UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 (Mark One)

 x
 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 29, 2024
 OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 Commission file number 001-38250

 FAT Brands Inc.
 (Exact name of registrant as specified in its charter)

 Delaware
 82-1302696

 (State or other jurisdiction of
incorporation or organization)

 (I.R.S. Employer
Identification No.)

 9720 Wilshire Blvd., Suite 500
 Beverly Hills, CA 90212
 (Address of principal executive offices, including zip code)
 (310) 319-1850
 (Registrant's telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class
 Trading Symbol(s)
 Name of each exchange on which registered

 Class A Common Stock, par value $0.0001 per share
 FAT
 The Nasdaq Stock Market LLC

 Class B Common Stock, par value $0.0001 per share
 FATBB
 The Nasdaq Stock Market LLC

 Series B Cumulative Preferred Stock, par value $0.0001 per share
 FATBP
 The Nasdaq Stock Market LLC

 Warrants to purchase Class A Common Stock
 FATBW
 The Nasdaq Stock Market LLC

 Securities registered pursuant to Section 12(g) of the Act:
 None
 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No x
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No x
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No
 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer
 x
 Smaller reporting company
 x

 Emerging growth company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes o No x
 The aggregate market value of voting common stock held by non-affiliated stockholders as of June 30, 2024 was approximately $ 40.7 million.
 As of February 24, 2025, there were 16,521,884 shares of Class A common stock and 1,270,805 shares of Class B common stock outstanding.

 FORM 10-K

 Item 1.

 Business

 Item 1A

 Risk Factors

 Item 1B

 Unresolved Staff Comments

 Item 1C
 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [RESERVED]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.
 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibits, and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
 Certain statements contained herein and certain statements contained in future filings by the Company with the SEC may not be based on historical facts and are "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Form 10-K may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected new franchisees, brands, store openings and future capital expenditures are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions.
 Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. These and other risks, uncertainties and contingencies are described in this Annual Report on Form 10-K, including under "Item 1A. Risk Factors," and the other reports that we file with the SEC from time to time.
 These forward-looking statements speak only as of the date of this Form 10-K. Except as may be required by law, the Company does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to any Forward-Looking Statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
 The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements of FAT Brands Inc. and the notes thereto included elsewhere in this filing. References in this filing to "the Company," "we," "our," and "us" refer to FAT Brands Inc. and its subsidiaries, including our majority-owned subsidiary Twin Hospitality Group, Inc., unless the context indicates otherwise.

 ITEM 1. BUSINESS
 FAT Brands Inc. is a leading multi-brand restaurant company that develops, markets, acquires and manages quick service, fast casual, casual dining and polished casual dining restaurant concepts around the world. We operate primarily as a franchisor of restaurants, where we generally do not own or operate the restaurant locations but rather generate revenue by charging franchisees an initial franchise fee as well as ongoing royalties. This "asset light" franchisor model provides us with the opportunity for strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risk, such as long-term real estate commitments or capital investments. For some of our brands, we also directly own and operate restaurant locations in addition to franchising restaurants.

 Our scalable management platform enables us to add new stores and restaurant concepts to our portfolio with minimal incremental corporate overhead cost, while taking advantage of significant corporate overhead synergies. The expansion of our existing brands as well as the acquisition of additional brands and restaurant concepts are key elements of our growth strategy. In addition to our restaurant operations, we own and operate a manufacturing and production facility in Atlanta, Georgia, which supplies our franchisees with cookie dough, pretzel dry mix and other ancillary products.

 As of December 29, 2024, our franchisee base consisted of over 730 franchise partners, who operated an aggregate of approximately 2,300 restaurants, including restaurants under construction. Additionally, we directly owned and operated 181 restaurants as of such date. System wide sales of our franchised and owned locations during fiscal 2024 were $2.4 billion.
 The FAT Brands Difference – Fresh. Authentic. Tasty.
 Our name represents the values that we embrace as a company and the food that we provide to customers – Fresh. Authentic. Tasty (which we refer to as "FAT"). The success of our franchisor model is tied to consistent delivery by our restaurant operators of freshly prepared, made-to-order food that our customers desire. With the input of our customers and franchisees, we continually strive to keep a fresh perspective on our brands by enhancing our existing menu offerings and introducing appealing new menu items. When enhancing our offerings, we ensure that any changes are consistent with the core identity and attributes of our brands, although we do not intend to adapt our brands to be all things to all people. In conjunction with our restaurant operators (which means the individuals who manage and/or own our franchised restaurants), we are committed to delivering authentic, consistent brand experiences that have strong brand identity with customers. Ultimately, we understand that we are only as good as the last meal served, and we are dedicated to having our franchisees consistently deliver tasty, high-quality food and positive guest experiences in their restaurants.
 Our Concepts

 We and our majority-owned subsidiary Twin Hospitality Group Inc. ("Twin Hospitality") are the owner and franchisor of the following restaurant brands in four main categories – Quick Service, Fast Casual, Casual Dining and Polished Casual Dining.

 Quick Service

 Round Table Pizza. Round Table Pizza is the franchisor of quick service restaurants located primarily in California and the western United States. Round Table pizzas are made with fresh dough and offered in a variety of original flavors and pizza combinations. Customers also have the option to create their own pizzas. Round Table Pizza includes three restaurant formats – Traditional, Clubhouse and Delivery Only.

 Marble Slab Creamery. Marble Slab Creamery is a purveyor of hand-mixed ice cream. Founded in 1983, Marble Slab was an innovator of the frozen slab technique where customers select a variety of items to be mixed into their ice cream or frozen yogurt on a chilled marble slab. Marble Slab ice cream is made in small batches in franchise locations using ingredients from around the world and dairy from local farms. Marble Slab has locations in the United States, Canada, Bahrain, Bangladesh, Guam, Kuwait, Pakistan, Puerto Rico and Saudi Arabia.

 Great American Cookies. Great American Cookies (which we refer to as "GAC") was founded in Atlanta, Georgia in 1977 as a single store which relied upon a single chocolate chip cookie recipe. In 1978, GAC began its franchise operations and introduced a complete line of cookies and brownies. Over the last 30 years, GAC further increased its presence in malls throughout the United States and significantly expanded its product offerings. GAC is known for its signature Cookie Cakes, signature flavors and menu of gourmet products baked fresh in store. GAC has franchised stores in the United States, Bahrain, Guam and Saudi Arabia.

 Hot Dog on a Stick. Hot Dog on a Stick (which we refer to as "HDOS") is the franchisor of quick service restaurants primarily located in regional malls in California and the western United States. HDOS founder Dave Barnham opened his first hot dog stand in Santa Monica, California in 1946. HDOS offers its turkey frank dipped in batter and cooked in canola oil, along with fresh squeezed lemonade, hot dog in a bun, cheese on a stick, funnel cake sticks and french fries.

 Pretzelmaker. Pretzelmaker and Pretzel Time are franchised concepts that specialize in offering hand-rolled soft pretzels, innovative soft pretzel products, dipping sauces and beverages. Retail locations are primarily located in shopping malls and other types of shopping centers. The brands were founded independently of each other in 1991, united under common ownership in 1998, and consolidated in 2008 to become the new Pretzelmaker.

 Fazoli's. Founded in 1988 in Lexington, Kentucky, Fazoli's is an Italian restaurant chain known for its fast and fresh premium quality Italian food, including freshly prepared pasta entrees, Submarinos sandwiches, salads, pizzas, desserts and unlimited signature breadsticks.

 Fast Casual

 Fatburger. Founded in Los Angeles, California in 1947, Fatburger (The Last Great Hamburger Stand) has, throughout its history, maintained its reputation as an iconic, all-American, Hollywood favorite hamburger restaurant serving a variety of freshly made-to-order and customizable Fatburgers, Turkeyburgers, Chicken Sandwiches, Impossible Burgers, Veggieburgers, french fries, onion rings, soft-drinks and milkshakes.

 Johnny Rockets. Founded in 1986 on iconic Melrose Avenue in Los Angeles, California, Johnny Rockets is a world-renowned, international restaurant franchise that offers high quality, innovative menu items including Certified Angus Beef cooked-to-order hamburgers, Boca Burger, chicken sandwiches, crispy fries and rich, delicious hand-spun shakes and malts. This dynamic lifestyle brand offers friendly service and upbeat music contributing to the chain's signature atmosphere of relaxed, casual fun.

 Elevation Burger. Established in Northern Virginia in 2002, Elevation Burger is a fast-casual burger, fries and shakes chain that provides its customers with healthier, "elevated" food options. Serving grass-fed beef, organic chicken and french fries cooked using a proprietary olive oil-based frying method, Elevation maintains environmentally friendly operating practices, including responsible sourcing of ingredients, robust recycling programs intended to reduce its carbon footprint, and store d cor constructed of eco-friendly materials.

 Yalla Mediterranean. Founded in 2014, Yalla Mediterranean began as a Los Angeles, California based restaurant chain specializing in authentic, healthful, Mediterranean cuisine with an environmental conscience and focus on sustainability. The word "yalla", which means "let's go", is embraced in every aspect of Yalla Mediterranean's culture and is a key component of our concept, which is based on a healthful Mediterranean menu of wraps, plates and bowls in a fast-casual setting, with cuisine prepared fresh daily using, GMO-free, local ingredients. Due primarily to the COVID-19 pandemic and the emphasis on catering orders, all Yalla Mediterranean stores were closed during the pandemic. We are currently planning to redesign and reintroduce the brand with a rollout of new stores.

 Casual Dining

 Buffalo's Cafe and Buffalo's Express. Established in Roswell, Georgia in 1985, Buffalo's Cafe (Where Everyone is Family) is a family-themed casual dining concept known for its chicken wings and 13 distinctive homemade wing sauces, burgers, wraps, steaks, salads and other classic American cuisine. Featuring a full bar and table service, Buffalo's Cafe offers a distinctive dining experience affording friends and family the flexibility to share an intimate dinner together or to casually watch sporting events while enjoying extensive menu offerings. Beginning in 2011, Buffalo's Express was developed and launched as a fast-casual, smaller footprint variant of Buffalo's Cafe offering a limited version of the full menu with an emphasis on chicken wings, wraps and salads. Current Buffalo's Express outlets are co-branded with Fatburger locations, providing our franchisees with complementary concepts that share kitchen space and result in a higher average unit volume (compared to stand-alone Fatburger locations).

 Hurricane Grill & Wings. Founded in Fort Pierce, Florida in 1995, Hurricane Grill & Wings is a tropical beach themed casual dining restaurant known for its fresh, jumbo, chicken wings, 35 signature sauces, burgers, bowls, tacos, salads and sides. Featuring a full bar and table service, Hurricane Grill & Wings' laid-back, casual, atmosphere affords family and friends the flexibility to enjoy dining experiences together regardless of the occasion. The acquisition of Hurricane Grill & Wings has been complementary to FAT Brands' existing portfolio chicken wing brands, Buffalo's Cafe and Buffalo's Express.

 Ponderosa Steakhouse / Bonanza Steakhouse. Ponderosa Steakhouse, founded in 1965, and Bonanza Steakhouse, founded in 1963, offer the quintessential American steakhouse experience. Ponderosa and Bonanza Steakhouses offer guests a high-quality buffet and broad array of great tasting, affordably priced steak, chicken and seafood entr es. Buffets at Ponderosa and Bonanza Steakhouses feature a large variety of all you can eat salads, soups, appetizers, vegetables, breads, hot main courses and desserts. An additional variation of the brand, Bonanza Steak & BBQ, offers a full-service steakhouse with fresh farm-to-table salad bar and a menu showcasing flame-grilled USDA steaks and house-smoked BBQ, with contemporized interpretations of traditional American classics.

 Native Grill & Wings. Based in Chandler, Arizona, Native Grill & Wings is a family-friendly sports grill with locations in Arizona, Illinois and Texas. Native Grill & Wings serves over 20 wing flavors that guests can order by the individual wing, as well as an extensive menu of pizza, burgers, sandwiches and salads.

 Polished Casual Dining

 The Twin Peaks and Smokey Bones brands are owned and operated through our subsidiary, Twin Hospitality Group Inc. In January 2025, we distributed approximately 5% of the fully-diluted shares of Class A Common Stock of Twin Hospitality to our common stockholders, and Twin Hospitality began trading as a standalone publicly traded company listed on NASDAQ under the symbol "TWNP". We retained the remaining shares of Twin Hospitality outstanding immediately following the distribution, and we will continue to consolidate our financial statements with Twin Hospitality as required under generally accepted accounting principles.

 Twin Peaks. Founded in 2005 in Dallas, Texas, Twin Peaks is a leading sports lodge-themed restaurant chain known for its scratch made food, 29-degree cold beer and all-female wait staff. Each Twin Peaks restaurant features a sports viewing experience in a comfortable mountain lodge atmosphere with a customized sports programming package provided by DirecTV. Menu items include smashed and seared to order burgers, in-house smoked ribs, street tacos and hand-breaded chicken wings. Twin Hospitality currently franchises, and also directly owns and operates, Twin Peaks restaurants in various states in the United States, and has three franchised Twin Peaks restaurants located in Mexico.

 Smokey Bones. The Masters of Meat. Smokey Bones Bar & Fire Grill is a full-service restaurant chain delivering great barbecue, award-winning ribs, perfectly seared steaks and memorable moments in approximately 60 locations across 16 states. Smokey Bones serves lunch, dinner, and late night, and has a full bar featuring a variety of bourbons and whiskeys, a selection of domestic, import and local craft beers, and several signature handcrafted cocktails. Smokey Bones offers a variety of meats that are slow-smoked, fire-grilled, and available for dine-in, pick-up, online ordering, catering, and delivery.

 Our Competitive Strengths
 We believe that our competitive strengths include:
 • Management Team Designed to Support Multiple Brands and Categories. As our business has expanded to 18 brands, we have developed a robust and comprehensive management and systems platform designed to support the expansion of our existing brands while enabling for the accretive and efficient acquisition and integration of additional restaurant concepts. We have distinct teams of managers focused on four main categories – Quick Service, Fast Casual, Casual Dining and Polished Casual Dining. Our platform is scalable and adaptable, allowing us to incorporate growth in existing brands and new concepts into the FAT Brands family with minimal incremental corporate costs.
 • Strong Brands Aligned with FAT Brands Vision. We have an enviable track record of delivering Fresh, Authentic, and Tasty meals across our franchise system, with leading brands in four categories. Our Fatburger, Round Table Pizza, Twin Peaks, Smokey Bones, Johnny Rockets, Fazoli's and Buffalo's concepts have built distinctive brand identities within their respective categories, providing made-to-order, high-quality food at competitive prices. The Ponderosa and Bonanza brands deliver an authentic American steakhouse experience. Hurricane Grill & Wings and Native Grill & Wings offer customers fresh chicken wings with an assortment of sauces and rubs in a casual dining atmosphere. Elevation Burger was the first organic burger chain, serving premium grass-fed beef patties and heart-healthy olive oil fries in a family and eco-friendly environment. Maintaining alignment with the FAT Brands vision across an expanding platform, we believe that our concepts appeal to a broad base of domestic and global consumers.
 • Ability to Cross-Sell Multiple Brands from the FAT Brands Portfolio. Our ability to easily and efficiently cross-sell to our existing franchisees new brands from our portfolio affords us the ability to grow more quickly and satisfy our existing franchisees' demands to expand their operations. By having the ability to offer our franchisees a variety of restaurant concepts in multiple categories, our existing franchisees are able to acquire the rights to a well-rounded portfolio of FAT Brands concept offerings to strategically satisfy their respective market demands where opportunities are available. We have developed a pipeline of approximately 1,000 restaurants under development driven in part by our diverse and attractive portfolio of brands.
 • Asset Light Business Model Driving High Free Cash Flow Conversion. We operate primarily as a franchisor of restaurants, where we generally do not own or operate the restaurant locations but rather generate revenue by charging franchisees an initial franchise fee as well as ongoing royalties based on their sales. This "asset light" franchisor model provides us with the opportunity for strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risks, such as long-term real estate commitments, capital investments and increases in employee wage costs. For some of our brands, we also directly own and operate restaurant locations.
 • Robust Franchisee Support. Our franchisees are our primary customers and we dedicate considerable resources and industry knowledge to promote their success. We offer our franchisees multiple support services such as public relations, supply chain assistance, site selection analysis, staff training and operational oversight and support. We develop and produce most marketing initiatives for our brands in-house, including advertising campaigns, product placements and social media / digital marketing. We have developed a diverse and loyal base of over 730 franchise partners with restaurants located in 34 countries, including 46 states within the United States and Washington D.C. and Puerto Rico, without any excessive market concentration among the franchisees.
 Our Growth Strategy
 The principal elements of our growth strategy include:
 • Organically Grow New Store Pipeline and Attract New Franchisees. We have developed a pipeline of approximately 1,000 restaurants under development among our existing and newly acquired franchisees. We also believe that the worldwide markets for our brands are far from saturated and can support a significant increase in units through new franchisee relationships. Additionally, we are seeing strong new franchisee activity as well as continued demand from our existing franchise partners to develop other brands within our portfolio. In many cases, prospective franchisees have experience in and knowledge of markets where we are not currently active, facilitating a smoother brand introduction than we or our existing franchisees could achieve independently.

 • Expand Our Factory Business. We operate a manufacturing facility in Atlanta, Georgia that supplies batter and pretzel mix to certain of our quick service restaurant brands and operates at approximately 40% capacity. We are executing a strategy to expand the facility's production by offering batter to other brand categories within our portfolio and by entering into third-party manufacturing contracts.

 • Capitalize on Growth Opportunities in our Polished Casual Dining Category. Twin Peaks is a leading sports lodge-themed restaurant chain known for its scratch made food, 29-degree cold beer and all-female wait staff. Twin Peaks has grown from 85 units to 115 units since our acquisition of the brand in October 2021. We will pursue the continued growth of this brand through additional company-owned and franchised units.

 • Driving Store Growth Through Co-Branding. We franchise co-branded Fatburger / Buffalo's Express locations, Johnny Rockets / Hurricane Grill and Wings locations, Great American Cookies / Marble Slab Creamery locations and Pretzel Maker / Great American Cookie locations. Additionally, we tri-brand Fat Burger / Buffalo's Express / Hot Dog on a Stick locations and Great American Cookies / Marble Slab Creamery / Pretzel Maker locations. Each co-brand and tri-brand giving franchisees the flexibility of offering multiple concepts, while sharing kitchen space, resulting in a higher average check (compared to stand-alone Fatburger locations). Franchisees benefit by serving a broader customer base, and we estimate that co-branding and tri-branding results in a 20%-30% increase in average unit volume compared to stand-alone locations with minimal incremental cost to franchisees. Our acquisition strategy reinforces the importance of co-branding, as we expect to offer each of the complementary brands that we acquire to our existing franchisees on a co-branded basis.

 • Optimize Capital Structure. In 2021, we funded our acquisition of restaurant brands primarily through the issuances of notes under four separate whole-business securitization facilities, which significantly reduced our net cost of capital compared with acquisitions that we consummated in prior years. We have refinanced and may continue in the future to refinance these notes and may seek an investment rating on a portion of the notes in order to further reduce our cost of capital.

 • Continue Expanding FAT Brands Internationally. We have a significant global presence, with franchised stores in 34 countries, including 46 states within the United States and Washington D.C. and Puerto Rico. We believe that the appeal of our Fresh, Authentic, and Tasty concepts is global, and we are targeting further penetration of Middle Eastern and Asian markets, particularly through expanding and number of units of several of our existing brands.

 • Acquire New Brands that Enhance Existing Categories. Our management platform was designed and developed to cost-effectively and seamlessly scale with new restaurant concept acquisitions, particularly those in our existing restaurant categories. We have identified additional categories of potential acquisitions that appeal to a broad base of U.S. and international customers and that would be accretive to our existing portfolio of brands.
 Franchise Program
 General. We utilize a franchise development strategy as our primary method for new store growth by leveraging the interest of our existing franchisees and those potential franchisees with an entrepreneurial spirit looking to launch their own business. We have a franchisee qualification and selection process to ensure that each franchisee meets our strict brand standards.

 Franchise Agreements. Our current franchise agreements generally provide for an initial franchise fee ranging from $20,000 to $50,000 per store, and a typical royalty fee of between 0.75% to 7.0% of net sales. In addition, franchisees typically pay an advertising fee based on net sales for local marketing and brand marketing.
 Development Agreements. For some of our brands, we use development agreements to facilitate the planned expansion of our restaurants through single and multiple unit development. Each development agreement gives a developer the exclusive right to construct, own and operate stores within a defined area. In exchange, the franchisee agrees to open a minimum number of stores in the area in a prescribed time period. Franchisees that enter into development agreements are required to pay a fee, which is credited against franchise fees due when the store is opened in the future. Franchisees may forfeit such fees and lose their rights to future development if they do not maintain the required store opening schedule.

 Franchisee Support
 Marketing
 Our Fresh, Authentic and Tasty values are the anchor that inspires our marketing efforts. Our resolve to maintain our premium positioning, derived from the FAT Brands' values, is reinforced by our management platform, capital light business model, experienced and diverse global franchisee network and seasoned and passionate management team. Although our marketing and advertising programs are concept-specific, we believe that our restaurant customers appreciate the value of their experiences visiting our establishments and, thus, the core of our marketing strategy is to engage and dialogue with customers at our restaurant locations as well as through social media.
 Our Fresh, Authentic and Tasty values are an invitation for restaurant customers to align with FAT Brands' commitment to consistently deliver freshly prepared, made-to-order food that restaurant customers desire. We are dedicated to keeping a fresh perspective on our concepts, perfecting our existing menu offerings as well as introducing appealing new items. We ensure that any changes are consistent with the core identity of our brands, and we will not adapt our brands to be all things to all people.
 Our marketing initiatives include a robust mix of local community marketing, in-store campaigns, product placements, partnerships, promotions, social media, influencer marketing, traditional media and word of mouth advertising. Corresponding with the evolutionary shift in how restaurant customers receive content and engage with media and brands today, we have also dramatically increased our focus on mobile, social, and digital advertising to leverage the content we generate from public relations and experiential marketing to better connect with restaurant customers, sharing information about new menu offerings, promotions, new store openings and other relevant FAT Brands information. We communicate with restaurant customers in creative and organic ways that we believe fortifies our connections with them and increases brand awareness.
 Site Selection and Development
 Our franchisees work alongside our franchise development department during the search, review, leasing and development process for a new restaurant location. Typically, it takes between 60 and 90 days from the time we sign an agreement with a franchisee until that franchisee signs a lease. When selecting a location, our team assists franchisees in seeking locations based on a variety of factors, including but not limited to traffic patterns, access, visibility, building constraints, competition, activity generators and lease terms.
 Supply Chain Assistance
 FAT Brands is committed to seeking out and working with best-in-class suppliers and distribution networks on behalf of our franchisees. Our Fresh, Authentic and Tasty vision guides us in how we source and develop our ingredients, always looking for the best ways to provide top quality food that is as competitively priced as possible for our franchisees and their customers. We utilize a third-party purchasing and consulting company that provides distribution, rebate collection, product negotiations, audits and sourcing services focusing on negotiating distributor, vendor and manufacturer contracts, thereby ensuring that our brands receive meaningful buying power for our franchisees.
 Our team has developed a reliable supply chain and continues to focus on identifying additional back-ups to avoid or minimize any possible interruption of service and product globally for our franchisees. Domestically, FAT Brands has distribution agreements with broadline national distributors as well as regional providers. Internationally, our franchisees have distribution agreements with different providers market-by-market. We utilize distribution centers operated by our distributors. Our broadline national distributors are the main purchasing link in the United States among many of our suppliers, and distribute most of our dry, refrigerated and frozen goods, non-alcoholic beverages, paper goods and cleaning supplies. Internationally, distributors are also used to provide the majority of products to our franchisees.
 Food Safety and Quality Assurance. Food safety is one of our top priorities of FAT Brands. As such, we maintain rigorous safety standards for our menu offerings. We have carefully selected preferred suppliers that adhere to our safety standards, and our franchisees are required to source their ingredients from these approved suppliers. Furthermore, our commitment to food safety is strengthened through the direct relationship between our Supply Chain and Field Consultant Assistance teams.

 Management Information Systems
 FAT Brands restaurants utilize a variety of back-office, computerized and manual, point-of-sale systems and tools. We utilize these systems following a multi-faceted approach to monitor restaurant operational performance, food safety, quality control, customer feedback and profitability.
 The point-of-sale systems are designed specifically for the restaurant industry and we use many customized features to evaluate operational performance, provide data analysis, marketing promotional tracking, guest and table management, high-speed credit card and gift card processing, daily transaction data, daily sales information, product mix, average transaction size, order modes, revenue centers and other key business intelligence data. Utilizing these point-of-sale systems back-end, web-based, enterprise level, software solution dashboards, our home office and Franchise Operations Consultant Support staff are provided with real-time access to detailed business data which allows for our home office and Franchise Operations Consultant Support staff to closely, and remotely, monitor stores performance and assist in providing focused and timely support to our franchisees. Furthermore, these systems supply sales, bank deposit and variance data to our accounting department on a daily basis, and we use this data to generate daily sales information and weekly consolidated reports regarding sales and other key measures for each restaurant with final reports following the end of each period.
 In addition to utilizing these point-of-sale systems, FAT Brands utilizes systems which provide detailed, real-time (and historical) operational data for all locations, allowing our management team to track product inventories, equipment temperatures, repair and maintenance schedules, intra-shift team communications, consistency in following standard operating procedures and tracking of tasks. FAT Brands also utilizes a web-based employee scheduling software program providing franchisees, and their management teams, increased flexibility and awareness of scheduling needs allowing them to efficiently, and appropriately, manage their labor costs and store staffing requirements/needs. Lastly, FAT Brands utilizes a proprietary customer feedback system allowing customers to provide feedback in real-time to our entire management team, franchisees and store managers.
 Field Consultant Assistance
 In conjunction with utilizing the FAT Brands Management Information Systems, FAT Brands has a team of dedicated Franchise Operations Consultant Support staff who oversee designated market areas and specific subsets of restaurants. Our Franchise Operations Consultant Support staff work in the field daily with franchisees, and their management teams, to ensure that the integrity of all FAT Brands concepts are upheld and that franchisees are utilizing the tools and systems FAT Brands requires in order to provide input to our franchisees to assist them to optimize and accelerate their profitability. FAT Brands Franchise Operations Consultant Support staff responsibilities include the following, many of which are performed on a rotating basis (but are not limited to):
 • Conducting announced and unannounced store visits and evaluations;
 • Continuous training and re-training of new and existing franchise operations;
 • Conducting quarterly workshops for franchisees and their management teams;
 • Development and collection of monthly profit and loss statements for each store;

 • Store set-up, training, oversight and support for pre- and post- new store openings;

 • Training, oversight and implementation of in-store marketing initiatives; and

 • Inspections of equipment, temperatures, food-handling procedures, customer service, products in store, cleanliness, and team member attitude.

 Training, Pre-Opening Assistance and Opening Support
 FAT Brands offers Executive level and Operational level training programs to its franchisees, pre-opening assistance and opening assistance. Once open, FAT Brands continually provides ongoing operational and marketing support to our franchisees with the intention of offering advice to their management teams that they can use if they choose to more effectively operate their restaurants and increasing their stores financial profitability.

