PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited condensed consolidated financial statements for the thirteen weeks ended December 30, 2023, including the income statement, balance sheet, statement of cash flows, and accompanying notes [Unaudited Condensed Consolidated Statements of Income](index=3&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | $45,140 | $41,861 | | Income from Operations | $793 | $1,197 | | Net Income | $594 | $874 | | Net Income Attributable to Stockholders | $109 | $624 | | Basic and Diluted EPS | $0.06 | $0.34 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive Income (in thousands) | Metric | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Income | $594 | $874 | | Change in fair value of interest rate swap, net of tax | ($338) | $0 | | **Total Comprehensive Income** | **$256** | **$874** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Highlights (in thousands) | Metric | December 30, 2023 (Unaudited) | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $26,897 | $25,532 | | Total Current Assets | $36,246 | $35,294 | | **Total Assets** | **$145,942** | **$145,769** | | Total Current Liabilities | $24,330 | $22,371 | | **Total Liabilities** | **$71,762** | **$70,855** | | **Total Stockholders' Equity** | **$74,180** | **$74,914** | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) - Total stockholders' equity decreased from **$74.91 million** at September 30, 2023, to **$74.18 million** at December 30, 2023, primarily driven by distributions to noncontrolling interests and an other comprehensive loss[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Summary of Cash Flows (in thousands) | Cash Flow Activity | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,450 | $5,879 | | Net cash used in investing activities | ($774) | ($2,680) | | Net cash used in financing activities | ($1,311) | ($2,194) | | **Net Increase in Cash** | **$1,365** | **$1,005** | | **Cash at End of Period** | **$26,897** | **$43,143** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - The company successfully met its Post-Distribution/Fixed Charge Covenant for the twelve months ended December 30, 2023, with a ratio of **1.55 to 1.00**, after receiving a waiver for non-compliance in the prior year[25](index=25&type=chunk) - The company has a significant construction commitment to rebuild its restaurant in Hollywood, Florida, with a total contract price of **$3,767,000**, of which **$2,625,000** has been paid as of the quarter-end[30](index=30&type=chunk) Segment Operating Income (in thousands) | Segment | Thirteen Weeks Ended Dec 30, 2023 | Thirteen Weeks Ended Dec 31, 2022 | | :--- | :--- | :--- | | Restaurants | $1,171 | $779 | | Package stores | $632 | $799 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the quarterly revenue increase driven by new stores and price hikes, alongside a significant net income decline due to rising operating costs and inflation - Total revenue increased by **7.83% to $45.1 million**, primarily due to sales from new stores and menu price increases implemented in March 2023[51](index=51&type=chunk) - Despite revenue growth, net income decreased by **32.04% to $594,000**, and net income attributable to stockholders fell **82.53% to $109,000**, driven by a 9.06% increase in operating costs[56](index=56&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The company entered into a purchase agreement to secure its supply of baby back ribs for 2024, committing to purchase approximately **$7.0 million** worth from its current supplier[77](index=77&type=chunk) Cash Flow and Liquidity Summary (in thousands) | Metric | As of/For the Thirteen Weeks Ended Dec 30, 2023 | | :--- | :--- | | Cash and Cash Equivalents | $26,897 | | Net cash provided by operating activities | $3,450 | | Capital Expenditures | $1,378 | | Working Capital | $11,916 | [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk from variable-rate debt is actively managed through an interest rate swap agreement, converting a major loan to a fixed rate - The company utilizes an interest rate swap agreement to manage risk on its $8.90M Loan, effectively converting the variable rate obligation to a fixed rate of **4.90%** for a fifteen-year period[88](index=88&type=chunk) - In Q1 fiscal 2024, the company rolled over **$900,000** into new 90-day, fully government-guaranteed certificates