is payable quarterly. The Company may prepay all or a portion of the outstanding principal and accrued and unpaid interest under the Loan and Security Agreement at any time upon prior notice to Lion without penalty, other than a make-whole provision providing for a minimum of six months’ interest. The Company is required to prepay all or a portion of the outstanding principal and accrued unpaid interest under the Loan and Security Agreement in connection with certain dispositions of assets, extraordinary receipts, issuances of additional debt or equity, or a change of control of the Company. In connection with the Loan and Security Agreement, the Company issued to Lion a warrant to purchase up to 1,167,404 shares of the Company’s Common Stock at $0.01 per share (the “Lion Warrant”), exercisable only if the amounts outstanding under the Loan and Security Agreement are not repaid in full prior to October 1, 2019. If the Loan and Security Agreement is repaid in full prior to October 1, 2019, the Lion Warrant will terminate in its entirety. As security for its obligations under the Loan Agreement, the Company granted a lien on substantially all of its assets to Lion. In addition, certain of the Company’s direct and indirect subsidiaries and affiliates entered into a Guaranty (the “Guaranty”) in favor of Lion, pursuant to which they guaranteed the obligations of the Company under the Loan and Security Agreement and granted as security for their guaranty obligations a lien on substantially all of their assets. The Loan and Security Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company’s ability to, among other things, incur other indebtedness, grant liens, merge or consolidate, dispose of assets, pay dividends or make distributions, in each case subject to customary exceptions. The Loan and Security Agreement also includes customary events of default that include, among other things, non-payment, inaccuracy of representations and warranties, covenant breaches, events that result in a material adverse effect (as defined in the Loan and Security Agreement), cross default to other material indebtedness, bankruptcy, insolvency and material judgments. The occurrence and continuance of an event of default could result in the acceleration of the Company’s obligations under the Loan and Security Agreement and an increase in the interest rate by 5.0% per annum. On the issuance date, the Company evaluated the allocation of the proceeds between the Loan and Security Agreement and the Lion Warrant based on the relative fair values of each. Since the Lion Warrant only becomes effective if the amounts outstanding under the Loan and Security Agreement are not repaid in full prior to October 1, 2019, no value was assigned to it as of the grant date. The Company intends to refinance the debt prior to the beginning of the exercise period of the Lion Warrant. Accordingly, the aggregate values assigned upon issuance of each component were as follows (in thousands): Warrants (equity component) Loan and Security Agreement (debt component) Total Gross proceeds $ - $ 20,000 $ 20,000 Issuance costs - (275 ) (275 ) Net proceeds $ - $ 19,725 $ 19,725 Balance sheet impact at issuance: Long-term debt, net of discount and offering costs $ - $ 19,725 $ 19,725 On June 19, 2019, the Company amended its existing loan facility with Lion. The Company entered into a First Amendment to Loan and Security Agreement (the “First Amendment”), which amends the Loan and Security Agreement originally dated January 29, 2019. Pursuant to the First Amendment, the Company increased its borrowings by $3,500,000 in order to fund the Elevation Buyer Note in connection with the acquisition of Elevation, acquire other assets and pay fees and expenses of the transactions. The First Amendment also added the acquired Elevation-related entities as guarantors and loan parties. As of June 30, 2019, the total principal amount due under the Loan and Security Agreement was $23,500,000 and the net carrying value of obligation under the Loan and Security Agreement was $23,194,000, which is net of unamortized debt offering costs of $306,000. The Company recognized interest expense on the Loan and Security Agreement of $1,796,000 for the twenty-six weeks ended June 30, 2019, which includes $85,000 for amortization of debt offering costs, with no comparable activity in 2018. The Company recognized interest expense of $1,076,000 for the thirteen weeks ended June 30, 2019, which included $52,000 for the amortization of debt offering costs, with no comparable activity in 2018. The effective interest rate for the facility under the Loan and Security Agreement is 20.9%. Subsequent to the quarter end, on July 24, 2019, the Company entered into a first amendment to the Lion Warrant, which extends the date on which the Lion Warrant was initially exercisable from October 1, 2019 to June 30, 2020, which coincides with the maturity date of the loan made under the Loan and Security Agreement. The Lender Warrant is only exercisable if the amounts outstanding under the Loan Agreement are not repaid in full prior to the extended Exercise Date. The Company agreed to pay Lion an extension fee of $500,000 in the form of an increase in the principal amount loaned under the Loan and Security Agreement, and on July 24, 2019 entered into a second amendment to the Loan Agreement (the “ Second Amendment Elevation Note On June 19, 2019, the Company completed the acquisition of Elevation Burger. A portion of the purchase price included the issuance to the Seller of a convertible subordinated promissory note (the “Elevation Note”) with a principal amount of $7,509,816, bearing interest at 6.0% per year and maturing in July 2026. The Elevation Note is convertible under certain circumstances into shares of the Company’s common stock at $12.00 per share. In connection with the valuation of the acquisition of Elevation Burger, the Elevation Note was recorded on the financial statements of the Company at $6,185,000, which is net of a loan discount of $1,295,000 and debt offering costs of $30,000. As of June 30, 2019, the carrying value of the Elevation Note was $6,159,000 which is net of the loan discount of $1,286,000 and debt offering costs of $30,000. The Company recognized interest expense relating to the Elevation Note during the thirteen and twenty-six weeks ended June 30, 2019 in the amount of $23,000, which included amortization of the loan discount of $9,000 and de minimis amortization of debt offering costs, with no comparable activity is 2018. The effective interest rate for the Elevation Note is 10.1%. The Company is required to make fully amortizing payments of $110,000 per month during the term of the Elevation Note. The Elevation Note is a general unsecured obligation of Company and is subordinated in right of payment to all indebtedness of the Company arising under any agreement or instrument to which Company or any of its Affiliates is a party that evidences indebtedness for borrowed money that is senior in right of payment. FCCG has guaranteed payment of the Elevation Note.

