FLANIGANS ENTERPRISES INC

Previous wording

As of March 29, 2025, Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries (“we”, “our”, “ours” and “us” as the context requires), (i) operates 32 units, consisting of restaurants, package liquor stores, combination restaurant/package liquor stores and a sports bar that we either own or have operational control over and partial ownership in; and franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination restaurant/package liquor stores. The table below provides information concerning the type (i.e. restaurant, sports bar, package liquor store or combination restaurant/package liquor store) and ownership of the units (i.e. whether (i) we own 100% of the unit; (ii) the unit is owned by a limited partnership of which we are the sole general partner and/or have invested in; or (iii) the unit is franchised by us), as of March 29, 2025 and as compared to September 28, 2024. With the exception of “The Whale’s Rib,” a restaurant we operate but do not own, and “Brendan’s Sports Pub” a restaurant/bar we own, all of the restaurants operate under our service marks “Flanigan’s Seafood Bar and Grill” or “Flanigan’s” and all of the package liquor stores operate under our service marks “Big Daddy’s Liquors” or “Big Daddy’s Wine & Liquors”.

Current wording

As of June 28, 2025, Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries (“we”, “our”, “ours” and “us” as the context requires), (i) operates 32 units, consisting of restaurants, package liquor stores, combination restaurant/package liquor stores and a sports bar that we either own or have operational control over and partial ownership in; and (ii) franchises an additional five units, consisting of two restaurants (one of which we operate) and three combination restaurant/package liquor stores. The table below provides information concerning the type (i.e. restaurant, sports bar, package liquor store or combination restaurant/package liquor store) and ownership of the units (i.e. whether (i) we own 100% of the unit; (ii) the unit is owned by a limited partnership of which we are the sole general partner and/or have invested in; or (iii) the unit is franchised by us), as of June 28, 2025 and as compared to September 28, 2024. With the exception of “The Whale’s Rib,” a restaurant we operate but do not own, and “Brendan’s Sports Pub” a restaurant/bar we own, all of the restaurants operate under our service marks “Flanigan’s Seafood Bar and Grill” or “Flanigan’s” and all of the package liquor stores operate under our service marks “Big Daddy’s Liquors” or “Big Daddy’s Wine & Liquors”.

Previous wording

Franchise Financial Arrangement: In exchange for our providing management and related services to our franchisees and granting them the right to use our service marks “Flanigan’s Seafood Bar and Grill” and “Big Daddy’s Liquors”, our franchisees (four of which are franchised to members of the family of our Chairman of the Board, officers and/or directors), are required to (i) pay to us a royalty equal to 1% of gross package store sales and 3% of gross restaurant sales; and (ii) make advertising expenditures equal to between 1.5% to 3% of all gross sales based upon our actual advertising costs allocated between stores, pro-rata, based upon gross sales.

Current wording

Franchise Financial Arrangement: In exchange for providing management and related services to our franchisees and granting them the right to use our service marks “Flanigan’s Seafood Bar and Grill” and “Big Daddy’s Liquors”, our franchisees (four of which are franchised to members of the family of our Chairman of the Board, officers and/or directors), are required to (i) pay to us a royalty equal to 1% of gross package store sales and 3% of gross restaurant sales; and (ii) make advertising expenditures equal to between 1.5% to 3% of all gross sales based upon our actual advertising costs allocated between stores, pro-rata, based upon gross sales.

Previous wording

Revenues. Total revenue for the thirteen weeks ended March 29, 2025 increased $5,563,000 or 11.57% to $53,632,000 from $48,069,000 for the thirteen weeks ended March 30, 2024 due primarily to increased package liquor store and restaurant sales, increased menu prices and revenue generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024. Effective February 23, 2025 we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 0.84% annually. Effective December 4, 2024 we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 4.90% annually and effective November 17, 2024 we increased our menu prices for our food offerings to target an increase to our food revenues of approximately 4.14% annually to offset higher food and liquor costs and higher overall expenses. Effective August 25, 2024, we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses (collectively the “Recent Price Increases”).

Current wording

Revenues. Total revenue for the thirteen weeks ended June 28, 2025 increased $3,062,000 or 6.24% to $52,164,000 from $49,102,000 for the thirteen weeks ended June 29, 2024 due primarily to increased package liquor store and restaurant sales and increased menu prices. Effective February 23, 2025 we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 0.84% annually. Effective December 4, 2024 we increased our menu prices for our bar offerings to target an increase to our bar revenues of approximately 4.90% annually and effective November 17, 2024 we increased our menu prices for our food offerings to target an increase to our food revenues of approximately 4.14% annually. Effective August 25, 2024, we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses (collectively the “Recent Price Increases”).