 Competition
 Our franchised and company owned restaurants compete in the quick service, fast casual, casual and polished casual dining categories of the restaurant industry, a highly competitive industry in terms of price, service, location, and food quality. The restaurant industry is often affected by changes in consumer trends, economic conditions, demographics, traffic patterns, and concern about the nutritional content of food. Furthermore, there are many well-established competitors with substantially greater financial resources than the Company's, including several national, international, regional and local store franchisors and operators. The restaurant industry also has few barriers to entry and new competitors may emerge at any time.
 Seasonality and Effects of Weather
 While some of our brands are subject to seasonal fluctuations in their sales and may be affected by inclement weather, our business overall does not experience significant seasonal variability in its financial performance. Holidays and severe weather in certain regions, including hurricanes, tornados, thunderstorms, snow and ice storms, prolonged extreme temperatures and similar conditions, may impact restaurant sales volumes in some of the markets in which we operate. In addition, the risk of increasingly severe weather due to climate change or the risk that those events happen more frequently could increasingly affect our operations in the future.
 Intellectual Property
 We own, domestically and internationally, valuable intellectual property including trademarks, service marks, trade secrets and other proprietary information related to our restaurant and corporate brands. This intellectual property includes logos and trademarks which are of material importance to our business. Depending on the jurisdiction, trademarks and service marks generally are valid as long as they are used and/or registered. We seek to actively protect and defend our intellectual property from infringement and misuse.
 Human Capital Resources
 We believe that our employees are critical to our success and seek to provide a working environment which encourages personal growth and success in our workforce. We believe that we have good relations with our employees and offer competitive compensation and benefits customary to our industry. Our benefits package for qualified employees includes employer paid health insurance and opportunities for stock-based incentives. Our restaurant employees receive continuing training and have the opportunity to advance in responsibility and leadership.
 We believe that communication is key to the effectiveness of our workforce and schedule regular weekly conference calls with all of our corporate employees, updating them on the direction of the business, important developments within our company and the industry and key milestones to be achieved. We also encourage our employees to be involved in their communities and directly operate two charities - The Seeds of Compassion Fund, Inc., a charitable foundation that provides disaster relief to local communities, and FAT Brands Foundation, a charitable foundation that was organized and seeded by FAT Brands and which seeks additional contributions from our employees, franchise partners and brand partners. From time to time, we also sponsor meal events for first responders and medical professionals during local disasters.
 As of December 29, 2024, we had approximately 7,131 employees, including approximately 2,089 full time employees. This amount includes approximately 1,714 full-time and 5,042 part time employees at restaurants which we own and operate. As an equal opportunity employer, all qualified applicants receive consideration without regard to race, national origin, gender, gender identity, sexual orientation, protected veteran status, disability, age or any other legally protected status.
 Government Regulation
 U.S. Operations. Our U.S. operations are subject to various federal, state and local laws affecting our business, primarily laws and regulations concerning the franchisor/franchisee relationship, marketing, food labeling, labor and employment, sanitation and safety and anti-bribery and anti-corruption laws. Various federal and state labor laws, along with rules and regulations, govern our relationship with our employees, including such matters as minimum wage, overtime, tip credits, health insurance, working conditions, safety and work eligibility requirements. Each of our franchised and company owned restaurants in the U.S. must comply with licensing and regulation by a number of governmental authorities, which include health, sanitation, safety, fire and zoning agencies in the state and/or municipality in which the restaurant is located. In addition, alcoholic beverage control regulations require each of our restaurants which sells alcohol to apply to a federal and state authority and, in certain locations, municipal authorities for a license and permit to sell alcoholic beverages on and off-premises. Typically, licenses must be renewed annually and may be revoked or suspended for cause by such authority at any time. To date, we have not been materially adversely affected by such licensing and regulation or by any difficulty, delay or failure to obtain required licenses or approvals.

 International Operations. Our restaurants outside the U.S. are subject to national and local laws and regulations which in general are similar to those affecting U.S. restaurants. The restaurants outside the U.S. are also subject to tariffs and regulations on imported commodities and equipment and laws regulating foreign investment, as well as anti-bribery and anti-corruption laws.
 See "Risk Factors" for a discussion of risks relating to federal, state, local and international regulation of our business.
 Our Corporate Information
 FAT Brands Inc. was formed as a Delaware corporation on March 21, 2017. Our corporate headquarters are located at 9720 Wilshire Blvd., Suite 500, Beverly Hills, California 90212. Our main telephone number is (310) 319-1850. Our principal Internet website address is www.fatbrands.com. The information on our website is not incorporated by reference into, or a part of, this Annual Report.
 Available Information
 Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are filed with the Securities and Exchange Commission (the "SEC"). We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements and other information with the SEC. The public may read and copy any materials filed by us with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549, and may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov. The contents of these websites are not incorporated into this Annual Report. Further, our references to the URLs for these websites are intended to be inactive textual references only. We also make the documents listed above available without charge through the Investor Relations Section of our website at www.fatbrands.com.

 ITEM 1A. RISK FACTORS
 Except for the historical information contained herein or incorporated by reference, this report and the information incorporated by reference contain forward-looking statements that involve risks and uncertainties. These statements include projections about our accounting and finances, plans and objectives for the future, future operating and economic performance and other statements regarding future performance. These statements are not guarantees of future performance or events. Our actual results could differ materially from those discussed in this report. Factors that could cause or contribute to these differences include, but are not limited to, those discussed in the following section, as well as those discussed in Part II, Item 7 entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere throughout this report and in any documents incorporated in this report by reference.
 You should carefully consider the following risk factors and in the other information included or incorporated in this report. If any of the following risks, either alone or taken together, or other risks not presently known to us or that we currently believe to not be significant, develop into actual events, then our business, financial condition, results of operations or prospects could be materially adversely affected. If that happens, the market price of our common stock could decline, and stockholders may lose all or part of their investment.
 Risks Related to Our Franchised Business Model
 Our operating and financial results and growth strategies are closely tied to the success of our franchisees.
 Most of our restaurants are operated by franchisees, which makes us dependent on the financial success and cooperation of our franchisees. We have limited control over how our franchisees' businesses are run, and the inability of franchisees to operate successfully could adversely affect our operating and financial results through decreased royalty payments. If our franchisees incur too much debt, if their operating expenses or commodity prices increase or if economic or sales trends deteriorate such that they are unable to operate profitably or repay existing debt, it could result in their financial distress, including insolvency or bankruptcy. If a significant franchisee or a significant number of our franchisees become financially distressed, our operating and financial results could be impacted through reduced or delayed royalty payments. Our success also depends on the willingness and ability of our franchisees to implement major initiatives, which may include financial investment. Our franchisees may be unable to successfully implement strategies that we believe are necessary for their further growth, which in turn may harm the growth prospects and financial condition of the company. Additionally, the failure

 of our franchisees to focus on the fundamentals of restaurant operations, such as quality service and cleanliness (even if such failures do not rise to the level of breaching the related franchise documents), could have a negative impact on our business.
 Our franchisees could take actions that could harm our business and may not accurately report sales.
 Our franchisees are contractually obligated to operate their restaurants in accordance with the operations, safety, and health standards set forth in our agreements with them and applicable laws. However, although we attempt to properly train and support all our franchisees, they are independent third parties whom we do not control. The franchisees own, operate, and oversee the daily operations of their restaurants, and their employees are not our employees. Accordingly, their actions are outside of our control. Although we have developed criteria to evaluate and screen prospective franchisees, we cannot be certain that our franchisees will have the business acumen or financial resources necessary to operate successful franchises at their approved locations, and state franchise laws may limit our ability to terminate or not renew these franchise agreements. Moreover, despite our training, support and monitoring, franchisees may not successfully operate restaurants in a manner consistent with our standards and requirements or may not hire and adequately train qualified managers and other restaurant personnel. The failure of our franchisees to operate their franchises in accordance with our standards or applicable law, actions taken by their employees or a negative publicity event at one of our franchised restaurants or involving one of our franchisees could have a material adverse effect on our reputation, our brands, our ability to attract prospective franchisees, our company-owned restaurants, and our business, financial condition or results of operations.
 Franchisees typically use a point of sale, or POS, cash register system to record all sales transactions at the restaurant. We require franchisees to use a specific brand or model of hardware or software components for their restaurant system. Currently, franchisees report sales manually and electronically, but we do not have the ability to verify all sales data electronically by accessing their POS cash register systems. We have the right under our franchise agreement to audit franchisees to verify sales information provided to us, and we have the ability to indirectly verify sales based on purchasing information but this cannot be done economically across all franchisees. However, franchisees may underreport sales, which would reduce royalty income otherwise payable to us and adversely affect our operating and financial results.
 If we fail to identify, recruit and contract with a sufficient number of qualified franchisees, our ability to open new franchised restaurants and increase our revenues could be materially adversely affected.
 The opening of additional franchised restaurants depends, in part, upon the availability of prospective franchisees who meet our criteria. Most of our franchisees open and operate multiple restaurants, and our growth strategy requires us to identify, recruit and contract with a significant number of new franchisees each year. We may not be able to identify, recruit or contract with suitable franchisees in our target markets on a timely basis or at all. In addition, our franchisees may not have access to the financial or management resources that they need to open the restaurants contemplated by their agreements with us, or they may elect to cease restaurant development for other reasons. If we are unable to recruit suitable franchisees or if franchisees are unable or unwilling to open new restaurants as planned, our growth may be slower than anticipated, which could materially adversely affect our ability to increase our revenues and materially adversely affect our business, financial condition and results of operations.
 If we fail to open new domestic and international franchisee-owned restaurants on a timely basis, our ability to increase our revenues could be materially adversely affected.
 A significant component of our growth strategy includes the opening of new domestic and international franchised restaurants. Our franchisees face many challenges associated with opening new restaurants, including:
 • identification and availability of suitable restaurant locations with the appropriate size; visibility; traffic patterns; local residential neighborhood, retail and business attractions; and infrastructure that will drive high levels of customer traffic and sales per restaurant;
 • competition with other restaurants and retail concepts for potential restaurant sites and anticipated commercial, residential and infrastructure development near new or potential restaurants;
 • ability to negotiate acceptable lease arrangements;
 • availability of financing and ability to negotiate acceptable financing terms;
 • recruiting, hiring and training of qualified personnel;
 • construction and development cost management;

 • completing their construction activities on a timely basis;
 • obtaining all necessary governmental licenses, permits and approvals and complying with local, state and federal laws and regulations to open, construct or remodel and operate our franchised restaurants;
 • unforeseen engineering or environmental problems with the leased premises;
 • avoiding the impact of adverse weather during the construction period; and
 • other unanticipated increases in costs, delays or cost overruns.
 As a result of these challenges, our franchisees may not be able to open new restaurants as quickly as planned or at all. Our franchisees have experienced, and expect to continue to experience, delays in restaurant openings from time to time and have abandoned plans to open restaurants in various markets on occasion. Any delays or failures to open new restaurants by our franchisees could materially and adversely affect our growth strategy and our results of operations.
 Negative publicity relating to one of our franchised restaurants could reduce sales at some or all of our other franchised restaurants.
 Our success is dependent in part upon our ability to maintain and enhance the value of our brands, consumers' connection to our brands and positive relationships with our franchisees. We may, from time to time, be faced with negative publicity relating to food quality, public health concerns, restaurant facilities, customer complaints or litigation alleging illness or injury, health inspection scores, integrity of our franchisees or their suppliers' food processing, employee relationships or other matters, regardless of whether the allegations are valid or whether or not the Company is held to be responsible. The negative impact of adverse publicity relating to one franchised restaurant may extend far beyond that restaurant or franchisee involved to affect some or all our other franchised restaurants. The risk of negative publicity is particularly great with respect to our franchised restaurants because we are limited in the manner in which we can control a franchisee's operations and messaging, especially on a real-time basis. The considerable expansion in the use of social media over recent years can further amplify any negative publicity that could be generated by such incidents. A similar risk exists with respect to unrelated food service businesses, if consumers associate those businesses with our own or franchised operations. Additionally, employee claims against us based on, among other things, wage and hour violations, discrimination, harassment or wrongful termination may also create negative publicity that could adversely affect us and divert our financial and management resources that would otherwise be used to benefit the future performance of our operations. A significant increase in the number of these claims or an increase in the number of successful claims would have a material adverse effect on our business, financial condition and results of operations. Consumer demand for our products and our brands' value could diminish significantly if any such incidents or other matters create negative publicity or otherwise erode consumer confidence in us or our products, which would likely result in lower sales and could have a material adverse effect on our business, financial condition and results of operations.
 Our brands' value may be limited or diluted through franchisee and third-party activity.
 Although we monitor and regulate certain aspects of franchisee activities under the terms of our franchise agreements, franchisees or other third parties may refer to or make statements about our brands that do not make proper use of our trademarks or required designations, that improperly alter trademarks or branding, or that are critical of our brands or place our brands in a context that may tarnish our reputation. This may result in dilution of, or harm to, our intellectual property or the value of our brands. Franchisee noncompliance with the terms and conditions of our franchise agreements may reduce the overall goodwill of our brands, whether through the failure to meet health and safety standards, engage in quality control or maintain product consistency, or through the participation in improper or objectionable business practices. Moreover, unauthorized third parties may use our intellectual property to trade on the goodwill of our brands, resulting in consumer confusion or dilution of our brands' value. Any reduction of our brands' goodwill, consumer confusion, or reputational dilution is likely to impact sales, and could materially and adversely impact our business and results of operations.
 Risks Relating to Our Business and Operations
 We have significant outstanding indebtedness under our whole-business securitization facilities, which require that we generate sufficient cash flow to satisfy the payment and other obligations under the terms of our debt and exposes us to the risk of default and lender remedies.
 We have financed our acquisitions and operations through the issuance of notes by four special purpose, wholly-owned financing subsidiaries, which own substantially all of our operations. The Company acts as the manager of each of these

 subsidiaries under a Management Agreement and performs management, franchising, distribution, intellectual property and operational functions on behalf of the subsidiaries for which it receives a management fee. The aggregate principal balance of the indebtedness under our whole-business securitization facilities was $1.3 billion as of December 29, 2024. Subject to contractual restrictions, we and our financing subsidiaries may incur additional indebtedness for various purposes, including to fund future acquisitions, the construction of company-owned restaurants and operational needs. The terms of our outstanding indebtedness provide for significant principal and interest payments, and subjects us to certain financial and non-financial covenants, including a debt service coverage ratio calculation, as defined in the applicable Indentures for these facilities. If certain covenants are not met, the indebtedness under these facilities may become partially or fully due and payable on an accelerated schedule. Our ability to meet the payment obligations under our debt depends on our ability to generate significant cash flow in the future. We cannot assure you that our business will generate cash flow from operations, or that other capital will be available to us, in amounts sufficient to enable us to meet our payment obligations under our Indentures and to fund our other liquidity needs. If we are not able to generate sufficient cash flow to service these obligations, we may need to refinance or restructure our debt, sell unencumbered assets (if any) or seek to raise additional capital. If we are unable to implement one or more of these options, we may not be able to meet these payment obligations, and the imposition of remedies by the note holders could materially and adversely affect our business, financial condition and liquidity.
 We may pursue opportunistic acquisitions of additional brands, and we may not find suitable acquisition candidates or successfully operate or integrate any brands that we may acquire.
 As part of our growth strategy, we may opportunistically acquire new brands and restaurant concepts. Although we believe that opportunities for future acquisitions may be available from time to time, competition for acquisition candidates may exist or increase in the future. Consequently, there may be fewer acquisition opportunities available to us as well as higher acquisition prices. There can be no assurance that we will be able to identify, acquire, manage or successfully integrate additional brands or restaurant concepts (including brands and concepts that we have already acquired) without substantial costs, delays or operational or financial problems.
 The difficulties of integration include coordinating and consolidating geographically separated systems and facilities, integrating the management and personnel of the acquired brands, maintaining employee morale and retaining key employees, implementing our management information systems and financial accounting and reporting systems, establishing and maintaining effective internal control over financial reporting, and implementing operational procedures and disciplines to control costs and increase profitability.
 In the event we are able to acquire additional brands or restaurant concepts, the integration and operation of such acquisitions may place significant demands on our management, which could adversely affect our ability to manage our existing restaurants. In addition, we may be required to obtain additional financing to fund future acquisitions, but there can be no assurance that we will be able to obtain additional financing on acceptable terms or at all.
 Food safety and foodborne illness concerns may have an adverse effect on our business.

 Foodborne illnesses, such as E. coli, hepatitis A, trichinosis and salmonella, occur or may occur within our system from time to time. In addition, food safety issues such as food tampering, contamination and adulteration occur or may occur within our system from time to time. Any report or publicity linking one of our franchisee's restaurants, or linking our competitors or our industry generally, to instances of foodborne illness or food safety issues could adversely affect our brands and reputations as well as our revenues and profits, and possibly lead to product liability claims, litigation and damages. If a customer of one of our franchisees' restaurants becomes ill as a result of food safety issues, restaurants in our system may be temporarily closed, which would decrease our revenues. In addition, instances or allegations of foodborne illness or food safety issues, real or perceived, involving our franchised restaurants, restaurants of competitors, or suppliers or distributors (regardless of whether we use or have used those suppliers or distributors), or otherwise involving the types of food served at our franchisees' restaurants, could result in negative publicity that could adversely affect our revenues or the sales of our franchisees. Additionally, allegations of foodborne illness or food safety issues could result in litigation involving us and our franchisees. The occurrence of foodborne illnesses or food safety issues could also adversely affect the price and availability of affected ingredients, which could result in disruptions in our supply chain and/or lower revenues and margins for us and our franchisees.
 The sale of alcoholic beverages at Twin Peaks and Smokey Bones Restaurants subjects us to additional regulations and potential liability.

 The Twin Peaks and Smokey Bones restaurants that we own and operate sell alcoholic beverages, and we are therefore required to comply with the alcohol licensing requirements of the federal government, states and municipalities where such restaurants are located. Alcoholic beverage control regulations require applications to state authorities and, in certain locations,

 county and municipal authorities for a license and permit to sell alcoholic beverages on the premises and to provide service for extended hours and on Sundays. Typically, the licenses are renewed annually and may be revoked or suspended for cause at any time. Alcoholic beverage control regulations relate to numerous aspects of the daily operations of the restaurants, including minimum age of guests and employees, hours of operation, advertising, wholesale purchasing, inventory control and handling, storage and dispensing of alcoholic beverages. If we fail to comply with federal, state or local regulations, such licenses may be revoked and our Twin Peaks and Smokey Bones restaurants may be forced to terminate the sale of alcoholic beverages. Any termination of the sale of alcoholic beverages could have a significant negative impact on our revenues. Similarly, any reduction in state blood alcohol content limits on drivers, or laws relating to vehicle interlocking devices, could also have a significant negative impact on revenues of the Twin Peaks and Smokey Bones restaurants.

 In certain states in which Twin Peaks and Smokey Bones restaurants are situated, we may be subject to dram shop statutes. These statutes generally provide a person injured by an intoxicated person the right to recover damages from an establishment that wrongfully served alcoholic beverages to the intoxicated individual. Recent litigation against restaurant chains has resulted in significant judgments and settlements under dram shop statutes. Because these cases often seek punitive damages, which may not be covered by insurance, such litigation could have an adverse impact on our business, results of operations or financial condition. Regardless of whether any claims against us or our Twin Peaks and Smokey Bones operations are valid or whether we are liable, claims may be expensive to defend and may divert time and money away from operations and hurt our financial performance. A judgment significantly in excess of insurance coverage or not covered by insurance could have a material adverse effect on our business, results of operations and financial condition. Adverse publicity resulting from these allegations may materially affect us and the Twin Peaks and Smokey Bones restaurants. In addition, it may not be possible to obtain adequate levels of insurance coverage in the future for alcohol related claims, and such coverage may not be available for reasonable insurance premiums.

 The impact global and domestic economic conditions have on consumer discretionary spending and our costs of operations could materially adversely affect our financial performance.

 Geopolitical and macroeconomic events have impacted consumer spending and our costs of operations and may continue to do so for some time in the future. Dining out is a discretionary expenditure that is influenced by domestic and global economic conditions, including, but not limited to: geopolitical instability, including armed conflicts, supply shortages, interest rates (including recent interest rates above historical norms), unemployment, significant cost inflation, health emergencies including the COVID-19 pandemic, consumer confidence, consumer purchasing and saving habits, credit conditions, stock market performance, home values, population growth, household incomes and tax policy. Material changes to governmental policy related to domestic and international fiscal concerns, and/or changes in central bank policies with respect to monetary policy, also could affect consumer discretionary spending. Any factor affecting consumer discretionary spending may influence customer traffic in our restaurants and average check amount, thus potentially having a material impact on our financial performance. Furthermore, negative economic conditions resulting from war, terrorist activities, global economic occurrences or trends or other geopolitical events or conflicts could cause consumers to make long-term changes to their discretionary spending behavior, whether on a temporary, extended or permanent basis. Reductions in staff levels and restaurant closures could result from prolonged negative economic conditions, which could materially adversely affect our business, financial condition or results of operations.
 Our success depends substantially on our corporate reputation and on the value and perception of our brands.
 Our success depends in large part upon our and our franchisees' ability to maintain and enhance the value of our brands and our customers' loyalty to our brands. Brand value is based in part on consumer perceptions on a variety of subjective qualities. Business incidents, whether isolated or recurring, and whether originating from us, franchisees, competitors, suppliers or distributors, can significantly reduce brand value and consumer trust, particularly if the incidents receive considerable publicity or result in litigation. For example, our brands could be damaged by claims or perceptions about the quality or safety of our products or the quality or reputation of our suppliers, distributors or franchisees, regardless of whether such claims or perceptions are true. Similarly, entities in our supply chain may engage in conduct, including alleged human rights abuses or environmental wrongdoing, and any such conduct could damage our or our brands' reputations. Any such incidents (even if resulting from actions of a competitor or franchisee) could cause a decline directly or indirectly in consumer confidence in, or the perception of, our brands and/or our products and reduce consumer demand for our products, which would likely result in lower revenues and profits. Additionally, our corporate reputation could suffer from a real or perceived failure of corporate governance or misconduct by a company officer, or an employee or representative of us or a franchisee.
 Failure to protect our service marks or other intellectual property could harm our business.
 We regard our service marks and trademarks related to our franchise restaurant businesses, as having critical importance to our future operations and marketing efforts. We rely on a combination of protections provided by contracts,

 copyrights, patents, trademarks, service marks and other common law rights, such as trade secret and unfair competition laws, to protect our franchised restaurants and services from infringement. We have registered certain trademarks and service marks in the U.S. and foreign jurisdictions. However, from time to time we become aware of names and marks identical or confusingly similar to our service marks being used by other persons. Although our policy is to oppose any such infringement, further or unknown unauthorized uses or other misappropriation of our trademarks or service marks could diminish the value of our brands and adversely affect our business. In addition, effective intellectual property protection may not be available in every country in which our franchisees have, or intend to open or franchise, a restaurant. There can be no assurance that these protections will be adequate and defending or enforcing our service marks and other intellectual property could result in the expenditure of significant resources. We may also face claims of infringement that could interfere with the use of the proprietary know how, concepts, recipes, or trade secrets used in our business. Defending against such claims may be costly, and we may be prohibited from using such proprietary information in the future or forced to pay damages, royalties, or other fees for using such proprietary information, any of which could negatively affect our business, reputation, financial condition, and results of operations.
 If our franchisees are unable to protect their customers' credit card data and other personal information, our franchisees could be exposed to data loss, litigation, and liability, and our reputation could be significantly harmed.
 Privacy protection is increasingly demanding, and the use of electronic payment methods and collection of other personal information expose our franchisees to increased risk of privacy and/or security breaches as well as other risks. The majority of our franchisees' restaurant sales are by credit or debit cards. In connection with credit or debit card transactions in-restaurant, our franchisees collect and transmit confidential information by way of secure private retail networks. Additionally, our franchisees collect and store personal information from individuals, including their customers and employees.
 If a person is able to circumvent our franchisees' security measures or those of third parties, he or she could destroy or steal valuable information or disrupt our operations. Our franchisees may become subject to claims for purportedly fraudulent transactions arising out of the actual or alleged theft of credit or debit card information, and our franchisees may also be subject to lawsuits or other proceedings relating to these types of incidents. Any such claim or proceeding could cause our franchisees to incur significant unplanned expenses, which could have an adverse impact on our financial condition, results of operations and cash flows. Further, adverse publicity resulting from these allegations could significantly harm our reputation and may have a material adverse effect on us and our franchisees' business.
 We and our franchisees rely on computer systems to process transactions and manage our business, and a disruption or a failure of such systems or technology could harm our ability to effectively manage our business.
 Network and information technology systems are integral to our business. We utilize various computer systems, including our franchisee reporting system, by which our franchisees report their weekly sales and pay their corresponding royalty fees and required advertising fund contributions. When sales are reported by a franchisee, a withdrawal for the authorized amount is initiated from the franchisee's bank on a set date each week based on gross sales during the week ended the prior Sunday. This system is critical to our ability to accurately track sales and compute royalties and advertising fund contributions and receive timely payments due from our franchisees. Our operations depend upon our ability to protect our computer equipment and systems against damage from physical theft, fire, power loss, telecommunications failure or other catastrophic events, as well as from internal and external security breaches, viruses, worms and other disruptive problems. Any damage or failure of our computer systems or network infrastructure that causes an interruption in our operations could have a material adverse effect on our business and subject us to litigation or actions by regulatory authorities. Despite the implementation of protective measures, our systems are subject to damage and/or interruption as a result of power outages, computer and network failures, computer viruses and other disruptive software, security breaches, catastrophic events, and improper usage by employees. Such events could result in a material disruption in operations, a need for a costly repair, upgrade or replacement of systems, or a decrease in, or in the collection of, royalties and advertising fund contributions paid to us by our franchisees. To the extent that any disruption or security breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability which could materially affect our results of operations. It is also critical that we establish and maintain certain licensing and software agreements for the software we use in our day-to-day operations. A failure to procure or maintain these licenses could have a material adverse effect on our business operations.
 Our business may be adversely affected by cybersecurity incidents, which result in unauthorized access, theft, modification or destruction of confidential information that is stored in our systems or by third parties on our behalf.
 Cybersecurity incidents or other unauthorized access to systems may result in disruption to our operations, corruption or theft of critical data, confidential information or intellectual property. As reliance on technology continues to grow and more business activities have shifted online, the risk associated with any cybersecurity incidents have grown. While we and our third-

 party vendors have implemented security systems and infrastructure to prevent, detect and/or mitigate the risk of unauthorized access to technology systems or platforms, there can be no assurance that these measures will be effective. Any cybersecurity or similar incident involving confidential information of our business, our franchisees or our restaurant customers could result in negative publicity, damage to our reputation, a loss of revenues, disruption of our business, litigation and regulatory actions. Additional capital investments might be required to remediate any problems, infringements, misappropriations or other third-party claims.
 The retail food industry in which we operate is highly competitive.
 The retail food industry in which we operate is highly competitive with respect to price and quality of food products, new product development, advertising levels and promotional initiatives, customer service, reputation, restaurant location, and attractiveness and maintenance of properties. If consumer or dietary preferences change, if our marketing efforts are unsuccessful, or if our franchisees' restaurants are unable to compete successfully with other retail food outlets in new and existing markets, our business could be adversely affected. We also face growing competition as a result of convergence in grocery, convenience, deli and restaurant services, including the offering by the grocery industry of convenient meals, including pizzas and entrees with side dishes. Competition from delivery aggregators and other food delivery services has also increased in recent years, particularly in urbanized areas. Increased competition could have an adverse effect on our sales, profitability or development plans, which could harm our financial condition and operating results.

 We have experienced and continue to experience inflationary conditions with respect to the cost for food, labor, construction and utilities, and we may not be able to increase prices or implement operational improvements sufficient to fully offset inflationary pressures on such costs, which may adversely impact our revenues and results of operations.

 The profitability of our company-owned restaurants and franchised restaurants depends in part on our ability to anticipate and react to changes in food and other supply costs, including labor costs, construction costs, and utility costs. Prices may be affected by general economic conditions, increased competition, supply shortages and interruptions due to weather, disease, inflation, and other conditions and factors beyond our control. Our inability to anticipate and respond effectively to one or more adverse changes in any of these factors could have a significant adverse effect on our results of operations and financial condition. We expect inflationary pressures and other fluctuations impacting the price of these items to continue to impact our business. Our attempts to offset cost pressures, such as through implementing operational efficiencies and increasing menu pricing, may not be successful. To the extent price increases are not sufficient to adequately offset higher costs or do not do so in a timely manner, or if such price increases result in significant decreases in revenue volume due to loss in customer retention, our revenues from sales may be adversely affected, and as a result our business, results of operations, and financial condition may also be materially and adversely affected.
 Supply chain shortages or interruptions in the availability and delivery of food and other supplies may increase costs or reduce revenues.
 The food products sold by our franchisees and in our company-owned restaurants, and the raw materials used in their these restaurants, are sourced from a variety of domestic and international vendors, suppliers and distributors. We, along with our franchisees, are also dependent upon third parties to make frequent deliveries of food products and supplies that meet our specifications at competitive prices. Shortages or interruptions in the supply of food items, raw materials and other supplies to our franchisees' restaurants could adversely affect the availability, quality and cost of items we use and the operations of our franchisees' and company-owned restaurants. If such shortages result in increased cost of food items and supplies, we and our franchisees may not be able to pass along all of such increased costs to restaurant customers.