Mandatorily Redeemable Preferre

Mandatorily Redeemable Preferred Stock	6 Months Ended
	Jun. 30, 2019
Mandatorily Redeemable Preferred Stock
Mandatorily Redeemable Preferred Stock	Note 12. MANDaTORilY REDEEMABLE PREFERRED STOCK Series A Fixed Rate Cumulative Preferred Stock On June 8, 2018, the Company filed a Certificate of Designation of Rights and Preferences of Series A Fixed Rate Cumulative Preferred Stock (“Series A Preferred Stock”) with the Secretary of State of the State of Delaware (the “Certificate of Designation”), designating a total of 100,000 shares of Series A Preferred Stock. The Certificate of Designation contains the following terms pertaining to the Series A Preferred Stock: Dividends Voting Rights Liquidation and Redemption In addition, prior to the Series A Mandatory Redemption Date, the Company may optionally redeem the Series A Preferred Stock, in whole or in part, at the following redemption prices per share, plus any accrued and unpaid dividends: (i) On or prior to June 30, 2021: $115.00 per share. (ii) After June 30, 2021 and on or prior to June 30, 2022: $110.00 per share. (iii) After June 30, 2022: $100.00 per share. Holders of Series A Preferred Stock may also optionally cause the Company to redeem all or any portion of their shares of Series A Preferred Stock beginning any time after the two-year anniversary of the initial issuance date for an amount equal to $100.00 per share plus any accrued and unpaid dividends, which amount may be settled in cash or Common Stock of the Company, at the option of the holder. If a holder elects to receive Common Stock, the shares will be issued based on the 20-day volume weighted average price of the Common Stock immediately preceding the date of the holder’s redemption notice. As of June 30, 2019, there were 100,000 shares of Series A Preferred stock outstanding, issued in the following two transactions: (i) On June 7, 2018, the Company entered into a Subscription Agreement for the issuance and sale (the “Offering”) of 800 units (the “Units”), with each Unit consisting of (i) 100 shares of the Company’s newly designated Series A Fixed Rate Cumulative Preferred Stock (the “Series A Preferred Stock”) and (ii) warrants (the “Series A Warrants”) to purchase 125 shares of the Company’s Common Stock at $8.00 per share. The sales price of each Unit was $10,000, resulting in gross proceeds to the Company from the initial closing of $8,000,000 and the issuance of 80,000 shares of Series A Preferred Stock and Series A Warrants to purchase 100,000 shares of common stock (the “Subscription Warrants”). (ii) On June 27, 2018, the Company entered into a Note Exchange Agreement, as amended, under which it agreed with FCCG to exchange all but $950,000 of the remaining balance of the Company’s outstanding Promissory Note issued to the FCCG on October 20, 2017, in the original principal amount of $30,000,000 (the “Note”). At the time, the Note had an estimated outstanding balance of principal plus accrued interest of $10,222,000 (the “Note Balance”). On June 27, 2018, $9,272,053 of the Note Balance was exchanged for shares of capital stock of the Company and warrants in the following amounts (the “Exchange Shares”): ● $2,000,000 of the Note Balance was exchanged for 200 Units consisting of 20,000 shares of Series A Fixed Rate Cumulative Preferred Stock of the Company at $100 per share and Series A Warrants to purchase 25,000 of the Company’s common stock at an exercise price of $8.00 per share (the “Exchange Warrants”); and ● $7,272,053 of the Note Balance was exchanged for 989,395 shares of Common Stock of the Company, representing an exchange price of $7.35 per share, which was the closing trading price of the Common Stock on June 26, 2018. The Company classifies the Series A Preferred Stock as long-term debt because it contains an unconditional obligation requiring the Company to redeem the instruments at $100.00 per share on the Mandatory Redemption Date. As of June 30, 2019, the net Series A Preferred Stock balance was $9,900,000 including an unaccreted debt discount of $88,000 and unamortized debt offering costs of $12,000. The Company recognized interest expense on the Series A Preferred Stock of $708,000 for the twenty-six weeks ended June 30, 2019, which includes accretion expense of $11,000 as well as $2,000 for the amortization of debt offering costs. For the thirteen weeks ended June 30, 2019, the Company recognized interest expense of $354,000, which includes accretion expense of $5,500 as well as $1,000 for the amortization of the debt offering costs. For the thirteen and twenty-six weeks ended July 1, 2018, the Company recognized $80,000 of interest expense, which includes accretion expense of $1,800. The effective interest rate for the Series A Preferred Stock is 14.2%. Series A-1 Fixed Rate Cumulative Preferred Stock On July 3, 2018, the Company filed with the Secretary of State of the State of Delaware a Certificate of Designation of Rights and Preferences of Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Certificate of Designation”), designating a total of 200,000 shares of Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Preferred Stock”). As of June 30, 2019, there were 45,000 shares of Series A-1 Preferred Stock issued and outstanding. The Series A-1 Certificate of Designation contains the following terms pertaining to the Series A-1 Preferred Stock: Dividends Voting Rights Liquidation and Redemption. Holders of Series A-1 Preferred Stock may also optionally cause the Company to redeem all or any portion of their shares of Series A-1 Preferred Stock beginning any time after the two-year anniversary of the initial issuance date for an amount equal to $100.00 per share plus any accrued and unpaid dividends, which amount may be settled in cash or Common Stock of the Company, at the option of the holder. If a holder elects to receive Common Stock, shares will be issued as payment for redemption at the rate of $12.00 per share of Common Stock. As of June 30, 2019, there were 45,000 shares of Series A-1 Preferred Stock outstanding. The Company classifies the Series A-1 Preferred Stock as long-term debt because it contains an unconditional obligation requiring the Company to redeem the instruments at $100.00 per share on the Series A-1 Mandatory Redemption Date. As of June 30, 2019, the net Series A-1 Preferred Stock balance was $4,323,000 including an unaccreted debt discount of $149,000 and unamortized debt offering costs of $28,000. The Company recognized interest expense on the Series A-1 Preferred Stock of $154,000 for the twenty-six weeks ended June 30, 2019, which included recognized accretion expense of $16,000, as well as $3,000 for the amortization of debt offering costs, with no comparable activity in 2018. The Company recognized interest expense on the Series A-1 Preferred Stock of $77,000 for the thirteen weeks ended June 30, 2019, which included recognized accretion expense of $8,000, as well as $1,700 for the amortization of debt offering costs, with no comparable activity in 2018.The effective interest rate for the Series A-1 Preferred Stock is 6.9%. The issuance of the Series A Preferred Stock and Series A-1 Preferred Stock was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Each of the investors in the Offering represented that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and was acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation by the Company or its representatives.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 13. Related Party Transactions The Company had open accounts with affiliated entities under the common control of FCCG resulting in net amounts due to the Company of $20,275,000 as of June 30, 2019. The receivable from FCCG bears interest at a rate of 10% per annum. During the twenty-six weeks ended June 30, 2019, $623,000 of accrued interest income was added to the balance of the receivable from FCCG. The balance of Due From Affiliates includes a preferred capital investment in Homestyle Dining LLC, a Delaware limited liability corporation (“HSD”) in the amount of $4.0 million made effective July 5, 2018 (the “Preferred Interest”). FCCG owns all of the common interests in HSD. The holder of the Preferred Interest is entitled to a 15% priority return on the outstanding balance of the investment (the “Preferred Return”). Any available cash flows from HSD on a quarterly basis are to be distributed to pay the accrued Preferred Return and repay the Preferred Interest until fully retired. On or before the five-year anniversary of the investment, the Preferred Interest is to be fully repaid, together with all previously accrued but unpaid Preferred Return. FCCG has unconditionally guaranteed repayment of the Preferred Interest in the event HSD fails to do so. During the twenty-six weeks ended June 30, 2019, the Company recorded a payable to FCCG in the amount of $46,000 under the Tax Sharing Agreement. (See Note 9).

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Shareholders' Equity	Note 14. SHAREHOLDERS’ EQUITY As of June 30, 2019 and December 30, 2018, the total number of authorized shares of common stock was 25,000,000, and there were 11,826,765 and 11,546,589 (unadjusted for the issuance of shares related to the common stock dividend during the first quarter of 2019) shares of common stock outstanding, respectively. Below are the changes to the Company’s common stock during the twenty-six weeks ended June 30, 2019: ● On February 7, 2019, the Company declared a stock dividend equal to 2.13% on its common stock, representing the number of shares equal to $0.12 per share of common stock based on the closing price as of February 6, 2019. The stock dividend was paid on February 28, 2019 to stockholders of record as of the close of business on February 19, 2019. The Company issued 245,376 shares of common stock at a per share price of $5.64 in satisfaction of the dividend. The number of common shares issued prior to the record date of the stock dividend have been adjusted retrospectively for the effects of the stock dividend. ● On February 22, 2019, the Company issued a total of 15,384 shares of common stock at a value of $5.85 per share to the non-employee members of the board of directors as consideration for accrued directors’ fees. ● On May 21, 2019, the Company issued a total of 19,416 shares of common stock at a value of $4.64 per share to the non-employee members of the board of directors as consideration for accrued directors’ fees.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Share-Based Compensation	Note 15. SHARE-BASED COMPENSATION Effective September 30, 2017, the Company adopted the 2017 Omnibus Equity Incentive Plan (the “Plan”). The Plan is a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands Inc. and its subsidiaries. The Plan provides a maximum of 1,021,250 shares available for grant. All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually. The Company’s stock option activity for the twenty-six weeks ended June 30, 2019 can be summarized as follows: Number of Shares Weighted Average Weighted Average Remaining Contractual Stock options outstanding at December 30, 2018 681,633 $ 8.84 9.1 Grants 15,000 $ 8.00 10.0 Forfeited - $ - - Expired - $ - - Stock options outstanding at June 30, 2019 696,633 $ 8.82 8.9 Stock options exercisable at June 30, 2019 121,693 $ 11.75 8.3 The assumptions used in the Black-Scholes valuation model to record the stock-based compensation are as follows: Including Non-Employee Options Expected dividend yield 4.00% - 10.43 % Expected volatility 30.23% - 31.73 % Risk-free interest rate 1.60% - 2.85 % Expected term (in years) 5.50 – 5.75 The Company recognized share-based compensation expense in the amount of $78,000 and $159,000 during the thirteen and twenty-six weeks ended June 30, 2019, respectively. The Company recognized share-based compensation expense in the amount of $120,000 and $245,000 during the thirteen and twenty-six weeks ended July 1, 2018. As of June 30, 2019, there remains $267,000 of related share-based compensation expense relating to these non-vested grants, which will be recognized over the remaining vesting period, subject to future forfeitures.