Previous wording

Restaurant Food Sales. Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $61,712,000 for the twenty-six weeks ended March 29, 2025 as compared to $55,711,000 for the twenty-six weeks ended March 30, 2024. The increase in restaurant food sales during the twenty-six weeks ended March 29, 2025 as compared to restaurant food sales during the twenty-six weeks ended March 30, 2024 is attributable to the Recent Price Increases and restaurant food sales generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant food sales for restaurants open for all of the twenty-six weeks ended March 29, 2025 and March 30, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $2,228,000 and $2,117,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 5.24%. Comparable weekly restaurant food sales for Company-owned restaurants (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $993,000 and $933,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 6.43%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only was $1,236,000 and $1,184,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 4.39%. We expect that restaurant food sales, including non-alcoholic beverages, for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Current wording

Restaurant Food Sales. Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $31,933,000 for the thirteen weeks ended June 28, 2025 as compared to $30,471,000 for the thirteen weeks ended June 29, 2024. The increase in restaurant food sales during the thirteen weeks ended June 28, 2025 as compared to restaurant food sales during the thirteen weeks ended June 29, 2024 is attributable to the Recent Price Increases. Comparable weekly restaurant food sales for restaurants open for all of the thirteen weeks ended June 28, 2025 and June 29, 2024 respectively, which consists of eleven restaurants owned by us and ten restaurants owned by affiliated limited partnerships was $2,431,000 and $2,322,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 4.69%. Comparable weekly restaurant food sales for Company-owned restaurants was $1,153,000 and $1,110,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 3.87%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only was $1,278,000 and $1,212,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 5.45%. We expect that restaurant food sales, including non-alcoholic beverages, for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Previous wording

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $16,156,000 for the twenty-six weeks ended March 29, 2025 as compared to $15,203,000 for the twenty-six weeks ended March 30, 2024. The increase in restaurant bar sales during the twenty-six weeks ended March 29, 2025 is primarily due to the Recent Price Increases and the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant bar sales for restaurants open for all of the twenty-six weeks ended March 29, 2025 and March 30, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $593,000 and $583,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 1.72%. Comparable weekly restaurant bar sales for Company-owned restaurants only (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $251,000 and $243,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 3.29%. Comparable weekly restaurant bar sales for affiliated limited partnership owned restaurants only was $342,000 and $340,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, an increase of 0.59%. We expect that restaurant bar sales for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Current wording

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $7,931,000 for the thirteen weeks ended June 28, 2025 as compared to $7,577,000 for the thirteen weeks ended June 29, 2024. The increase in restaurant bar sales during the thirteen weeks ended June 28, 2025 is primarily due to the Recent Price Increases. Comparable weekly restaurant bar sales for restaurants open for all of the thirteen weeks ended June 28, 2025 and June 29, 2024 respectively, which consists of eleven restaurants owned by us and ten restaurants owned by affiliated limited partnerships was $610,000 and $583,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 4.63%. Comparable weekly restaurant bar sales for Company-owned restaurants only was $268,000 and $259,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 3.47%. Comparable weekly restaurant bar sales for affiliated limited partnership owned restaurants only was $342,000 and $324,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, an increase of 5.56%. We expect that restaurant bar sales for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Previous wording

Package Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $12,051,000 for the thirteen weeks ended March 29, 2025 as compared to $10,140,000 for the thirteen weeks ended March 30, 2024, an increase of $1,911,000. This increase was primarily due to increased package liquor store traffic. The weekly average of same store package liquor store sales, which includes eleven (11) Company-owned package liquor stores was $927,000 and $780,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 18.85%. We expect that package liquor store sales for the balance of our fiscal year 2025 will increase due to increased package liquor store traffic.

Current wording

Package Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $11,522,000 for the thirteen weeks ended June 28, 2025 as compared to $10,292,000 for the thirteen weeks ended June 29, 2024, an increase of $1,230,000. This increase was primarily due to increased package liquor store traffic. The weekly average of same store package liquor store sales, which includes eleven (11) Company-owned package liquor stores was $886,000 and $792,000 for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 11.87%. We expect that package liquor store sales for the balance of our fiscal year 2025 will increase due to increased package liquor store traffic.

Previous wording

Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization), for the twenty-six weeks ended March 29, 2025 increased $9,669,000 or 10.78% to $99,401,000 from $89,732,000 for the twenty-six weeks ended March 30, 2024. The increase was primarily due to increased payroll, an expected general increase in food costs, costs and expenses incurred from the opening of our Company-owned restaurant in Hollywood Florida (Store #19R) during the second quarter of our fiscal year 2024, partially offset by actions taken by management to reduce and/or control costs. We anticipate that our costs and expenses will continue to increase through the balance of our fiscal year 2025. Costs and expenses decreased as a percentage of total revenue to approximately 95.68% for the twenty-six weeks ended March 29, 2025 from 96.27% for the twenty-six weeks ended March 30, 2024.

Current wording

Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization), for the thirteen weeks ended June 28, 2025 increased $2,375,000 or 5.07% to $49,190,000 from $46,815,000 for the thirteen weeks ended June 29, 2024. The increase was primarily due to increased payroll and operating expenses partially offset by actions taken by management to reduce and/or control costs. We anticipate that our costs and expenses will continue to increase through the balance of our fiscal year 2025. Costs and expenses decreased as a percentage of total revenue to approximately 94.30% for the thirteen weeks ended June 28, 2025 from 95.34% for the thirteen weeks ended June 29, 2024.