 Such shortages or disruptions could be caused by inclement weather, natural disasters, increased demand, problems in production or distribution, restrictions on imports or exports, the inability of vendors to obtain credit, political instability in the countries in which suppliers and distributors are located, the financial instability of suppliers and distributors, suppliers' or distributors' failure to meet our standards, product quality issues, inflation, the price of gasoline, other factors relating to the suppliers and distributors and the countries in which they are located, food safety warnings or advisories or the prospect of such pronouncements, the cancellation of supply or distribution agreements or an inability to renew such arrangements or to find replacements on commercially reasonable terms, or other conditions beyond our control or the control of our franchisees or us. Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price, availability and timing of delivery of some of our ingredients.

 A shortage or interruption in the availability of certain food products, raw materials or supplies could increase costs and limit the availability of products critical to our franchisees' and company-owned restaurant operations, which in turn could

 lead to restaurant closures and/or a decrease in sales and therefore, and a reduction in our revenues and royalty fees paid to us. In addition, failure by a key supplier or distributor to our franchisees to meet its service requirements could lead to a disruption of service or supply until a new supplier or distributor is engaged, and any disruption could have an adverse effect on our franchisees and therefore our business. See "Business—Supply Chain Assistance."
 Climate change and the shift to more sustainable business practices could negatively affect our business or damage our reputation.
 Climate change may increase the risk of severe weather or the risk that those events happen more frequently, which could cause negatively affect restaurant sales volumes in some of the markets in which we operate and may result in decreased availability or less favorable pricing for certain commodities used in our products, such as beef, chicken and dairy. In addition, climate change may increase the frequency or severity of natural disasters and other extreme weather conditions, which could disrupt our supply chain generally or otherwise impact demand for our products. Also, concern over climate change and other sustainable business practices may result in new or increased legal and regulatory requirements or generally accepted business practices, which could significantly increase our costs. Legislative, regulatory or other efforts to combat climate change or other environmental concerns could result in future increases in the cost of raw materials, taxes, transportation and utilities, which could affect our results of operations and necessitate future investments in facilities and equipment. In addition, a failure to reduce our greenhouse gas emissions or adopt other sustainable business practices or the perception of a failure to act responsibly with respect to the environment or to effectively respond to regulatory requirements concerning climate change or other sustainable business practices can lead to adverse publicity, diminish the value of our brands and result in an adverse effect on our business.
 Our business may be adversely impacted by changes in consumer discretionary spending, general economic conditions, or consumer behavior.
 Purchases at our franchisees' restaurants are generally discretionary for consumers and, therefore, our results of operations are susceptible to economic slowdowns and recessions. Our results of operations are dependent upon discretionary spending by customers of our franchisees' restaurants, which may be affected by general economic conditions globally or in one or more of the markets we serve. Some of the factors that impact discretionary consumer spending include unemployment rates, fluctuations in the level of disposable income, the price of gasoline, stock market performance, changes in the level of consumer confidence, and long-term changes in consumer behavior related to social distancing behaviors resulting from COVID-19 or other widespread health events. These and other macroeconomic factors could have an adverse effect on sales at our franchisees' restaurants, which could lead to an adverse effect on our profitability or development plans and harm our financial condition and operating results.
 Our expansion into international markets exposes us to a number of risks that may differ in each country where we have franchised restaurants.
 We currently have franchised restaurants in 34 countries, including 46 states within the United States and Washington D.C. and Puerto Rico, and we plan to continue to grow internationally. Expansion in international markets may be affected by local economic and market as well as geopolitical conditions. Therefore, as we expand internationally, our franchisees may not experience the operating margins we expect, and our growth and our results of operations and growth may be materially and adversely affected. Our financial condition and results of operations may be adversely affected if global markets in which our franchised restaurants compete are affected by changes in political, economic or other factors. These factors, over which neither our franchisees nor we have control, may include such issues as (but not limited to):
 • recessionary or expansive trends in international markets;
 • changing labor conditions and difficulties in staffing and managing our foreign operations;
 • increases in the taxes we pay and other changes in applicable tax laws;
 • legal and regulatory changes, and the burdens and costs of our compliance with a variety of foreign laws;
 • changes in inflation rates;
 • changes in exchange rates and the imposition of restrictions on currency conversion or the transfer of funds;
 • difficulty in protecting our brand, reputation and intellectual property;
 • difficulty in collecting our royalties and longer payment cycles;

 • expropriation of private enterprises;
 • increases in anti-American sentiment and the identification of our brands as American brands;
 • political and economic instability; and
 • other external factors.
 We depend on key executive management.
 We depend on the leadership and experience of our relatively small number of key executive management personnel. The loss of the services of any of our executive management members could have a material adverse effect on our business and prospects, as we may not be able to find suitable individuals to replace such personnel on a timely basis or without incurring increased costs, or at all. We believe that our future success will depend on our continued ability to attract and retain highly skilled and qualified personnel. There is a high level of competition for experienced, successful personnel in our industry. Our inability to meet our executive staffing requirements in the future could impair our growth and harm our business.
 Labor shortages or difficulty finding qualified employees could slow our growth, harm our business and reduce our profitability.
 Restaurant operations are highly service oriented, and our success depends in part upon our franchisees' and our ability to attract, retain and motivate a sufficient number of qualified employees, including restaurant managers and other crew members. The market for qualified employees in our industry is very competitive. Any future inability to recruit and retain qualified individuals may delay the planned openings of new restaurants by us and our franchisees and could adversely impact our existing franchised and company owned restaurants. Any such delays, material increases in employee turnover rate or widespread employee dissatisfaction could have a material adverse effect on our and our franchisees' business and results of operations.
 In addition, strikes, work slowdowns or other job actions may become more common in the United States. Although none of the employees employed by our franchisees or by us are represented by a labor union or are covered by a collective bargaining agreement, in the event of a strike, work slowdown or other labor unrest, the ability to adequately staff our restaurants could be impaired, which could result in reduced revenue and customer claims, and may distract our management from focusing on our business and strategic priorities.
 Changes in labor and other operating costs could adversely affect our results of operations.
 An increase in the costs of employee wages, benefits and insurance (including workers' compensation, general liability, property and health) at our franchised and corporate owned restaurants could arise from an increase in the federal or state minimum wage or from general economic or competitive conditions. In addition, competition for qualified employees could compel us or our franchisees to pay higher wages to attract or retain key crew members, which could result in higher labor costs and decreased profitability. As more state and local jurisdictions implement minimum wage increases, we expect that labor costs will continue to increase. For example, California adopted a state-wide minimum wage of $20 per hour for employees of restaurants that are part of a national fast food chain effective April 1, 2024. The increased labor costs at certain of our franchised restaurants in California could impact their profitability and the desire to open new stores or renew their franchise agreements for existing stores and result in price increases, which could impact demand for our products or lead to operational changes. Further, the California law could prompt similar legislation in other states or localities. A material increase in labor expenses, as well as increases in general operating costs such as rent and energy, could adversely affect our franchisees' profit margins, their sales volumes and their ability to remain in business, which would adversely affect our results of operations.
 Risks Related to Government Regulation and Litigation

 We face risks related to pending government charges against the Company and are a party to stockholder litigation, which could cause us to incur additional expenses and could materially adversely affect our business, financial condition, and reputation.

 On May 10, 2024, the U.S. Department of Justice indicted the Company on two violations of Section 402 of the Sarbanes-Oxley Act for directly and indirectly extending and/or arranging for the extension of credit in 2019 and 2020 to our former Chief Executive Officer, Andrew Wiederhorn, in the aggregate amount of $2.65 million. In addition, the SEC filed a complaint against us alleging that for periods covering 2017 through 2020, we failed to disclose certain related party transactions, failed to maintain proper books and records and internal accounting controls, made false or misleading statements

 regarding our liquidity and use of proceeds from certain transactions, and directly or indirectly extended credit to Mr. Wiederhorn in the form of a personal loan. A putative civil securities class action lawsuit was subsequently filed in June 2024 by an investor against our Company, Mr. Wiederhorn and our co-Chief Executive Officers, alleging that the defendants made false and misleading statements and omitted material facts in our reports filed with the SEC related to the subject matter of the government investigations and litigation, our handling of these matters, and our cooperation with the government. Such governmental charges and stockholder action present certain risks, and at this stage, we are not able to reasonably estimate the outcome or duration of these actions, nor can we predict what consequences any such action may have on our Company. Moreover, there could be developments of which we are not aware, and which could result in further proceedings against Mr. Wiederhorn, our Company, and our other directors, officers and employees. We may incur additional costs in connection with the defense or settlement of existing and any future government charges and stockholder actions.

 These pending government charges and stockholder litigation, the results thereof, including any fines, penalties or settlements payable by us, and any actions that we have taken or may take as a result thereof may materially adversely affect our business, financial condition, and reputation. If we are ultimately subject to adverse findings resulting from such pending government charges and stockholder litigation, we could be required to pay damages and/or penalties or have other remedies imposed on us, and we and/or our directors, officers or employees may be subject to additional civil litigation against our Company and/or our directors and officers regarding such matters.
 We are a party to stockholder litigation which could negatively impact our business, operating results and financial condition.
 We may incur additional costs in connection with the defense or settlement of existing and any future stockholder litigation, including the stockholder litigation that has been brought against us and certain of our directors. See "Part I, Item 3. Legal Proceedings" below. Subject to certain limitations, we are obligated to indemnify our directors in connection with the litigation and any related litigation or settlement amounts, which may be time-consuming, result in significant expense and divert the attention and resources of our management away from our operating business matters. An unfavorable financial outcome that exceeds coverage provided under our insurance policies, could have an adverse effect on our financial condition and results of operations and could harm our reputation.
 We could be party to litigation that could adversely affect us by increasing our expenses, diverting management attention or subjecting us to significant monetary damages and other remedies.
 We may become involved in legal proceedings involving consumer, employment, real estate related, tort, intellectual property, breach of contract, securities, derivative and other litigation. Plaintiffs in these types of lawsuits often seek recovery of very large or indeterminate amounts, and the magnitude of the potential loss relating to such lawsuits may not be accurately estimated. Regardless of whether any such claims have merit, or whether we are ultimately held liable or settle, such litigation may be expensive to defend and may divert resources and management attention away from our operations and negatively impact reported earnings. With respect to insured claims, a judgment for monetary damages in excess of any insurance coverage could adversely affect our financial condition or results of operations. Any adverse publicity resulting from these allegations may also adversely affect our reputation, which in turn could adversely affect our results of operations.
 Our subsidiary Fog Cutter Acquisition, LLC is a party to environmental litigation which could result in significant legal expenses whether or not it is resolved favorably.
 As described in this Annual Report under "Item 3. Legal Proceedings", our subsidiary Fog Cutter Capital Group Inc. (now known as Fog Cutter Acquisition, LLC), is a party to litigation entitled Stratford Holding LLC v. Foot Locker Retail Inc. for alleged environmental contamination stemming from dry cleaning operations on a property which was included in a lease portfolio managed by a former subsidiary of Fog Cutter. The property owners seek damages in the range of $12 million to $22 million in the aggregate from all defendants. The Company is unable to predict the ultimate outcome of this matter, and reserves have been recorded on the balance sheet relating to this litigation. There can be no assurance that Fog Cutter Acquisition, LLC will be successful in defending against this action, and an unfavorable outcome in excess of the reserves could have a material adverse effect on our financial condition and results of operations.

 Changes in, or noncompliance with, governmental regulations may adversely affect our business operations, growth prospects or financial condition.
 We and our franchisees are subject to numerous laws and regulations around the world. These laws change regularly and are increasingly complex. For example, we and our franchisees are subject to laws and regulations such as (but not limited to):
 • Government orders regarding the response to health and other public safety concerns such as the various restrictions on business operations relating to the COVID-19 pandemic being experienced in 2020;
 • The Americans with Disabilities Act in the U.S. and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas;
 • The U.S. Fair Labor Standards Act, which governs matters such as minimum wages, overtime and other working conditions, as well as family leave mandates and a variety of similar state laws that govern these and other employment law matters;
 • Laws and regulations in government mandated health care benefits such as the Patient Protection and Affordable Care Act;
 • Laws and regulations relating to nutritional content, nutritional labeling, product safety, product marketing and menu labeling;
 • Laws relating to state and local licensing;
 • Laws relating to the relationship between franchisors and franchisees;
 • Laws and regulations relating to health, sanitation, food, workplace safety, child labor, including laws prohibiting the use of certain "hazardous equipment" by employees younger than the age of 18 years of age, and fire safety and prevention;
 • Laws and regulations relating to union organizing rights and activities;
 • Laws relating to information security, privacy, cashless payments, and consumer protection;
 • Laws relating to currency conversion or exchange;
 • Laws relating to international trade and sanctions;
 • Tax laws and regulations;
 • Antibribery and anticorruption laws;
 • Environmental laws and regulations; and
 • Federal and state immigration laws and regulations in the U.S.
 Compliance with new or existing laws and regulations could impact our operations. The compliance costs associated with these laws and regulations could be substantial. Any failure or alleged failure to comply with these laws or regulations by our franchisees or indirectly by us could adversely affect our reputation, international expansion efforts, growth prospects and financial results or result in, among other things, litigation, revocation of required licenses, internal investigations, governmental investigations or proceedings, administrative enforcement actions, fines and civil and criminal liability. Publicity relating to any such noncompliance could also harm our reputation and adversely affect our revenues.
 Failure to comply with antibribery or anticorruption laws could adversely affect our business operations.
 The U.S. Foreign Corrupt Practices Act and other similar applicable laws prohibiting bribery of government officials and other corrupt practices are the subject of increasing emphasis and enforcement around the world. Although we have implemented policies and procedures designed to promote compliance with these laws, there can be no assurance that our employees, contractors, agents, franchisees or other third parties will not take actions in violation of our policies or applicable law, particularly as we expand our operations in emerging markets and elsewhere. Any such violations or suspected violations could subject us to civil or criminal penalties, including substantial fines and significant investigation costs, and could also

 materially damage our reputation, brands, international expansion efforts and growth prospects, business and operating results. Publicity relating to any noncompliance or alleged noncompliance could also harm our reputation and adversely affect our revenues and results of operations.
 Risks Related to Our Class A Common Stock and Organizational Structure
 We are controlled by Fog Cutter Holdings LLC, whose interests may differ from those of our public stockholders.

 Fog Cutter Holdings LLC controls approximately 55.6% of the voting power of our Common Stock and has significant influence over our corporate management and affairs and is able to control virtually all matters requiring stockholder approval, including election of directors and significant corporate transactions. Since a majority of the outstanding voting power of our capital stock is held by one entity, we are considered a "controlled company" under the corporate governance rules of The Nasdaq Stock Market LLC. Under these rules, we are not required to have a majority of our Board of Directors be independent, nor are we required to have a compensation committee or independent nominating function. It is possible that the interests of Fog Cutter Holdings LLC may, in some circumstances, conflict with our interests and the interests of our other stockholders.

 The dual class structure of our Common Stock concentrates voting control with current holders of Class B Common Stock, and limits the ability of holders of our Class A Common Stock to influence corporate matters.

 Our Class B Common Stock has 2,000 votes per share, and our Class A Common Stock has one vote per share. The holders of Class B Common Stock collectively will likely be able to control all matters submitted to our stockholders for approval even if additional shares of Class A Common Stock are issued. This concentrated control will limit the ability of holders of our Class A Common Stock to influence corporate matters for the foreseeable future, and, as a result, the market price of our Class A Common Stock could be adversely affected.
 Our anti-takeover provisions could prevent or delay a change in control of our company, even if such change in control would be beneficial to our stockholders.
 Provisions of our amended and restated certificate of incorporation and bylaws as well as provisions of Delaware law could discourage, delay or prevent a merger, acquisition or other change in control of our company, even if such change in control would be beneficial to our stockholders. These provisions include:
 • dual class structure of our Common Stock, which concentrates voting control with the current holders of Class B Common Stock;
 • net operating loss protective provisions, which require that any person wishing to become a "5% shareholder" (as defined in our certificate of incorporation) must first obtain a waiver from our Board of Directors, and any person that is already a "5% shareholder" of ours cannot make any additional purchases of our stock without a waiver from our board of directors;
 • authorizing the issuance of "blank check" preferred stock that could be issued by our Board of Directors to increase the number of outstanding shares and thwart a takeover attempt;
 • limiting the ability of stockholders to call special meetings or amend our bylaws;
 • requiring all stockholder actions to be taken at a meeting of our stockholders; and
 • establishing advance notice and duration of ownership requirements for nominations for election to the board of directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
 These provisions could also discourage proxy contests and make it more difficult for minority stockholders to elect directors of their choosing and cause us to take other corporate actions they desire. In addition, because our Board of Directors is responsible for appointing the members of our management team, these provisions could in turn affect any attempt by our stockholders to replace current members of our management team.
 In addition, the Delaware General Corporation Law, or the DGCL, to which we are subject, prohibits us, except under specified circumstances, from engaging in any mergers, significant sales of stock or assets or business combinations with any stockholder or group of stockholders who owns at least 15% of our common stock.

 We may continue to issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our Common Stock, which could depress the price of our Common Stock.
 Our amended and restated certificate of incorporation authorizes us to issue one or more series of preferred stock. Our board of directors has the authority to determine the preferences, limitations and relative rights of the shares of preferred stock and to fix the number of shares constituting any series and the designation of such series, without any further vote or action by our stockholders. We may authorize or issue shares of preferred stock with voting, liquidation, dividend and other rights superior to the rights of our Common Stock. To date we have authorized and outstanding shares of Series B Preferred Stock, which have liquidation and dividend rights superior to the rights of our Common Stock. The potential issuance of preferred stock may also delay or prevent a change in control of us, discourage bids for our Common Stock at a premium to the market price, and materially and adversely affect the market price and the voting and other rights of the holders of our Common Stock.
 The provision of our certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers.
 Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the DGCL or our amended and restated certificate of incorporation or the bylaws or (iv) any action asserting a claim against us governed by the internal affairs doctrine will have to be brought only in the Court of Chancery in the State of Delaware. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.
 If our operating and financial performance in any given period does not meet the guidance that we provide to the public, our stock price may decline.
 We may provide public guidance on our expected operating and financial results for future periods. Any such guidance will be comprised of forward-looking statements subject to the risks and uncertainties described in our public filings and public statements. Our actual results may not always be in line with or exceed any guidance we have provided, especially in times of economic uncertainty. If our operating or financial results for a particular period do not meet any guidance we provide or the expectations of investment analysts or if we reduce our guidance for future periods, the market price of our Class A Common Stock or Class B Common Stock may decline as well.
 Our ability to pay regular dividends to our stockholders is subject to the discretion of our Board of Directors and may be limited by our holding company structure and applicable provisions of Delaware law.
 While we have paid cash or stock dividends to holders of our Common Stock in each fiscal year since 2018 and our Series B Preferred Stock since it was first issued, our board of directors may, in its sole discretion, decrease the amount or frequency of cash or stock dividends or discontinue the payment of dividends entirely. In addition, as a holding company, we will be dependent upon the ability of our operating subsidiaries to generate earnings and positive cash flows and distribute them to us so that we may pay cash dividends to our stockholders. Our ability to pay cash dividends will be subject to our consolidated operating results, cash assets and requirements and financial condition, the applicable provisions of Delaware law which may limit the amount of funds available for distribution to our stockholders, our compliance with covenants and financial ratios related to existing or future indebtedness, and our other agreements with third parties. Under a letter agreement that we executed in November 2024 in connection with the refinancing of the Twin Securitization Notes, we agreed not to pay a dividend on our common stock until at least $25,000,000 in proceeds from Qualified Equity Offerings (as defined in the Base Indenture for the Twin Securitization Notes) have been used to prepay the Twin Securitization Notes. In addition, each of the companies in the corporate chain must manage its assets, liabilities and working capital in order to meet all of its cash obligations, including the payment of dividends or distributions.

 ITEM 1B. UNRESOLVED STAFF COMMENTS
 None.

 ITEM 1C. CYBERSECURITY

 Cybersecurity Risk Management and Strategy

 Our business is substantially dependent upon our computer systems, devices and networks to collect, process and store the data necessary to conduct most aspects of our business. We have developed and maintain a cybersecurity program, which includes people, processes, and technology aimed at defending our computer systems, devices and networks against increasingly sophisticated threats.

 We recognize the importance of protecting both our information and operations from threats that could disrupt our business, put our assets at risk or compromise our customer and employee data. Our cybersecurity program is implemented and maintained using information security tools, policies and a dedicated team responsible for monitoring our networks, providing training to our employees, analyzing the evolution of new threats and strategies for mitigating such threats and seeking to continually harden our cybersecurity posture. The program is periodically exercised, reviewed, updated, and vetted through third-party audits, assessments, and tests with the goal of validating its effectiveness in reducing risk, as well as evaluating its compliance with legal and regulatory requirements. We assess, identify and manage our material risks from cybersecurity threats by employing the following:

 • Identification of critical systems – we seek to identify which operational or information technology, if compromised or exploited, would result in operational disruption or data compromise. We aim to protect the entire environment at an enterprise level where practical, combined with additional layered, risk-based controls designed to safeguard against cybersecurity threats. This strategic, defense-in-depth, and risk-based approach to cybersecurity provides a methodology designed to identify, protect, detect, respond, and recover from cybersecurity incidents.

 • Network segmentation – we use a combination of firewalls and routers to provide network segmentation seeking to provide us with network zone protection.

 • Access controls – we leverage several security capabilities to attempt to enforce access, authorization and authentication to relevant systems, technology, and controls. A least-privilege methodology is applied for localized client workstations, servers, and applications. Security capabilities for access control include physical, administrative, and technical controls that combine to provide a defense-in-depth approach designed to protect our cyber assets from unauthorized use.

 • Continuous monitoring, detection, and auditing – we employ various technologies, tactics, and procedures aimed to continuously monitor, baseline, and detect threats, and audit our network and systems. In addition, we use a combination of technology tools with outside managed security service providers designed to capture, analyze and respond to security anomalies.

 • Patch management – we use a network vulnerability scanning tool that continually scans, and reports identified vulnerabilities in servers and workstations in certain networks. Vulnerability scanner reports are used to drive patching and remediation efforts and are also used as a tool to evaluate the effectiveness of efforts to seek to ensure patches are applied timely. Application and infrastructure subject matter experts subscribe to various third-party vendor security notifications to receive proactive notifications on, among other things, bugs, security flaws and mitigations, related to operational and information systems.

 The above cybersecurity risk management processes are integrated into our overall risk management program. Cybersecurity threats are understood to be wide reaching and to intersect with various other enterprise risks. In addition to assessing our own cybersecurity preparedness, we also consider cybersecurity risks associated with our use of third-party service providers based on the potential impact of a disruption of the services to our operations and the sensitivity of data shared with the service providers.

 We regularly engage independent third parties to periodically assess our cybersecurity posture. These assessments include penetration tests, purple team activities, health checks and point-specific technical cybersecurity assessments of key systems. Some of these assessments are performed with internal audit oversight and tested in regular intervals.

 Impact of Risks from Cybersecurity Threats

 As of the date of this Annual Report, we are not aware of any previous cybersecurity threats, including as a result of previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us. We acknowledge that cybersecurity threats are continually evolving, and the possibility of future cybersecurity incidents remains. Despite the implementation of our cybersecurity processes, our security measures cannot guarantee that a significant cybersecurity attack will not occur. While we devote resources to our security measures designed to protect our systems and information, no security measure is infallible. See Item 1A. Risk Factors for additional information about the risks to our business associated with a breach or other compromise to our information and operational technology systems.

 Cybersecurity Governance

 Our Board of Directors oversees the execution of our cybersecurity strategy and the assessment of cybersecurity risks, along with the actions that we may take seeking to mitigate and address those cybersecurity risks. The position of Chief Information Officer (CIO), which is currently vacant, leads our cybersecurity initiatives, managing a dedicated cybersecurity team focused on implementing and overseeing a robust cybersecurity program. The cybersecurity team has related academic degrees, certifications, and real-world experience in managing cybersecurity incidents and risks. The cybersecurity program emphasizes proactive prevention, detection, mitigation, and remediation of potential cybersecurity incidents. To promote transparency and informed decision-making, the CIO and cybersecurity team provide periodic updates regarding cybersecurity risks and initiatives to both our Cyber Incident Response Steering Committee and the Board of Directors. This ensures alignment and clarity among all stakeholders concerning our cybersecurity posture. By nurturing collaboration between our board, executive leadership, and cybersecurity professionals, we are devoted to protecting our digital assets and maintaining stakeholder trust. Our commitment to enhancing our cybersecurity framework equips FAT Brands to effectively address the dynamic threat landscape.

 ITEM 2. PROPERTIES

 Our corporate headquarters, including our principal administrative, sales and marketing, customer support, and research and development operations, are located in Beverly Hills, California, comprising approximately 15,000 square feet of space, pursuant to a lease that expires on January 31, 2031.

 Our subsidiary, GFG Management, LLC, leases an approximately 16,000 square foot warehouse location in Atlanta, GA under a lease expiring on May 31, 2029.

 Our subsidiary, GAC Supply, LLC, owns and operates an approximately 40,000 square foot manufacturing and production facility in Atlanta, Georgia and the underlying real property, which supplies our franchisees with cookie dough, pretzel dry mix and other ancillary products.

 Our subsidiary, Twin Restaurant Holding, LLC, leases offices in Dallas, TX comprising approximately 8,300 square feet under a lease expiring on April 30, 2025.

 Our subsidiary, Fazoli's Holdings, LLC, leases offices located in Lexington, KY comprising approximately 19,200 square feet under a lease expiring on April 30, 2027.

 Our subsidiary, Smokey Bones, LLC, leases offices located in Plantation, Florida comprising approximately 6,000 square feet under a lease expiring in February 2033.

 In addition to the above locations, certain of our subsidiaries directly own and operate restaurant locations, substantially all of which are located in leased premises. As of December 29, 2024, we owned and operated 181 restaurant locations. The leases have remaining terms ranging from less than 1 year to 25.8 years.

 We believe that our existing facilities are in good operating condition and adequate to meet our current and foreseeable needs. Additional information related to our operating leases are disclosed in Note 9.

 ITEM 3. LEGAL PROCEEDINGS
 Government Investigations and Litigation

 In December 2021, the U.S. Attorney's Office for the Central District of California (the "U.S. Attorney") and the U.S. Securities and Exchange Commission (the "SEC") informed the Company that they had opened investigations relating to the Company and our former CEO, Andrew Wiederhorn, and were formally seeking documents and materials concerning, among other things, the Company's December 2020 merger with Fog Cutter Capital Group Inc. ("FCCG"), transactions between those entities and Mr. Wiederhorn, as well as compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family from those entities prior to the merger.

 On May 10, 2024, the U.S. Department of Justice ("DOJ") indicted the Company on two violations of Section 402 of the Sarbanes-Oxley Act for directly and indirectly extending and/or arranging for the extension of credit in 2019 and 2020 to former CEO Andrew Wiederhorn in the amount of $2.65 million. These charges allege that the Company, through its subsidiary Fatburger N.A., transferred approximately $600,000 to Mr. Wiederhorn in the form of a personal loan on January 30, 2019, and lent approximately $2 million in 2020 to its former parent company FCCG which indirectly funded a personal loan from FCCG

 to Mr. Wiederhorn. The indictment also includes charges against Mr. Wiederhorn, the Company's former CFO, Rebecca Hershinger, and the Company's former tax advisor, William Amon, on violations of various federal tax and other laws related to loans from FCCG to Mr. Wiederhorn.

 Concurrently with the DOJ's charges, the SEC filed a complaint against the Company, claiming violations of Section 17(a)(2) of the Securities Act of 1933; Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), 13(k), and 14(a) of the Securities Exchange Act of 1934; and Rules 10b-5(b), 12b-20, 13a-1, 13a-13, 14a-3, and 14a-9 thereunder. The SEC's claims pertain principally to allegations that, for fiscal periods covering 2017 through 2020, the Company failed to disclose certain related party transactions, failed to disclose the salaries of Mr. Wiederhorn's adult children working at the Company, failed to maintain proper books and records and internal accounting controls, made false or misleading statements regarding the Company's liquidity and use of proceeds from certain transactions, and directly or indirectly extended credit to Mr. Wiederhorn in the form of a personal loan. The SEC's complaint also names Mr. Wiederhorn, Ms. Hershinger, and the Company's SVP of Finance, Ron Roe, as defendants. The SEC is seeking injunctive relief, disgorgement, and civil monetary penalties.

 The Company is evaluating these charges and intends to vigorously defend itself against them.