of deposit, earning an average fixed annual interest rate of **5.34%**[89](index=89&type=chunk) [Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls were not effective due to a material weakness in internal control over financial reporting, with remediation efforts now in progress - Management concluded that disclosure controls and procedures were **not effective** as of December 30, 2023[91](index=91&type=chunk) - A **material weakness** was identified due to an insufficient complement of trained and knowledgeable accounting personnel, which could allow a material misstatement to go undetected[93](index=93&type=chunk)[94](index=94&type=chunk) - Remediation efforts are underway, including engaging qualified accounting consultants and staffing a new Financial Reporting Division with a qualified CPA to enhance internal controls[95](index=95&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces potential 'dram shop' litigation risk but has no current claims, and other legal matters are not expected to have a material adverse effect - The company is subject to "dram shop" statutes but currently has **no active claims** of this nature[33](index=33&type=chunk)[99](index=99&type=chunk) - Management believes that other various claims and legal actions arising in the ordinary course of business will **not have a material adverse effect** on financial results[34](index=34&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase any common stock during the quarter but retains authorization from a 2007 plan to purchase additional shares - **No shares** of the company's common stock were purchased during the thirteen weeks ended December 30, 2023[100](index=100&type=chunk) - The company retains the authority to purchase **65,414 shares** of its common stock under a discretionary plan approved by the Board in 2007[100](index=100&type=chunk) [Exhibits](index=27&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the report, including key certifications by the CEO and CFO and the Interactive Data Files (XBRL) - The report includes required certifications from the CEO and CFO pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[101](index=101&type=chunk) - Interactive Data Files (XBRL documents) are filed as exhibits with this report[101](index=101&type=chunk)

Business Operations - As of fiscal year 2023, the total company-owned/operated units increased to 31 from 30 in fiscal year 2022, with 11 package liquor stores and 9 restaurants[10] - The company opened a new package liquor store in Miramar, Florida, during the second quarter of fiscal year 2023, bringing the total to 11[11] - The company plans to operationalize a new stand-alone restaurant in Hollywood, Florida, during fiscal year 2024, replacing a previous location destroyed by fire[20] - The company currently franchises five restaurants, all operating under the "Flanigan's Seafood Bar and Grill" brand[21] - The company operates three franchised package liquor stores, two of which are jointly operated with restaurants[17] - The company has not entered into new franchise arrangements since 1986 and does not anticipate doing so in the foreseeable future[21] - The company operates its restaurants in a casual dining atmosphere, with hours of operation from 11:00 a.m. to 1:00-5:00 a.m. depending on demand[19] - The company has invested in eleven limited partnerships that own and operate restaurants under the "Flanigan's Seafood Bar and Grill" service mark[23] - The company manages "The Whale's Rib" restaurant, generating $400,000 in revenue from management services for both fiscal years ended September 30, 2023, and October 1, 2022[37] - The company has a 25% limited partnership interest in a restaurant in Fort Lauderdale, which has returned all cash invested but does not provide an annual management fee due to the company's non-general partner status[36] Financial Performance - Food sales accounted for approximately 78.71% of total restaurant sales, while bar sales represented about 21.29%[13] - As of September 30, 2023, all limited partnerships, except for the 2022 Sunrise Restaurant and the 2023 Miramar Restaurant, have returned all cash invested, allowing the company to receive an annual management fee equal to 50% of cash available for distribution[24] - The company has total loans of approximately $23.13 million, with $21.61 million owed to an institutional