Previous wording

Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the thirteen weeks ended March 29, 2025 increased to $27,415,000 from $24,886,000 for the thirteen weeks ended March 30, 2024. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), increased to 67.23% for the thirteen weeks ended March 29, 2025 as compared to 67.09% for the thirteen weeks ended March 30, 2024 due primarily to the Recent Price Increases, partially offset by the higher food costs.

Current wording

Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the thirteen weeks ended June 28, 2025 increased to $26,909,000 from $24,944,000 for the thirteen weeks ended June 29, 2024. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), increased to 67.50% for the thirteen weeks ended June 28, 2025 as compared to 65.56% for the thirteen weeks ended June 29, 2024 due primarily to the Recent Price Increases and lower food costs.

Previous wording

Package Store Sales. Gross profit for package store sales for the thirteen weeks ended March 29, 2025 increased to $3,382,000 from $2,648,000 for the thirteen weeks ended March 30, 2024. Our gross profit margin (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 28.06% for the thirteen weeks ended March 29, 2025 and 26.11% for the thirteen weeks ended March 30, 2024. We anticipate that the gross profit margin for package liquor store merchandise will decrease for the balance of our fiscal year 2025 due to higher costs and a reduction in pricing of certain package store merchandise to remain competitive.

Current wording

Package Store Sales. Gross profit for package store sales for the thirteen weeks ended June 28, 2025 increased to $2,743,000 from $2,589,000 for the thirteen weeks ended June 29, 2024. Our gross profit margin (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 23.81% for the thirteen weeks ended June 28, 2025 and 25.16% for the thirteen weeks ended June 29, 2024. We anticipate that the gross profit margin for package liquor store merchandise will decrease for the balance of our fiscal year 2025 due to higher costs and a reduction in pricing of certain package store merchandise to remain competitive.

Previous wording

Payroll and Related Costs. Payroll and related costs for the twenty-six weeks ended March 29, 2025 increased $2,573,000 or 8.76% to $31,930,000 from $29,357,000 for the twenty-six weeks ended March 30, 2024. Payroll and related costs for the twenty-six weeks ended March 29, 2025 were higher due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024 and the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 30.73% for the twenty-six weeks ended March 29, 2025 and 31.50% of total revenue for the twenty-six weeks ended March 30, 2024.

Current wording

Payroll and Related Costs. Payroll and related costs for the thirteen weeks ended June 28, 2025 increased $805,000 or 5.26% to $16,106,000 from $15,301,000 for the thirteen weeks ended June 29, 2024. Payroll and related costs for the thirteen weeks ended June 28, 2025 were higher due primarily to the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 30.88 % for the thirteen weeks ended June 28, 2025 and 31.16% of total revenue for the thirteen weeks ended June 29, 2024.

Previous wording

Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to operating restaurant and package stores) for the twenty-six weeks ended March 29, 2025 increased $1,314,000 or 10.69% to $13,611,000 from $12,297,000 for the twenty-six weeks ended March 30, 2024 due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024, inflation and otherwise to increases in expenses across all categories.

Current wording

Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to operating restaurant and package stores) for the thirteen weeks ended June 28, 2025 increased $761,000 or 12.14% to $7,029,000 from $6,268,000 for the thirteen weeks ended June 29, 2024 due primarily to inflation and increases in expenses across all categories.

Previous wording

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold interests and rent expense associated with operating lease liabilities under ASC 842) for the thirteen weeks ended March 29, 2025 increased $173,000 or 8.96% to $2,103,000 from $1,930,000 for the thirteen weeks ended March 30, 2024.

Current wording

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold interests and rent expense associated with operating lease liabilities under ASC 842) for the thirteen weeks ended June 28, 2025 increased $46,000 or 2.27% to $2,070,000 from $2,024,000 for the thirteen weeks ended June 29, 2024.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for the thirteen weeks ended March 29, 2025 increased $72,000 or 5.19% to $1,458,000 from $1,386,000 for the thirteen weeks ended March 30, 2024. Selling, general and administrative expenses decreased as a percentage of total revenue for the thirteen weeks ended March 29, 2025 to 2.72% as compared to 2.88% for the thirteen weeks ended March 30, 2024.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for the thirteen weeks ended June 28, 2025 decreased $204,000 or 15.84% to $1,084,000 from $1,288,000 for the thirteen weeks ended June 29, 2024 due primarily to lower consulting fees. Selling, general and administrative expenses decreased as a percentage of total revenue for the thirteen weeks ended June 28, 2025 to 2.08% as compared to 2.62% for the thirteen weeks ended June 29, 2024.