Warrants

Warrants	6 Months Ended
	Jun. 30, 2019
Other Liabilities Disclosure [Abstract]
Warrants	Note 16. WARRANTS As of June 30, 2019, the Company had issued the following outstanding warrants to purchase shares of its common stock: ● Warrants issued on October 20, 2017 to purchase 81,700 shares of the Company’s stock granted to the selling agent in the Company’s initial public offering (the “Common Stock Warrants”). The Common Stock Warrants are exercisable commencing April 20, 2018 through October 20, 2022. The exercise price for the Common Stock Warrants is $14.69 per share, and the Common Stock Warrants were valued at $124,000 at the date of grant. The Common Stock Warrants provide that upon exercise, the Company may elect to redeem the Common Stock Warrants in cash by paying the difference between the applicable exercise price and the then-current fair market value of the common stock. ● Warrants issued on June 7, 2018 to purchase 102,125 shares of the Company’s common stock at $7.83 per share (the “Subscription Warrants”). The Subscription Warrants were issued as part of the Subscription Agreement (see Note 12). The Subscription Warrants were valued at $87,000 at the date of grant. The Subscription Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on June 27, 2018 to purchase 25,530 shares of the Company’s common stock at $7.83 per share (the “Exchange Warrants”). The Exchange Warrants were issued as part of the Exchange (See Note 12). The Exchange Warrants were valued at $25,000 at the date of grant. The Exchange Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 57,439 shares of the Company’s common stock at $7.83 per share (the “Hurricane Warrants”). The Hurricane Warrants were issued as part of the acquisition of Hurricane. The Hurricane Warrants were valued at $58,000 at the date of grant. The Hurricane Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 509,604 shares of the Company’s common stock at $7.20 per share (the “Lender Warrant”). The Lender Warrant was issued as part of the $16 million credit facility with FB Lending, LLC (See Note 11). The Lender Warrant was valued at $592,000 at the date of grant. The Lender Warrant may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 66,691 shares of the Company’s common stock at $7.20 per share (the “Placement Agent Warrants”). The Placement Agent Warrants were issued to the placement agents of the $16 million credit facility with FB Lending, LLC (See Note 11). The Placement Agent Warrants were valued at $78,000 at the date of grant. The Placement Agent Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on January 29, 2019, in connection with the Loan and Security Agreement (See Note 11), to purchase up to 1,167,404 shares of the Company’s Common Stock at $0.01 per share (the “Lion Warrant”), exercisable at any time between October 1, 2019 and January 29, 2024, but only if the amounts outstanding under the Loan and Security Agreement are not repaid in full prior to October 1, 2019. If the Loan and Security Agreement is repaid in full prior to October 1, 2019, the Lion Warrant will terminate in its entirety. The Lion Warrants were not valued at the date of grant due to the contingency relating to their exercise. ● Warrants issued on June 19, 2019, in connection with the acquisition of Elevation Burger (See Note 3), to purchase 46,875 shares of the Company’s common stock at $8.00 per share (the “Elevation Warrant”), exercisable for a period of five years, but only in the event of a merger of the Company and FCCG, commencing on the second business day following the potential merger and ending on the five year anniversary thereafter, at which time the Elevation Warrant shall terminate The Elevation Warrants were not valued at the date of grant due to the contingency relating to their exercise. The Company’s warrant activity for the twenty-six weeks ended June 30, 2019, as adjusted for the February 2019 stock dividend, is as follows: Number of Shares Weighted Average Weighted Average Remaining Contractual Warrants outstanding at December 30, 2018 843,089 $ 8.06 4.0 Grants 1,214,279 $ 0.32 4.3 Exercised - $ - - Forfeited - $ - - Expired - $ - - Warrants outstanding at June 30, 2019 2,057,368 $ 3.49 4.3 Warrants exercisable at June 30, 2019 843,089 $ 8.23 3.9 The range of assumptions used in the Black-Scholes valuation model to record basis of the warrants as of the grant dates are as follows: Warrants Expected dividend yield 4.00% - 6.63 % Expected volatility 31.73 % Risk-free interest rate 0.99% - 1.91 % Expected term (in years) 5.00

Dividends on Common Stock

Dividends on Common Stock	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Dividends on Common Stock	Note 17. DIVIDENDS ON COMMON STOCK The Company declared a stock dividend on February 7, 2019 equal to 2.13% on its common stock, representing the number of shares equal to $0.12 per share of common stock based on the closing price as of February 6, 2019. The stock dividend was paid on February 28, 2019 to stockholders of record as of the close of business on February 19, 2019. The Company issued 245,376 shares of common stock at a per share price of $5.64 in satisfaction of the dividend. As no fractional shares were issued, the Company paid stockholders cash in lieu of fractional shares.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 18. Commitments and Contingencies Litigation Eric Rojany, et al. v. FAT Brands Inc., et al. Daniel Alden, et al. v. FAT Brands Inc., et al. On June 7, 2018, plaintiff Eric Rojany, a putative investor in the Company, filed a putative class action lawsuit against the Company, Andrew Wiederhorn, Ron Roe, Fog Cutter Capital Group, Inc., Tripoint Global Equities, LLC and members of the Company’s board of directors, entitled Rojany v. FAT Brands Inc. Alden v. FAT Brands, Inc. Rojany Alden Rojany The Company and other defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. Adam Vignola, et al. v. FAT Brands Inc., et al. On August 24, 2018, plaintiff Adam Vignola, a putative investor in the Company, filed a putative class action lawsuit against the Company, Andrew Wiederhorn, Ron Roe, Fog Cutter Capital Group, Inc., Tripoint Global Equities, LLC and members of the Company’s board of directors, entitled Vignola v. FAT Brands Inc. Rojany Rojany The Company and other defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. The Company is obligated to indemnify its officers and directors to the extent permitted by applicable law in connection with the above actions, and has insurance for such individuals, to the extent of the limits of the applicable insurance policies and subject to potential reservations of rights. The Company is also obligated to indemnify Tripoint Global Equities, LLC under certain conditions relating to the Rojany Vignola The Company is involved in other claims and legal proceedings from time-to-time that arise in the ordinary course of business. The Company does not believe that the ultimate resolution of these actions will have a material adverse effect on its business, financial condition, results of operations, liquidity or capital resources. Operating Leases The Company leases corporate headquarters located in Beverly Hills, California comprising 5,478 square feet of space, pursuant to a lease that expires on April 30, 2020, as well as an additional 2,915 square feet of space pursuant to a lease amendment that expires on February 29, 2024. The Company leases 1,775 square feet of space in Plano, TX for pursuant to a lease that expires on March 31, 2021. The Company also leases 5,057 square feet of space in Falls Church, VA pursuant to a lease that expires on April 30, 2020. Elevation subleases approximately 2,500 square feet of its lease to an unrelated third party. The Company believes that all existing facilities are in good operating condition and adequate to meet current and foreseeable needs.

Geographic Information and Majo

Geographic Information and Major Franchisees	6 Months Ended
	Jun. 30, 2019
Geographic Information And Major Franchisees
Geographic Information and Major Franchisees	Note 19. geographic information AND MAJOR FRANCHISEES R evenues by geographic area are as follows (in thousands): Thirteen Weeks Ended Twenty-six Weeks Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 United States $ 5,059 $ 2,895 $ 9,070 $ 5,643 Other countries 836 1,013 1,698 1,850 Total revenues $ 5,895 $ 3,908 $ 10,768 $ 7,493 Revenues are shown based on the geographic location of our licensee restaurants. All our assets are located in the United States. During the thirteen and twenty-six weeks ended June 30, 2019 and July 1, 2018, no individual franchisee accounted for more than 10% of the Company’s revenues.

Operating Segments

Operating Segments	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Operating Segments	NOTE 20. OPERATING SEGMENTS With minor exceptions, the Company’s operations are comprised exclusively of franchising a growing portfolio of restaurant brands. This growth strategy is centered on expanding the footprint of existing brands and acquiring new brands through a centralized management organization which provides substantially all executive leadership, marketing, training and accounting services. While there are variations in the brands, the nature of the Company’s business is fairly consistent across its portfolio. Consequently, management assesses the progress of the Company’s operations as a whole, rather than by brand or location which become more significant as the number of brands has increased. As part of its ongoing franchising efforts, the Company will, from time to time, make opportunistic acquisitions of operating restaurants in order to convert them to franchise locations. During the refranchising period, the Company may operate the restaurants. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial performance and allocates resources at an overall level on a recurring basis. Therefore, management has determined that the Company has one operating and reportable segment.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 21. SUBSEQUENT EVENTS Pursuant to FASB ASC 855, Management has evaluated all events and transactions that occurred from June 30, 2019 through the date of issuance of these financial statements. During this period, the Company did not have any significant subsequent events. Loan and Security Agreement On July 24, 2019, the Company entered into a first amendment to the Lion Warrant, which extends the date on which the Lion Warrant was initially exercisable from October 1, 2019 to June 30, 2020, which coincides with the maturity date of the loans made under the Loan Agreement. The Lender Warrant is only exercisable if the amounts outstanding under the Loan Agreement are not repaid in full prior to the Exercise Date. The Company agreed to pay the Lenders an extension fee of $500,000 in the form of an increase in the principal amount loaned under the Loan and Security Agreement, and on July 24, 2019 entered into a second amendment to the Loan Agreement (the “ Second Amendment