lender[66] - The company received forgiveness for $3.98 million in loans under the Paycheck Protection Program during fiscal year 2022[64] - As of September 30, 2023, the company is in compliance with financial covenants under its loans, with a calculated ratio of 1.40 to 1.00 against a required minimum of 1.15 to 1.00[68] - The company has a discretionary matching contribution of $70,000 to its 401(k) retirement plan for the fiscal year ended September 30, 2023[62] - The company has donated over $100,000 to HOPE mission for disaster and hunger relief, and $10,000 annually to local Breast Cancer Support organizations[60] - The company has a general liability insurance policy with coverage of $1 million per occurrence and excess liability insurance of $10 million above the primary coverage[70] - For the fiscal year 2023, the company paid approximately $3.281 million in insurance premiums, which includes $658,000 for franchisee coverage[72] Supply Chain and Risk Management - The company is actively monitoring its food suppliers to mitigate supply chain risks and has identified alternative supply sources[66] - The company emphasizes high volume business in its package liquor stores by offering competitive pricing and a wide selection of products[16] - The company has identified alternative supply sources in key product categories to mitigate potential supply availability risks[66] - The company has a significant reliance on liquor sales, which constitute a large share of its revenue, and any delays in obtaining liquor licenses could adversely affect operations[50] Pricing and Market Position - The company increased menu prices for food offerings by approximately 2.06% annually and for bar offerings by approximately 5.65% annually to offset rising costs[75] - The company has adjusted pricing strategies in response to competitive pressures in the liquor and hospitality industries[74] - The company has a competitive market position due to strong brand recognition of "Big Daddy's" and "Flanigan's" names[74] - The company operates under several service marks, including "Big Daddy's Liquors" and "Flanigan's Seafood Bar and Grill," with registered federal trademarks[78] Employee Management - The company employs 1,855 staff members, with 707 full-time and 1,148 part-time employees, and none are represented by collective bargaining organizations[58] - The company has a robust training program to maximize staff potential and fill management positions internally[56] - The company emphasizes systematic operations and control across all units, with an incentive cash bonus program for managers and salespersons based on performance[38] Insurance and Compliance - The company has secured property insurance with a fixed deductible of $100,000 plus 5% of all insured losses for windstorm-related damages[72] - The company is uninsured against liability claims exceeding $11 million per occurrence and in the aggregate[70] - The company has secured general liability and excess liability insurance for the period commencing after December 30, 2023, with increased self-insured retention amounts[70] - The company has no significant pending matters concerning its licenses that could lead to revocation or other significant actions[51]

Revenue Growth - Total revenue for the thirteen weeks ended July 1, 2023, increased by $4,697,000 or 11.55% to $45,372,000 compared to $40,675,000 for the same period in 2022[68] - Total sales for the thirty-nine weeks ended July 1, 2023, were $128,815,000, compared to $116,270,000 for the same period in 2022, marking a significant increase[66] - Total revenue for the thirty-nine weeks ended July 1, 2023, increased by $12,628,000 or 10.66% to $131,036,000 from $118,408,000 in the previous year[84] Sales Performance - Restaurant food sales reached $28,126,000 for the thirteen weeks ended July 1, 2023, up from $25,574,000 in the same period of 2022, reflecting an increase due to recent price hikes and new restaurant openings[69] - Comparable weekly restaurant food sales for the thirteen weeks ended July 1, 2023, were $1,901,000, a 2.20% increase from $1,860,000 for the same period in 2022[69] - Restaurant bar sales for the thirteen weeks ended July 1, 2023, totaled $7,687,000, an increase of 13.76% from $6,755,000 for the same period in 2022[70] - Restaurant food sales for the thirty-nine weeks ended July 1, 