Previous wording

***Depreciation and Amortization.***Depreciation and amortization expense for the twenty-six weeks ended March 29, 2025 increased $315,000 or 15.81% to $2,307,000 from $1,992,000 for the twenty-six weeks ended March 30, 2024. This increase is driven by the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. As a percentage of total revenue, depreciation and amortization expense was 2.22% of revenue for the twenty-six weeks ended March 29, 2025 and 2.14% of revenue for the twenty-six weeks ended March 30, 2024.

Current wording

***Depreciation and Amortization.***Depreciation and amortization expense for the thirteen weeks ended June 28, 2025 increased $40,000 or 3.55% to $1,167,000 from $1,127,000 for the thirteen weeks ended June 29, 2024. As a percentage of total revenue, depreciation and amortization expense was 2.24% of revenue for the thirteen weeks ended June 28, 2025 and 2.30% of revenue for the thirteen weeks ended June 29, 2024.

Previous wording

Interest Expense, Net. Interest expense, net, for the thirteen weeks ended March 29, 2025 decreased $20,000 to $235,000 from $255,000 for the thirteen weeks ended March 30, 2024.

Current wording

Interest Expense, Net. Interest expense, net, for the thirteen weeks ended June 28, 2025 decreased $14,000 to $237,000 from $251,000 for the thirteen weeks ended June 29, 2024.

Previous wording

***Income Taxes.***Income tax for the thirteen weeks ended March 29, 2025 was an expense of $311,000, as compared to a benefit of $55,000 for the thirteen weeks ended March 30, 2024. This is primarily due to the tax expense that is anticipated based on the projected pre-tax income and permanent differences.

Current wording

***Income Taxes.***Income tax expense for the thirteen weeks ended June 28, 2025 was $242,000 compared to $282,000 for the thirteen weeks ended June 29, 2024. This is primarily due to the tax expense that is anticipated based on the projected pre-tax income and permanent differences.

Previous wording

Net Income. Net income for the twenty-six weeks ended March 29, 2025 increased $860,000 or 27.58% to $3,978,000 from $3,118,000 for the twenty-six weeks ended March 30, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the twenty-six weeks ended March 29, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income for the twenty-six weeks ended March 29, 2025 is 3.83%, as compared to 3.35% for the twenty-six weeks ended March 30, 2024.

Current wording

Net Income. Net income for the thirteen weeks ended June 28, 2025 increased $687,000 or 38.12% to $2,489,000 from $1,802,000 for the thirteen weeks ended June 29, 2024 due primarily to the Recent Price Increases and lower food costs, partially offset by overall increased expenses. As a percentage of revenue, net income for the thirteen weeks ended June 28, 2025 is 4.77%, as compared to 3.67% for the thirteen weeks ended June 29, 2024.

Previous wording

Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders. Net income attributable to Flanigan’s Enterprises, Inc.’s stockholders for the twenty-six weeks ended March 29, 2025 increased $694,000 or 33.84 % to $2,745,000 from $2,051,000 for the twenty-six weeks ended March 30, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the twenty-six weeks ended March 29, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income attributable to stockholders for the twenty-six weeks ended March 29, 2025 is 2.64%, as compared to 2.20% for the twenty-six weeks ended March 30, 2024.

Current wording

Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders. Net income attributable to Flanigan’s Enterprises, Inc.’s stockholders for the thirteen weeks ended June 28, 2025 increased $271,000 or 24.17% to $1,392,000 from $1,121,000 for the thirteen weeks ended June 29, 2024 due primarily to the Recent Price Increases and lower food costs, partially offset by overall increased expenses. As a percentage of revenue, net income attributable to stockholders for the thirteen weeks ended June 28, 2025 is 2.67% as compared to 2.28% for the thirteen weeks ended June 29, 2024.

Previous wording

Revenues. Total revenue for the twenty-six weeks ended March 29, 2025 increased $10,685,000 or 11.46% to $103,894,000 from $93,209,000 for the twenty-six weeks ended March 30, 2024 due primarily to increased package liquor store and restaurant sales, the Recent Price Increases and revenue generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024.

Current wording

Revenues. Total revenue for the thirty-nine weeks ended June 28, 2025 increased $13,747,000 or 9.66% to $156,058,000 from $142,311,000 for the thirty-nine weeks ended June 29, 2024 due primarily to increased package liquor store and restaurant sales, the Recent Price Increases and revenue generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) in March 2024.