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Nature of Operations	Nature of operations
Principles of Consolidation	Principles of consolidation The accounts of Hurricane have been consolidated since its acquisition by the Company on July 3, 2018. The accounts of the Yalla Business have been consolidated since December 3, 2018. The accounts of Elevation Burger have been consolidated since its acquisition on June 19, 2019. Intercompany accounts have been eliminated in consolidation.
Use of Estimates in the Preparation of the Consolidated Financial Statements	Use of estimates in the preparation of the consolidated financial statements
Financial Statement Reclassification	Financial statement reclassification
Cash	Cash -
Accounts Receivable	Accounts receivable
Trade Notes Receivable	Trade notes receivable –
Assets Classified as Held for Sale	Assets classified as held for sale –
Goodwill and Other Intangible Assets	Goodwill and other intangible assets
Income Taxes	Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A two-step approach is utilized to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
Royalties	Royalties:
Franchise Fees	Franchise Fees: The franchise fee may be adjusted at management’s discretion or in a situation involving store transfers. Deposits are non-refundable upon acceptance of the franchise application. In the event a franchisee does not comply with their development timeline for opening franchise stores, the franchise rights may be terminated, and franchise fee revenue is recognized for non-refundable deposits.
Store Opening Fees	Store opening fees –
Advertising	Advertising –
Share-based Compensation	Share-based compensation
Earnings Per Share	Earnings per share The Company declared a stock dividend on February 7, 2019 and issued 245,376 shares of common stock in satisfaction of the dividend (See Note 17). Unless otherwise noted, earnings per share and other share-based information for 2019 and 2018 have been adjusted retrospectively to reflect the impact of the stock dividend.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In July 2018, the FASB issued ASU 2018-09, Codification Improvements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Adopting the new accounting standard for leases affected various financial statement line items for the thirteen and twenty-six weeks ended June 30, 2019. The following table provides the affected amounts as reported in these unaudited consolidated financial statements compared with what they would have been if the previous accounting guidance had remained in effect. As of June 30, 2019 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Operating lease right of use assets $ 1,147 $ - Operating lease right of use assets classified as held for sale $ 3,312 $ - Operating lease liabilities $ 1,167 $ - Operating lease liabilities associated with operating lease right of use assets classified as held for sale $ 3,371 $ -
Recently Issued Accounting Standards	Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40).

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of Affected Amounts Reported in Consolidated Financial Statements	The following table provides the affected amounts as reported in these unaudited consolidated financial statements compared with what they would have been if the previous accounting guidance had remained in effect. As of June 30, 2019 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Operating lease right of use assets $ 1,147 $ - Operating lease right of use assets classified as held for sale $ 3,312 $ - Operating lease liabilities $ 1,167 $ - Operating lease liabilities associated with operating lease right of use assets classified as held for sale $ 3,371 $ -

Acquisitions and Significant _2

Acquisitions and Significant Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Yalla Mediterranean, LLC [Member]
Schedule of Allocation of Tangible and Intangible Assets Acquired	The allocation of the total consideration recognized of $3,490,000 to the net tangible and intangible assets acquired in the Yalla Business is presented in the table below (in thousands): Cash $ 82 Accounts receivable 77 Inventory 95 Other assets 90 Property and equipment 2,521 Intangible assets 1,530 Goodwill 263 Accounts payable and accrued expenses (1,168 ) Total net identifiable assets $ 3,490
Hurricane AMT, LLC [Member]
Schedule of Allocation of Tangible and Intangible Assets Acquired	The allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 358 Accounts receivable 352 Other assets 883 Intangible assets 11,020 Goodwill 2,772 Accounts payable and accrued expenses (643 ) Deferred franchise fees (1,885 ) Other liabilities (357 ) Total net identifiable assets $ 12,500
Elevation Burger [Member]
Schedule of Allocation of Tangible and Intangible Assets Acquired	The allocation of the consideration to the preliminary valuation of net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 18 Accounts receivable 50 Other assets 446 Intangible assets 7,140 Goodwill 1,601 Amounts payable to franchising agent (1,065 ) Deferred franchise fees (758 ) Other liabilities (239 ) Total net identifiable assets $ 7,193

Assets Classified as Held for_2

Assets Classified as Held for Sale (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Remaining Assets Classified as Held for Sale	As a result, the following remaining assets have been classified as held for sale on the accompanying consolidated balance sheet as of June 30, 2019 (in thousands): June 30, 2019 Property, plant and equipment $ 1,914 Operating lease right of use assets 3,312 Total $ 5,226
Schedule of Refranchising Restaurant Costs and Expenses	During the thirteen and twenty-six weeks ended June 30, 2019, the restaurants incurred refranchising restaurant costs and expenses, net of revenue of $503,000 and $1,021,000, respectively, as follows, with no comparable activity in the prior periods (in thousands): Thirteen Weeks Ended Twenty-six Weeks Ended Restaurant sales $ 1,598 $ 3,430 Cost of restaurant sales (520 ) (1,150 ) Other restaurant operating costs (1,581 ) (3,301 ) $ (503 ) $ (1,021 )

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Goodwill consists of the following (in thousands): June 30, 2019 December 30, 2018 Goodwill: Fatburger $ 529 $ 529 Buffalo’s 5,365 5,365 Hurricane 2,772 2,772 Ponderosa 1,462 1,462 Yalla 263 263 Elevation Burger 1,601 - Total Goodwill $ 11,992 $ 10,391

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consist of the following (in thousands): June 30, 2019 December 30, 2018 Trademarks: Fatburger $ 2,135 $ 2,135 Buffalo’s 27 27 Hurricane 6,840 6,840 Ponderosa 7,230 7,230 Yalla 1,530 1,530 Elevation Burger 4,690 - Total trademarks 22,452 17,762 Franchise agreements: Hurricane – cost 4,180 4,180 Hurricane – accumulated amortization (322 ) (161 ) Ponderosa – cost 1,640 1,640 Ponderosa – accumulated amortization (187 ) (132 ) Elevation Burger – cost 2,450 - Elevation Burger – accumulated amortization (14 ) - Total franchise agreements 7,747 5,527 Total Other Intangible Assets $ 30,199 $ 23,289
Schedule of Future Amortization	The expected future amortization of the Company’s capitalized franchise agreements is as follows (in thousands): Fiscal year: 2019 $ 466 2020 932 2021 932 2022 932 2023 932 Thereafter 3,553 Total $ 7,747

Deferred Income (Tables)

Deferred Income (Tables)	6 Months Ended
	Jun. 30, 2019
Contract with Customer, Liability [Abstract]
Schedule of Deferred Income	Deferred income is as follows (in thousands): June 30, 2019 December 30, 2018 Deferred franchise fees $ 6,253 $ 6,711 Deferred royalties 534 653 Deferred advertising revenue 384 333 Total $ 7,171 $ 7,697

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Schedule of Components of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): June 30, 2019 December 30, 2018 Deferred tax assets (liabilities) Deferred income $ 3,066 $ 1,779 Reserves and accruals 455 346 Intangibles (806 ) (532 ) Deferred state income tax (122 ) (72 ) Tax credits (53 ) 126 Share-based compensation 132 131 NOL carryforward 267 - Interest expense (347 ) 439 Other (26 ) 19 Total $ 2,566 $ 2,236
Schedule of Components of the Income Tax Provision (Benefit)	Components of the income tax expense are as follows (in thousands): Twenty-six Weeks Ended Twenty-six Weeks Ended Current Federal $ 318 $ 204 State 262 49 Foreign 375 109 955 362 Deferred Federal (89 ) (46 ) State (241 ) (20 ) (330 ) (66 ) Total income tax expense $ 625 $ 296
Schedule of Statutory Income Tax Rate to Pretax Income	Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate to pretax income as follows (in thousands): Twenty-six Weeks Ended Twenty-six Weeks Ended June 30, 2019 July 1, 2018 Tax benefit at statutory rate $ (124 ) $ 247 State and local income taxes 14 24 Foreign taxes 375 - Tax credits (375 ) - Dividends on mandatorily redeemable preferred stock 643 - Other 92 25 Total income tax (benefit) expense $ 625 $ 296
FCCG [Member]
Schedule of Net Operating Loss	The contractual future maturities of the Company’s operating lease liabilities as of June 30, 2019, including anticipated lease extensions, are as follows (in thousands): Fiscal year: 2019 $ 653 2020 1,126 2021 887 2022 899 2023 924 Thereafter 5,565 Total lease payments 10,054 Less imputed interest 5,516 Total $ 4,538