 Derivative Litigation

 James Harris and Adam Vignola, derivatively on behalf of FAT Brands, Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc., and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2021-0511-NAC). On June 10, 2021, plaintiffs James Harris and Adam Vignola, putative stockholders of the Company, filed a stockholder derivative action ("Harris I") in the Delaware Court of Chancery nominally on behalf of the Company against the Company's current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn) and the Company's current and former majority stockholders, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc. Plaintiffs assert claims of breach of fiduciary duty, unjust enrichment and waste of corporate assets arising out of the Company's December 2020 merger with Fog Cutter Capital Group, Inc. Since it was originally filed, the parties engaged in motion practice and substantial discovery, and the Company's Board appointed a Special Litigation Committee. On June 3, 2024, the Court granted the United States' request to extend the stay of all proceedings in this matter pending resolution of the charges in United States v. Wiederhorn, et al., 2:24-CR-295-RGK (C.D. Cal.). In January 2025, the principal parties to this matter participated in a mediation in Wilmington, DE and agreed in principle to settle this matter and the Harris II litigation. The settlement is subject to final documentation and approval of the Delaware court, as well as non-objection by the United States. We are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 James Harris and Adam Vignola, derivatively on behalf of FAT Brands, Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn and Fog Cutter Holdings, LLC, and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2022-0254-NAC). On March 17, 2022, plaintiffs James Harris and Adam Vignola, putative stockholders of the Company, filed a stockholder derivative action ("Harris II") in the Delaware Court of Chancery nominally on behalf of the Company against the Company's current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn) and the Company's majority stockholder, Fog Cutter Holdings, LLC. Plaintiffs assert claims of breach of fiduciary duty in connection with the Company's June 2021 recapitalization transaction. Since it was originally filed, the parties engaged in motion practice and substantial discovery, and the Company's Board appointed a Special Litigation Committee. In January 2025, the principal parties to this matter participated in a mediation in Wilmington, DE and agreed in principle to settle this matter and the Harris I litigation. The settlement is subject to final documentation and approval of the Delaware court, as well as non-objection by the United States. We are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 Richard Collura v. Andrew A. Wiederhorn, et al. (Delaware Chancery Court, Case No. 2024-1305-NAC). In December 2024, plaintiff Richard Collura, a putative stockholder of the Company, filed a stockholder derivative action in the Delaware Court of Chancery nominally on behalf of the Company against certain of the Company's current and former officers and directors (Andrew Wiederhorn, Kenneth Kuick, Robert Rosen, Ron Roe, John Allen, Kenneth Anderson, Donald Berchtold, Tyler Child, Lynne Collier, Mark Elenowitz, James Ellis, Peter Feinstein, Amy Forrestal, Matthew Green, Squire Junger, John Metz, James Neuhauser, Edward Rensi, Carmen Vidal, Mason Wiederhorn, Taylor Wiederhorn and Thayer Wiederhorn), and the Company's majority stockholder, Fog Cutter Holdings, LLC. Plaintiff alleges that Mr. Wiederhorn and certain of the other defendants engaged in an unlawful scheme to distribute money to Mr. Wiederhorn and his family for their own personal benefit through 2020, which they allege attracted the attention of the U.S. Attorney's office and the SEC, and that the Company indicated in public statements and filings that it was cooperating with the government investigations but allegedly was not

 actually cooperating and investigating the scheme, which caused the Company's stock price to fall. Defendants dispute the premises and allegations of the lawsuit and intend to vigorously defend against the claims. We cannot predict the outcome of this lawsuit. This lawsuit does not assert any claims against the Company. However, subject to certain limitations, we are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 Other Litigation

 Mitchell Kates v. FAT Brands, Inc., Andrew Wiederhorn, Kenneth J. Kuick and Robert G. Rosen (United States District Court for the Central District of California, Case No. 2:24-cv-04775-MWF-MAA). On June 7, 2024, plaintiff Mitchell Kates, a putative investor in the Company, filed a putative class action lawsuit against the Company, Andrew Wiederhorn, Kenneth J. Kuick and Robert G. Rosen, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and Rule 10b-5 promulgated thereunder, alleging that the defendants made false and misleading statements and omitted material facts necessary to make statements not misleading in the Company's reports filed with the SEC under the 1934 Act related to the subject matter of the government investigations and litigation discussed above, the Company's handling of these matters and its cooperation with the government. Plaintiff alleges that the Company's public statements wrongfully inflated the trading price of the Company's common stock, preferred stock and warrants. Plaintiff is seeking to certify the complaint as a class action and is seeking compensatory damages in an amount to be determined at trial. Plaintiff's motion for appointment as lead plaintiff, filed on August 6, 2024, remains sub judice. As this matter is still in the early stages, we cannot predict the outcome of this lawsuit.
 Stratford Holding LLC v. Foot Locker Retail Inc. (U.S. District Court for the Western District of Oklahoma, Case No. 5:12-cv-772-HE). In 2012 and 2013, two property owners in Oklahoma City, Oklahoma sued numerous parties, including Foot Locker Retail Inc. and our subsidiary Fog Cutter Capital Group Inc. (now known as Fog Cutter Acquisition, LLC), for alleged environmental contamination on their properties, stemming from dry cleaning operations on one of the properties. The property owners seek damages in the range of $12.0 million to $22.0 million. From 2002 to 2008, a former Fog Cutter subsidiary managed a lease portfolio, which included the subject property. Fog Cutter denies any liability, although it did not timely respond to one of the property owners' complaints and several of the defendants' cross-complaints and thus is in default. The parties are currently conducting discovery. The court has vacated the current trial date and has not yet reset the trial date. The Company is unable to predict the ultimate outcome of this matter, however, reserves have been recorded on the balance sheet of FAT Brands relating to this litigation. There can be no assurance that the defendants will be successful in defending against these actions.
 SBN FCCG LLC v FCCGI (Los Angeles Superior Court, Case No. BS172606). SBN FCCG LLC ("SBN") filed a complaint against Fog Cutter Capital Group, Inc. ("FCCG") in New York state court for an indemnification claim (the "NY case") stemming from an earlier lawsuit in Georgia regarding a certain lease portfolio formerly managed by a former FCCG subsidiary. In February 2018, SBN obtained a final judgment in the NY case for a total of $0.7 million, which included $0.2 million in interest dating back to March 2012. SBN then obtained a sister state judgment in Los Angeles Superior Court, Case No. BS172606 (the "California case"), which included the $0.7 million judgment from the NY case, plus additional statutory interest and fees, for a total judgment of $0.7 million. In May 2018, SBN filed a cost memo, requesting an additional $12,411 in interest to be added to the judgment in the California case, for a total of $0.7 million. In May 2019, the parties agreed to settle the matter for $0.6 million, which required the immediate payment of $0.1 million, and the balance to be paid in August 2019. FCCG wired $0.1 million to SBN in May 2019, but has not yet paid the remaining balance of $0.5 million. The parties have not entered into a formal settlement agreement, and they have not yet discussed the terms for the payment of the remaining balance.
 SBN FCCG LLC v FCCGI (Supreme Court of the State of New York, County of New York, Index No. 650197/2023). On January 13, 2023, SBN filed another complaint against FCCG in New York state court for an indemnification claim stemming from a lawsuit in Oklahoma City regarding the same lease portfolio formerly managed by Fog Cap (the "OKC Litigation"), and a bankruptcy proceeding involving Fog Cap (the "Bankruptcy Proceeding"). SBN alleges that under a February 2008 stock purchase agreement, Fog Cutter is required to indemnify SBN and its affiliates. According to the complaint, SBN has, at the time of filing the complaint, incurred costs subject to indemnification of approximately $12 million. On March 11, 2024, the court issued an order granting FCCG's motion to dismiss SBN's complaint without prejudice to refile the complaint, if at all, once the underlying proceedings (the OKC Litigation and the Bankruptcy Proceeding) were complete. On April 10, 2024, SBN filed a notice of appeal of the trial court's order dismissing SBN's complaint. We are unable at this time to express any opinion as to the eventual outcome of this matter or the possible range of loss, if any.
 The Company is involved in other claims and legal proceedings from time-to-time that arise in the ordinary course of business, including those involving the Company's franchisees. The Company does not believe that the ultimate resolution of

 these actions will have a material adverse effect on its business, financial condition, results of operations, liquidity or capital resources. As of December 29, 2024, the Company had accrued an aggregate of $5.1 million for the specific matters mentioned above and claims and legal proceedings involving franchisees as of that date.

 ITEM 4. MINE SAFETY DISCLOSURES
 Not applicable.

 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
 Market Information
 Our Class A Common Stock, par value $0.0001 per share, is traded on the NASDAQ Capital Market under the ticker symbols "FAT" and our Class B Common Stock, par value $0.0001 per share, is traded on the NASDAQ Capital Market under the ticker symbol "FATBB."
 Holders of Our Common Stock
 As of February 24, 2025, there were 37 stockholders of record of our Class A Common Stock and 35 stockholders of record of our Class B Common Stock. The number of record holders does not include persons who held such shares in nominee or "street name" accounts through brokers.
 Dividend Policy
 The declaration and payment of future dividends, as well as the amount thereof, are subject to the discretion of our Board of Directors. The amount and size of any future dividends will depend upon our future results of operations, financial condition, capital levels, cash requirements and other factors. There can be no assurance that we will declare and pay dividends in future periods. Under a letter agreement that we executed in November 2024 in connection with the refinancing of the Twin Securitization Notes, we agreed not to pay a dividend on our common stock (FAT and FATBB) until at least $25,000,000 in proceeds from Qualified Equity Offerings (as defined in the Base Indenture for the Twin Securitization Notes) have been used to prepay the Twin Securitization Notes. Such restriction does not apply to dividends on our outstanding Series B Cumulative Preferred Stock (FATBP).
 Equity Compensation Plan Information
 We maintain a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands Inc. and its subsidiaries. The purpose of the Plan is to help attract, motivate and retain qualified personnel and thereby enhance stockholder value. Awards which lapse or are forfeited become available again for grant. See Note 14 in our consolidated financial statements for more details on our share-based compensation.
 The following table sets forth information as of December 29, 2024, with respect to compensation plans under which equity securities that we have authorized for issuance:

 Plan Category
 Number of Securities to be Issued
upon Exercise of Outstanding Options, Warrants
and Rights
 Weighted-Average Exercise Price of
Outstanding Options,
Warrants and Rights
 Number of Securities Remaining Available for
Future Issuance under Equity Compensation
Plans (Excluding Securities Reflected in Column
(a))

 (a)
 (b)
 (c)

 Equity compensation plans approved by security holders
 3,885,664
 $
 7.88
 1,860,240

 Equity compensation plans not approved by security holders

 —
 —
 —

 Total

 3,885,664
 $
 7.88
 1,860,240

 Issuer Purchases of Equity Securities
 We do not have a program in place to repurchase our own Common Stock or Preferred Stock and as of December 29, 2024, we have not repurchased any of these securities except for the cancellation of shares issued under the Plan.

 ITEM 6. [RESERVED].

 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 Executive Overview
 Business overview
 FAT Brands Inc. is a leading multi-brand restaurant franchising company that develops, markets, and acquires primarily quick-service, fast casual, casual dining and polished casual restaurant concepts around the world. As of December 29, 2024, the Company owned eighteen restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Smokey Bones, Great American Cookies, Hot Dog on a Stick, Buffalo's Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses. At December 29, 2024, the Company had approximately 2,300 locations open or under construction, of which approximately 92% were franchised.
 Under our franchised business model, we generate revenue by charging franchisees an initial franchise fee as well as ongoing royalties. This asset light franchisor model provides the opportunity for strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risk, such as long-term real estate commitments or capital investments. Our scalable management platform enables us to add new stores and restaurant concepts to our portfolio with minimal incremental corporate overhead cost, while taking advantage of significant corporate overhead synergies. The acquisition of additional brands and restaurant concepts as well as expansion of our existing brands are key elements of our growth strategy.
 Our revenues are derived primarily from two sales channels, franchised restaurants and company owned restaurants, which we operate as one segment. The primary sources of revenues are the sale of food and beverages at our company restaurants and the collection of royalties, franchise fees and advertising revenue from sales of food and beverages at our franchised restaurants.

 Results of Operations
 We operate on a 52-week or 53-week fiscal year ending on the last Sunday of the calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations. In a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations, which may cause our revenue, expenses and other results of operations to be higher due to an additional week of operations. The 2024 fiscal year is a 52-week year. The 2023 fiscal year was a 53-week year.

 Results of Operations of FAT Brands Inc.
 The following table summarizes key components of our consolidated results of operations for the fiscal years ended December 29, 2024 and December 31, 2023.

 (In Thousands)
For the Fiscal Years Ended

 Consolidated statement of operations data:

 Revenues

 Royalties
 $
 90,035
 $
 94,036

 Restaurant sales
 413,480
 299,029

 Advertising fees
 39,473
 39,490

 Factory revenue
 37,949
 37,983

 Franchise fees
 6,487
 4,979

 Other revenue
 5,228
 4,940

 Total revenues
 592,652
 480,457

 Costs and expenses

 General and administrative expense
 128,564
 93,117

 Cost of restaurant and factory revenues
 393,131
 282,887

 Depreciation and amortization
 41,528
 31,131

 Impairment of goodwill and other intangible assets
 30,600

 Refranchising loss
 1,949
 2,873

 Advertising expense
 49,100
 47,619

 Total costs and expenses
 644,872
 458,127

 (Loss) income from operations
 (52,220)
 22,330

 Total other expense, net
 (140,380)
 (118,695)

 Loss before income tax benefit
 (192,600)
 (96,365)

 Income tax benefit
 (2,753)
 (6,255)

 $
 (189,847)
 $
 (90,110)

 Net loss for the fiscal year ended December 29, 2024, totaled $189.8 million consisting of revenues of $592.7 million less costs and expenses of $644.9 million, other expense of $140.4 million, and income tax benefit of $2.8 million. Net loss for the fiscal year ended December 31, 2023, totaled $90.1 million consisting of revenues of $480.5 million less costs and expenses of $458.1 million, other expense of $118.7 million plus an income tax benefit of $6.3 million.
 Revenues consist of royalties, franchise fees, advertising fees, restaurant sales, factory revenues, and other revenue. We earned revenues of $592.7 million for the fiscal year ended December 29, 2024 compared to $480.5 million for the fiscal year ended December 31, 2023. The increase of $112.2 million is primarily driven by revenue from our acquisition of Smokey Bones in September 2023 and revenues from new restaurant openings.
 Costs and expenses consist of general and administrative expense, cost of restaurant and factory revenues, depreciation and amortization, impairment of goodwill and other intangible assets, refranchising losses and advertising expense. Our costs and expenses increased from $458.1 million in the 2023 fiscal year to $644.9 million in the comparable period of

 2024, primarily due to the acquisition of Smokey Bones in September 2023 and increased activity from Company-owned restaurants.
 General and administrative expenses increased $35.4 million for the fiscal year ended December 29, 2024, compared to the prior year, primarily due to the acquisition of Smokey Bones in September 2023 and increased professional fees related to pending litigation.
 Cost of restaurant and factory revenues are related to the operations of our company-owned restaurant locations and factory produced dough and batter and increased $110.2 million, or 39.0%, to $393.1 million in fiscal 2024 compared to fiscal 2023, primarily due to the acquisition of Smokey Bones in September 2023 and increased costs at company-owned restaurant.
 Depreciation and amortization increased $10.4 million in fiscal year 2024 compared to fiscal year 2023, primarily due to the acquisition of Smokey Bones in September 2023 and depreciation of new property and equipment at company-owned restaurant locations.
 We recorded non-cash impairment charges for goodwill and other intangible assets of $30.6 million and $0.5 million during the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
 Refranchising net loss for the fiscal year ended December 29, 2024, was comprised of restaurant operating costs, net of food sales, of $0.9 million, and $1.0 million in net loss related to the sale or closure of refranchised restaurants. Refranchising net loss for the fiscal year ended December 31, 2023, was comprised of restaurant operating costs, net of food sales, of $3.0 million, partially offset by $0.1 million in net gains related to the sale or closure of refranchised restaurants.
 Advertising expense increased $1.5 million for the fiscal year ended December 29, 2024, compared to the prior year. These expenses vary in relation to advertising revenues.
 Total other expense, net for the fiscal year ended December 29, 2024 was $140.4 million and consisted primarily of net interest expense of $138.3 million and net losses on extinguishment of debt in the amount of $1.8 million. Total other expense, net for the fiscal year ended December 31, 2023 was $118.7 million and consisted primarily of net interest expense of $117.5 million and net losses on extinguishment of debt in the amount of $2.4 million.
 We recorded an income tax benefit of $2.8 million for the year ended December 29, 2024, compared to an income tax benefit of $6.3 million for the fiscal year ended December 31, 2023. These tax results were based on a net loss before taxes of $192.6 million for fiscal year 2024 and $96.4 million for fiscal year 2023.

 Liquidity and Capital Resources
 Liquidity is a measurement of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund business operations, acquisitions, and expansion of franchised restaurant locations and for other general business purposes. Our primary sources of funds for liquidity during the fiscal year ended December 29, 2024 consisted of cash on hand at the beginning of the period and net proceeds of $85.9 million from the sale of secured debt as discussed in Note 10 of the accompanying consolidated financial statements.
 We are involved in a world-wide expansion of franchise locations, which will require significant liquidity, primarily from our franchisees. If real estate locations of sufficient quality cannot be located and either leased or purchased, the timing of restaurant openings may be delayed. Additionally, if we or our franchisees cannot obtain capital sufficient to fund this expansion, the extent of or timing of restaurant openings may be reduced or delayed.
 We also may acquire additional restaurant concepts. These acquisitions typically require capital investments in excess of our normal cash on hand. We would expect that future acquisitions will necessitate financing with additional debt or equity transactions. If we are unable to obtain acceptable financing, our ability to acquire additional restaurant concepts likely would be negatively impacted.
 We have liabilities of $91.8 million relating to put options exercised by others on our Series B Cumulative Preferred Stock. The Company has contractual options pursuant to the put/call agreements to extend this repayment via incremental interest payments and there are capital market options that the Company may consider. We believe that we have sufficient liquidity to meet our liquidity needs and capital resource requirements for at least the next twelve months primarily through currently available cash and cash equivalents, cash flows from operations and access to the capital markets.

 As of December 29, 2024, we had cash and restricted cash totaling $67.4 million.
 Debt Issuances (Whole-Business Securitizations)
 We financed our acquisitions and operations through the issuance of notes by five special purpose, wholly-owned financing subsidiaries identified below, which own substantially all of our operations. The Company acts as the manager of each of these subsidiaries under a Management Agreement and performs management, franchising, distribution, intellectual property and operational functions on behalf of the subsidiaries and receives a management fee.
 FAT Brands Royalty I, LLC
 On April 26, 2021, FAT Brands Royalty I, LLC ("FB Royalty"), a special purpose, wholly-owned subsidiary of FAT Brands, completed the Offering of three tranches of fixed rate senior secured notes. Net proceeds totaled $140.8 million, which consisted of the combined face amount of $144.5 million, net of debt offering costs of $3.0 million and original issue discount of $0.7 million. A portion of the proceeds was used to repay and retire notes issued in 2022 under the Base Indenture (the "2020 Securitization Notes"). The payoff amount totaled $83.7 million, which included principal of $80.0 million, accrued interest of $2.2 million and prepayment premiums of $1.5 million.
 On July 6, 2022, FB Royalty issued an additional $76.5 million aggregate principal amount of three tranches of fixed rate senior secured notes (in millions):

 Closing Date
 Class
 Seniority
 Principal Balance
 Coupon
 Final Legal Maturity Date

 A-2
 Senior
 $42.7
 4.75%

 B-2
 Senior Subordinated
 $14.2
 8.00%

 M-2
 Subordinated
 $19.6
 9.00%

 Of the $76.5 million aggregate principal amount, $30.0 million was sold privately during the third quarter of 2022, resulting in net proceeds of $27.1 million (net of debt offering costs of $0.6 million and original issue discount of $2.3 million). The remaining $46.5 million in aggregate principal was sold privately on October 21, 2022, when the Company entered into an Exchange Agreement with the Twin Peaks sellers and redeemed 1,821,831 shares of the Company's 8.25% Series B Cumulative Preferred Stock at a price of $23.69 per share, plus accrued and unpaid dividends to the date of redemption, in exchange for $46.5 million aggregate principal amount of secured debt ($43.2 million net of debt offering costs and original issue discount).
 Prior to the redemption, the Twin Peaks sellers held 2,847,393 shares of Series B Cumulative Preferred Stock, which shares were issued to it on October 1, 2021 as partial consideration for the Company's acquisition of Twin Peaks.
 Pursuant to the Exchange Agreement, (i) at any time prior to July 25, 2023, the Company may call from the Twin Peaks sellers all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.86, plus any accrued plus unpaid interest thereon; (ii) at any time on or after the date of the Exchange Agreement, the Company may call from the Twin Peaks sellers, and at any time on or after July 25, 2023, the Twin Peaks sellers may put to the Company, all or a portion of the Class A-2 Notes and/or Class B-2 Notes at the outstanding principal balance multiplied by 0.94, plus any accrued plus unpaid interest thereon; and (iii) at any time on or after July 25, 2023, the Company may call from the Twin Peaks sellers, and the Twin Peaks sellers may put to the Company, all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.91, plus any accrued plus unpaid interest thereon. If the Company does not remit the applicable call price or put price upon a duly exercised call or put, as applicable, the amount owed by the Company will accrue interest at 10% per annum, which interest is due and payable in cash monthly by the Company. On July 13, 2023, pursuant to the Exchange Agreement, the Twin Peaks sellers exercised their put option. During the first quarter of fiscal 2024, the Company paid $1.0 million to settle the 10% per annum interest in perpetuity and to settle the put option. As a result, as of December 29, 2024, the outstanding principal balance owned by the Twin Peaks seller is no longer subject to the put option.
 FAT Brands GFG Royalty I, LLC
 In connection with the acquisition of GFG, on July 22, 2021, FAT Brands GFG Royalty I, LLC ("GFG Royalty"), a special purpose, wholly-owned subsidiary of the Company, completed the issuance and sale in a private offering (the "GFG Offering") of three tranches of fixed rate senior secured notes. Net proceeds totaled $338.9 million, which consisted of the

 combined face amount of $350.0 million, net of debt offering costs of $6.0 million and original issue discount of $5.1 million. Substantially all of the proceeds were used to acquire GFG. Immediately following the closing of the acquisition of GFG, the Company contributed the franchising subsidiaries of GFG to GFG Royalty, pursuant to a Contribution Agreement.
 On December 15, 2022, GFG Royalty issued an additional $113.5 million aggregate principal amount of three tranches of fixed rate senior secured notes as follows (in millions):

 Closing Date
 Class
 Seniority
 Principal Balance
 Coupon
 Final Legal Maturity Date

 A-2
 Senior
 $67.8
 6.00%

 B-2
 Senior Subordinated
 $20.2
 7.00%

 M-2
 Subordinated
 $25.5
 9.50%

 Of the $113.5 million aggregate principal amount, $25.0 million was sold privately during the fourth quarter, resulting in net proceeds of $22.3 million (net of debt offering costs of $0.4 million and original issue discount of $2.3 million). The remaining $88.5 million in aggregate principal was issued to FAT Brands Inc. and has been eliminated in consolidation. In January 2023, an additional $40.0 million aggregate principal amount was sold privately, resulting in net proceeds of $34.8 million. On September 20, 2023, an additional $2.8 million aggregate principal amount was sold privately resulting in net proceeds of $2.5 million. In October 2023, $20.2 million aggregate principal amount previously issued to FAT Brands Inc. was sold privately resulting in net proceeds of $18.1 million. The remaining principal amount remains issued to FAT Brands, Inc., pending sale to third party investors as of December 29, 2024.
 Twin Hospitality I, LLC (Formerly FAT Brands Twin Peaks I, LLC)
 Prior Securitization Notes
 In connection with the acquisition of Twin Peaks, on October 1, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, Twin Hospitality I, LLC (formerly FAT Brands Twin Peaks I, LLC), of an aggregate principal amount of $250.0 million. The net proceeds from the sale of the Notes were used by the Company to finance the cash portion of the purchase price for the acquisition of Twin Peaks Buyer, LLC and its direct and indirect subsidiaries. Net proceeds totaled $236.9 million, which consisted of the combined face amount of $250.0 million, net of debt offering costs of $5.6 million and original issue discount of $7.5 million. Substantially all of the proceeds were used to acquire Twin Peaks. Immediately following the closing of the acquisition of Twin Peaks, the Company contributed the franchising subsidiaries of Twin Peaks to Twin Hospitality I, LLC, pursuant to a Contribution Agreement.
 On September 8, 2023, Twin Hospitality I, LLC issued an additional $98.0 million aggregate principal amount of 2 tranches of fixed rate secured notes to FAT Brands Inc., pending sale to third party investors. Of the $98.0 million aggregate principal amount, $48.0 million was sold privately during the third quarter of 2023 resulting in net proceeds of $45.2 million. A portion of the proceeds was used to purchase $14.9 million aggregate principal amount of outstanding Securitization Notes, which will be held pending re-sale to third party investors. In connection with the bonds repurchased, the Company recognized a $2.7 million net loss on extinguishment of debt. The remaining $50.0 million in aggregate principal of notes issued by Twin Hospitality I, LLC was issued to a wholly-owned subsidiary of FAT Brands, Inc., pending sale to third party investors.
 On March 20, 2024, Twin Hospitality I, LLC issued an additional $50.0 million aggregate principal amount of one tranche of fixed rate secured notes to FAT Brands Inc., pending sale to third party investors. Of the $50.0 million aggregate principal amount, $38.8 million was sold privately during the first quarter of 2024 resulting in net proceeds of $36.4 million. A portion of the proceeds was used to purchase $7.4 million aggregate principal amount of outstanding Securitization Notes, which will be held pending re-sale to third party investors. In connection with the bonds repurchased, the Company recognized a $0.4 million net gain on extinguishment of debt. During the second quarter of 2024, the remaining $11.2 million in aggregate principal of notes was sold privately to a third party investor resulting in net proceeds of $10.7 million.