Previous wording

Restaurant Food Sales. Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $32,586,000 for the thirteen weeks ended March 29, 2025 as compared to $29,356,000 for the thirteen weeks ended March 30, 2024. The increase in restaurant food sales during the thirteen weeks ended March 29, 2025 as compared to restaurant food sales during the thirteen weeks ended March 30, 2024 is attributable to the Recent Price Increases and restaurant food sales generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant food sales for restaurants open for all of the thirteen weeks ended March 29, 2025 and March 30, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $2,358,000 and $2,227,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 5.88%. Comparable weekly restaurant food sales for Company-owned restaurants (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $1,112,000 and $1,029,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 8.07%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only was $1,245,000 and $1,198,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 3.92%. We expect that restaurant food sales, including non-alcoholic beverages, for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Current wording

Restaurant Food Sales. Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $93,645,000 for the thirty-nine weeks ended June 28, 2025 as compared to $86,182,000 for the thirty-nine weeks ended June 29, 2024. The increase in restaurant food sales during the thirty-nine weeks ended June 28, 2025 as compared to restaurant food sales during the thirty-nine weeks ended June 29, 2024 is attributable to the Recent Price Increases and restaurant food sales generated from the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant food sales for restaurants open for all of the thirty-nine weeks ended June 28, 2025 and June 29, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $2,253,000 and $2,141,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 5.23%. Comparable weekly restaurant food sales for Company-owned restaurants (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $1,003,000 and $948,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 5.80%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only was $1,250,000 and $1,193,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 4.78%. We expect that restaurant food sales, including non-alcoholic beverages, for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Previous wording

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $8,194,000 for the thirteen weeks ended March 29, 2025 as compared to $7,740,000 for the thirteen weeks ended March 30, 2024. The increase in restaurant bar sales during the thirteen weeks ended March 29, 2025 is primarily due to the Recent Price Increases and the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant bar sales for restaurants open for all of the thirteen weeks ended March 29, 2025 and March 30, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $602,000 and $593,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 1.52%. Comparable weekly restaurant bar sales for Company-owned restaurants only (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $258,000 and $252,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 2.38%. Comparable weekly restaurant bar sales for affiliated limited partnership owned restaurants only was $344,000 and $341,000 for the thirteen weeks ended March 29, 2025 and March 30, 2024, an increase of 0.88%. We expect that restaurant bar sales for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Current wording

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic beverages at restaurants totaled $24,087,000 for the thirty-nine weeks ended June 28, 2025 as compared to $22,780,000 for the thirty-nine weeks ended June 29, 2024. The increase in restaurant bar sales during the thirty-nine weeks ended June 28, 2025 is primarily due to the Recent Price Increases and the opening of our corporate owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. Comparable weekly restaurant bar sales for restaurants open for all of the thirty-nine weeks ended June 28, 2025 and June 29, 2024 respectively, which consists of ten restaurants owned by us (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) and ten restaurants owned by affiliated limited partnerships was $590,000 and $573,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 2.97%. Comparable weekly restaurant bar sales for Company-owned restaurants only (excluding our Hollywood, Florida location Store #19R which opened for business during the second quarter of our fiscal year 2024) was $248,000 and $238,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 4.20%. Comparable weekly restaurant bar sales for affiliated limited partnership owned restaurants only was $342,000 and $335,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, an increase of 2.09%. We expect that restaurant bar sales for the balance of our fiscal year 2025 will increase due to the Recent Price Increases.

Previous wording

Package Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $24,486,000 for the twenty-six weeks ended March 29, 2025 as compared to $20,742,000 for the twenty-six weeks ended March 30, 2024, an increase of $3,744,000. This increase was primarily due to increased package liquor store traffic. The weekly average of same store package liquor store sales, which includes eleven (11) Company-owned package liquor stores was $942,000 and $798,000 for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively, an increase of 18.05%. We expect that package liquor store sales for the balance of our fiscal year 2025 will increase due to increased package liquor store traffic.

Current wording

Package Store Sales. Revenue generated from sales of liquor and related items at package liquor stores totaled $36,008,000 for the thirty-nine weeks ended June 28, 2025 as compared to $31,034,000 for the thirty-nine weeks ended June 29, 2024, an increase of $4,974,000. This increase was primarily due to increased package liquor store traffic. The weekly average of same store package liquor store sales, which includes eleven (11) Company-owned package liquor stores was $923,000 and $796,000 for the thirty-nine weeks ended June 28, 2025 and June 29, 2024, respectively, an increase of 15.95%. We expect that package liquor store sales for the balance of our fiscal year 2025 will increase due to increased package liquor store traffic.

Previous wording

Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization), for the thirteen weeks ended March 29, 2025 increased $4,613,000 or 10.16% to $49,997,000 from $45,384,000 for the thirteen weeks ended March 30, 2024. The increase was primarily due to increased payroll, an expected general increase in food costs, costs and expenses incurred from the opening of our Company-owned restaurant in Hollywood Florida (Store #19R) during the second quarter of our fiscal year 2024, partially offset by actions taken by management to reduce and/or control costs. We anticipate that our costs and expenses will continue to increase through the balance of our fiscal year 2025. Costs and expenses decreased as a percentage of total revenue to approximately 93.22% for the thirteen weeks ended March 29, 2025 from 94.41% for the thirteen weeks ended March 30, 2024.