2023, totaled $80,006,000, an increase of 10.03% from $72,554,000 in 2022[86] - Restaurant bar sales increased to $21,956,000 for the thirty-nine weeks ended July 1, 2023, up from $19,431,000 for the same period in 2022, representing an increase of 7.81%[87] - Package store sales increased to $8,791,000 for the thirteen weeks ended July 1, 2023, compared to $7,626,000 for the same period in 2022, contributing to overall revenue growth[65] - Package store sales totaled $26,853,000 for the thirty-nine weeks ended July 1, 2023, compared to $24,285,000 for the same period in 2022, an increase of 10.59%[88] Cost and Expenses - Operating costs and expenses increased by $4,080,000 or 10.57% to $42,672,000 for the thirteen weeks ended July 1, 2023, compared to $38,592,000 in 2022[73] - Payroll and related costs increased by $1,800,000 or 14.06% to $14,598,000 for the thirteen weeks ended July 1, 2023, compared to $12,798,000 in 2022[76] - Selling, general and administrative expenses rose by $1,410,000 or 21.64% to $7,927,000 for the thirteen weeks ended July 1, 2023, from $6,517,000 in the prior year[79] - Operating costs and expenses rose by $10,718,000 or 9.43% to $124,428,000 for the thirty-nine weeks ended July 1, 2023, from $113,710,000 in the prior year[90] - Payroll and related costs increased by $5,343,000 or 14.42% to $42,408,000 for the thirty-nine weeks ended July 1, 2023, from $37,065,000 in the prior year[93] - Selling, general and administrative expenses rose by $2,896,000 or 14.45% to $22,935,000 for the thirty-nine weeks ended July 1, 2023, compared to $20,039,000 in the previous year[96] Profitability - Gross profit for restaurant food and bar sales increased to $24,078,000, with a gross profit margin of 67.23% for the thirteen weeks ended July 1, 2023, up from 63.28% in 2022[74] - Net income for the thirteen weeks ended July 1, 2023, increased by $447,000 or 22.76% to $2,411,000, with a net income margin of 5.31%[82] - Net income decreased by $1,782,000 or 24.60% to $5,463,000 for the thirty-nine weeks ended July 1, 2023, down from $7,245,000 in the prior year[99] - Net income attributable to Flanigan's Enterprises, Inc. stockholders decreased by $933,000 or 18.44% to $4,126,000 for the thirty-nine weeks ended July 1, 2023, compared to $5,059,000 in the previous year[100] Investments and Assets - The company operates a total of 32 owned/operated units as of July 1, 2023, an increase from 30 units as of October 1, 2022[59] - Current assets as of July 1, 2023, were $37,208,000, down from $50,893,000 as of October 1, 2022, primarily due to increased property purchases[121] - Working capital decreased to $15,609,000 as of July 1, 2023, from $28,717,000 as of October 1, 2022, mainly due to real property purchases and equipment investments[121] - Long-term debt decreased to $23,430,000 as of July 1, 2023, from $25,389,000 as of October 1, 2022, due to the repayment of a $5.5 million term loan[113] - The company invested $900,000 in 90-day certificates of deposit at an average fixed annual interest rate of 4.87% during the thirty-nine weeks ended July 1, 2023[130] Market Conditions - Inflation, particularly in food, beverage, and labor costs, is materially impacting the company's operating results, prompting price increases on the menu[125] - Menu prices for food offerings were increased by approximately 2.06% effective March 26, 2023, and bar offerings by approximately 5.65% effective March 19, 2023, to offset rising costs[68] - The company anticipates an increase in restaurant bar sales for the remainder of fiscal year 2023 due to increased traffic and the operation of the new Miramar restaurant[87] Cash Flow and Dividends - During the thirty-nine weeks ended July 1, 2023, net cash provided by operating activities was $7,200,000, compared to $7,790,000 for the same period in 2022[110] - The company declared a cash dividend of $0.45 per share during the thirty-nine weeks ended July 1, 2023, down from $1.00 per share in the same period of 2022[110]