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Summary of Operating Lease Right of Use Assets and Operating Lease Liabilities Relating to Operating Leases	Operating lease right of use assets and operating lease liabilities relating to the operating leases as of June 30, 2019 are as follows (in thousands): June 30, 2019 December 30, 2018 Right of use assets $ 4,459 $ - Lease liabilities $ 4,538 $ -
Schedule of Contractual Future Maturities of Operating Lease Liabilities	The contractual future maturities of the Company’s operating lease liabilities as of June 30, 2019, including anticipated lease extensions, are as follows (in thousands): Fiscal year: 2019 $ 653 2020 1,126 2021 887 2022 899 2023 924 Thereafter 5,565 Total lease payments 10,054 Less imputed interest 5,516 Total $ 4,538
Summary of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information for the twenty-six weeks ended June 30, 2019 related to leases is as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 584 Operating lease right of use assets obtained in exchange for new lease obligations: Operating lease liabilities $ 187

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Aggregate Values Assigned Upon Issuance of Each Component	Accordingly, the aggregate values assigned upon issuance of each component were as follows (in thousands): Warrants (equity component) Loan and Security Agreement (debt component) Total Gross proceeds $ - $ 20,000 $ 20,000 Issuance costs - (275 ) (275 ) Net proceeds $ - $ 19,725 $ 19,725 Balance sheet impact at issuance: Long-term debt, net of discount and offering costs $ - $ 19,725 $ 19,725

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of Stock Option Activity	The Company’s stock option activity for the twenty-six weeks ended June 30, 2019 can be summarized as follows: Number of Shares Weighted Average Weighted Average Remaining Contractual Stock options outstanding at December 30, 2018 681,633 $ 8.84 9.1 Grants 15,000 $ 8.00 10.0 Forfeited - $ - - Expired - $ - - Stock options outstanding at June 30, 2019 696,633 $ 8.82 8.9 Stock options exercisable at June 30, 2019 121,693 $ 11.75 8.3
Schedule of Assumptions Used for Stock-based Compensation	The assumptions used in the Black-Scholes valuation model to record the stock-based compensation are as follows: Including Non-Employee Options Expected dividend yield 4.00% - 10.43 % Expected volatility 30.23% - 31.73 % Risk-free interest rate 1.60% - 2.85 % Expected term (in years) 5.50 – 5.75

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Jun. 30, 2019
Other Liabilities Disclosure [Abstract]
Summary of Warrant Activity	The Company’s warrant activity for the twenty-six weeks ended June 30, 2019, as adjusted for the February 2019 stock dividend, is as follows: Number of Shares Weighted Average Weighted Average Remaining Contractual Warrants outstanding at December 30, 2018 843,089 $ 8.06 4.0 Grants 1,214,279 $ 0.32 4.3 Exercised - $ - - Forfeited - $ - - Expired - $ - - Warrants outstanding at June 30, 2019 2,057,368 $ 3.49 4.3 Warrants exercisable at June 30, 2019 843,089 $ 8.23 3.9
Schedule of Assumptions Used for Stock-based Compensation, Warrants	The range of assumptions used in the Black-Scholes valuation model to record basis of the warrants as of the grant dates are as follows: Warrants Expected dividend yield 4.00% - 6.63 % Expected volatility 31.73 % Risk-free interest rate 0.99% - 1.91 % Expected term (in years) 5.00

Geographic Information and Ma_2

Geographic Information and Major Franchisees (Tables)	6 Months Ended
	Jun. 30, 2019
Geographic Information And Major Franchisees
Schedule of Revenues by Geographic Area	R evenues by geographic area are as follows (in thousands): Thirteen Weeks Ended Twenty-six Weeks Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 United States $ 5,059 $ 2,895 $ 9,070 $ 5,643 Other countries 836 1,013 1,698 1,850 Total revenues $ 5,895 $ 3,908 $ 10,768 $ 7,493

Organization and Relationships

Organization and Relationships (Details Narrative) $ in Thousands	Oct. 20, 2017	Jun. 30, 2019USD ($)	Jul. 01, 2018USD ($)	Jun. 30, 2019USD ($)Integer	Jul. 01, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ownership percentage, description	On October 20, 2017, the Company completed an initial public offering and issued additional shares of common stock representing 20 percent of its ownership (the "Offering"). The Company's common stock trades on the Nasdaq Capital Market under the symbol "FAT." As of June 30, 2019, FCCG continues to control a significant voting majority of the Company.
Initial public offering percentage	20.00%
Franchising brands and locations, description				The Company owns and franchises eight restaurant brands: Fatburger, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouses, Bonanza Steakhouses, Yalla Mediterranean and Elevation Burger. Combined, these brands have over 380 locations open and more than 200 under development.
Number of franchise brands				8
Number of franchise locations				380
Number of franchises minimum, under development				200
Income from operations | $		$ 1,402	$ 827	$ 2,197	$ 1,768
Net income (loss) | $		$ (508)	$ 373	$ (1,218)	$ 882

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	Feb. 07, 2019	Jun. 30, 2019	Dec. 30, 2018
Number of common stock share issued	245,376
Right of use assets		$ 1,147
Lease liabilities		1,167
ASU 2016-02 [Member]
Right of use assets			4,313
Lease liabilities			$ 4,225
Domestic Stores [Member]
Store opening fees		35
International Stores [Member]
Store opening fees		$ 60
Domestic and International Stores [Member]
Store opening description		If the fees collected are less than the respective store opening fee amounts, the full up-front fees are recognized at opening. The store opening fees are based on out-of-pocket costs to the Company for each store opening and are primarily comprised of labor expenses associated with training, store design, and supply chain setup.
Tax Sharing Agreement [Member]
Income tax likely being realized		The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
Maximum [Member]
FDIC insured amount		$ 250
Interest rate percentage		7.50%
Royalty fee percentage		6.00%
Minimum [Member]
Interest rate percentage		6.00%
Royalty fee percentage		0.75%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Affected Amounts Reported in Consolidated Financial Statements (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Operating lease right of use assets	$ 1,147
Operating lease right of use assets classified as held for sale	3,312
Operating lease liabilities	1,167
Operating lease liabilities associated with operating lease right of use assets classified as held for sale	3,371
Amounts Under Previous Accounting Guidance [Member]
Operating lease right of use assets
Operating lease right of use assets classified as held for sale
Operating lease liabilities
Operating lease liabilities associated with operating lease right of use assets classified as held for sale

Acquisitions and Significant _3

Acquisitions and Significant Transactions (Details Narrative)	Jun. 19, 2019USD ($)Integer$ / sharesshares	Dec. 03, 2018USD ($)	Jul. 03, 2018USD ($)$ / sharesshares	Jun. 30, 2019USD ($)
Notes receivable				$ 377,000
Hurricane Warrants [Member]
Number of warrants to purchase common stock | shares			57,439
Exercise price per share | $ / shares			$ 7.83
Yalla Mediterranean, LLC [Member]
Net tangible and intangible assets acquired		$ 3,490,000
Hurricane AMT, LLC [Member]
Purchase price of business			$ 12,500,000
Payment of cash to acquire business			8,000,000
Net tangible and intangible assets acquired			12,500,000
Issuance of equity			4,500,000
Equity units value per unit			$ 10,000
Number of units sold | shares			450
Hurricane AMT, LLC [Member] | Hurricane Warrants [Member]
Number of warrants to purchase common stock | shares			125
Exercise price per share | $ / shares			$ 8
Hurricane AMT, LLC [Member] | Series A-1 Fixed Rate Cumulative Preferred Stock [Member]
Number of preferred shares designated | shares			100
Intellectual Property Purchase Agreement [Member] | Yalla Mediterranean, LLC [Member]
Purchase price of business				$ 1,985,000
Net tangible and intangible assets acquired		$ 3,490,000
Purchase price description		The purchase price for the intellectual property will be paid in the form of an earn-out, calculated as the greater of $1,500,000 or 400% of Yalla Income
Purchase price of intellectual property		$ 1,790,000
Effective accretion interest rate				19.00%
Master Agreement [Member] | Yalla Mediterranean Restaurants [Member]
Purchase price of business				$ 1,722,000
Earn-out payable		$ 1,700,000
Purchase price description		The purchase price will be the greater of $1,000,000 or the sum of (i) the first $1,750,000 of gross sale proceeds received from the sale of the Yalla Mediterranean restaurants to franchisee/purchasers, plus (ii) the amount, if any, by which fifty percent (50%) of the net proceeds (after taking into consideration operating income or loss and transaction costs and expenses) from the sale of the Yalla Mediterranean restaurants exceeds $1,750,000.
Effective accretion interest rate				5.40%
Maximum [Member]
Interest rate				7.50%
Elevation Burger [Member]
Purchase price of business	$ 10,050,000
Number of locations | Integer	44
Payment of cash to acquire business	$ 50,000
Number of warrants to purchase common stock | shares	46,875
Share price | $ / shares	$ 8
Net tangible and intangible assets acquired	$ 7,193,000
Elevation Burger [Member] | Maximum [Member]
Earn-out payable	$ 2,500,000
Elevation Burger [Member] | Elevation Note [Member]
Share price | $ / shares	$ 12
Principal amount of note	$ 7,509,816
Interest rate	6.00%			10.10%
Maturity date	Jul. 31, 2026
Elevation Burger [Member] | Elevation Buyer Note [Member]
Purchase price of business	$ 1,903,000
Interest rate	6.00%
Maturity date	Aug. 31, 2026
Notes receivable	$ 2,300,000