Current wording

Costs and Expenses. Costs and expenses (consisting of cost of merchandise sold, payroll and related costs, operating expenses, occupancy costs, selling, general and administrative expenses and depreciation and amortization), for the thirty-nine weeks ended June 28, 2025 increased $12,044,000 or 8.82% to $148,591,000 from $136,547,000 for the thirty-nine weeks ended June 29, 2024. The increase was primarily due to increased payroll, an expected general increase in food costs and overall expenses as well as costs and expenses incurred from the opening of our Company-owned restaurant in Hollywood Florida (Store #19R) during the second quarter of our fiscal year 2024, partially offset by actions taken by management to reduce and/or control costs. We anticipate that our costs and expenses will continue to increase through the balance of our fiscal year 2025. Costs and expenses decreased as a percentage of total revenue to approximately 95.22% for the thirty-nine weeks ended June 28, 2025 from 95.95% for the thirty-nine weeks ended June 29, 2024.

Previous wording

Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the twenty-six weeks ended March 29, 2025 increased to $51,474,000 from $46,873,000 for the twenty-six weeks ended March 30, 2024. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), was 66.10% for the twenty-six weeks ended March 29, 2025 and March 30, 2024, respectively.

Current wording

Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the thirty-nine weeks ended June 28, 2025 increased to $78,383,000 from $71,817,000 for the thirty-nine weeks ended June 29, 2024. Our gross profit margin for restaurant food and bar sales (calculated as gross profit reflected as a percentage of restaurant food and bar sales), increased to 66.58% for the thirty-nine weeks ended June 28, 2025 as compared to 65.91% for the thirty-nine weeks ended June 29, 2024.

Previous wording

Package Store Sales. Gross profit for package store sales for the twenty-six weeks ended March 29, 2025 increased to $6,336,000 from $5,370,000 for the twenty-six weeks ended March 30, 2024. Our gross profit margin (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 25.88% for the twenty-six weeks ended March 29, 2025 and 25.89% for the twenty-six weeks ended March 30, 2024. We anticipate that the gross profit margin for package liquor store merchandise will decrease for the balance of our fiscal year 2025 due to higher costs and a reduction in pricing of certain package store merchandise to remain competitive.

Current wording

Package Store Sales. Gross profit for package store sales for the thirty-nine weeks ended June 28, 2025 increased to $9,079,000 from $7,959,000 for the thirty-nine weeks ended June 29, 2024. Our gross profit margin (calculated as gross profit reflected as a percentage of package liquor store sales), for package store sales was 25.21% for the thirty-nine weeks ended June 28, 2025 and 25.65% for the thirty-nine weeks ended June 29, 2024. We anticipate that the gross profit margin for package liquor store merchandise will decrease for the balance of our fiscal year 2025 due to higher costs and a reduction in pricing of certain package store merchandise to remain competitive.

Previous wording

Payroll and Related Costs. Payroll and related costs for the thirteen weeks ended March 29, 2025 increased $1,212,000 or 8.10% to $16,184,000 from $14,972,000 for the thirteen weeks ended March 30, 2024. Payroll and related costs for the thirteen weeks ended March 29, 2025 were higher due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024 and the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 30.18 % for the thirteen weeks ended March 29, 2025 and 31.15% of total revenue for the thirteen weeks ended March 30, 2024.

Current wording

Payroll and Related Costs. Payroll and related costs for the thirty-nine weeks ended June 28, 2025 increased $3,378,000 or 7.56% to $48,036,000 from $44,658,000 for the thirty-nine weeks ended June 29, 2024. Payroll and related costs for the thirty-nine weeks ended June 28, 2025 were higher due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024 and the increase to the Florida minimum wage. Payroll and related costs as a percentage of total revenue was 30.78% for the thirty-nine weeks ended June 28, 2025 and 31.38% of total revenue for the thirty-nine weeks ended June 29, 2024.

Previous wording

Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to operating restaurant and package stores) for the thirteen weeks ended March 29, 2025 increased $674,000 or 10.56% to $7,057,000 from $6,383,000 for the thirteen weeks ended March 30, 2024 due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024, inflation and otherwise to increases in expenses across all categories.

Current wording

Operating Expenses. Operating expenses (including but not limited to utilities, insurance, cleaning, credit card fees, supplies, security, and other costs closely related to operating restaurant and package stores) for the thirty-nine weeks ended June 28, 2025 increased $2,075,000 or 11.18% to $20,640,000 from $18,565,000 for the thirty-nine weeks ended June 29, 2024 due primarily to the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024, inflation and otherwise to increases in expenses across all categories.

Previous wording

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold interests and rent expense associated with operating lease liabilities under ASC 842) for the twenty-six weeks ended March 29, 2025 decreased $37,000 or 0.90% to $4,057,000 from $4,094,000 for the twenty-six weeks ended March 30, 2024 partially due to the decrease in the Florida state sales tax.