 Twin Securitization Notes
 On November 21, 2024, Twin Hospitality I, LLC refinanced all of its above-referenced secured notes through the issuance and sale of four tranches of fixed rate secured notes to third party investors for a total aggregate principal amount of $416.7 million. Net Proceeds from the sale of the Twin Securitization notes were $407.5 million and consisted of $6.0 million of debt offering costs and $3.2 million of original issue discounts. The net proceeds from the sale of the Twin Securitization Notes was used to redeem all of the Prior Securitization Notes, which included principal of $388.8 million and accrued interest of $2.3 million, with the remainder to be used for working capital and general corporate purposes. The Company recognized a loss on extinguishment of debt of $2.4 million.
 Also on November 21, 2024, the Company contributed Twin Hospitality I, LLC, to a new holding company, Twin Hospitality Group Inc., in anticipation of a planned listing of Twin Hospitality as a standalone public company. In January 2025, the Company distributed approximately 5% of the fully-diluted shares of Class A Common Stock of Twin Hospitality to our common stockholders, and Twin Hospitality began trading as a standalone publicly traded company listed on NASDAQ under the symbol "TWNP". The Company retained the remaining shares of Twin Hospitality outstanding immediately following the distribution. (See Note 19, Subsequent Events)
 FAT Brands Fazoli's Native I, LLC
 In connection with the acquisition of Fazoli's and Native Grill & Wings, on December 15, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, FAT Brands Fazoli's Native I, LLC, of an aggregate principal amount of $193.8 million. Net proceeds totaled $180.6 million, which consisted of the combined face amount of $193.8 million, net of debt offering costs of $3.8 million and original issue discount of $9.4 million. The proceeds were used to close the acquisitions of Fazoli's and Native, and to provide working capital for the Company. Immediately following the closing of the acquisition of Fazoli's and Native, the Company contributed the franchising subsidiaries of these entities to FAT Brands Fazoli's Native I, LLC, pursuant to a Contribution Agreement.
 FB Resid Holdings 1, LLC
 On July 8, 2023, FB Resid Holdings I, LLC ("FB Resid"), a special purpose, wholly-owned subsidiary of FAT Brands, completed the issuance of two tranches of fixed rate secured notes with a total aggregate principal amount of $150.0 million pursuant to a Base indenture, dated July 10, 2023 (the "FB Resid Indenture"). Of the $150.0 million aggregate principal amount, $105.8 million was sold privately, resulting in net proceeds of $105.3 million. A portion of the proceeds was used to purchase $64.6 million of outstanding Securitization Notes, which will be held pending re-sale to third party investors. The remaining $44.2 million in aggregate principal of notes issued by FB Resid was issued to a wholly-owned subsidiary of FAT Brands, Inc., pending sale to third party investors.
 On November 21, 2024, the Company modified the terms of the outstanding notes issued by FB Resid pursuant to an Omnibus Amendment executed with the noteholders as well as with the Company's other whole business securitization subsidiaries, FAT Brands Royalty I, LLC, FAT Brands GFG Royalty I, LLC, Twin Hospitality I, LLC (f/k/a FAT Brands Twin Peaks I, LLC) and FAT Brands Fazoli's Native I, LLC (the "Existing Issuers"). The Omnibus Amendment amended the treatment of "Excess Amounts" under the Company's current securitization transactions, other than Twin Hospitality I, LLC, upon (i) the occurrence of an Event of Default under the FB Resid Indenture or (ii) if the Controlling Class Representative (currently 3|5|2 Capital ABS Master Fund LP) has notified the FB Resid Trustee that certain Excess Amounts are required to satisfy clauses (i) through (xiii) of the Priority of Payments on the next applicable Monthly Allocation Date under the FB Resid Indenture. In such event, all such Excess Amounts must be deposited into a segregated account to be included in Retained Collections and deposited in the Collection Account under the FB Resid Indenture for application in accordance with the waterfall of payments under Section 5.10 of the FB Resid Indenture. The Omnibus Amendment also amended the FB Resid Indenture to provide that with respect to (i) any Mandatory Prepayment Amount and/or (ii) from and after the occurrence of any Event of Default (as such terms are defined in the FB Resid Indenture), payments of interest and principal with respect to the Class A-1 Notes and the Class A-2 Notes shall be made in accordance with the Applicable Class A Payment Priority (defined in the Omnibus Amendment), and no amounts may be paid on the Class A-1B Notes or Class A-2B Notes until amounts then due and owing to the Class A-1A Notes and the Class A-2A Notes shall have been paid in full in cash.
 In addition, under the Omnibus Amendment, the Company and FB Resid agreed not to permit (i) any equity interests of any Existing Issuer to be sold, transferred or disposed, other than the transactions contemplated by the Twin Peaks Listing Event, or (ii) any Specified Additional Issuance (as defined in the FB Resid Indenture). In addition, the Omnibus Amendment added a new Event of Default under the FB Resid Indenture if the Issuer should fail, by July 31, 2026, to have prepaid or

 purchased at least $20,000,000 of Class A-1A Notes and Class A-2A Notes held by the Controlling Class Representative or its managed funds. Also under the Omnibus Amendment, the Company agreed not to sell or otherwise dispose of any of its equity interests of Twin Hospitality until Twin Hospitality has used at least $75,000,000 of aggregate Qualified Equity Offering Proceeds (as defined in the Omnibus Amendment) or other proceeds to prepay the new Notes issued under the TWNP Indenture. The Company also agreed not to declare or pay any dividend or distribution in the form of equity interests in Twin Hospitality (i) until the third anniversary of the Closing Date (ii) or if any Potential Rapid Amortization Event, Rapid Amortization Event, Default or Event of Default has occurred or would result therefrom under the indentures of any Existing Issuer.
 On November 21, 2024, the Company also entered into a Pledge and Security Agreement (the "Pledge Agreement") and Securities Account Control Agreement (the "Control Agreement") with UMB Bank, N.A., as trustee under the FB Resid Indenture and as securities intermediary (in such capacities, the "Pledge Trustee"). Under the Pledge Agreement, the Company pledged all of its shares of Class A Common Stock of Twin Hospitality (other than shares distributed to its shareholders at the time of the Twin Peaks Listing Event) (the "Pledged Shares") along with all proceeds of the Pledged Shares for the payment and performance of all obligations of FB Resid under the FB Resid Indenture. The Company agreed that the "Applicable Percentage" (a formula that is defined in the Pledge Agreement) of any (i) proceeds of the sale or other disposal of Pledged Shares, (ii) dividend, distribution, rights, warrants or other consideration with respect to the Pledged Shares, and (iii) proceeds of any loan secured by the Pledged Shares (collectively, the "Proceeds"), will be applied to purchase first the Class A-2A Notes, and then the Class A-1A Notes, issued under the FB Resid Indenture at par plus any accrued and unpaid interest thereon and interest paid in kind. The Company also agreed that, if Twin Hospitality has not raised at least $25,000,000 in Qualified Equity Proceeds and is sold, then so long as either (i) the Issuer has repaid its debt in full under the TWNP Indenture or (ii) the Issuer's noteholders have otherwise waived such payment and approved the sale in writing, then 50% of the Proceeds from the sale of Twin Hospitality will be applied to purchase first the Class A-2A Notes, and then the Class A-1A Notes, issued under the FB Resid Indenture at par plus any accrued and unpaid interest thereon and interest paid in kind. Also under the Pledge Agreement, upon the occurrence and during the continuance of an Event of Default and following the Grace Period, if applicable, under the FB Resid Indenture, all rights of the Company to vote or give consent with respect to the Pledged Shares shall be vested in the Pledge Trustee. Under the Control Agreement, the Company agreed to deposit all of the Pledged Shares at the time of the Twin Peaks Listing Event into a controlled account maintained by the Pledge Trustee, and the Pledge Trustee will distribute Proceeds of the Pledged Shares held in such account according to the Pledge Agreement. The Company will be entitled to enter any market order to sell Pledged Shares in a brokers' transaction on an approved trading market, and may enter orders to sell Pledged Shares other than on a permitted trading market (i) with the prior written consent of the Pledge Trustee or (ii) in a trade to be executed within 5% of the 5-trading day volume weighted average price and with a value of at least $15,000,000. Upon an Event of Default under the FB Resid Indenture, the Controlling Class Representative will be entitled to exercise sole control of the Pledged Shares and direct sales or other dispositions of the Pledged Shares held in the controlled account.
 Retained Notes
 During 2024, the Company repurchased certain of its securitized notes to be held for resale to third party investors and sold certain of its securitized notes previously repurchased or issued and not sold (collectively, the "Retained Notes"). During 2024, cash proceeds from the sale of Retained Notes and cash used to repurchase Retained Notes was $108.2 million and $36.4 million including accrued interest, respectively. The $108.2 million includes the sale of $30.9 million aggregate principal Twin Peaks Securitization notes issued in 2024 in addition to securitization notes previously held in wholly-owned subsidiaries of Fat Brands Inc. As of December 29, 2024, the Company held $164.8 million of Retained Notes, which have been eliminated in consolidation.
 We believe that we will be in compliance with our debt covenants and have sufficient sources of cash to meet our liquidity needs for the next twelve months.
 Equity Issuances
 On November 14, 2022, we entered into an ATM Sales Agreement (the "ThinkEquity Sales Agreement") with ThinkEquity LLC (the "Agent"), pursuant to which we may offer and sell from time to time through the Agent up to 21,435,000 maximum aggregate offering price of shares of our Class A Common Stock and/or 8.25% Series B Preferred Stock. The ThinkEquity Sales Agreement with the Agent was terminated in May 2024.
 On July 19, 2024, we entered into an Equity Distribution Agreement (the "Noble Sales Agreement") with Noble Capital Markets, Inc. (the "Sales Agent"), pursuant to which we may offer and sell from time to time through the Sales Agent

 shares (the "Placement Shares") of our Class A Common Stock and/or 8.25% Series B Cumulative Preferred Stock. During the three months ended December 29, 2024, pursuant to the Noble Sales Agreement, the Company sold and issued 169,247 shares of 8.25% Series B Cumulative Preferred Stock, at a weighted average share price of $9.73, paid the Sales Agent commissions of approximately $50,000 for such sales and received net proceeds of $1.6 million (net of fees and commissions) for such sales.
 Comparison of Cash Flows
 Our cash and restricted cash balance was $67.4 million as of December 29, 2024, compared to $91.9 million as of December 31, 2023.
 The following table summarizes key components of our consolidated cash flows for the fiscal years ended December 29, 2024, and December 31, 2023:

 (In thousands)
For the Fiscal Years Ended

 Net cash used in operating activities
 $
 (56.2)
 $
 (35.6)

 Net cash used in investing activities
 (26.5)
 (59.8)

 Net cash provided by financing activities
 58.2
 118.6

 Net (decrease) increase in cash and restricted cash
 $
 (24.5)
 $
 23.1

 Operating Activities
 Net cash used in operating activities increased $20.6 million to $56.2 million in fiscal 2024 compared to $35.6 million in fiscal 2023, and is primarily related to higher debt service costs associated with our securitizations and by changes in working capital compared to fiscal 2023.
 Investing Activities
 Net cash used in investing activities was $26.5 million in fiscal 2024 compared to $59.8 million in fiscal 2023, and is primarily related to purchases of property and equipment in connection with company-owned restaurants. The $33.3 million decrease in fiscal 2024 when compared to fiscal 2023 is primarily attributable to the acquisition of Barbecue Integrated, Inc. in September, 2023. See Note 3 in our consolidated financial statements for more information on our mergers and acquisitions.
 Financing Activities
 Net cash provided by financing activities was $58.2 million in fiscal 2024 compared to $118.6 million in fiscal 2023, and is primarily comprised of proceeds from borrowings, partially offset by repurchases of previously issued securitized notes and dividends paid on our Class A and Class B Common Stock and our Series B Cumulative Preferred Stock. The $62.1 million decrease in fiscal 2024 compared to fiscal 2023 is primarily due to lower net proceeds from borrowings during fiscal 2024 compared to fiscal 2023. See Note 10 in our consolidated financial statements for more information on debt.
 Dividends
 The dividends declared on the Company's common stock by the Board of Directors during the fiscal year ended December 29, 2024 are as follows (in millions):

 Declaration Date
 Dividend Per Share
 Record Date
 Payment Date
 Total Dividend (In Millions)

 January 9, 2024
 $
 0.14
 February 15, 2024
 March 1, 2024
 $
 2.4

 April 17, 2024
 $
 0.14
 May 15, 2024
 May 31, 2024
 $
 2.4

 July 9, 2024
 $
 0.14
 August 15, 2024
 August 30, 2024
 $
 2.4

 October 29, 2024
 $
 0.14
 November 15, 2024
 November 29, 2024
 $
 2.4

 The declaration and payment of future dividends, as well as the amount thereof, are subject to the discretion of our Board of Directors. The amount and size of any future dividends will depend upon our future results of operations, financial condition, capital levels, cash requirements, and other factors. There can be no assurance that we will declare and pay dividends in future periods.
 Capital Expenditures
 As of December 29, 2024, we do not have any material commitments for capital expenditures.
 Critical Accounting Policies and Estimates
 Franchise Fees: The franchise arrangement is documented in the form of a franchise agreement. The franchise arrangement requires us to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which includes the transfer of the franchise license. The services provided by us are highly interrelated with the franchise license and are considered a single performance obligation. Franchise fee revenue from the sale of individual franchises is recognized over the term of the individual franchise agreement on a straight-line basis. Unamortized non-refundable deposits collected in relation to the sale of franchises are recorded as deferred franchise fees.
 The franchise fee may be adjusted at management's discretion or in a situation involving store transfers between franchisees. Deposits are non-refundable upon acceptance of the franchise application. In the event a franchisee does not comply with their development timeline for opening franchise stores, the franchise rights may be terminated, at which point the franchise fee revenue is recognized in the amount of the non-refundable deposits.
 Royalties: In addition to franchise fee revenue, we collect a royalty calculated as a percentage of net sales from our franchisees. Royalties range from 0.75% to 7.0% and are recognized as revenue when the related sales are made by the franchisees. Royalties collected in advance of sales are classified as deferred income until earned.
 Advertising: We require advertising payments from franchisees based on a percent of their net sales. We also receive, from time to time, payments from vendors that are to be used for advertising. Advertising funds collected are required to be spent for specific advertising purposes. Advertising revenue and associated expense is recorded on the consolidated statement of operations. Assets and liabilities associated with the related advertising fees are reflected in the Company's consolidated balance sheets.
 Goodwill and other intangible assets: Goodwill and other intangible assets with indefinite lives, such as trademarks, are not amortized but are reviewed for impairment annually, or more frequently if indicators arise, as was done in 2024 and 2023. The Company recorded impairment charges of $30.6 million and $0.5 million relating to goodwill and other intangible assets during the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
 Property and Equipment: Property and Equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The useful lives of our property and equipment typically range from 3 to 7 years. Upon retirement or other disposal of property and equipment, the cost and related amounts of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds, is recorded in earnings. On an annual basis the Company assesses its property and equipment for impairment. The Company recognized impairment expense of $1.9 million and $0.5 million during the fiscal years ended December 29, 2024 and December 31, 2023, respectively and included in General and administrative expense on the Consolidated Statements of Operations.
 Assets classified as held-for-sale: Assets are classified as held-for-sale when we commit to a plan to sell the asset, the asset is available for immediate sale in its present condition and an active program to locate a buyer at a reasonable price has been initiated. The sale of these assets is generally expected to be completed within one year. The combined assets are valued at the lower of their carrying amount or fair value, net of costs to sell and included as current assets on the Company's consolidated balance sheet. Assets classified as held-for-sale are not depreciated. However, interest attributable to the liabilities associated with assets classified as held-for-sale and other expenses continue to be recorded as expenses in the Company's Consolidated Statements of Operations.
 Income taxes: We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

 We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
 Share-based compensation: We have a stock option plan which provides for options to purchase shares of our common stock. For grants to employees and directors, we recognize an expense for the value of options granted at their fair value at the date of grant over the vesting period in which the options are earned. Cancellations or forfeitures are accounted for as they occur. Fair values are estimated using the Black-Scholes option-pricing model. (See Note 14 in our consolidated financial statements for more details on our share-based compensation.)
 Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates.
 Recently Adopted Accounting Standards
 In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. The amendments improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The Company adopted ASU No. 2023-07 for the fiscal year beginning January 1, 2024 and have applied this standard retrospectively for all periods presented on the Company's consolidated financial statements.
 Recently Issued Accounting Standards Not Yet Adopted

 In November 2024, the FASB issued ASU No. 2024-03, Income Statement —Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued update 2025-01—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The amendments require disclosure in the notes to financial statements of specified information about certain costs and expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting within annual reporting periods beginning after December 15, 2027. The Update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.
 In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require that public business entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments also require that all entities disclose on an annual basis the income taxes paid disaggregated by jurisdiction. The amendments eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is still evaluating the impact the adoption of this standard will have on its consolidated financial statements.

 Off-Balance Sheet Arrangements
 As of December 29, 2024, we did not have any off-balance sheet arrangements.

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Not required.

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 See Item 15 of Part IV of this Annual Report on Form 10-K.

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
 There were no disagreements with accountants on any matter of accounting principles or practices, or financial statement disclosure required to be reported under this item.

 ITEM 9A. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
 Our management, with the participation of our principal executive officers and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive officers and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on such evaluation, our principal executive officers and principal financial officer have concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
 Management's Annual Report on Internal Control Over Financial Reporting
 Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act.
 A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting also includes those policies and procedures that:
 (a)Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
 (b)Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
 (c)Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.
 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 Under the supervision of the Audit Committee of the Board of Directors and with the participation of our management, including our principal executive officers and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria established in Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our assessment and those criteria, our principal executive officers and principal financial officer concluded that our internal control over financial reporting was effective as of December 29, 2024.
 Because we are a non-accelerated filer, we are not required to include an attestation report by our independent registered public accounting firm regarding the effectiveness of our internal control over financial reporting in this annual report as of December 29, 2024.

 Changes in Internal Control over Financial Reporting
 There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended December 29, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 ITEM 9B. OTHER INFORMATION
 During the fourth fiscal quarter of 2024, no director or officer of the Company adopted or terminated a "Rule 10-b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

 Not applicable.

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
 Executive Officers and Directors
 Below is a list of the names and ages, as of February 24, 2025, of our directors and executive officers, and a description of the business experience of each of them.

 Name
 Age
 Position

 Andrew A. Wiederhorn
 Chairman of the Board of Directors

 John S. Allen

 Tyler B. Child

 Mark Elenowitz
 Director (Lead Independent Director)

 James G. Ellis

 Peter R. Feinstein

 Matthew H. Green

 John C. Metz

 Director and Chief Brand Officer

 Director and Chief Development Officer

 Director and Chief Operating Officer

 Co-Chief Executive Officer and Chief Financial Officer

 Co-Chief Executive Officer and Head of Debt Capital Markets

 Allen Z. Sussman
 General Counsel and Corporate Secretary

 Ron Roe
 Senior Vice President of Finance

 Andrew A. Wiederhorn is the founder of FAT Brands and served as a director of the Company since our inception in March 2017. He also served as President and CEO of FAT Brands and our principal operating subsidiaries from March 2017 until May 2023. He currently serves on the board of managers of our majority stockholder, Fog Cutter Holdings LLC, and was previously Chairman and CEO of our former parent company, Fog Cutter Capital Group Inc. Mr. Wiederhorn previously founded and served as the Chairman and Chief Executive Officer of Wilshire Financial Services Group Inc. and Wilshire Credit Corporation. Mr. Wiederhorn received his B.S. degree in Business Administration from the University of Southern California in 1987, with an emphasis in Finance and Entrepreneurship. He previously served on the Board of Directors of Fabricated Metals, Inc., The Boy Scouts of America Cascade Pacific Council, The Boys and Girls Aid Society of Oregon, University of Southern California Associates, Citizens Crime Commission of Oregon, and Economic Development Council for the City of Beverly Hills Chamber of Commerce. Mr. Wiederhorn brings to the Board his more than 20 years of experience with the Company and its predecessors, including as the Company's founder, as well as his experience with sophisticated financial structures, mergers and acquisitions, strategic planning, and leadership and management of complex organizations.

 On May 10, 2024, Mr. Wiederhorn was indicted on federal charges, alleging that Mr. Wiederhorn caused FAT Brands Inc. and an affiliate to distribute $47 million to him for his personal use and benefit, mischaracterized these distributions as loans, and failed to disclose the disbursements as reportable compensation. The indictment also alleges that Mr. Wiederhorn failed to pay personal income taxes in the amount of $7.7 million. Mr. Wiederhorn was charged with endeavoring to obstruct the administration of the Internal Revenue Code, tax evasion, wire fraud, making false statements and omitting material facts in statements to accountants in connection with audits and reviews, certifying faulty financial reports, and causing the Company to extend and maintain credit in the form of personal loan. Mr. Wiederhorn was also charged in a separate indictment for illegally possessing a firearm and ammunition after being convicted of a felony.
 John S. Allen has served as a director of FAT Brands since September 2023. Mr. Allen is a retired restaurant operator, having served as the owner and operator of Pacific Way Bakery & Caf. Mr. Allen received a Bachelor of Arts degree from the University of Illinois. Mr. Allen brings to the Board his experience and history in restaurant operations, management and finance.

 Donald J. Berchtold has served as a director of FAT Brands since March 2023. Mr. Berchtold also serves as Chief Concept Officer of FAT Brands Inc., a role he has held since February 2018. Mr. Berchtold previously held the position of President and Chief Operating Officer of Fatburger North America Inc. and President and Chief Operating Officer of Fog Cutter Capital Group Inc. Mr. Berchtold also served as Senior Vice President of Wilshire Financial Services Group Inc. and its sister company, Wilshire Credit Corporation. Mr. Berchtold was the owner-operator of his own business that included a dinner house, catering company and other food service concepts and was an active member in the Restaurants of Oregon Association. Mr. Berchtold holds a Bachelor of Science degree in Finance and Marketing from Santa Clara University. Mr. Berchtold brings to the Board his more than 20 years of experience with the Company and its predecessors, his more than 50 years of experience in the restaurant and hospitality industries, his knowledge and experience in strategic planning, and leadership and management of complex organizations.
 Tyler B. Child has served as a director of FAT Brands since March 2023. Ms. Child has approximately 10 years of experience in investment banking, working in Equity Capital Markets on the Syndicate Desk for JMP Securities LLC, Banc of America Securities, LLC, and Montgomery Securities. Ms. Child holds a bachelor's degree in Communications and Spanish from Santa Clara University. Ms. Child brings to the Board her experience and history in investment banking and capital markets.
 Lynne L. Collier has served as a director of FAT Brands since July 2022. Ms. Collier is an experienced capital market professional, with nearly 30 years of experience in public capital markets and a focus on the restaurant industry. Ms. Collier currently serves as Head of Consumer Discretionary for Water Tower Research, LLC, and previously served as a Managing Director in the Investor Relations Division of ICR Inc. from April 2021 to June 2022. Prior to that, Ms. Collier had a 25-year career in equity research as a sell-side Consumer Analyst, including for Loop Capital, Canaccord Genuity and Sterne Agee. Ms. Collier received a bachelor's degree in Finance from Baylor University and an M.B.A. in Finance from Texas Christian University. Ms. Collier brings to the Board substantial expertise in financial analysis of companies in the restaurant and hospitality industries, and broad expertise in capital markets and investor relations generally.
 Mark Elenowitz has served as a director of FAT Brands since April 2023. Mr. Elenowitz is a Wall Street veteran, who co-founded a boutique investment bank and its online capital formation platform BANQ. He is a noted speaker at Small Cap and Reg A events, including the SEC Small Business Forum, and has been profiled in BusinessWeek, CNBC and several other publications. Mr. Elenowitz is also a member of the Depository Trust & Clearing Corporation (DTCC) Private Markets Executive Advisory Board, tasked with developing DTCC's new Digital Securities Management (DSM) platform. Mr. Elenowitz currently serves as managing director of Tripoint Capital Management, Digital Offering LLC and Cambria Capital LLC, and is the President and co-founder of Horizon Fintex, a fintech company offering a suite of integrated securities software applications for compliant issuance through secondary trading of electronic securities. In addition, he is the co-creator of Upstream concept, a MERJ Exchange Market, a global stock exchange for digital securities and affiliate of the World Federation of Exchanges (WFE). Mr. Elenowitz is also a member of the Board of Directors of the Long Island Capital Alliance and the National Investment Banking Association, and sits on the advisory boards of several private companies. He is a graduate of the University of Maryland School of Business and Management with a Bachelor of Science degree in Finance. Mr. Elenowitz brings to the Board substantial expertise in capital markets, financial and strategic planning, complex financial transactions, mergers and acquisitions, and leadership of complex organizations.
 James G. Ellis has served as a director of FAT Brands since September 2023. Mr. Ellis served as the Dean of the Marshall School of Business at the University of Southern California from 2007 until June 2019. Prior to his appointment as Dean in April 2007, Mr. Ellis was the Vice Provost, Globalization, for USC and prior to that was Vice Dean, External Relations. Mr. Ellis was also a professor in the Marketing Department of the Marshall School of Business from 1997 until retiring in 2021. Mr. Ellis continues to serve on the Boards of Directors of a number of other public and private companies, including Mercury General Corporation and J.G. Boswell Company. Mr. Ellis received a Bachelor of Business Administration degree from the University of New Mexico and MBA degree from Harvard Business School. Mr. Ellis brings to the Board substantial expertise in finance, marketing, financial accounting and complex financial transactions, and leadership and management of complex organizations.
 Peter R. Feinstein has served as a director of FAT Brands since July 2023. Mr. Feinstein is an experienced operator of restaurant and entertainment properties, including SHAC, LLC, Fatburger franchises, Sugar Factory, El Dorado Cantina and Country Star Restaurants. Mr. Feinstein is also a retired certified public accountant, having served in senior management and audit roles with Kenneth Leventhal & Co. and Fox & Co. Mr. Feinstein graduated with a Bachelor of Science degree in Accounting from UCLA. Mr. Feinstein brings to the Board substantial expertise in financial and strategic planning, financial accounting, mergers and acquisitions, hospitality industry operations and management, and leadership and management of complex organizations.

 Matthew H. Green has served as a director of FAT Brands since July 2023. Mr. Green is an experienced finance professional based in London, with over 30 years of experience as a merchant banker, focused primarily on the real estate, infrastructure, and energy sectors for clients including private equity firms, pension funds, sovereign wealth funds and family offices. Mr. Green received a bachelor's degree in Business Administration from the University of Washington. Mr. Green brings to the Board his experience and history in debt finance and capital markets, real estate, and investment banking.
 John C. Metz has served as a director of FAT Brands since July 2023. Mr. Metz is an experienced owner, operator and developer of restaurants and hospitality properties. Mr. Metz currently owns and operates approximately 70 franchised restaurants, including Hurricane Dockside Grill, Denny's and Wahoo Seafood Grill restaurants. Mr. Metz received a Bachelor of Science degree in Hotel Administration and an M.B.A. from Cornell University. Mr. Metz brings to the Board his experience and history in restaurant operations and franchising, and financial and operational management of complex organizations.
 Carmen Vidal has served as a director of FAT Brands since March 2023. Ms. Vidal has also served as International Legal Counsel & Director of International Franchise Development (Europe/Middle East/North Africa) for the Company since October 2021. Prior to that, Ms. Vidal served as Vice President of International Development for the Company. Ms. Vidal brings to the Board her substantial experience in international franchising and cross-border transactions, and long history with the Company and its predecessors.

 Mason A. Wiederhorn has served as a director of FAT Brands since March 2023, and serves on the board of managers of the Company's majority stockholder, Fog Cutter Holdings LLC. He has also served as the Chief Brand Officer of the Company since December 2021. Prior to that, Mr. Wiederhorn served as Creative Director of the Company, preceded by his role as Creative Director of Fatburger North America Inc. and Buffalo's Franchise Concepts Inc., and Videographer for Fatburger North America Inc. Mr. Wiederhorn graduated from the Business of Cinematic Arts program at the University of Southern California Marshall School of Business. Mr. Wiederhorn brings to the Board his participation in the founding and growth of our Company and its predecessors, leadership skills, and background and education in the creative arts and promotion of our multiple brands.

 Taylor A. Wiederhorn has served as a director of FAT Brands since March 2023, and serves on the board of managers of the Company's majority stockholder, Fog Cutter Holdings LLC. He has also been the Chief Development Officer of the Company since October 2017. Previously, Mr. Wiederhorn served as Vice President - Franchise Marketing and Development for Fatburger North America from December 2011 until October 2017. Mr. Wiederhorn graduated from the USC Marshall School of Business with a Bachelor of Science degree in Business Administration with a concentration in Corporate Finance. Mr. Wiederhorn brings to the Board his participation in the founding and growth of the Company and its predecessors, leadership skills, management of our sales teams, and business background and education.

 Thayer D. Wiederhorn has served as a director of FAT Brands since March 2023 and serves on the board of managers of the Company's majority stockholder, Fog Cutter Holdings LLC. He has also been the Chief Operating Officer of the Company since November 2021, responsible for day-to-day operations and providing leadership to management to ensure the execution of both short-term and long-term business strategies. Prior to his role as Chief Operating Officer, Mr. Wiederhorn served as Chief Marketing Officer from March 2017, overseeing global branding and marketing initiatives. He also held several prior positions, including VP of Marketing for Fatburger North America Inc. and Buffalo's Franchise Concepts Inc. from June 2012 to March 2017, and Director of Marketing for Fatburger from July 2011 to June 2012. Additionally, he served as Marketing Coordinator and Brand Development Agent for Fatburger in 2010 and 2011. Mr. Wiederhorn began his career working in Fatburger restaurants and food trucks. He holds a Bachelor of Science degree in Business Administration with an emphasis in Finance and Business Economics from the University of Southern California. Mr. Wiederhorn brings to the Board his deep involvement and insight in the founding and growth of the Company and its predecessors, along with his leadership expertise, marketing experience and formal business education.

 Kenneth J. Kuick has served as the Company's Co-Chief Executive Officer since May 2023, and Chief Financial Officer since May 31, 2021. Prior to joining the Company, Mr. Kuick served as Chief Financial Officer of Noodles & Company, a national fast-casual restaurant concept, from November 2018 to August 2020, where he was responsible for leading the Company's finance, accounting and supply chain operations. Prior to that, Mr. Kuick served as Chief Accounting Officer of VICI Properties Inc., a real estate investment trust specializing in casino properties, from October 2017 to August 2018, where he was responsible for accounting, consolidated financial operations, capital markets transactions, treasury, internal audit, tax and external reporting. Prior to that, Mr. Kuick served as Chief Accounting Officer of Caesars Entertainment Operating Company, a subsidiary of Caesars Entertainment Corporation, and as Vice President, Assistant Controller for Caesars Entertainment Corporation. Mr. Kuick is a Certified Public Accountant and earned his Bachelor of Science degree in Accounting and Business Systems from Taylor University.