Acquisitions and Significant _4

Acquisitions and Significant Transactions - Schedule of Allocation of Tangible and Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 19, 2019	Dec. 30, 2018	Dec. 03, 2018	Jul. 03, 2018
Goodwill	$ 11,992		$ 10,391
Yalla Mediterranean, LLC [Member]
Cash				$ 82
Accounts receivable				77
Inventory				95
Other assets				90
Property and equipment				2,521
Intangible assets				1,530
Goodwill				263
Accounts payable and accrued expenses				(1,168)
Total net identifiable assets				$ 3,490
Hurricane AMT, LLC [Member]
Cash					$ 358
Accounts receivable					352
Other assets					883
Intangible assets					11,020
Goodwill					2,772
Accounts payable and accrued expenses					(643)
Deferred franchise fees					(1,885)
Other liabilities					(357)
Total net identifiable assets					$ 12,500
Elevation Burger [Member]
Cash		$ 18
Accounts receivable		50
Other assets		446
Intangible assets		7,140
Goodwill		1,601
Amounts payable to franchising agent		(1,065)
Deferred franchise fees		(758)
Other liabilities		(239)
Total net identifiable assets		$ 7,193

Assets Classified as Held for_3

Assets Classified as Held for Sale (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Dec. 30, 2018
Property, Plant and Equipment [Abstract]
Gain on sale refranchised restaurants			$ 970
Operating lease liabilities related to the assets classified as held for sale	$ 3,371		3,371
Refranchising restaurant costs and expenses, net of revenue	$ 503		$ 1,021

Assets Classified as Held for_4

Assets Classified as Held for Sale - Schedule of Remaining Assets Classified as Held for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Property, Plant and Equipment [Abstract]
Property, plant and equipment	$ 1,914
Operating lease right of use assets	3,312
Total	$ 5,226

Assets Classified as Held for_5

Assets Classified as Held for Sale - Schedule of Refranchising Restaurant Costs and Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Restaurant sales	$ 5,895	$ 3,908	$ 10,768	$ 7,493
Total	503		1,021
Restuarant Sales [Member]
Restaurant sales	1,598		3,430
Cost of restaurant sales	(520)		(1,150)
Other restaurant operating costs	(1,581)		(3,301)
Total	$ (503)		$ (1,021)

Notes Receivable (Details Narra

Notes Receivable (Details Narrative) - USD ($)	Jun. 19, 2019	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Trade notes receivable		$ 377,000		$ 377,000
Trade notes receivable, reserves		123,000		123,000
Interest income on notes receivable		$ 4,000		$ 4,000
Elevation Burger [Member]
Net carrying value of total consideration	$ 10,050,000
Elevation Burger [Member] | Elevation Buyer Note [Member]
Debt instrument rate of interest	6.00%
Trade notes receivable	$ 2,300,000
Maturity date	Aug. 31, 2026
Net carrying value of total consideration	$ 1,903,000
Discount	$ 397,000
Minimum [Member]
Debt instrument rate of interest		6.00%		6.00%
Maximum [Member]
Debt instrument rate of interest		7.50%		7.50%

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Total Goodwill	$ 11,992	$ 10,391
Fatburger [Member]
Total Goodwill	529	529
Buffalo's [Member]
Total Goodwill	5,365	5,365
Hurricane [Member]
Total Goodwill	2,772	2,772
Ponderosa [Member]
Total Goodwill	1,462	1,462
Yalla [Member]
Total Goodwill	263	263
Elevation Burger [Member]
Total Goodwill	$ 1,601

Other Intangible Assets - Sched

Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Total trademarks	$ 22,452	$ 17,762
Total franchise agreements	7,747	5,527
Total Other Intangible Assets	30,199	23,289
Fatburger [Member]
Total trademarks	2,135	2,135
Buffalo's [Member]
Total trademarks	27	27
Hurricane [Member]
Total trademarks	6,840	6,840
Hurricane [Member] | Franchise Agreements [Member]
Cost	4,180	4,180
Accumulated amortization	(322)	(161)
Ponderosa [Member]
Total trademarks	7,230	7,230
Ponderosa [Member] | Franchise Agreements [Member]
Cost	1,640	1,640
Accumulated amortization	(187)	(132)
Yalla [Member]
Total trademarks	1,530	1,530
Elevation Burger [Member]
Total trademarks	4,690
Elevation Burger [Member] | Franchise Agreements [Member]
Cost	2,450
Accumulated amortization	$ (14)

Other Intangible Assets - Sch_2

Other Intangible Assets - Schedule of Future Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 466
2020	932
2021	932
2022	932
2023	932
Thereafter	3,553
Total	$ 7,747	$ 5,527

Deferred Income - Schedule of D

Deferred Income - Schedule of Deferred Income (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Contract with Customer, Liability [Abstract]
Deferred franchise fees	$ 6,253	$ 6,711
Deferred royalties	534	653
Deferred advertising revenue	384	333
Total	$ 7,171	$ 7,697

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - Fog Cutter Capital Group Inc [Member] $ in Thousands	Jun. 30, 2019USD ($)
Due from related party	$ 20,275
Net operating loss carryforward	88,913
Taxes payable	46
Tax Sharing Agreement [Member]
Due from related party	$ 20,275

Income Taxes - Schedule of Net

Income Taxes - Schedule of Net Operating Loss (Details) - FCCG [Member] $ in Thousands	Jun. 30, 2019USD ($)
Total	$ 88,913
2019 [Member]
Total	12,654
2020 [Member]
Total	25,045
2021 [Member]
Total	2,844
2022 [Member]
Total	46
2023 [Member]
Total	76
Thereafter [Member]
Total	$ 48,248

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Income Tax Disclosure [Abstract]
Deferred income	$ 3,066	$ 1,779
Reserves and accruals	455	346
Intangibles	(806)	(532)
Deferred state income tax	(122)	(72)
Tax credits	(53)	126
Share-based compensation	132	131
NOL carryforward	267
Interest expense	(347)	439
Other	(26)	19
Total	$ 2,566	$ 2,236

Income Taxes - Schedule of Co_2

Income Taxes - Schedule of Components of the Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Current: Federal			$ 318	$ 204
Current: State			262	49
Current: Foreign			375	109
Current Income Tax Expense (Benefit), Total			955	362
Deferred: Federal			(89)	(46)
Deferred: State			(241)	(20)
Deferred: Income Tax Expense (Benefit), Total			(330)	(66)
Total income tax expense	$ 1,344	$ 112	$ 625	$ 296

Income Taxes - Schedule of Stat

Income Taxes - Schedule of Statutory Income Tax Rate to Pretax Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Tax benefit at statutory rate			$ (124)	$ 247
State and local income taxes			14	24
Foreign taxes			375
Tax credits			(375)
Dividends on mandatorily redeemable preferred stock			643
Other			92	25
Total income tax (benefit) expense	$ 1,344	$ 112	$ 625	$ 296

Leases (Details Narrative)

Leases (Details Narrative) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jul. 01, 2018USD ($)	Jun. 30, 2019USD ($)Integer	Jul. 01, 2018USD ($)
Number of restuarant properties | Integer			9
Lease expense | $	$ 355	$ 59	$ 702	$ 112
Weighted average remaining lease term	6 years		6 years
Weighted average discount rate	15.90%		15.90%
Minimum [Member]
Leases remaining term	1 year 1 month 6 days		1 year 1 month 6 days
Lease options to extend	5 years		5 years
Maximum [Member]
Leases remaining term	8 years 3 months 19 days		8 years 3 months 19 days
Lease options to extend	10 years		10 years

Leases - Summary of Operating L

Leases - Summary of Operating Lease Right of Use Assets and Operating Lease Liabilities Relating to Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Right of use assets	$ 1,147
Lease liabilities	1,167
Corporate Offices And For Certain Restaurant Properties [Member]
Right of use assets	4,459
Lease liabilities	$ 4,538

Leases - Schedule of Contractua

Leases - Schedule of Contractual Future Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 30, 2018
Total	$ 1,167
Corporate Offices And For Certain Restaurant Properties [Member]
2019	653
2020	1,126
2021	887
2022	899
2023	924
Thereafter	5,565
Total lease payments	10,054
Less imputed interest	5,516
Total	$ 4,538

