Related Party Transactions |
6 Months Ended |
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Jun. 30, 2022 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions The Company is affiliated with various entities through common control and ownership.
The Company received royalty revenue from franchisees related to a significant stockholder totaling approximately $0.1 million for the each of the three and six months ended June 30, 2022 and $0.2 million and $0.3 million for each of the three and six months ended June 30, 2021.
The Company leased building space for its former corporate office from an entity under common ownership with a significant stockholder. This lease had a 36-month term, effective January 1, 2020. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million. For the three and six months ended June 30, 2021, rent expense was approximately $0.1 million. In January 2022, the Company exercised its right to terminate this lease effective as of July 2022.
Pursuant to a lease amendment entered into in February 2022, the Company leases building space for it's corporate office from an entity controlled by the Company's Executive Chairman of the Board. This lease has a 10 year term with an option to renew. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million and $0.2 million
The Company also leased building space for a restaurant located in Virginia from an entity (i) in which the Company's Executive Chairman of the Board has an indirect minority ownership interest, and (ii) which is managed by an entity in which the Company's Executive Chairman of the Board has an indirect ownership interest. This lease was terminated in May 2022 upon transfer of the restaurant to a franchisee. Rent expense for the three and six months ended June 30, 2022 was de minimis. There was no rent expense for the three and six months ended June 30, 2021.
In August 2022, the Company amended, effective as of September 1, 2022, the independent contractor agreement entered into in April 2021 with a corporation (the “Consultant”) for which the Chief Operating Officer (the “Consultant Principal”) of Lionheart Capital, LLC, an entity controlled by the Company’s Executive Chairman of the Board, serves as President. Pursuant to the terms of the agreements, the Consultant shall provide certain strategic advisory services to the Company in exchange for total annual cash compensation and expense reimbursements of $0.1 million, payable monthly.
On January 3, 2022, the Consultant Principal was granted 37,959 unrestricted shares of common stock of the Company and recorded share-based compensation associated with this grant of approximately $0.2 million during the six months ended June 30, 2022.
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