Revenue Growth - Total revenue for the thirteen weeks ended April 1, 2023, increased by $3,473,000 or 8.61% to $43,803,000 compared to $40,330,000 for the same period in 2022[53] - Total revenue for the twenty-six weeks ended April 1, 2023, increased by $7,931,000 or 10.20% to $85,664,000 from $77,733,000 in the prior year[68] - The company expects restaurant food and bar sales to continue increasing due to higher restaurant traffic and the opening of the 2023 Miramar Restaurant in the third quarter of fiscal year 2023[54][55] Sales Breakdown - Restaurant food sales reached $27,113,000 for the thirteen weeks ended April 1, 2023, up from $24,775,000 in the same period of 2022, reflecting an increase of 9.00%[54] - Restaurant bar sales totaled $7,281,000 for the thirteen weeks ended April 1, 2023, compared to $6,669,000 for the same period in 2022, marking an increase of 9.15%[55] - Package store sales increased to $8,659,000 for the thirteen weeks ended April 1, 2023, from $8,148,000 in the same period of 2022, representing a growth of 6.25%[51] - Package store sales revenue increased to $18,062,000 for the twenty-six weeks ended April 1, 2023, up from $16,659,000 for the same period in 2022, representing an increase of 8.41%[72] Operating Costs and Expenses - Operating costs and expenses increased by $2,612,000 or 6.79% to $41,092,000 for the thirteen weeks ended April 1, 2023, from $38,480,000 in the prior year[57] - Operating costs and expenses increased by $6,638,000 or 8.84% to $81,756,000, but decreased as a percentage of total revenue to approximately 95.44% from 96.64% year-over-year[74] - Payroll and related costs increased by $2,143,000 or 17.81% to $14,174,000 for the thirteen weeks ended April 1, 2023, representing 32.36% of total revenue[61] - Payroll and related costs increased by $3,543,000 or 14.60% to $27,810,000, with payroll as a percentage of total revenue rising to 32.46% from 31.22%[77] Profitability - Gross profit for restaurant food and bar sales increased to $23,184,000, with a gross profit margin of 67.41% for the thirteen weeks ended April 1, 2023, compared to 63.83% in the prior year[59] - Gross profit for restaurant food and bar sales rose to $44,133,000, with a gross profit margin of 66.72% for the twenty-six weeks ended April 1, 2023, compared to $37,949,000 and 63.61% in the prior year[75] - Net income for the thirteen weeks ended April 1, 2023, increased by $835,000 or 62.17% to $2,178,000, with a net income margin of 4.97%[66] - Net income decreased by $2,229,000 or 42.21% to $3,052,000, with net income as a percentage of revenue falling to 3.56% from 6.79%[82] Capital and Cash Flow - As of April 1, 2023, cash and cash equivalents were approximately $37,764,000, a decrease of $4,374,000 from $42,138,000 as of October 1, 2022[89] - Net cash provided by operating activities for the twenty-six weeks ended April 1, 2023, was $4,194,000, a decrease from $7,190,000 for the same period in 2022, representing a decline of approximately 41.5%[94] - Capital expenditures for the twenty-six weeks ended April 1, 2023, totaled $3,698,000, down from $4,111,000 in the prior year, indicating a decrease of about 10.0%[95] - Long-term debt decreased to $23,732,000 as of April 1, 2023, from $25,389,000 as of October 1, 2022, reflecting a reduction of approximately 6.5%[98] Future Outlook - The company anticipates continued increases in package liquor store sales and operating costs throughout fiscal year 2023[56][57] - The company anticipates package liquor store sales will continue to increase due to higher traffic and new store openings in Florida[72] - The company plans to increase menu prices for food and bar offerings to target revenue increases of approximately 2.06% and 5.65% annually, respectively[86] - The company expects inflation and supply chain issues to continue impacting operations, but believes current cash availability will be sufficient to fund operations for at least the next twelve months[92] Other Financial Metrics - The company did not declare or pay a cash dividend during the twenty-six weeks ended April 1, 2023, compared to a cash dividend of $1.00 per share in the same period of 2022[94] - The working capital as of April 1, 2023, was $26,033,000, down from $28,717,000 as of October 1, 2022, showing a decrease of about 9.3%[105] - The Post-Distribution Basic Fixed Charge Coverage Ratio was calculated to be 1.35 to 1.00 for the twelve months ended April 1, 2023, above the required minimum of 1.15 to 1.00[99] - The company invested $600,000 in 90-day certificates of deposit at an average fixed annual interest rate of 4.52% during the twenty-six weeks ended April 1, 2023[113]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction o ...