Leases - Summary of Supplementa

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018
Operating lease right of use assets obtained in exchange for new lease obligations: Operating lease liabilities	$ 194
Corporate Offices And For Certain Restaurant Properties [Member]
Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases	584
Operating lease right of use assets obtained in exchange for new lease obligations: Operating lease liabilities	$ 187

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Jul. 24, 2019	Jun. 19, 2019	Jan. 29, 2019	Jul. 03, 2018	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Repayment of borrowings								$ 7,903,000
Interest expense					$ 834,000	$ 222,000	2,520,000	436,000
Amortization of debt discount							1,093,000
FB Lending Term Loan [Member]
Repayment of borrowings			$ 18,095,000
Debt instrument, principal amount			16,400,000
Accrued interest and prepayment fees			$ 1,695,000
Interest expense					$ 0		1,337,000
Accretion expense							349,000
Unamortized debt offering costs							$ 651,000
Debt interest rate					29.80%		29.80%
TCA Global Credit Master Fund, LP [Member]
Repayment of borrowings				$ 2,000,000
Elevation Burger [Member]
Payment of cash for acquisition		$ 50,000
Warrants issued to purchase shares		46,875
Share price		$ 8
Elevation Burger [Member] | Elevation Note [Member]
Interest expense					$ 23,000		$ 23,000
Debt interest rate		6.00%			10.10%		10.10%
Debt maturity date		Jul. 31, 2026
Debt outstanding amount		$ 6,185,000			$ 6,159,000		$ 6,159,000
Principal amount of note		$ 7,509,816
Share price		$ 12
Net of loan discount		$ 1,295,000			1,286,000		1,286,000
Debt offering costs		30,000			30,000		30,000
Amortization of debt discount					9,000		9,000
Amortization of payments per month					110,000		110,000
Loan and Security Agreement (Debt Component) [Member]
Term loan borrowings				$ 16,000,000
Warrants issued to purchase shares			1,167,404	509,604
Exercise price per share			$ 0.01	$ 7.20
Debt instrument, principal amount					23,500,000		23,500,000
Interest expense					$ 1,076,000		1,796,000
Unamortized debt offering costs							$ 306,000
Debt interest rate					20.90%		20.90%
Increase in borrowings		$ 3,500,000
Debt outstanding amount					$ 23,194,000		$ 23,194,000
Amortization of debt offering costs					$ 52,000		$ 85,000
Loan and Security Agreement (Debt Component) [Member] | Subsequent Event [Member]
Payment for extension fee	$ 500,000
Late fee	$ 400,000
Loan and Security Agreement (Debt Component) [Member] | Lion Warrant [Member] | Subsequent Event [Member]
Warrant extended date, description	Extends the date on which the Lion Warrant was initially exercisable from October 1, 2019 to June 30, 2020, which coincides with the maturity date of the loan made under the Loan and Security Agreement.
Loan and Security Agreement (Debt Component) [Member] | Placement Agent Warrants [Member]
Warrants issued to purchase shares				66,691
Exercise price per share				$ 7.20
Loan and Security Agreement (Debt Component) [Member] | Lion Fund, L.P. and The Lion Fund II, L.P [Member]
Warrants issued to purchase shares			1,167,404
Exercise price per share			$ 0.01
Debt interest rate			20.00%
Proceeds from loan			$ 20,000,000
Debt maturity date			Jun. 30, 2020
Loan and Security Agreement (Debt Component) [Member] | Lion Fund, L.P. and The Lion Fund II, L.P [Member] | FB Lending, LLC [Member]
Repayment of borrowings			$ 16,000,000
Warrant expiration date			Oct. 1, 2019
Increase in interest rate			5.00%
Loan and Security Agreement (Debt Component) [Member] | Hurricane Acquisition [Member]
Payment of cash for acquisition				$ 8,000,000

Debt - Schedule of Aggregate Va

Debt - Schedule of Aggregate Values Assigned Upon Issuance of Each Component (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Gross proceeds	$ 20,000
Issuance costs	(275)
Net proceeds	19,725
Long-term debt, net of discount and offering costs	19,725
Loan and Security Agreement (Debt Component) [Member]
Gross proceeds	20,000
Issuance costs	(275)
Net proceeds	19,725
Long-term debt, net of discount and offering costs	19,725
Warrants (Equity Component) [Member]
Gross proceeds
Issuance costs
Net proceeds
Long-term debt, net of discount and offering costs

Mandatorily Redeemable Prefer_2

Mandatorily Redeemable Preferred Stock (Details Narrative) - USD ($)	Feb. 07, 2019	Jul. 03, 2018	Jun. 27, 2018	Jun. 08, 2018	Jun. 07, 2018	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Oct. 20, 2017
Number of shares issued	245,376
Interest expense						$ 834,000	$ 222,000	$ 2,520,000	$ 436,000
Fog Cutter Capital Group Inc [Member]
Related party debt balance amount converted			$ 950,000
Subscription Agreement [Member]
Sale of units in transactions					800
Sales price of shares issuance and sale					$ 10,000
Proceeds from initial pubilc offering					$ 8,000,000
Subscription Agreement [Member] | Warrant [Member]
Number of shares eligible for warrants					125
Warrants exercise price					$ 8
Subscription Agreement [Member] | Series A Warrants [Member]
Number of shares eligible for warrants					100,000
Note Exchange Agreement [Member]
Number of shares eligible for warrants			25,000
Warrants exercise price			$ 8
Related party debt balance amount converted			$ 2,000,000
Debt principal balance										$ 30,000,000
Principal and interest balance of debt										$ 10,222,000
Note Exchange Agreement [Member] | Fog Cutter Capital Group Inc [Member]
Related party debt balance amount converted			$ 9,272,053
Series A Preferred Stock [Member]
Number of shares designated				100,000
Liquidation preference shares				$ 100
Cash dividend rate				9.90%
Deferred dividend rate				4.00%
Cash redemption price per share				$ 100
Preferred stock, shares outstanding						100,000		100,000
Preferred stock, face value						$ 9,900,000		$ 9,900,000
Debt discount						88,000		88,000
Unamortized debt offering costs								12,000
Interest expense						354,000	80,000	708,000	80,000
Accretion expense						5,500	1,800	11,000	1,800
Amortization of debt offering costs						$ 1,000		$ 2,000
Effective interest rate						14.20%		14.20%
Series A Preferred Stock [Member] | Subscription Agreement [Member]
Number of shares issued					80,000
Series A Preferred Stock [Member] | On Or Prior to June 30, 2021 [Member]
Cash redemption price per share						$ 115		$ 115
Series A Preferred Stock [Member] | After June 30, 2021 and On Or Prior to June 30, 2022 [Member]
Cash redemption price per share						110		110
Series A Preferred Stock [Member] | After June 30, 2022 [Member]
Cash redemption price per share						100		100
Series A Fixed Rate Cumulative Preferred Stock [Member] | Subscription Agreement [Member]
Number of preferred stock designated					100
Series A Fixed Rate Cumulative Preferred Stock [Member] | Note Exchange Agreement [Member]
Number of preferred stock designated			200
Number of shares converted			20,000
Conversion price per share			$ 100
Exchange Shares [Member] | Note Exchange Agreement [Member]
Related party debt balance amount converted			$ 7,272,053
Exchange Shares [Member] | Note Exchange Agreement [Member] | Common Stock [Member]
Number of shares converted			989,395
Conversion price per share			$ 7.35
Series A-1 Preferred Stock [Member]
Number of shares designated		200,000
Liquidation preference shares		$ 100
Cash dividend rate		6.00%
Cash redemption price per share		$ 12				$ 100		$ 100
Preferred stock, shares outstanding						45,000		45,000
Preferred stock, face value						$ 4,323,000		$ 4,323,000
Debt discount						149,000		149,000
Unamortized debt offering costs								28,000
Interest expense						77,000		154,000
Accretion expense						8,000		16,000
Amortization of debt offering costs						$ 1,700		$ 3,000
Effective interest rate						6.90%		6.90%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jul. 05, 2018
Fog Cutter Capital Group Inc [Member]
Due from related party	$ 20,275
Debt interest rate	10.00%
Accrued interest income receivable	$ 623
Taxes payable	$ 46
Homestyle Dining LLC [Member]
Debt interest rate		15.00%
Principal amount		$ 4,000