 Robert G. Rosen has served as the Company's Co-Chief Executive Officer and Head of Debt Capital Markets since May 2023. Prior to that, he served as Executive Vice President of Capital Markets since April 2021. Prior to joining the Company, he had been the Managing Member of Kodiak Financial Group LLC since 2004. Kodiak invests in credit classes of ABS and MBS securities, purchases individual real estate loans and portfolios, purchases and manages real estate developments and invests in private equity transactions as well as venture capital transactions. Mr. Rosen began his career in commercial banking, focusing on direct lending for Fleet Bank (then Fleet Norstar Bank) in Albany NY after completing their extensive management training program. This was followed in 1990 by a career on Wall Street, working for Bankers Trust (now Deutsche Bank) and Kidder Peabody in structured finance and investment banking focusing primarily on credit derivatives including securitizations, asset-based lending as well as financing and banking commercial banks and other originators of securitizable assets. After Kidder, Mr. Rosen joined Black Diamond Advisors and Black Diamond Securities (and ultimately Black Diamond Capital Management). He served as a Director and FINOP of the Black Diamond entities, with a continued focus on structured finance transactions and credit as well as portfolio management (banking, sales and trading) and servicing. Mr. Rosen continued his career at Bank of Tokyo Mitsubishi and several buy side firms. He continues to be a long-term consultant to Black Diamond Capital Management and serves on multiple advisory boards and committees of Black Diamond. Mr. Rosen holds an MBA and a BA degree from Union College in Managerial Economics.

 Allen Z. Sussman has served as the Company's General Counsel, Secretary and EVP for Corporate Development since March 2021. Prior to that time, Mr. Sussman was a partner at the law firm of Loeb & Loeb LLP in Los Angeles, California, specializing in corporate and securities law, and served as the primary outside corporate and securities counsel of FAT Brands. Prior to private practice, in the early 1990s Mr. Sussman served as an attorney with the Division of Enforcement of the U.S. Securities and Exchange Commission in Washington, DC. Mr. Sussman holds a B.S. degree in Industrial and Labor Relations from Cornell University and a J.D. degree from Boston University School of Law.

 Ron Roe currently serves as the Company's Senior Vice President of Finance. Prior to August 16, 2018, Mr. Roe served as the Chief Financial Officer since 2009 and served as the Vice President of Finance from 2007 to 2009. Prior to 2007, Mr. Roe was an acquisitions associate for Fog Cutter Capital Group Inc. He began his career as an investment banking analyst with Piper Jaffray. Mr. Roe attended UC Berkeley, where he earned a Bachelor of Arts degree in Economics.

 Family Relationships

 The family relationships among our directors and executive officers are reported below under "Item 13. Certain Relationships and Related Transactions, and Director Independence" and incorporated herein by reference.

 Delinquent Section 16(a) Reports

 Based solely on a review of Forms 3, 4 and 5 and amendments thereto furnished to us for the year ended December 29, 2024, our directors, officers, or beneficial owners of more than 10% of our common stock timely furnished reports on all Forms 3, 4 and 5.

 Insider Trading Policy

 We have adopted an Insider Trading Policy that governs the purchase, sale and other dispositions of our securities by our directors, officers and employees. We believe that our Insider Trading Policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the Nasdaq listing standards applicable to us. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

 Code of Ethics
 We have adopted a written code of business ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. We have posted a current copy of the code under the Corporate Governance section of our website at  In addition, we intend to post on our website all disclosures that are required by law or the NASDAQ listing standards concerning any amendments to, or waivers from, any provision of the code.

 Board Committees
 During fiscal 2024, our Board of Directors held 25 meetings. Each director attended at least 75% of the aggregate number of meetings of the Board of Directors and meetings of the committees of the Board of Directors on which he or she serves.
 The following table sets forth the two standing committees of our Board and the members of each committee as of December 29, 2024 and the number of meetings held by our Board of Directors and the committees during 2024:

 Board of
Directors
 Audit
Committee
 Compensation
Committee

 Andrew A. Wiederhorn
 Chair
 Chair

 John S. Allen
 X

 X

 Tyler B. Child
 X
 X
 X

 X
 Chair
 X

 Mark Elenowitz
 X
 X
 X

 James G. Ellis
 X
 X
 X

 Peter R. Feinstein
 X
 X
 X

 Matthew H. Green
 X
 X
 X

 John C. Metz
 X
 X

 X

 X

 X

 X

 Meetings in 2024:

 To assist it in carrying out its duties, the Board of Directors has delegated certain authority to an Audit Committee and a Compensation Committee, the functions of which are described below.
 Audit Committee
 The Audit Committee is responsible for, among other matters:

 • appointing, compensating, retaining, evaluating, terminating and overseeing our independent registered public accounting firm;
 • discussing with our independent registered public accounting firm their independence from management;
 • reviewing with our independent registered public accounting firm the scope and results of their audit;
 • approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm;
 • overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;
 • reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters.

 Our Board of Directors has determined that each member of the Audit Committee meets the definition of "independent director" for purposes of serving on an audit committee under Rule 10A-3 and NASDAQ rules.

 The Board of Directors has determined that each of Ms. Collier, Mr. Elenowitz, Mr. Feinstein and Mr. Ellis qualifies as an "audit committee financial expert," as such term is defined in Item 407(d)(5) of Regulation S-K.

 The Board of Directors adopted a charter for the Audit Committee. A copy of the Audit Committee charter is available in the Corporate Governance section of our website at  The Audit Committee reviews and reassesses the adequacy of the charter on an annual basis.
 Compensation Committee
 The Compensation Committee of the Board is responsible for assisting our Board of Directors in discharging its responsibilities relating to the compensation of our Co-Chief Executive Officers, other executive officers and outside directors, as well as administering stock incentive plans. During the fiscal year ended December 29, 2024, there were no employee directors on the Compensation Committee and no Compensation Committee interlocks. The Compensation Committee is required to have a majority of independent directors. The current members of the Compensation Committee are Lynne Collier, Tyler Child, Mark Elenowitz, James Ellis, Peter Feinstein, Matthew Green, John Metz and Andrew Wiederhorn.

 The Compensation Committee is responsible for the following, among other matters, as required from time to time:

 • reviewing and recommending to our board of directors the compensation of our Co-Chief Executive Officers and other executive officers and the outside directors;
 • conducting a performance review of our Co-Chief Executive Officers;
 • administering the Company's incentive-compensation plans and equity-based plans as in effect or as adopted from time to time by the Board of Directors;
 • approving any new equity compensation plan or material change to an existing plan where stockholder approval has not been obtained; and
 • reviewing our compensation policies.

 In addition, the Compensation Committee has established a sub-committee of the Compensation Committee comprised solely of "non-employee directors" within the meaning of Rule 16b-3 of the Exchange Act. The sub-committee is available to administer the Company's equity incentive plans if the Board deems it necessary to comply with Rule 16b-3 of the Exchange Act with respect to any equity awards.

 The Board of Directors has adopted a charter for the Compensation Committee, a copy of which is available in the Corporate Governance section of our website at  The Compensation Committee reviews and reassesses the adequacy of the charter on an annual basis.

 ITEM 11. EXECUTIVE COMPENSATION
 The following table sets forth the compensation for the fiscal years ended December 29, 2024 and December 31, 2023 awarded to, earned by, or paid to each individual who served as principal executive officer of the Company during fiscal 2024 and the other two most highly compensated executive officers. We refer to the individuals included in the Summary Compensation Table as our "named executive officers."

 SUMMARY COMPENSATION TABLE

 Name and
Principal
Position
 Fiscal
Year
 Salary ($)
 Bonus ($)
 Stock Awards (1) ($)

 Option
 Awards (1) ($)

 All Other Compensation ($)

 Total ($)

 2024
 —
 —
 —
 —

 Co-Chief Executive Officer, Co-President and Head of Debt Capital Markets
 2023
 2,200,000
 —
 2,148,000
 —
 4,898,000

 2024
 —
 —
 —
 —

 Co-Chief Executive Officer, Co-President and Chief Financial Officer
 2023
 532,439
 1,000,000
 —
 268,495
 1,669
 1,802,603

 2024
 —
 —
 —
 —

 Chief Development Officer
 2023
 1,100,000
 —
 —
 —
 1,650,000

 2024
 —
 —
 —
 —

 Chief Operating Officer
 2023
 1,100,000
 —
 —
 —
 1,650,000

 Explanatory Notes:
 (1) Amounts shown represent the aggregate grant date fair value computed in accordance with Accounting Standards Codification 718. Assumptions used in the calculation of this amount for fiscal year ended December 29, 2024 are included in Note 14 to the Company's consolidated financial statements for the fiscal year ended December 29, 2024, included in Part IV of this Annual Report on Form 10-K.
 Executive Employment Agreements

 There are no written employment agreements between the Company and any of its employees, other than Kenneth J. Kuick and Robert G. Rosen.

 On May 5, 2023, the Company entered into an Employment Agreement (the "Kuick Agreement") with Kenneth J. Kuick, who has served as the Company's Co-Chief Executive Officer, Co-President and Chief Financial Officer since May 5, 2023. Pursuant to the Kuick Agreement, Mr. Kuick's term as Co-Chief Executive Officer, Co-President and Chief Financial Officer will continue on an at-will basis, unless terminated as provided in the Kuick Agreement.

 Pursuant to the Kuick Agreement, Mr. Kuick's annual base salary is $550,000, subject to an annual merit-based increases in the sole discretion of the Board of Directors of the Company (the "Board"). Mr. Kuick will also be eligible for an annual discretionary bonus in the sole discretion of the Board, except that the annual bonus is guaranteed to be no less than $270,000 annually. Mr. Kuick's eligibility to receive a bonus for any particular calendar year is subject to the achievement by him and the Company, as applicable, of personal and Company-wide targets to be established by the Company in the discretion of the Board.

 Pursuant to the Kuick Agreement, Mr. Kuick will be eligible to receive awards of equity from time to time in the form of stock options, stock purchase rights and/or restricted stock awards. Such awards will be subject to the achievement by Mr. Kuick and the Company, as applicable, of personal and Company-wide targets to be established by the Company, on such terms and subject to such conditions as the Board shall determine as of the date of any such grant. In the event of a change in control (as defined in the Employment Agreement), Mr. Kuick's continuous employment is involuntarily terminated without "cause" (as defined in the Employment Agreement), or Mr. Kuick resigns from continuous employment for "good reason" (as defined in the Kuick Agreement), and in any case other than as a result of his death or disability, then 100% of the equity awards that are then unvested will become fully vested. In addition, in the event that Mr. Kuick's employment is terminated by the Company without "cause" or by Mr. Kuick for "good reason," Mr. Kuick will be entitled to receive severance of six months of base salary payable on the Company's regular payroll schedule.

 The Kuick Agreement also entitles Mr. Kuick to participate in the benefit plans or programs that the Company may make available to employees and their families from time to time. The Kuick Agreement also provides for certain other

 ancillary benefits, including the reimbursement of all reasonable business expenses. In addition, Mr. Kuick is entitled to 15 days of paid time off during each twelve-month period of employment.

 On May 5, 2023, the Company entered into an Employment Agreement (the "Rosen Agreement") with Robert G. Rosen, who has served as the Company's Co-Chief Executive Officer, Co-President and Head of Debt Capital Markets since May 5, 2023. Pursuant to the Rosen Agreement, Mr. Rosen's term as Co-Chief Executive Officer, Co-President and Head of Debt Capital Markets will continue on an at-will basis, unless terminated as provided in the Rosen Agreement.

 Pursuant to the Rosen Agreement, Mr. Rosen's annual base salary is $550,000, subject to an annual merit-based increases in the sole discretion of the Board of Directors of the Company (the "Board"). Mr. Rosen will also be eligible for an annual discretionary bonus in the sole discretion of the Board, except that the annual bonus is guaranteed to be no less than $270,000 annually. Mr. Rosen's eligibility to receive a bonus for any particular calendar year is subject to the achievement by him and the Company, as applicable, of personal and Company-wide targets to be established by the Company in the discretion of the Board.

 Pursuant to the Rosen Agreement, Mr. Rosen will be eligible to receive awards of equity from time to time in the form of stock options, stock purchase rights and/or restricted stock awards. Such awards will be subject to the achievement by Mr. Rosen and the Company, as applicable, of personal and Company-wide targets to be established by the Company, on such terms and subject to such conditions as the Board shall determine as of the date of any such grant. In the event of a change in control (as defined in the Rosen Agreement), Mr. Rosen's continuous employment is involuntarily terminated without "cause" (as defined in the Rosen Agreement), or Mr. Rosen resigns from continuous employment for "good reason" (as defined in the Rosen Agreement), and in any case other than as a result of his death or disability, then 100% of the equity awards that are then unvested will become fully vested. In addition, in the event that Mr. Rosen's employment is terminated by the Company without "cause" or by Mr. Rosen for "good reason," Mr. Rosen will be entitled to receive severance of twelve months of base salary payable on the Company's regular payroll schedule.

 The Rosen Agreement also entitles Mr. Rosen to participate in the benefit plans or programs that the Company may make available to employees and their families from time to time. The Rosen Agreement also provides for certain other ancillary benefits, including the reimbursement of all reasonable business expenses. In addition, Mr. Rosen is entitled to 20 days of paid time off during each twelve-month period of employment.

 OUTSTANDING EQUITY AWARDS AT FISCAL 2024 YEAR END
 The following table summarizes the outstanding equity award holdings of our named executive officers as of December 29, 2024.

 Option Awards
 Stock Awards

 Name
 Number of Securities
Underlying Unexercised
Options (#) Exercisable
 Number of Securities
Underlying Unexercised
Options (#) Unexercisable
 Option Exercise Price ($)
 Option Expiration Date
 Number of Shares or Units of Stock That Have Not Vested (#)
 Market Value of Shares or Units of Stock That Have Not Vested ($)

 100,000
 —
 11.43
 11/16/2031
 —
 —

 Co-Chief Executive Officer, Co-President and Head of Debt Capital Markets
 133,333
 266,667
 5.37
 4/26/2033

 100,000
 11.43
 11/16/2031
 —
 —

 Co-Chief Executive Officer, Co-President and Chief Financial Officer
 16,667
 33,333
 5.37
 4/26/2033

 15,318
 —
 10.68
 10/20/2027
 —
 —

 Chief Development Officer
 15,318
 —
 4.80
 12/10/2028

 100,000
 —
 11.43
 11/16/2031

 15,318
 —
 10.68
 10/20/2027
 —
 —

 Chief Operating Officer
 15,318
 —
 4.80
 12/10/2028

 100,000
 —
 11.43
 11/16/2031

 The terms of the equity awards described above are set forth in the Company's 2017 Omnibus Equity Incentive Plan (the "Plan"). The Plan is a comprehensive incentive compensation plan under which we can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands and its subsidiaries. The Plan, as amended, provides for a maximum of 5,000,000 shares available for grant and is administered by the Compensation Committee of the Board of Directors and its sub-committee described above under Item 10 – Compensation Committee.
 Option Exercises and Stock Vested
 None of the named executive officers acquired shares of the Company's stock through exercise of options during the year ended December 29, 2024.
 Granting of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information
 The Company does not grant equity awards in anticipation of the release of material nonpublic information ("MNPI") that is likely to result in changes to the price of our Class A Common Stock, and does not time the public release of such information based on award grant dates. Equity awards are typically granted according to a predetermined schedule or based on an event such as the recipient's appointment as an officer or director, to ensure consistency and avoid the appearance of timing based on MNPI. The Board and Compensation Committee do not consider MNPI when determining the timing of equity awards or in setting the terms of equity awards, such as grant size or vesting conditions. During the last completed fiscal year, the Company has not made awards to any named executive officer during the period beginning four business days before and ending one business day after the filing of a periodic report on Form 10-Q or Form 10-K or the filing or furnishing of a current report on Form 8-K, and it is the Company's ongoing policy not to time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.
 DIRECTOR COMPENSATION
 The Company uses a combination of cash and stock-based incentive compensation to attract and retain qualified candidates to serve on the Board of Directors. In setting director compensation, the Company considers the significant amount of time that our directors expend in fulfilling their duties to the Company as well as the skill-level required by the Company of members of the Board of Directors.

 We pay each non-employee director serving on our Board of Directors $120,000 in annual cash compensation and an annual equity award of stock options to acquire 30,636 shares of our Class A common stock. The stock options issued to

 directors are awarded under our 2017 Omnibus Equity Incentive Plan. The non-employee director compensation policy may be amended, modified or terminated at any time by our Board of Directors or Compensation Committee.

 At various times upon the quarterly payment dates of the cash component of director compensation, the Board has allowed non-employee directors to receive their cash compensation in the form of Class A common stock of the Company at fair market value at the time the election is made. Under such arrangement, during fiscal 2024, the non-employee directors elected to receive only cash compensation.

 The following table sets forth a summary of the compensation we paid or accrued to our directors for the fiscal year ended December 29, 2024. The compensation paid or accrued for 2024 to directors Donald J. Berchtold, Carmen Vidal, Mason A. Wiederhorn, Taylor D. Wiederhorn and Thayer A. Wiederhorn is disclosed below under the caption "Item 13. Certain Relationships and Related Transactions, and Director Independence".

 Name
 Fees
Earned
or Paid
in Cash
($)
 Stock
Awards
($)
 Option
Awards
($) (1)
 Total
($)

 Andrew A. Wiederhorn (2)

 6,746,249
 —
 6,831,374

 John S. Allen (3)

 —

 (10)
 —
 (10)
 (10)

 Tyler B. Child (4)

 —

 —

 Mark Elenowitz (5)

 —

 James G. Ellis (6)

 —

 Peter R. Feinstein (7)

 —

 Matthew H. Green (8)

 —

 John C. Metz (9)

 —

 (10)
 —
 (10)
 (10)

 (10)
 —
 (10)
 (10)

 (10)
 —
 (10)
 (10)

 Thayer A. Wiederhorn
 (10)
 —
 (10)
 (10)

 Explanatory Notes:
 (1)Amounts shown represent the grant date fair value calculated in accordance with Accounting Standards Codification 718. Assumptions used in the calculation of this amount are included in footnote 14 to the Company's consolidated financial statements included in Part IV of this Annual Report on Form 10-K. During 2024, the directors were each granted options to purchase 30,636 shares of common stock.
 (2)The amount reflects $6,317,750 of fees earned pursuant to Mr. Wiederhorn's consulting agreement, $308,499 of aggregate incremental cost to the Company of providing him with certain personal use of leased aircraft (based on the applicable hourly rate charged to the Company), and $120,000 of standard Board of Directors fees.
 (3) Mr. Allen joined the Board of Directors in September 2023.
 (4) Ms. Child joined the Board of Directors in March 2023.
 (5) Mr. Elenowitz joined the Board of Directors in April 2023.
 (6) Mr. Ellis joined the Board of Directors in September 2023.
 (7) Mr. Feinstein joined the Board of Directors in July 2023.
 (8) Mr. Green joined the Board of Directors in July 2023.
 (9) Mr. Metz joined the Board of Directors in July 2023.
 (10) See the applicable disclosure for this director below under "Item 13. Certain Relationships and Related Transactions, and Director Independence".

 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
 PRINCIPAL STOCKHOLDERS
 Common Stock

 The following table sets forth information, as of February 24, 2025, with respect to the beneficial ownership of our Class A common stock and our Class B common stock by:

 each person known by us to beneficially own more than 5% of our Class A common stock or Class B common stock;

 each of our directors;

 each of our named executive officers; and

 all of our executive officers and directors as a group.

 The number of shares beneficially owned by each stockholder is determined under rules issued by the SEC and includes voting power (if applicable) or investment power with respect to securities. Under these rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power (if applicable) or investment power. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares subject to options, or other rights held by such person that are currently exercisable or will become exercisable within 60 days of the effective date of the disclosure, are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person. Unless otherwise indicated, the address of all listed stockholders is c/o FAT Brands Inc., 9720 Wilshire Blvd., Suite 500, Beverly Hills, California 90212. Each of the stockholders listed below has sole voting power (if applicable) and sole investment power with respect to the shares beneficially owned by such stockholder unless noted otherwise, subject to community property laws where applicable.

 As of February 24, 2025, there were issued and outstanding 16,521,884 shares of Class A common stock and 1,270,805 shares of Class B common stock.

 Class A Common Stock
Beneficially Owned
 Class B Common Stock
Beneficially Owned
 Percent of Total Voting Power

 Name of beneficial owner
 Number
 %
 Number
 %

 Greater than 5% Stockholders

 Fog Cutter Holdings LLC
 7,015,249
 (1)
 42.5
 %
 707,534
 55.7
 %
 55.6
 %

 HOT GFG LLC
 2,259,354
 (2)
 13.7
 %
 —
 *
 *

 Gregory Fortunoff and certain persons
 1,244,688
 (3)
 7.5
 %
 —
 *
 *

 Named Executive Officers and Directors

 Andrew A. Wiederhorn
 295,392
 (4)
 1.8
 %
 11,079
 *
 *

 466,666
 (6)
 2.8
 %
 10,000
 *
 *

 233,333
 (5)
 1.4
 %
 10,000
 *
 *

 John S. Allen

 (7)
 *
 —
 *
 *

 233,727
 (8)
 1.4
 %
 20,309
 1.6
 %
 1.6
 %

 Tyler B. Child
 21,967
 (7)
 *
 *
 *

 50,848
 (9)
 *
 —
 *
 *

 Mark Elenowitz
 22,988
 (10)
 *
 —
 *
 *

 James G. Ellis
 (7)
 *
 —
 *
 *

 Peter R. Feinstein
 (7)
 *
 —
 *
 *

 Matthew H. Green
 (7)
 *
 —
 *
 *

 John C. Metz

 (7)
 *
 —
 *
 *

 30,015
 (11)
 *
 —
 *
 *

 146,735
 (12)
 *
 4,109
 *
 *

 287,345
 (13)
 1.7
 %
 14,989
 1.2
 %
 1.2
 %

 277,258
 (13)
 1.7
 %
 14,652
 1.2
 %
 1.2
 %

 All directors and executive officers as a group (18 persons)
 2,607,211
 (14)
 14.5
 %
 112,944
 8.9
 %
 8.9
 %

 Represents the voting power with respect to all shares of our Class A Common Stock and Class B Common Stock, voting as a single class, beneficially owned by the holder. Each share of Class A Common Stock is entitled to one vote per share and each share of Class B Common Stock is entitled to 2,000 votes per share.

 *

 Represents beneficial ownership of less than 1% of the class.

 (1)
 Based in part on a Schedule 13D/A filed on September 26, 2024 by Fog Cutter Holdings LLC, a limited liability company controlled by a board of managers comprised of Andrew A. Wiederhorn, Taylor A. Wiederhorn, Thayer D. Wiederhorn and Mason A. Wiederhorn. The address of Fog Cutter Holdings LLC is 9720 Wilshire Blvd., Suite 500, Beverly Hills, CA 90212.

 (2)
 Based in part on a Schedule 13G filed jointly on March 8, 2022 by HOT GFG LLC and Ms. Rachel Serruya. Ms. Serruya is the sole Director and President of HOT GFG LLC and may be deemed to have voting and investment power over these shares. Ms. Serruya disclaims beneficial ownership of such securities except to the extent of her indirect pecuniary interest therein, if any. The address provided by HOT GFG LLC is 210 Shields Court, Markham, Ontario, Canada L3R8V2.

 (3)
 Based in part on a Schedule 13D/A filed on August 25, 2022 by Gregory Fortunoff, with an address at 49 West 37th Street, New York, NY 10018. Mr. Fortunoff expressly disclaims beneficial ownership for all purposes of the shares beneficially owned by other persons.

 (4)
 Includes options to purchase 151,060 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure, and 100,000 shares of Class A Common Stock owned by Mr. Wiederhorn's spouse, to which he disclaims beneficial ownership except to the extent of his pecuniary interest therein. Does not include unvested options to purchase an additional 40,848 shares of Class A Common Stock.

 (5)
 Includes options to purchase 133,333 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Does not include unvested options to purchase an additional 16,667 shares of Class A Common Stock.

 (6)
 Includes options to purchase 366,666 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Does not include unvested options to purchase an additional 133,334 shares of Class A Common Stock.

 (7)
 Includes options to purchase 20,424 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Does not include unvested options to purchase an additional 40,848 shares of Class A Common Stock.

 (8)
 Includes options to purchase 30,636 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure.

 (9)
 Includes options to purchase 41,848 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Does not include unvested options to purchase an additional 51,060 shares of Class A Common Stock.

 (10)
 Includes options to purchase 20,424 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Includes warrants to purchase 2,564 shares of Class A Common Stock. Does not include unvested options to purchase an additional 40,848 shares of Class A Common Stock.

 (11)
 Includes options to purchase 30,015 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure.

 (12)
 Includes options to purchase 105,636 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure.

 (13)
 Includes options to purchase 130,636 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure.

 (14)
 Includes options to purchase an aggregate of 1,424,706 shares of Class A Common Stock that have vested or will vest within 60 days of the effective date of the disclosure. Does not include unvested options to purchase an aggregate of 527,848 shares of Class A Common Stock.

 Preferred Stock

 The following table sets forth information, as of February 24, 2025, with respect to the beneficial ownership of our non-voting Series B Cumulative Preferred Stock (the "Series B Preferred Stock") by each of our directors, each of our named executive officers, and all of our executive officers and directors as a group. As of February 24, 2025, there were 8,407,787 issued and outstanding shares of Series B Preferred Stock.

 Series B Preferred Stock
 Beneficially Owned

 Name of Beneficial Owner

 Shares

 %

 Named Executive Officers and Directors

 Andrew A. Wiederhorn

 1,643
 *

 *

 2,000
 *

 John S. Allen

 —
 *

 —
 *

 Tyler B. Child
 —
 *

 —
 *

 Mark Elenowitz
 9,686
 *

 James G. Ellis
 —
 *

 Peter R. Feinstein
 —
 *

 Matthew H. Green
 —
 *

 John C. Metz
 71,306
 *

 —
 *

 —
 *

 *

 1,689
 *

 All directors and executive officers as a group (18 persons)

 90,936
 1.1
 %

 *

 Represents beneficial ownership of less than 1% of the class.

 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
 Parent Company
 As disclosed above under "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters," Fog Cutter Holdings, LLC beneficially holds approximately 55.6% of the voting power with respect to all shares of our common stock.
 Transactions with Related Persons
 The following is a summary of (i) family relationships among our directors, director nominees, and executive officers, and (ii) reportable related person transactions since the beginning of our 2023 fiscal year (which began on December 26, 2022) or currently proposed to which we were or will be a party:

 • in which the amount involved exceeds $120,000; and
 • in which any director, director nominee, executive officer, stockholder who beneficially owns 5% or more of our common stock or any member of their immediate family had or will have a direct or indirect material interest.

 Andrew Wiederhorn, our current Chairman of the Board and former President and Chief Executive Officer, entered into a written Separation, Cooperation, and Release Agreement (the "Separation Agreement") and Consulting Agreement (the "Consulting Agreement") with the Company on July 19, 2023. Under the Separation Agreement, Mr. Wiederhorn was entitled to receive any accrued but unpaid base salary and the value of any accrued and unused vacation through his resignation date in accordance with his Employment Agreement. In addition, Mr. Wiederhorn was entitled to receive a final bonus under his Employment Agreement for such portion of 2023 through his separation date in the amount of $950,000. Mr. Wiederhorn's stock options will continue to vest after his resignation date as long as he continues to provide services to the Company as a consultant. Under the Separation Agreement, Mr. Wiederhorn provided a general release of the Company, and the Company released Mr. Wiederhorn from certain claims related to his employment and separation from the Company, subject in each case to certain exceptions. Mr. Wiederhorn also agreed to assist and cooperate with the Company in transitioning his duties, as well

 as with any investigations, legal claims, or other matters related to his past employment. In addition, the Company agreed that, unless otherwise prohibited by applicable law, any attorney fees and expenses advanced to Mr. Wiederhorn by the Company in connection with the Company's pending litigation and governmental investigations are awarded to him under the Separation Agreement. The Consulting Agreement provides that Mr. Wiederhorn will provide specified non-executive consulting services to the Company, including advice regarding corporate strategy, acquisitions, capital allocation, financing and restaurant/franchise operations. In consideration for such services, the Consulting Agreement provides that the Company will pay to Fog Cutter Consulting Corp., a company affiliated with Mr. Wiederhorn, an hourly fee of $1,850. In addition, while Mr. Wiederhorn remains a director of the Company, he will receive standard Board fees as a non-employee director. The Consulting Agreement also contains customary confidentiality obligations by Mr. Wiederhorn and an assignment to the Company of intellectual property developed by Mr. Wiederhorn in the course of providing consulting services to the Company.

