Papa Johns 1999 Annual Report Download - page 58

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Notes to Consolidated Financial Statements (continued)
6. Franchisee Loan Program
During 1996, we established a program under which selected franchisees may borrow funds for use in the construction and
development of their restaurants. Loans outstanding to franchisees were approximately $11.7 million as of December 26, 1999 and
$9.0 million as of December 27, 1998. As of December 26, 1999, commitments to lend up to an additional $2.5 million had been
made. Such loans bear interest at fixed or floating rates (ranging from 5.5% to 12.0% at December 26, 1999), and are generally
secured by the fixtures, equipment, signage and, where applicable, land of each restaurant and the ownership interests in the
franchisee. Interest earned on franchisee loans was approximately $762,000 in 1999, $986,000 in 1998 and $815,000 in 1997, and
is reported in investment income in the accompanying consolidated statements of income. Approximately $3.6 million of the loans
outstanding as of December 26, 1999 and $4.7 million as of December 27, 1998 were to franchisees in which we or certain of our
directors or officers had an ownership interest.
7. Accrued Expenses
Accrued expenses consist of the following (in thousands):
1999 1998
Salaries, wages and bonuses $ 3,236 $ 2,748
Taxes other than income 5,498 5,093
Insurance 4,451 3,733
Income taxes 9,205 5,027
Facility costs 1,335 3,494
Rent 1,360 1,081
Advertising litigation 4,083 -
Other 9,348 5,740
Total $ 38,516 $ 26,916
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