Current wording

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area maintenance, repairs, real property taxes, amortization of leasehold interests and rent expense associated with operating lease liabilities under ASC 842) for the thirty-nine weeks ended June 28, 2025 increased $9,000 or 0.15% to $6,127,000 from $6,118,000 for the thirty-nine weeks ended June 29, 2024.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for the twenty-six weeks ended March 29, 2025 increased $373,000 or 14.46% to $2,952,000 from $2,579,000 for the twenty-six weeks ended March 30, 2024 due primarily to increased television and radio advertising costs. Selling, general and administrative expenses increased as a percentage of total revenue for the twenty-six weeks ended March 29, 2025 to 2.84% as compared to 2.77% for the twenty-six weeks ended March 30, 2024.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses (consisting of general corporate expenses, including but not limited to advertising, professional costs, clerical and administrative overhead) for the thirty-nine weeks ended June 28, 2025 increased $169,000 or 4.37% to $4,036,000 from $3,867,000 for the thirty-nine weeks ended June 29, 2024 due primarily to increased television and radio advertising costs. Selling, general and administrative expenses decreased as a percentage of total revenue for the thirty-nine weeks ended June 28, 2025 to 2.59% as compared to 2.72% for the thirty-nine weeks ended June 29, 2024.

Previous wording

***Depreciation and Amortization.***Depreciation and amortization expense for the thirteen weeks ended March 29, 2025 increased $150,000 or 14.84% to $1,161,000 from $1,011,000 for the thirteen weeks ended March 30, 2024. This increase is driven by the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. As a percentage of total revenue, depreciation and amortization expense was 2.16% of revenue for the thirteen weeks ended March 29, 2025 and 2.10% of revenue for the thirteen weeks ended March 30, 2024.

Current wording

***Depreciation and Amortization.***Depreciation and amortization expense for the thirty-nine weeks ended June 28, 2025 increased $355,000 or 11.38% to $3,474,000 from $3,119,000 for the thirty-nine weeks ended June 29, 2024. This increase is driven by the opening of our company owned restaurant in Hollywood, Florida (Store #19R) during the second quarter of our fiscal year 2024. As a percentage of total revenue, depreciation and amortization expense was 2.23% of revenue for the thirty-nine weeks ended June 28, 2025 and 2.19% of revenue for the thirty-nine weeks ended June 29, 2024.

Previous wording

Interest Expense, Net. Interest expense, net, for the twenty-six weeks ended March 29, 2025 decreased $32,000 to $485,000 from $517,000 for the twenty-six weeks ended March 30, 2024.

Current wording

Interest Expense, Net. Interest expense, net, for the thirty-nine weeks ended June 28, 2025 decreased $46,000 to $722,000 from $768,000 for the thirty-nine weeks ended June 29, 2024.

Previous wording

***Income Taxes.***Income tax for the twenty-six weeks ended March 29, 2025 was an expense of $346,000, as compared to a benefit of $73,000 for the twenty-six weeks ended March 30, 2024. This is primarily due to the tax expense that is anticipated based on the projected pre-tax income and permanent differences.

Current wording

***Income Taxes.***Income tax expense for the thirty-nine weeks ended June 28, 2025 was $588,000, as compared to $209,000 for the thirty-nine weeks ended June 29, 2024. This is primarily due to the tax expense that is anticipated based on the projected pre-tax income and permanent differences.

Previous wording

Net Income. Net income for the thirteen weeks ended March 29, 2025 increased $822,000 or 32.57% to $3,346,000 from $2,524,000 for the thirteen weeks ended March 30, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the twenty-six weeks ended March 29, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income for the thirteen weeks ended March 29, 2025 is 6.24%, as compared to 5.25% for the thirteen weeks ended March 30, 2024.

Current wording

Net Income. Net income for the thirty-nine weeks ended June 28, 2025 increased $1,547,000 or 31.44% to $6,467,000 from $4,920,000 for the thirty-nine weeks ended June 29, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the thirty-nine weeks ended June 28, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income for the thirty-nine weeks ended June 28, 2025 is 4.14%, as compared to 3.46% for the thirty-nine weeks ended June 29, 2024.

Previous wording

Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders. Net income attributable to Flanigan’s Enterprises, Inc.’s stockholders for the thirteen weeks ended March 29, 2025 increased $748,000 or 38.52% to $2,690,000 from $1,942,000 for the thirteen weeks ended March 30, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the thirteen weeks ended March 29, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income attributable to stockholders for the thirteen weeks ended March 29, 2025 is 5.02%, as compared to 4.04% for the thirteen weeks ended March 30, 2024.

Current wording

Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders. Net income attributable to Flanigan’s Enterprises, Inc.’s stockholders for the thirty-nine weeks ended June 28, 2025 increased $965,000 or 30.42 % to $4,137,000 from $3,172,000 for the thirty-nine weeks ended June 29, 2024 due primarily to the Recent Price Increases and the operation of our Company-owned restaurant of Hollywood, Florida (Store #19R) during the thirty-nine weeks ended June 28, 2025, offset by higher food costs and overall increased expenses. As a percentage of revenue, net income attributable to stockholders for the thirty-nine weeks ended June 28, 2025 is 2.65%, as compared to 2.23% for the thirty-nine weeks ended June 29, 2024.