 John C. Metz joined our Board of Directors on July 11, 2023. Mr. Metz is the President and owner of RREMC Restaurants, LLC, which franchisees certain of the Company's Hurricane Dockside Grill restaurants under standard franchise terms for the Company's Hurricane brand. Under such arrangements, RREMC Restaurants, LLC pays to the Company a standard royalty rate on net sales plus marketing fees, which totaled approximately $549,600 since the beginning of our 2024 fiscal year and $692,975 for our 2023 fiscal year. In addition, in January 2022 Mr. Metz accepted a consulting fee from the Company of $160,000 in connection with the Company's acquisition of Native Grill & Wings.

 Thayer Wiederhorn serves as Chief Operating Officer and a member of the Board of Directors of the Company. He is the son of Andrew Wiederhorn, grandson of Donald Berchtold, nephew of Tyler Child and Jacob Berchtold, and brother of Taylor Wiederhorn and Mason Wiederhorn, none of whom have a material interest in Thayer Wiederhorn's employment or share a household with him. For fiscal years 2023 and 2024 he received an annual base salary of $550,000, and a bonus of $1,100,000 for fiscal 2023. During those periods he also participated in the general welfare and benefit plans of the Company and vested in stock options to purchase an aggregate of 66,667 shares of the Company's Class A common stock granted in previous years.

 Taylor Wiederhorn serves as Chief Development Officer and a member of the Board of Directors of the Company. He is the son of Andrew Wiederhorn, grandson of Donald Berchtold, nephew of Tyler Child and Jacob Berchtold, and brother of Thayer Wiederhorn and Mason Wiederhorn, none of whom have a material interest in Taylor Wiederhorn's employment or share a household with him. For fiscal years 2023 and 2024 he received an annual base salary of $550,000, and a bonus of $1,100,000 for fiscal 2023. During those periods he also participated in the general welfare and benefit plans of the Company and vested in stock options to purchase an aggregate of 66,667 shares of the Company's Class A common stock granted in previous years.

 Mason Wiederhorn serves as Chief Brand Officer and a member of the Board of Directors of the Company. He is the son of Andrew Wiederhorn, grandson of Donald Berchtold, nephew of Tyler Child and Jacob Berchtold, and brother of Thayer Wiederhorn and Taylor Wiederhorn, none of whom have a material interest in Mason Wiederhorn's employment or share a household with him. For fiscal years 2023 and 2024 he received an annual base salary of $500,000, and a bonus of $1,000,000 for fiscal 2023. During those periods he also participated in the general welfare and benefit plans of the Company and vested in stock options to purchase an aggregate of 50,000 shares of the Company's Class A common stock granted in previous years.

 Donald Berchtold serves as Chief Creative Officer and a member of the Board of Directors of the Company. He is the father of director Tyler Child and grandfather of Thayer Wiederhorn, Taylor Wiederhorn and Mason Wiederhorn, none of whom have a material interest in Mr. Berchtold's employment or share a household with him. For fiscal years 2023 and 2024 he received an annual base salary of $275,000, and a bonus of $75,000 for fiscal 2023. During those periods he also participated in the general welfare and benefit plans of the Company.

 Jacob Berchtold serves as Chief Operating Officer of the Fast Casual Division of the Company, and has been involved in restaurant operations of the Company and its predecessors since 2005. He is the son of Donald Berchtold, brother of Tyler Child and uncle of Thayer Wiederhorn, Taylor Wiederhorn and Mason Wiederhorn, none of whom have a material interest in Jacob Berchtold's employment or share a household with him. For fiscal years 2023 and 2024 he received an annual base salary of $350,000, and a bonus of $100,000 for fiscal 2023. During those periods he also participated in the general welfare and benefit plans of the Company and vested in stock options to purchase an aggregate of 50,000 shares of the Company's Class A common stock granted in previous years.

 Carmen Vidal serves as the Company's International Legal Counsel and Director of International Franchise Development (Europe/Middle East/North Africa). For fiscal years 2023 and 2024 she received an annual base salary of $182,000 and a bonus of $50,000 for fiscal 2023. During those periods she also participated in the general welfare and benefit

 plans of the Company and vested in stock options to purchase an aggregate of 16,666 shares of the Company's Class A common stock granted in previous years.
 Director Independence
 From the inception of our Company in 2017 until March 2023, a majority of our Board was independent and we had a standalone, fully independent compensation committee, nominating and audit committees. In March 2023, the Board was refreshed and expanded to ten persons, and all four members of the board of managers of our majority stockholder joined the Company's Board of Directors (Andrew Wiederhorn, Mason Wiederhorn, Taylor Wiederhorn, and Thayer Wiederhorn). Since March 2023, the size of our Board was expanded to 14 persons and additional independent directors were appointed.
 Currently, eight of our directors are considered independent within the meaning of the applicable rules and regulations of the SEC and the director independence standards of The NASDAQ Stock Market LLC ("NASDAQ") (Ms. Collier, Ms. Child, and Messrs. Allen, Elenowitz, Ellis, Feinstein, Green, and Metz). Mr. Elenowitz currently serves as the lead independent director on the Board of Directors.
 Furthermore, the Board has determined that each member of the audit committee is "independent" under the applicable rules and regulations of the SEC and the director independence standards of NASDAQ applicable to the audit committee, as currently in effect.

 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
 Effective as of June 27, 2023, the Company engaged Macias, Gini & O'Connell, LLP ("MGO") to serve as the Company's independent registered public accounting firm for the fiscal years ending December 29, 2024 and December 31, 2023. The decision to engage MGO was also approved by the Audit Committee of the Company's Board of Directors.
 The aggregate accounting fees paid to MGO for the years ended December 29, 2024 and December 31, 2023 are as follows (dollars in thousands):

 Audit fees
 $
 1,940
 $

 Audit related fees
 $
 —
 $
 —

 Other fees
 $
 —
 $
 —

 Audit Committee Pre-Approval Policies and Procedures. The Audit Committee reviews the independence of our independent registered public accounting firm on an annual basis and has determined that MGO is independent. In addition, the Audit Committee pre-approves all work (and the related estimated fees) that is to be performed by our independent registered public accounting firm.

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)Financial Statements
 FAT Brands Inc.

 Audited Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm (PCAOB ID 324)

 Consolidated Balance Sheets as of December 29, 2024 and December 31, 2023

 Consolidated Statements of Operations for the Fiscal Years Ended December 29, 2024 and December 31, 2023

 Consolidated Statements of Changes in Stockholders' Deficit for the Fiscal Years Ended December 29, 2024 and December 31, 2023

 Consolidated Statements of Cash Flows for the Fiscal Years Ended December 29, 2024 and December 31, 2023

 Notes to Consolidated Financial Statements

 (b)Exhibits – See Exhibit Index immediately following the signatures page.

 Report of Independent Registered Public Accounting Firm

 To the Stockholders and the Board of Directors of FAT Brands Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance sheets of FAT Brands Inc. and its subsidiaries (the Company) as of December 29, 2024 and December 31, 2023, the related consolidated statements of operations, stockholders' deficit and cash flows for the years then ended, and the related notes to the consolidated financial statements and Schedule II (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

 Basis for Opinion

 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provides a reasonable basis for our opinion.

 Critical Audit Matter

 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 Goodwill and Indefinite-Lived Intangible Asset Impairment Assessment

 Critical Audit Matter Description

 As discussed in Note 2 of the financial statements, goodwill and indefinite-lived intangible assets are tested for impairment at least annually, and more frequently if events or changes in circumstances between annual tests indicate a potential impairment. Goodwill is evaluated for impairment by determining whether the fair values of the Company's reporting units exceed their carrying values and indefinite-lived intangible assets are evaluated for impairment by determining whether the fair values of such indefinite-lived intangible assets exceed their carrying values. The Company determined that goodwill or the indefinite-lived intangible asset related to certain brands was impaired and the Company recorded a related impairment loss for the year ended December 29, 2024. The determination of the fair value of the reporting units and indefinite-lived intangible assets required significant estimates and assumptions. Minor changes in these assumptions could have a significant impact on either the fair value of the reporting units and indefinite-lived intangible assets, the amount of any goodwill or indefinite-lived intangible asset impairment charge, or both.

 We identified the impairment assessment of goodwill and indefinite-lived intangible assets as a critical audit matter. Auditing management's goodwill and indefinite-lived impairment tests was especially challenging and complex due to the significant

 estimation underlying the determination of fair values. In particular, the fair value estimates were sensitive to changes in the significant assumptions used under the income and market approaches utilized to determine the fair value of goodwill and the relief from royalty method utilized to determine the fair value of the indefinite-lived intangible asset. Significant assumptions made by management in estimating fair value under the income and market approaches included future trends in sales, the appropriate discount rate, the selection of guideline companies and the valuation multiples applied. Significant assumptions used to determine fair value under the relief of royalty method included future trends in sales, the royalty rate and the appropriate discount rate.

 How the Critical Audit Matter Was Addressed in Our Audit

 The primary procedures we performed to address this critical audit matter included:

 • Understanding the design of certain internal controls related to the Company's goodwill and indefinite-lived intangible asset impairment process;
 • Reviewing management's goodwill and indefinite-lived intangible asset impairment analysis including the determination of fair value of the reporting units and indefinite-lived intangible assets tested;
 • Comparing the actual sales to those forecasted by the Company in previous years in order to assess the historical accuracy of management's forecasting;
 • Utilizing a valuation professional with specialized skills and knowledge, who assisted in evaluating the valuation methodologies utilized by the Company for goodwill and indefinite-lived intangible assets by comparing the methodologies to those utilized by other companies holding similar assets, and comparing management's assumption inputs to information from external sources and available economic forecasts and data;
 • Testing the completeness and accuracy of underlying data used in the models
 • Comparing the estimated fair value of the reporting units to the Company's market capitalization and evaluating whether any variances from the projections or changes in market capitalization were indicative of potential impairment;
 • Evaluating whether the significant assumptions used in the goodwill and indefinite-lived intangible assets impairment analysis were reasonable by considering the past performance of reporting units and third party industry data, and whether such assumptions were consistent with evidence obtained in other areas of the audit; and
 • Performing sensitivity analysis over certain significant inputs and assumptions of the Company to assess the impact any changes to those assumptions could have had on the Company's fair value estimate.

 /s/ Macias Gini & O'Connell LLP
 We have served as the Company's auditor since 2023.

 Irvine, CA

 CONSOLIDATED BALANCE SHEETS
 (in thousands, except share data)

 Assets

 Current assets

 Cash
 $
 23,383
 $
 37,044

 Restricted cash
 25,239
 39,271

 Accounts receivable, net
 19,422
 21,146

 Inventory
 8,420
 9,306

 Assets classified as held-for-sale
 3,756

 Other current assets
 11,200
 10,486

 Total current assets
 88,034
 121,009

 Non-current restricted cash
 18,767
 15,588

 198,091
 220,035

 Goodwill
 285,337
 305,089

 Other intangible assets, net
 595,689
 620,622

 Property and equipment, net
 97,390
 100,524

 Other assets
 5,870
 5,371

 Total assets
 $
 1,289,178
 $
 1,388,238

 Liabilities and Stockholders' Deficit

 Liabilities

 Current liabilities

 Accounts payable
 $
 38,725
 $
 21,809

 Accrued expenses and other liabilities
 68,084
 58,903

 Deferred income, current portion
 2,275
 2,490

 Accrued advertising
 5,307
 7,992

 Accrued interest payable
 24,837
 24,961

 Dividend payable on preferred shares
 1,389
 1,325

 Liabilities related to assets classified as held- for-sale
 3,421

 Operating lease liability, current portion
 16,229
 17,254

 Redeemable preferred stock
 91,836
 91,836

 Long-term debt, current portion
 49,241
 42,611

 Acquisition purchase price payable
 —
 4,000

 Total current liabilities
 298,316
 276,602

 Deferred income, net of current portion
 20,347
 21,958

 Deferred income tax liabilities, net
 13,772
 18,805

 Operating lease liability, net of current portion
 200,132
 211,744

 Long-term debt, net of current portion
 1,208,997
 1,110,308

 Other liabilities
 3,326
 4,684

 Total liabilities
 1,744,890
 1,644,101

 Commitments and contingencies (Note 16)

 Stockholders' deficit

 Preferred stock: $ 0.0001 par value; 15,000,000 shares authorized; 3,591,706 shares issued and outstanding at December 29, 2024 and 3,591,804 shares issued and outstanding at December 31, 2023; liquidation preference $ 25 per share

 40,837

 Class A and Class B common stock and additional paid-in capital as of December 29, 2024: $ 0.0001 par value per share; 51,600,000 shares authorized (Class A 50,000,000, Class B 1,600,000); 17,254,683 shares issued and outstanding (Class A 15,983,878, Class B 1,270,805). Common stock and additional paid-in capital as of December 31, 2023: $ 0.0001 par value; 51,600,000 shares authorized (Class A 50,000,000, Class B 1,600,000); 16,900,099 shares issued and outstanding (Class A 15,629,294, Class B 1,270,805)

 ( 37,925)
 ( 31,189)

 Accumulated deficit
 ( 458,624)
 ( 268,777)

 Total stockholders' deficit
 ( 455,712)
 ( 255,863)

 Total liabilities and stockholders' deficit
 $
 1,289,178
 $
 1,388,238

 The accompanying notes are an integral part of these audited consolidated financial statements.

 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except share and per share data)

 For the Fiscal Years Ended December 29, 2024 and December 31, 2023
 2024
 2023

 Revenue

 Royalties
 $
 90,035
 $
 94,036

 Restaurant sales
 413,480
 299,029

 Advertising fees
 39,473
 39,490

 Factory revenues
 37,949
 37,983

 Franchise fees
 6,487
 4,979

 Other revenue
 5,228
 4,940

 Total revenue
 592,652
 480,457

 Costs and expenses

 General and administrative expense
 128,564
 93,117

 Cost of restaurant and factory revenues
 393,131
 282,887

 Depreciation and amortization
 41,528
 31,131

 Impairment of goodwill and other intangible assets
 30,600

 Refranchising loss
 1,949
 2,873

 Advertising fees
 49,100
 47,619

 Total costs and expenses
 644,872
 458,127

 (Loss) income from operations
 ( 52,220)
 22,330

 Other (expense) income, net

 Interest expense
 ( 120,580)
 ( 99,342)

 Interest expense related to preferred shares
 ( 17,670)
 ( 18,189)

 Net loss on extinguishment of debt
 ( 1,798)
 ( 2,397)

 Other (expense) income, net
 ( 332)
 1,233

 Total other expense, net
 ( 140,380)
 ( 118,695)

 Loss before income tax benefit
 ( 192,600)
 ( 96,365)

 Income tax benefit
 ( 2,753)
 ( 6,255)

 $
 $

 $
 $

 Dividends on preferred shares

 $
 ( 197,626)
 $
 ( 97,117)

 Basic and diluted loss per common share
 $
 ( 11.60)
 $
 ( 5.85)

 Basic and diluted weighted average shares outstanding
 17,041,888
 16,599,015

 Cash dividends declared per common share
 $
 0.56
 $
 0.56

 The accompanying notes are an integral part of these audited consolidated financial statements.

 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
 (in thousands, except share data)

 For the Fiscal Year Ended December 29, 2024

 Common Stock
 Preferred Stock

 Class A Shares
 Class B Shares
 Class A Par
Value
 Class B Par
Value
 Additional
Paid-In
 Capital
 Total
Common
 Stock
 Shares
 Par
Value
 Additional
Paid-In
 Capital
 Total
Preferred
 Stock
 Accumulated
Deficit
 Total

 Balance at December 31, 2023
 15,629,294
 1,270,805
 $
 $
 —
 $
 ( 31,191)
 $
 ( 31,189)
 3,591,804
 $
 —
 $
 $
 $
 ( 268,777)
 $
 ( 255,863)

 —
 —
 —
 —
 —
 —
 —
 —
 —
 —

 Issuance of common and preferred stock
 354,584
 —
 —
 —
 359,902
 —
 4,513
 4,513
 —
 4,996

 Share-based compensation
 —
 —
 —
 —
 2,330
 2,330
 —
 —
 —
 —
 —
 2,330

 Dividends paid on common stock
 —
 —
 —
 —
 ( 9,549)
 ( 9,549)
 —
 —
 —
 —
 —
 ( 9,549)

 Dividends paid on Series B preferred stock
 —
 —
 —
 —
 —
 —
 —
 —
 —

 Balance at December 29, 2024
 15,983,878
 1,270,805
 $
 $
 —
 $
 ( 37,927)
 $
 ( 37,925)
 3,951,706
 $
 —
 $
 40,837
 $
 40,837
 $
 ( 458,624)
 $
 ( 455,712)

 For the Fiscal Year Ended December 31, 2023

 Common Stock
 Preferred Stock

 Class A Shares
 Class B Shares
 Class A Par
Value
 Class B Par
Value
 Additional
Paid-In
 Capital
 Total
Common
 Stock
 Shares
 Par
Value
 Additional
Paid-In
 Capital
 Total
Preferred
 Stock
 Accumulated
Deficit
 Total

 Balance at December 25, 2022
 15,300,870
 1,270,805
 $
 $
 —
 $
 ( 26,017)
 $
 ( 26,015)
 3,252,154
 $
 —
 $
 45,504
 $
 45,504
 $
 ( 178,667)
 $
 ( 159,178)

 —
 —
 —
 —
 —
 —
 —
 —
 —
 —

 Issuance of common stock and preferred stock
 328,424
 —
 —
 —
 339,650
 —
 5,606
 5,606
 —
 6,157

 Share-based compensation
 —
 —
 —
 —
 3,615
 3,615
 —
 —
 —
 —
 —
 3,615

 Dividends paid on common stock
 —
 —
 —
 —
 ( 9,340)
 ( 9,340)
 —
 —
 —
 —
 —
 ( 9,340)

 Dividends paid on Series B preferred stock
 —
 —
 —
 —
 —
 —
 —
 —
 —

 Balance at December 31, 2023
 15,629,294
 1,270,805
 $
 $
 —
 $
 ( 31,191)
 $
 ( 31,189)
 3,591,804
 $
 —
 $
 $
 $
 ( 268,777)
 $
 ( 255,863)

 The accompanying notes are an integral part of these audited consolidated financial statements.

 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
 For the Fiscal Years Ended December 29, 2024 and December 31, 2023

 2024
 2023

 Cash flows from operating activities

 $
 $

 Adjustments to reconcile net loss to net cash used in operations:

 Deferred income taxes
 ( 5,032)
 ( 8,376)

 Net loss on extinguishment of debt
 1,798
 2,397

 Depreciation and amortization
 41,528
 31,131

 Share-based compensation
 2,330
 3,615

 Change in operating right-of-use assets
 8,781

 Accretion of loan fees and interest
 22,647
 13,538

 Impairment of goodwill and other intangible assets
 30,600

 Provision (recovery) for bad debts
 1,029
 ( 9,827)

 Loss on disposal of PP&E
 —

 Change in:

 Accounts receivable
 12,571

 Inventory
 ( 2,381)

 Other current and noncurrent assets
 ( 1,547)
 ( 6,129)

 Accounts payable
 16,916
 3,481

 Accrued expense and other liabilities
 9,171
 6,101

 Deferred income
 ( 1,826)

 Accrued advertising
 ( 2,685)
 ( 6,828)

 Accrued interest payable
 8,785
 11,720

 Dividend payable on preferred shares
 ( 142)

 Other current and noncurrent liabilities
 ( 957)
 2,344

 Total adjustments
 133,601
 54,502

 Net cash used in operating activities
 ( 56,246)
 ( 35,608)

 Cash flows from investing activities

 Acquisitions, net of cash acquired
 —
 ( 38,597)

 Acquisition of intangible assets
 —
 ( 2,607)

 Payments received on notes receivable

 Purchases of property and equipment
 ( 22,801)
 ( 18,896)

 Payment of acquisition purchase price payable
 ( 4,000)
 —

 Net cash used in investing activities
 ( 26,467)
 ( 59,805)

 Cash flows from financing activities

 Proceeds from borrowings, net of issuance costs
 530,864
 183,112

 Repayments of borrowings
 ( 460,333)
 ( 54,369)

 Proceeds from issuance of common and preferred shares
 4,996
 6,157

 Dividends paid on common shares
 ( 9,549)
 ( 9,340)

 Dividends paid on preferred shares

 Net cash provided by financing activities
 58,199
 118,553

 Net increase (decrease) in cash and restricted cash
 ( 24,514)
 23,140

 Cash and restricted cash at beginning of the period
 91,903
 68,763

 Cash and restricted cash at end of the period
 $
 67,389
 $
 91,903

 Supplemental disclosures of cash flow information:

 Cash paid for interest
 $
 119,674
 $
 109,388

 Cash paid for income taxes
 $
 1,885
 $
 1,752

 The accompanying notes are an integral part of these audited consolidated financial statements.

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 NOTE 1. ORGANIZATION AND RELATIONSHIPS
 Organization and Nature of Business
 FAT Brands Inc. (the "Company") is a leading multi-brand restaurant franchising company that develops, markets and acquires primarily quick-service, fast casual, casual and polished casual dining restaurant concepts around the world. Organized in March 2017 as a wholly-owned subsidiary of Fog Cutter Capital Group, Inc. ("FCCG"), the Company completed its initial public offering on October 20, 2017 and issued additional shares of common stock representing 20 percent of its ownership upon completion of the offering. During the fourth quarter of 2020, the Company completed a transaction in which FCCG merged into a wholly-owned subsidiary of the Company, and the Company became the parent of FCCG.
 As of December 29, 2024, the Company owned eighteen restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Smokey Bones, Great American Cookies, Hot Dog on a Stick, Buffalo's Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses. As of December 29, 2024, the Company had approximately 2,300 locations open and under construction, of which approximately 92 % were franchised.
 Each franchising subsidiary licenses the right to use its brand name and provides franchisees with operating procedures and methods of merchandising. Upon signing a franchise agreement, the franchisor is committed to provide training, some supervision and assistance, and access to operations manuals. As needed, the franchisor will also provide advice and written materials concerning techniques of managing and operating the restaurants.
 The Company's operations have historically been comprised primarily of franchising a growing portfolio of restaurant brands. This growth strategy is centered on expanding the footprint of existing brands and acquiring new brands through a centralized management organization which provides substantially all executive leadership, marketing, training and accounting services. As part of these ongoing franchising efforts, the Company will, from time to time, make opportunistic acquisitions of operating restaurants and may convert them to franchise locations. During the refranchising period, the Company may operate the restaurants and classifies the operational activities as refranchising gains or losses and the assets and associated liabilities as held-for sale. Through recent acquisitions, the Company also operates "company owned" restaurant locations of certain brands. Our revenues are derived primarily from two sales channels, franchised restaurants and company owned restaurants, which we operate as one segment.
 Liquidity
 The Company recognized loss from operations of $ 52.2 million during fiscal year 2024 and income from operations of $ 22.3 million during fiscal year 2023. The Company has a history of net losses and an accumulated deficit of $ 458.6 million as of December 29, 2024. Additionally, as of December 29, 2024, the Company had negative working capital of $ 210.3 million. Of this amount, $ 91.8 million represents the current portion of redeemable preferred stock as discussed in Note 12. Since the Company did not deliver the applicable cash proceeds at the related due dates, the amount accrues interest until the payments are completed. The Company had $ 23.4 million of unrestricted cash as of December 29, 2024 and plans on the combination of cash flows from operations, cash on hand, $ 100.6 million of issued but not sold aggregate principal amount of fixed rate secured notes and $ 64.2 million aggregate principal amount of repurchased but not re-sold fixed rate secured notes (see Note 10) to be sufficient to cover any working capital requirements for the next twelve months from the date of this report. If the Company does not achieve its operating plan, additional forms of financing may be required through the issuance of debt or equity. Although management believes it will have access to financing, no assurances can be given that such financing will be available on acceptable terms, in a timely manner or at all.