Operations and Expansion - As of October 1, 2022, Flanigan's operates 30 units, an increase from 27 units in 2021, including 8 restaurants, 7 package liquor stores, and 10 limited partnership managed restaurants[11]. - The company opened a new stand-alone package liquor store in Hollywood, Florida, replacing one that was destroyed by fire[21]. - Flanigan's has expanded its limited partnership owned restaurants, with 10 units managed as of 2022, up from 8 in 2021[12]. - The company plans to construct a new stand-alone restaurant in Hollywood, Florida, to replace a restaurant destroyed by fire, but it is not expected to be operational during fiscal year 2023[26]. - The company opened a new limited partnership owned restaurant in Sunrise, Florida during fiscal year 2022 and is developing another in Miramar, expected to open in February 2023[106]. - The limited partnership owned restaurant at 14301 West Sunrise Boulevard opened in March 2022, and another is expected to open in February 2023[13]. Sales and Revenue - Food sales account for approximately 78.8% of total restaurant sales, while bar sales represent about 21.2%[17]. - The company has entered into purchase agreements for approximately $10.4 million and $6.8 million of baby back ribs for 2022 and 2023, respectively, with a decrease in cost anticipated for 2023[46]. - Menu price increases were implemented to target a 2.38% and 3.34% annual increase in food revenues and a 7.80% increase in bar revenues, respectively[79]. - The company manages "The Whale's Rib" restaurant and generated $400,000 in revenue from management services for both fiscal years ended October 1, 2022, and October 2, 2021[41]. Franchise and Licensing - Flanigan's has not entered into any new franchise arrangements since 1986 and does not anticipate doing so in the foreseeable future[22]. - The company operates five franchised restaurants, all under the "Flanigan's Seafood Bar and Grill" service mark[27]. - Franchisees of package liquor stores pay a royalty of approximately 1% of gross sales, plus an advertising fee of 1.5% to 3% of gross sales[23]. - Franchisees pay a royalty of approximately 3% of gross sales and an advertising fee of 1.5% to 3% of gross sales depending on actual advertising costs[28]. Financial Performance and Compliance - The company is in compliance with financial covenants on loans totaling approximately $23.27 million as of October 1, 2022[72]. - The company has received approximately $3.98 million in loans under the Paycheck Protection Program, which were fully forgiven in fiscal year 2022[69]. - The company anticipates continuing to form limited partnerships to raise funds for new restaurant operations under its service marks[29]. - The company is subject to various federal, state, and local regulations, including licensing for the sale of alcoholic beverages[52]. Labor and Employment - As of fiscal year-end 2022, the company employed 1,766 persons, with 1,627 working in restaurants, and none represented by collective bargaining organizations[62]. - The minimum wage in Florida is currently $11.00 per hour, increasing by $1.00 annually until it reaches $15.00 per hour in 2027, impacting labor costs significantly[90]. - The company has invested in staff training and career advancement opportunities to retain qualified personnel in a competitive labor market[59]. - Labor shortages and increased labor costs could negatively impact the company's ability to deliver a satisfactory dining experience[112]. Risk Management and Cybersecurity - The company maintains a high-speed connection for data transfer and has a backup system to mitigate business interruptions[49]. - Cybersecurity measures include encryption and tokenization for credit card transactions, ensuring no credit card data is stored internally[51]. - The company requires cybersecurity awareness training for all staff members with access to cyber systems[51]. - Cyber risk insurance coverage is maintained to reduce the company's risk profile[51]. Market Challenges - The COVID-19 pandemic has caused significant disruptions to operations and may continue to adversely affect restaurant operations and financial results[85]. - The company faces intense competition in the restaurant and package liquor store industry, which could hinder revenue and profitability growth[96]. - Rising healthcare costs and unpredictable medical claims trends could materially affect financial performance[92]. - The company is unable to contract for extended periods for certain commodities, leading to potential supply and cost fluctuations due to inflation[104]. Regulatory Environment - The company is subject to various governmental regulations that could impact operations and financial performance if not complied with[120]. - The implementation of the Affordable Care Act may significantly increase labor costs and impose additional administrative expenses on the company[133]. - Compliance with various employment and immigration regulations could lead to substantial expenses and potential liabilities from non-compliance claims[135]. - Increased regulatory focus on nutrition and food practices may lead to higher expenses and changes in customer buying habits, adversely affecting sales[141].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction of (I.R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 2, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction of (I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 1, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 2, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-06836 FLANIGAN'S ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Florida 59-0877638 (State or Othe ...