Previous wording

We fund our operations through cash from operations and borrowings from third parties. As of March 29, 2025, we had cash and cash equivalents of approximately $22,973,000, an increase of $1,571,000 from our cash balance of $21,402,000 as of September 28, 2024.

Current wording

We fund our operations through cash from operations and borrowings from third parties. As of June 28, 2025, we had cash and cash equivalents of approximately $18,210,000, a decrease of $3,192,000 from our cash balance of $21,402,000 as of September 28, 2024. This decrease is primarily due to the expenditure of $2.2 million for the purchase of undeveloped land in Cutler Bay, Florida for a future restaurant site. This acquisition reflects our ongoing investment in strategic expansion. While no construction has commenced as of the reporting date, management anticipates capital expenditures related to site development and build-out in future fiscal quarters.

Previous wording

The following table is a summary of our cash flows for the twenty-six weeks ended March 29, 2025 and March 30, 2024.

Current wording

The following table is a summary of our cash flows for the thirty-nine weeks ended June 28, 2025 and June 29, 2024.

Previous wording

We did not declare or pay a cash dividend on our capital stock during the twenty-six weeks ended March 29, 2025 or the twenty-six weeks ended March 30 2024. Any future determination to pay cash dividends will be at our Board’s discretion and will depend upon our financial condition, operating results, capital requirements and such other factors as our Board deems relevant.

Current wording

During the thirty-nine weeks ended June 28, 2025 our Board of Directors declared a cash dividend of $0.55 per share to shareholders of record on June 12, 2025 and was made payable on June 27, 2025. During the thirty-nine weeks ended June 29, 2024 our Board of Directors declared a cash dividend of $0.50 per share to shareholders of record on June 14, 2024 and was made payable on June 28, 2024. Any future determination to pay cash dividends will be at our Board’s discretion and will depend upon our financial condition, operating results, capital requirements and such other factors as our Board deems relevant.

Previous wording

In addition to using cash for our operating expenses, we use cash generated from operations and borrowings to fund the development and construction of new restaurants and to fund capitalized property improvements for our existing restaurants. During the twenty-six weeks ended March 29, 2025, we acquired property and equipment of $1,731,000, (of which $11,000 was purchase deposits transferred to property and equipment), including $87,000 for renovations to one (1) Company-owned package location and $43,000 for renovations to one (1) limited partnership owned restaurant. During the twenty-six weeks ended March 30, 2024, we acquired property and equipment and construction in progress of $4,314,000, (of which $206,000 was purchase deposits transferred to property and equipment, $715,000 was purchase deposits transferred to CIP, and $280,000 was property and equipment in accounts payable), including $437,000 for renovations to three (3) Company-owned restaurants.

Current wording

In addition to using cash for our operating expenses, we use cash generated from operations and borrowings to fund the development and construction of new restaurants and to fund capitalized property improvements for our existing restaurants. During the thirty-nine weeks ended June 28, 2025, we acquired property and equipment of $4,956,000, (of which $2.2 million was for the purchase of the Cutler Bay Property and $57,000 was purchase deposits transferred to property and equipment), including $285,000 for renovations to four (4) Company-owned location and $43,000 for renovations to one (1) limited partnership owned restaurant. During the thirty-nine weeks ended June 29, 2024, we acquired property and equipment and construction in progress of $5,282,000, (of which $255,000 was purchase deposits transferred to property and equipment, $715,000 was purchase deposits transferred to CIP, and $308,000 was property and equipment in accounts payable), including $437,000 for renovations to three (3) Company-owned restaurants.

Previous wording

As of March 29, 2025, we had long-term debt (including the current portion) of $21,247,000, as compared to $21,912,000 as of September 28, 2024.

Current wording

As of June 28, 2025, we had long-term debt (including the current portion) of $20,926,000, as compared to $21,912,000 as of September 28, 2024.

Previous wording

During the first quarter of our fiscal year 2025, we entered into a new Master Services Agreement with our current major vendor for a period of one (1) year effective January 1, 2025, with Company options for four (4) one (1) year renewal options to extend the term of the same. In this new Master Service Agreement, as in our prior Master Service Agreements, we commit to purchase specific products through our current major vendor but are free to purchase other products through other vendors, provided no less than 80% of our overall product needs are purchased through our current major vendor.

Current wording

During the first quarter of our fiscal year 2025, we entered into a new Master Services Agreement with our current major vendor for a period of one (1) year effective January 1, 2025, with Company options for four (4) one (1) year renewal options to extend the term of the same. In this new Master Service Agreement, as in our prior Master Service Agreements, we commit to purchase specific products through our current major vendor but are free to purchase other products through other vendors, provided no less than 80% of our overall product needs are purchased through our current major vendor. During the third quarter of our fiscal year 2025 we exercised the first one (1) year renewal option and extended the term of the Master Services Agreement for a period of one (1) year effective January 1, 2026.