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - $ / shares	May 21, 2019	Feb. 22, 2019	Feb. 07, 2019	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018	Dec. 30, 2018
Common stock, shares authorized				25,000,000		25,000,000		25,000,000
Common stock, shares issued				11,826,765		11,826,765		11,546,589
Common stock, shares outstanding				11,826,765		11,826,765		11,546,589
Common stock, dividend percentage			2.13%
Common stock, dividend per share			$ 0.12		$ 0.12		$ 0.24
Divisend, payable date						Feb. 28, 2019
Dividend, closing of business date						Feb. 19, 2019
Number of shares issued			245,376
Share issued price per share			$ 5.64
Non-Employees [Member]
Number of shares issued	19,416	15,384
Share issued price per share	$ 4.64	$ 5.85

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Options vesting period			3 years
Options vesting description			All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually.
Stock based compensation expense	$ 78	$ 120	$ 159	$ 245
Stock based compensation to non-vested grants			$ 267
2017 Omnibus Equity Incentive Plan [Member] | Maximum [Member]
Number of shares available for grant	1,021,250		1,021,250

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Equity [Abstract]
Number of Shares, Stock options outstanding, beginning balance | shares	681,633
Number of Shares, Grants | shares	15,000
Number of Shares, Forfeited | shares
Number of Shares, Expired | shares
Number of Shares, Stock options outstanding, ending balance | shares	696,633
Number of Shares, Stock options exercisable, ending balance | shares	121,693
Weighted Average Exercise Price, Stock options outstanding, beginning balance | $ / shares	$ 8.84
Weighted Average Exercise Price, Grants | $ / shares	8
Weighted Average Exercise Price, Forfeited | $ / shares
Weighted Average Exercise Price, Expired | $ / shares
Weighted Average Exercise Price, Stock options outstanding, ending balance | $ / shares	8.82
Weighted Average Exercise Price, Stock options exercisable, ending balance | $ / shares	$ 11.75
Weighted Average Remaining Contractual Life (Years), Stock options outstanding, beginning balance	9 years 1 month 6 days
Weighted Average Remaining Contractual Life (Years), Grants	10 years
Weighted Average Remaining Contractual Life (Years), Stock options outstanding, ending balance	8 years 10 months 25 days
Weighted Average Remaining Contractual Life (Years), Stock options exercisable, ending balance	8 years 3 months 19 days

Share-Based Compensation - Sc_2

Share-Based Compensation - Schedule of Assumptions Used for Stock-based Compensation (Details) - Including Non-Employee Options [Member]	6 Months Ended
	Jun. 30, 2019
Minimum [Member]
Expected dividend yield	4.00%
Expected volatility	30.23%
Risk-free interest rate	1.60%
Expected term (in years)	5 years 6 months
Maximum [Member]
Expected dividend yield	10.43%
Expected volatility	31.73%
Risk-free interest rate	2.85%
Expected term (in years)	5 years 9 months

Warrants (Details Narrative)

Warrants (Details Narrative) - USD ($)	Jun. 19, 2019	Jan. 29, 2019	Oct. 20, 2017	Jul. 03, 2018	Jun. 27, 2018	Jun. 07, 2018
Elevation Burger [Member]
Number of shares eligible for warrants	46,875
Loan and Security Agreement (Debt Component) [Member]
Number of shares eligible for warrants		1,167,404		509,604
Warrants exercise price		$ 0.01		$ 7.20
Warrants exercisable date, description		exercisable at any time between October 1, 2019 and January 29, 2024
Term loan borrowings				$ 16,000,000
Common Stock Warrants [Member]
Number of shares eligible for warrants			81,700
Warrants exercise price			$ 14.69
Common stock warrants value			$ 124,000
Warrants exercisable date, description			exercisable commencing April 20, 2018 through October 20, 2022.
Subscription Warrants [Member]
Number of shares eligible for warrants						102,125
Warrants exercise price						$ 7.83
Common stock warrants value						$ 87,000
Exchange Warrants [Member]
Number of shares eligible for warrants					25,530
Warrants exercise price					$ 7.83
Common stock warrants value					$ 25,000
Hurricane Warrants [Member]
Number of shares eligible for warrants				57,439
Warrants exercise price				$ 7.83
Common stock warrants value				$ 58,000
Lender Warrant [Member]
Number of shares eligible for warrants				509,604
Warrants exercise price				$ 7.20
Common stock warrants value				$ 592,000
Lender Warrant [Member] | FB Lending, LLC [Member]
Term loan borrowings				$ 16,000,000
Placement Agent Warrants [Member]
Number of shares eligible for warrants				66,691
Warrants exercise price				$ 7.20
Common stock warrants value				$ 78,000
Placement Agent Warrants [Member] | FB Lending, LLC [Member]
Term loan borrowings				$ 16,000,000
Elevation Warrant [Member] | Elevation Burger [Member]
Number of shares eligible for warrants	46,875
Warrants exercise price	$ 8
Warrants exercisable, term	5 years
Warrants exercisable term, description	exercisable for a period of five years, but only in the event of a merger of the Company and FCCG, commencing on the second business day following the potential merger and ending on the five year anniversary thereafter

Warrants - Summary of Warrant A

Warrants - Summary of Warrant Activity (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Shares, Warrants Outstanding, Beginning balance	843,089
Number of Shares, Warrants Grants	1,214,279
Number of Shares, Warrants Exercised
Number of Shares, Warrants Forfeited
Number of Shares, Warrants Expired
Number of Shares, Warrants Outstanding, Ending balance	2,057,368
Number of Shares, Warrants Exercisable Ending Balance	843,089
Weighted Average Exercise Price, Warrants outstanding, Beginning balance | $ / shares	$ 8.06
Weighted Average Exercise Price, Warrants grants | $ / shares	0.32
Weighted Average Exercise Price, Warrants outstanding, Ending balance | $ / shares	3.49
Weighted Average Exercise Price, Warrants exercisable ending balance | $ / shares	$ 8.23
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Beginning balance	4 years
Weighted Average Remaining Contractual Life (Years), Warrants Grants	4 years 3 months 19 days
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Ending balance	4 years 3 months 19 days
Weighted Average Remaining Contractual Life (Years), Warrants exercisable	3 years 10 months 25 days

Warrants - Schedule of Assumpti

Warrants - Schedule of Assumptions Used for Stock-based Compensation, Warrants (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2019
Measurement Input, Expected Dividend Rate [Member] | Minimum [Member]
Fair value of assumptions, percentage	4.00%
Measurement Input, Expected Dividend Rate [Member] | Maximum [Member]
Fair value of assumptions, percentage	6.63%
Measurement Input, Price Volatility [Member]
Fair value of assumptions, percentage	31.73%
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Fair value of assumptions, percentage	0.99%
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Fair value of assumptions, percentage	1.91%
Measurement Input, Expected Term [Member]
Fair value of assumptions, expected term	5 years

Dividends on Common Stock (Deta

Dividends on Common Stock (Details Narrative) - $ / shares	Feb. 07, 2019	Jun. 30, 2019
Equity [Abstract]
Common stock dividend rate	2.13%
Dividend declared per share	$ 0.12
Dividend payable date		Feb. 28, 2019
Dividend payable record date		Feb. 19, 2019
Number of common stock share issued	245,376
Shares issued price per share	$ 5.64

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2019ft²
Elevation Subleases [Member] | Unrelated Third party [Member]
Square feet of space	2,500
Beverly Hills, California [Member]
Square feet of space	5,478
Operating lease expiration date	Apr. 30, 2020
Additional square feet of space	2,915
Additional operating lease expiration date	Feb. 29, 2024
Plano,TX [Member]
Square feet of space	1,775
Operating lease expiration date	Mar. 31, 2021
Falls Church, VA [Member]
Square feet of space	5,057
Operating lease expiration date	Apr. 30, 2020

Geographic Information and Ma_3

Geographic Information and Major Franchisees (Details Narrative)	6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018
Geographic Information And Major Franchisees
Franchise revenue percentage description	No individual franchisee accounted for more than 10% of the Company's revenues	No individual franchisee accounted for more than 10% of the Company's revenues

Geographic Information and Ma_4

Geographic Information and Major Franchisees - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2019	Jul. 01, 2018
Total Revenue	$ 5,895	$ 3,908	$ 10,768	$ 7,493
United States [Member]
Total Revenue	5,059	2,895	9,070	5,643
Other Countries [Member]
Total Revenue	$ 836	$ 1,013	$ 1,698	$ 1,850

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Loan and Security Agreement (Debt Component) [Member] - Subsequent Event [Member]	Jul. 24, 2019USD ($)
Payment for extension fee	$ 500,000
Late fee	$ 400,000
Lion Warrant [Member]
Warrant extended date, description	Extends the date on which the Lion Warrant was initially exercisable from October 1, 2019 to June 30, 2020, which coincides with the maturity date of the loan made under the Loan and Security Agreement.