 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of presentation – The accompanying audited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Our revenues are derived primarily from two sales channels, franchised restaurants and company-owned locations, which we operate as one reportable segment. (See Note 18)
 The accompanying audited consolidated financial statements have been prepared pursuant to accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company's results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature.
 Nature of operations – The Company operates on a 52-week calendar and its fiscal year ends on the last Sunday of the calendar year. Consistent with the industry practice, the Company measures its stores' performance based upon 7-day work weeks. Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days, since certain days are more profitable than others. The use of this fiscal year means a 53rd week is added to the fiscal year every 5 or 6 years, as was the case in fiscal year 2023. In a 52-week year, all four quarters are comprised of 13 weeks. In a 53-week year, one extra week is added to the fourth quarter. Fiscal year 2024 was a 52-week year and 2023 was a 53-week year.
 Principles of consolidation – The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. Newly-acquired subsidiaries are included from the date of acquisition. Intercompany accounts have been eliminated in consolidation.
 Use of estimates in the preparation of the consolidated financial statements – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the determination of fair values of goodwill and other intangible assets, the allocation of basis between assets acquired, sold or retained, allowances for uncollectible notes receivable and accounts receivable, and the valuation allowance related to deferred tax assets. Estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 Credit and depository risks – Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Management evaluates each of its franchisee's financial condition prior to entry into a franchise or other agreement, as well as periodically through the term of the agreement, and believes that it has adequately provided for any exposure to potential credit losses. As of December 29, 2024 and December 31, 2023, accounts receivable, net of allowance for doubtful accounts, totaled $ 19.4 million and $ 21.1 million, respectively, with no franchisee representing more than 10% of that amount.
 Restricted cash – The Company has restricted cash consisting of funds required to be held in trust in connection with its securitized debt. The current portion of restricted cash was $ 25.2 million and $ 39.3 million as of December 29, 2024 and December 31, 2023, respectively. Noncurrent restricted cash of $ 18.8 million and $ 15.6 million as of December 29, 2024 and December 31, 2023, respectively, represents interest reserves required to be set aside for the duration of the securitized debt.
 Accounts receivable – Accounts receivable are recorded at the invoiced amount and are stated net of an allowance for doubtful accounts on the Consolidated Balance sheets. Accounts receivable net of allowance for doubtful accounts as of December 25, 2022 was $ 23.9 million. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in existing accounts receivable. The allowance is based on historical collection data and current franchisee information. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 29, 2024 and December 31, 2023 accounts receivable was stated net of an allowance for doubtful accounts of $ 3.9 million and $ 3.7 million, respectively.
 Employee Retention Tax Credits - On March 27, 2020, the U.S. government enacted the Coronavirus Aid Relief and Security Act (the "CARES Act") to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit ("ERC"). As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, the Company accounts for the ERC by analogy to International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance ("IAS 20"). During 2024, the Company received and recognized $ 3.6 million of ERCs recorded in "General and administrative expense" in the Consolidated Statements of operations.
 Inventories – Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials used in the Company's dough manufacturing facility in Atlanta, Georgia, and finished goods which consist primarily of food, beverages and supplies for Company restaurants. Inventory costs are included in "Cost of restaurant and factory revenues" in the Consolidated Statements of Operations.
 Assets classified as held-for-sale – Assets are classified as held-for-sale when the Company commits to a plan to sell the asset, the asset is available for immediate sale in its present condition, and an active program to locate a buyer at a reasonable price has been initiated. The sale of these assets is generally expected to be completed within one year. The combined assets are valued at the lower of their carrying amount or fair value, net of costs to sell, and included as current assets on the Company's consolidated balance sheet. Assets classified as held-for-sale are not depreciated. However, interest attributable to the liabilities
 associated with assets classified as held-for-sale and other related expenses are recorded as expenses in the Company's consolidated statement of operations.
 Goodwill and other intangible assets – Intangible assets are stated at the estimated fair value at the date of acquisition and include goodwill, trademarks, and franchise agreements. Goodwill and other intangible assets with indefinite lives, such as trademarks, are not amortized but are reviewed for impairment annually or more frequently if indicators arise. All other intangible assets are amortized over their estimated weighted average useful lives, which range from 2.2 years to 15.4 years. Management assesses potential impairments to intangible assets at least annually, or when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. Judgments regarding the existence of impairment indicators and future cash flows related to intangible assets are based on operational performance of the acquired businesses, market conditions and other factors.
 Property and Equipment, net - Property and Equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The useful lives of our property and equipment typically range from 3 to 7 years. Upon retirement or other disposal of property and equipment, the cost and related amounts of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds, is recorded in earnings. On an annual basis the Company assesses its property and equipment for impairment.
 Fair value measurements - The Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in U.S. GAAP. As necessary, the Company measures its financial assets and liabilities using inputs from the following three levels of the fair value hierarchy:
 • Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities.
 • Level 2 - Inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active
 markets for similar assets or liabilities.
 • Level 3 - Inputs are unobservable and reflect the Company's own assumptions.
 The Company does not have a material amount of financial assets or liabilities that are required to be measured at fair value on a recurring basis under U.S. GAAP. None of the Company's non-financial assets or non-financial liabilities are required to be measured at fair value on a recurring basis.
 Income taxes – The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A valuation allowance is recognized when the realization of our deferred tax assets is expected to be less than our carrying amounts.
 A two-step approach is utilized to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
 Franchise fees - The franchise arrangement is documented in the form of a franchise agreement. The franchise arrangement requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which includes the transfer of the franchise license. The services provided by the Company are highly inter-related with the franchise license and are considered a single performance obligation. Franchise fee revenue from the sale of individual franchises is recognized over the term of the individual franchise agreement on a straight-line basis. Unamortized non-refundable deposits collected in relation to the sale of franchises are recorded as deferred income.
 The franchise fee may be adjusted from time to time at management's discretion. Deposits are non-refundable upon acceptance of the franchise application. In the event a franchisee does not comply with their development timeline for opening franchise stores, the franchise rights may be terminated, at which point the franchise fee revenue is recognized for non-refundable deposits.
 Royalties – In addition to franchise fee revenue, the Company collects a royalty calculated as a percentage of net sales from our franchisees. Royalties typically range from 0.75 % to 7.0 % and are recognized as revenue when the related sales are made by the franchisees. Royalties collected in advance of sales are classified as deferred income until earned.
 Company-owned restaurant revenue - Company-owned restaurant revenue is recognized at the point in time when food and beverage products are sold. Company restaurant sales are presented net of sales-related taxes collected from customers and remitted to governmental taxing authorities.
 Advertising – The Company requires advertising fee payments from franchisees based on a percent of net sales. The Company also receives, from time to time, payments from vendors that are to be used for advertising. Advertising funds collected are required to be spent for specific advertising purposes. Advertising revenue and the associated expense are recorded gross on the Company's consolidated statement of operations. Assets and liabilities associated with the related advertising fees are reflected in the Company's consolidated balance sheet.
 Share-based compensation – The Company has a stock option plan which provides for options to purchase shares of the Company's common stock. Options issued under the plan may have a variety of terms as determined by the Board of Directors including the option term, the exercise price and the vesting period. Options granted to employees and directors are valued at the date of grant and recognized as an expense over the vesting period in which the options are earned. Cancellations or forfeitures are accounted for as they occur. Stock options issued to non-employees as compensation for services are accounted for based upon the estimated fair value of the stock option. The Company recognizes this expense over the period in which the services are provided. Management utilizes the Black-Scholes option-pricing model to determine the fair value of the stock options issued by the Company. See Note 14 for more details on the Company's share-based compensation.
 Earnings per share – The Company reports basic earnings or loss per share in accordance with FASB ASC 260, "Earnings Per Share". Basic earnings per share is computed using the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed using the weighted average number of common shares outstanding plus the effect of dilutive securities during the reporting period. Any potentially dilutive securities that have an anti-dilutive impact on the per share calculation are excluded. During periods in which the Company reports a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of the inclusion of all potentially dilutive securities would be anti-dilutive. As of December 29, 2024, and December 31, 2023, there were no potentially dilutive securities considered in the calculation of diluted loss per common share due to net losses for each period.
 Recently Adopted Accounting Standards
 In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. The amendments improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The Company adopted ASU No. 2023-07 for our fiscal year 2024 annual financial statements and interim financial statements thereafter and have applied this standard retrospectively for all periods presented in the consolidated financial statements. See Note 18 for more details on the Company's segment information.
 Recently Issued Accounting Standards Not Yet Adopted

 In November 2024, the FASB issued ASU No. 2024-03, Income Statement —Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued update 2025-01—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The amendments require disclosure in the notes to financial statements of specified information about certain costs and expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting within annual reporting periods beginning after December 15, 2027. The Update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.
 In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require that public business entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments also require that all entities disclose on an annual basis the income taxes paid disaggregated by jurisdiction. The amendments
 eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or make a statement that an estimate of the range cannot be made. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted. The Company plans to adopt the standard when it becomes effective for us beginning in our fiscal year 2025 annual financial statements, and we expect the adoption of this standard will impact certain of our income tax disclosures.

 NOTE 3. MERGERS AND ACQUISITIONS
 Acquisition of Barbeque Integrated, Inc.
 On September 25, 2023, the Company completed the acquisition of Barbeque Integrated, Inc. from Barbeque Holding LLC. Barbeque Integrated, Inc. is the operator of a chain of barbeque restaurants located in the Eastern and Midwest United States branded as Smokey Bones. The net purchase price was $ 31.3 million after final working capital adjustments.
 The assessment of the fair value of the net assets and liabilities acquired by the Company through the transaction was estimated at $ 31.3 million. The allocation of the consideration to the net tangible and intangible assets acquired is presented in the table below (in millions):

 Cash
 $
 0.3

 Accounts receivable, net of allowances

 2.8

 Inventory

 2.6

 Prepaids and other current assets

 1.5

 Other intangible assets, net

 8.8

 Goodwill
 11.7

 108.9

 Other assets

 1.8

 Property and equipment, net

 18.1

 Below market leases

 0.2

 Accounts payable

 ( 3.6)

 Accrued expenses and other liabilities

 ( 9.9)

 Operating lease liability, current portion

 ( 3.9)

 Operating lease liability, net of current portion

 ( 105.6)

 Other liabilities

 ( 2.4)

 Total net identifiable assets

 $
 31.3

 The identifiable intangible assets acquired in connection with the transaction are based on valuations performed by management and third-party experts. Identifiable intangible assets totaled $ 8.8 million in trademarks.
 Pro Forma Information

 The table below presents the combined pro forma revenue and net loss of the Company and Barbeque Integrated, Inc. for the year ended December 31, 2023, assuming the acquisition had occurred on December 27, 2021 (the beginning of the Company's 2022 fiscal year) (in millions). Actual consolidated results are presented in the pro forma information for any period in which Barbeque Integrated, Inc. was actually a consolidated subsidiary of the Company. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had the acquisition of Barbeque Integrated, Inc. occurred on this date nor does it purport to predict the results of operations for future periods.

 Years Ended

 Revenue
 $
 610.1

 $
 ( 93.8)

 NOTE 4. REFRANCHISING
 As part of its ongoing franchising efforts, the Company may, from time to time, make opportunistic acquisitions of operating restaurants in order to convert them to franchise locations or acquire existing franchise locations to resell to another franchisee across all of its brands.
 The following assets used in the operation of certain restaurants meet all of the criteria requiring that they be classified as held- for-sale, and have been classified accordingly on the accompanying consolidated balance sheets as of December 29, 2024 and December 31, 2023 (in millions):

 Property, plant and equipment
 $
 —
 $
 0.7

 0.4
 3.1

 Total
 $
 0.4
 $
 3.8

 Operating lease liabilities related to the assets classified as held-for-sale in the amount of $ 0.4 million and $ 3.4 million, have been classified as current liabilities on the accompanying consolidated balance sheets as of December 29, 2024 and December 31, 2023, respectively.
 The following table highlights the operating results of the Company's refranchising program during 2024 and 2023 (in millions):

 Twelve Months Ended

 Restaurant costs and expenses, net of revenue
 $
 0.9
 3.0

 Loss (gains) on store sales or closures

 1.0
 ( 0.1)

 Refranchising loss

 $
 1.9
 $
 2.9

 NOTE 5. PROPERTY AND EQUIPMENT, NET
 Property and equipment, net consists primarily of real estate (including land, buildings and tenant improvements) and equipment.
 As of December 29, 2024 and December 31, 2023, the Company's gross carrying value of property and equipment and accumulated depreciation balances were (in millions):

 Total

 2024
 2023

 Real estate
 $
 89.6
 $
 83.5

 Equipment
 57.3
 44.9

 Total property and equipment, gross
 146.9
 128.4

 Less: accumulated depreciation
 ( 49.5)
 ( 27.9)

 Total property and equipment, net
 $
 97.4
 $
 100.5

 Depreciation expense for the fiscal years ended December 29, 2024 and December 31, 2023 was $ 23.6 million and $ 15.8 million, respectively.
 On an annual basis the Company assesses its property and equipment for impairment. The Company recognized $ 1.9 million impairment expense for the fiscal year ended December 29, 2024. For the fiscal year ended December 31, 2023, the company recognized impairment expense of $ 0.5 million. The impairment expenses is included in General and administrative expense on the Consolidated Statements of Operations.
 Upon retirement or other disposal of property and equipment, the cost and related amounts of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset

 value and the proceeds, is recorded in earnings. Loss on disposals during the fiscal year ended December 29, 2024 and December 31, 2023 was $ 0.4 million and $ 0, respectively.

 NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 The following table reflects the changes in carrying amounts of goodwill for the fiscal years ended December 29, 2024 and December 31, 2023 (in millions):

 Gross goodwill:

 Balance, beginning of year
 $
 306.8
 $
 295.0

 Acquired
 —
 11.8

 Balance, end of year
 306.8
 306.8

 Accumulated impairment:

 Balance, beginning of year
 ( 1.7)
 ( 1.7)

 Impairment
 ( 19.8)
 —

 Balance, end of year
 ( 21.5)
 ( 1.7)

 Net carrying value
 $
 285.3
 $
 305.1

 When considering the available facts, assessments and judgments, the Company recorded $ 19.8 million and $ 0 of goodwill impairment charges for the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
 Other intangible assets consist primarily of trademarks, franchise agreements and customer relationships that were classified as identifiable intangible assets at the time of the brands' acquisition by the Company, or at the time they were acquired by FCCG prior to FCCG's contribution of the brands to the Company in connection with the initial public offering. Franchise agreements and customer relationships are amortized over the useful life of the asset. Trademarks are typically considered to have an indefinite useful life and are not amortized.
 Changes in Carrying Value of Other Intangible Assets
 The changes in carrying value of other intangible assets for the fiscal years ended December 29, 2024 and December 31, 2023 are as follows (in millions):

 Amortizing
 Non-Amortizing
 Total

 2024
 2023
 2024
 2023
 2024
 2023

 Balance, beginning of year
 $
 157.9
 $
 162.1
 $
 462.7
 $
 463.2
 $
 620.6
 $
 625.3

 Impairment
 —
 —
 ( 9.0)
 ( 0.5)
 ( 9.0)
 ( 0.5)

 Amortization expense
 ( 15.9)
 ( 15.3)
 —
 —
 ( 15.9)
 ( 15.3)

 Acquisitions
 —
 9.1
 —
 —
 —
 9.1

 Adjustment to preliminary purchase price allocation
 —
 2.0
 —
 —
 —
 2.0

 Balance, end of year
 $
 142.0
 $
 157.9
 $
 453.7
 $
 462.7
 $
 595.7
 $
 620.6

 Gross Carrying Value and Accumulated Amortization of Other Intangible Assets
 The carrying value of amortizing other intangible assets is as follows as of December 29, 2024 and December 31, 2023 (in millions):

 Gross Carrying Amount
 Accumulated Amortization
 Net Carrying Amount
 Gross Carrying Amount
 Accumulated Amortization
 Net Carrying Amount

 Amortizing intangible assets

 Franchise agreements
 $
 118.3
 $
 ( 34.2)
 $
 84.1
 $
 109.5
 $
 ( 24.2)
 $
 85.3

 Customer relationships
 73.9
 ( 19.6)
 54.3
 73.9
 ( 13.7)
 60.2

 Other
 4.1
 ( 0.5)
 3.6
 12.9
 ( 0.5)
 12.4

 Balance, end of year
 $
 196.3
 $
 ( 54.3)
 $
 142.0
 $
 196.3
 $
 ( 38.4)
 $
 157.9

 When considering the available facts, assessments and judgments, including increased interest rates, the Company recorded impairment of trademarks in the amount of $ 9.0 million and $ 0.5 million for the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
 Amortization expense for the fiscal years ended December 29, 2024 and December 31, 2023 was $ 15.9 million and $ 15.3 million, respectively.
 The expected future amortization of the Company's amortizable intangible assets is as follows (in millions):

 Fiscal year:

 2025
 $
 15.6

 2026
 15.6

 2027
 15.6

 2028
 15.9

 2029
 15.0

 Thereafter

 64.3

 Total

 $
 142.0

 NOTE 7. DEFERRED INCOME
 Deferred income is as follows (in millions):

 Deferred franchise fees
 $
 22.6
 24.3

 Deferred vendor incentives

 —
 0.1

 Total

 $
 22.6
 $
 24.4

 NOTE 8. INCOME TAXES
 Components of the income tax benefit, net are as follows (in millions):

 Fiscal Year Ended December 29, 2024
 Fiscal Year Ended December 31, 2023

 Current

 Federal
 $
 —
 $
 —

 State

 0.7
 0.8

 Foreign

 1.6
 1.3

 2.3
 2.1

 Deferred

 Federal

 ( 5.2)
 ( 6.3)

 State

 0.1
 ( 2.1)

 ( 5.1)
 ( 8.4)

 Total income tax benefit

 $
 ( 2.8)
 $
 ( 6.3)

 Income tax benefit related to continuing operations differ from the amounts computed by applying the statutory income tax rate to pretax income as follows (in millions):

 Fiscal Year Ended December 29, 2024
 Fiscal Year Ended December 31, 2023

 Tax benefit at statutory rate
 $
 ( 40.5)
 $
 ( 20.3)

 State and local income taxes
 0.6
 ( 1.5)

 State and federal valuation allowances
 35.9
 17.1

 162(m) limitation
 1.5
 1.1

 Foreign taxes
 1.6
 1.3

 Tax credits
 ( 8.6)
 ( 9.0)

 Nondeductible interest expense
 5.1
 1.7

 Other

 1.6
 3.3

 Total income tax benefit

 $
 ( 2.8)
 $
 ( 6.3)

 As of December 29, 2024, the Company's subsidiaries' annual tax filings for the prior three years are open for audit by Federal and for the prior four years for state tax agencies. The Company is the beneficiary of indemnification agreements from the prior owners of the subsidiaries for tax liabilities related to periods prior to its ownership of the subsidiaries. Management evaluated the Company's overall tax positions and has determined that no provision for uncertain income tax positions is necessary as of December 29, 2024.
 Deferred taxes reflect the net effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for calculating taxes payable. Significant components of the Company's deferred tax assets and liabilities are as follows (in millions):

 Deferred tax assets (liabilities), net

 Net federal and state operating loss carryforwards
 $
 42.0
 $
 38.0

 Deferred revenue

 6.0
 5.3

 Intangibles
 ( 90.6)
 ( 90.0)

 Reserves and accruals
 14.3
 10.0

 Interest expense carryforward

 93.0
 68.1

 Tax credits
 37.6
 28.3

 Share-based compensation

 1.3
 1.3

 Fixed assets

 ( 3.0)
 ( 6.9)

 ( 55.4)
 ( 55.6)

 Operating lease liabilities

 57.7
 57.9

 Valuation allowance
 ( 118.5)
 ( 77.4)

 Other

 1.8
 2.2

 Total

 $
 ( 13.8)
 $
 ( 18.8)

 Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not (a likelihood of more than fifty percent) that some portion or all of the deferred tax assets will not be realized. As of December 29, 2024 and December 31, 2023, the Company recorded a valuation allowance against its deferred tax assets in the amount of $ 118.5 million and $ 77.4 million, respectively, as it is determined that these amounts would not likely be realized. Realization of our deferred tax assets is dependent upon future earnings, the timing and amount of which, if any, are uncertain. The valuation allowance increased by $ 41.0 million and $ 36.8 million during the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
 The Company had federal net operating loss carryforwards ("NOLs") of approximately $ 155.6 million and $ 139.5 million as of December 29, 2024 and December 31, 2023, respectively. The Company's State NOLs were approximately $ 157.3 million and $ 126.3 million as of December 29, 2024 and December 31, 2023, respectively. The NOLs begin to expire in 2037. Utilization of some of the federal and state net operating loss and credit carryforwards are subject to annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization. The Company also had certain federal tax credits totaling approximately $ 37.6 million and $ 28.3 million as of December 29, 2024 and December 31, 2023 respectively. The credits will began to expire in 2024.
 Under Section 382 and 383 of the Internal Revenue Code, if an ownership change occurs with respect to a "loss corporation", as defined, there are annual limitations on the amount of the NOLs and certain other deductions and credits which are available to the Company. The portion of the NOLs and other tax benefits accumulated by Johnny Rockets, GFG, Fazoli's and Barbecue Integrated, Inc. prior to the Acquisition are subject to this annual limitation.

 NOTE 9. LEASES
 As of December 29, 2024, the Company has recorded 194 operating leases for corporate offices and for certain owned restaurant properties, some of which are in the process of being refranchised. The leases have remaining terms ranging from less than 1 year to 25.8 years. The Company recognized lease expense of $ 31.5 million and $ 22.2 million for the fiscal years ended December 29, 2024 and December 31, 2023, respectively. The weighted average remaining lease term of the operating leases as of December 29, 2024 was 15.5 years.

 Operating lease right-of-use assets and operating lease liabilities are as follows (in millions):

 December 29,
2024
 December 31,
2023

 $
 198.1
 $
 220.0

 Right of use assets classified as held-for-sale
 0.4
 3.1

 Total right-of-use assets
 $
 198.5
 $
 223.1

 Operating lease liabilities
 $
 216.4
 $
 229.0

 Lease liabilities related to assets held-for-sale
 0.4
 3.4

 Total operating lease liabilities
 $
 216.8
 $
 232.4

 The operating lease right-of-use assets and operating lease liabilities include obligations relating to the optional term extensions available on certain restaurant leases based on management's intention to exercise the options. The weighted average discount rate used to calculate the carrying value of the right-of-use assets and lease liabilities was 9.0 % which is based on the Company's incremental borrowing rate at the time the lease is acquired.
 The contractual future maturities of the Company's operating lease liabilities as of December 29, 2024, including anticipated lease extensions, are as follows (in millions):

 Fiscal year:

 2025
 $
 30.9

 2026
 28.8

 2027
 28.3

 2028
 26.3

 2029
 25.5

 Thereafter

 295.7

 Total lease payments
 435.5

 Less imputed interest

 219.1

 Total

 $
 216.4

 Supplemental cash flow information for the fiscal years ended December 29, 2024 and December 31, 2023 related to leases is as follows (in millions):

 2024
 2023

 Cash paid for amounts included in the measurement of operating lease liabilities:

 Operating cash flows from operating leases
 $
 29.8
 $
 19.8

 Operating lease right-of-use assets obtained in exchange for new lease obligations:

 Operating lease liabilities
 $
 7.8
 $
 8.5

 NOTE 10. DEBT

 Long-term debt consisted of the following (in millions):

 Final Maturity
 Anticipated Call Date
 Rate
 Face Value
 Book Value
 Book Value

 Senior Debt

 FB Royalty Securitization
 4/25/2051
 4.75 %
 $
 136.3
 $
 134.4
 $
 135.9

 GFG Royalty Securitization
 6.00 %
 269.8
 265.2
 267.7

 Twin Peaks Securitization
 10/25/2054
 10/25/2027
 7.00 %
 281.4
 277.5
 193.7

 Fazoli's/Native Securitization
 1/25/2025
 6.00 %
 125.5
 125.4
 126.0

 FB Resid Securitization
 7/25/2027
 10.00 %
 53.9
 53.8
 52.7

 Senior Subordinated Debt

 FB Royalty Securitization
 4/25/2051
 8.00 %
 45.4
 42.7
 42.1

 GFG Royalty Securitization
 7.00 %
 101.7
 98.9
 95.9

 Twin Peaks Securitization
 10/25/2054
 10/25/2027
 9.00 %
 57.6
 53.7
 48.6

 Fazoli's/Native Securitization
 1/25/2025
 7.00 %
 24.4
 24.2
 17.4

 FB Resid Securitization
 7/25/2027
 10.00 %
 56.0
 55.9
 52.7

 Subordinated Debt

 FB Royalty Securitization
 4/25/2051
 9.00 %
 15.7
 15.5
 18.6

 GFG Royalty Securitization
 9.50 %
 55.6
 49.2
 43.4

 Twin Peaks Securitization
 10/25/2054
 10/25/2027
 10.00 %
 46.9
 45.6
 29.4

 Fazoli's/Native Securitization
 1/25/2025
 9.00 %
 —
 —
 20.7

 Total Securitized Debt
 1,270.2
 1,242.0
 1,144.8

 Elevation Note
 7/19/2026
 N/A
 6.00 %
 2.0
 2.0
 3.0

 Twin Peaks Equipment Notes
 5/5/2027 to 7/31/2028

 N/A
 7.99 % to 11.50 %

 4.7
 4.7
 1.9

 Twin Peaks Construction Loan III
 12/28/2024

 N/A
 Prime + 1 %

 —
 —
 2.2

 Twin Peaks Construction Loan IV
 10/1/2025
 N/A
 12.50
 %
 3.2
 3.2
 —

 Twin Peaks Promissory Note
 10/4/2024
 N/A
 5.30
 %
 —
 —
 1.0

 FAT Brands GFG Royalty I, LLC Promissory Note
 N/A
 16.90 % to 18.65 %

 6.4
 6.3
 —

 Total debt
 $
 1,286.5
 1,258.2
 1,152.9

 Current portion of long-term debt
 ( 49.2)
 ( 42.6)

 Long-term debt
 $
 1,209.0
 $
 1,110.3

 Terms of Outstanding Debt
 FB Royalty Securitization
 On April 26, 2021, FAT Brands Royalty I, LLC ("FB Royalty"), a special purpose, wholly-owned subsidiary of FAT Brands, completed the Offering of three tranches of fixed rate senior secured notes. Net proceeds totaled $ 140.8 million, which consisted of the combined face amount of $ 144.5 million, net of debt offering costs of $ 3.0 million and original issue discount of $ 0.7 million. A portion of the proceeds was used to repay and retire notes issued in 2022 under the Base Indenture (the "2020 Securitization Notes"). The payoff amount totaled $ 83.7 million, which included principal of $ 80.0 million, accrued interest of $ 2.2 million and prepayment premiums of $ 1.5 million. The Company recognized a loss on extinguishment of debt of $ 7.8

 million in connection with the refinance as well as interest expense on the 2020 Securitization Notes in the amount of $ 2.6 million for the year ended December 26, 2021.
 On July 6, 2022, FB Royalty issued an additional $ 76.5 million aggregate principal amount of three tranches of fixed rate senior secured notes (in millions):

 Closing Date
 Class
 Seniority
 Principal Balance
 Coupon
 Final Legal Maturity Date

 A-2
 Senior
 $ 42.7
 4.75 %

 B-2
 Senior Subordinated
 $ 14.2
 8.00 %

 M-2
 Subordinated
 $ 19.6
 9.00 %

 Of the $ 76.5 million aggregate principal amount, $ 30.0 million was sold privately during the third quarter of 2022, resulting in net proceeds of $ 27.1 million (net of debt offering costs of $ 0.6 million and original issue discount of $ 2.3 million). The remaining $ 46.5 million in aggregate principal was sold privately on October 21, 2022, when the Company entered into an Exchange Agreement with the Twin Peaks sellers and redeemed 1,821,831 shares of the Company's 8.25 % Series B Cumulative Preferred Stock at a price of $ 23.69 per share, plus accrued and unpaid dividends to the date of redemption, in exchange for $ 46.5 million aggregate principal amount of secured debt ($ 43.2 million net of debt offering costs and original issue discount).
 Prior to the redemption, the Twin Peaks sellers held 2,847,393 shares of Series B Cumulative Preferred Stock, which shares were issued to it on October 1, 2021 as partial consideration for the Company's acquisition of Twin Peaks.
 Pursuant to the Exchange Agreement, (i) at any time prior to July 25, 2023, the Company may call from the Twin Peaks sellers all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.86, plus any accrued plus unpaid interest thereon; (ii) at any time on or after the date of the Exchange Agreement, the Company may call from the Twin Peaks sellers, and at any time on or after July 25, 2023, the Twin Peaks sellers may put to the Company, all or a portion of the Class A-2 Notes and/or Class B-2 Notes at the outstanding principal balance multiplied by 0.94, plus any accrued plus unpaid interest thereon; and (iii) at any time on or after July 25, 2023, the Company may call from the Twin Peaks sellers, and the Twin Peaks sellers may put to the Company, all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.91, plus any accrued plus unpaid interest thereon. If the Company does not remit the applicable call price or put price upon a duly exercised call or put, as applicable, the amount owed by the Company will accrue interest at 10 % per annum, which interest is due and payable in cash monthly by the Company. On July 13, 2023, pursuant to the Exchange Agreement, the Twin Peaks sellers exercised their put option. During the first quarter of 2024, the Company paid $ 1.0 million to settle the 10 % per annum interest in perpetuity and to settle the put option. As a result, as of December 29, 2024, the outstanding principal balance owned by the Twin Peaks sellers is no longer subject to the put option.
 As of December 29, 2024, the carrying value of the FB Royalty Securitization Notes was $ 211.8 million (net of debt offering costs of $ 2.5 million and original issue discount of $ 5.8 million). The Company recognized interest expense on the FB Royalty Securitization Notes of $ 15.4 million for the year ended December 29, 2024, respectively, which includes $ 1.7 million for amortization of debt offering costs, and $ 0.7 million for amortization of the original issue discount. The average annualized effective interest rate of the FB Royalty Securitization Notes, including the amortization of debt offering costs and original issue discount, was 8.4 % for the time the debt was outstanding during the year ended December 29, 2024.
 The FB Royalty Securitization Notes are generally secured by a security interest in substantially all the assets of FB Royalty and its subsidiaries.
 GFG Royalty Securitization
 In connection with the acquisition of GFG, on July 22, 2021, FAT Brands GFG Royalty I, LLC ("GFG Royalty"), a special purpose, wholly-owned subsidiary of the Company, completed the issuance and sale in a private offering (the "GFG Offering") of three tranches of fixed rate senior secured notes. Net proceeds totaled $ 338.9 million, which consisted of the combined face amount of $ 350.0 million, net of debt offering costs of $ 6.0 million and original issue discount of $ 5.1 million. Substantially all

 of the proceeds were used to acquire GFG. Immediately following the closing of the acquisition of GFG, the Company contributed the franchising subsidiaries of GFG to GFG Royalty, pursuant to a Contribution Agreement.
 On December 15, 2022, GFG Royalty issued an additional $ 113.5 million aggregate principal amount of three tranches of fixed rate senior secured notes as follows (in millions):

 Closing Date
 Class
 Seniority
 Principal Balance
 Coupon
 Final Legal Maturity Date

 A-2
 Senior
 $ 67.8
 6.00 %

 B-2
 Senior Subordinated
 $ 20.2
 7.00 %

 M-2
 Subordinated
 $ 25.5
 9.50 %

 Of the $ 113.5 million aggregate principal amount, $ 25.0 million was sold privately during the fourth quarter of 2022, resulting in net proceeds of $ 22.3 million (net of debt offering costs of $ 0.4 million and original issue discount of $ 2.3 million). The remaining $ 88.5 million in aggregate principal was issued to FAT Brands Inc. and has been eliminated in consolidation. In January 2023, an additional $ 40.0 million aggregate principal amount was sold privately, resulting in net proceeds of $ 34.8 million. On September 20, 2023, an additional $ 2.8 million aggregate principal amount was sold privately resulting in net proceeds of $ 2.5 million. In October 2023, $ 20.2 million aggregate principal amount previously issued to FAT Brands Inc. was sold privately resulting in net proceeds of $ 18.1 million. The remaining $ 25.3 million in aggregate principal amount remains issued to FAT Brands, Inc., pending sale to third party investors.
 As of December 29, 2024, the carrying value of the GFG Securitization Notes was $ 443.6 million (net of debt offering costs of $ 4.7 million and original issue discount of $ 5.9 million). The Company recognized interest expense on the GFG Securitization Notes of $ 35.8 million for fiscal year ended December 29, 2024, which includes $ 1.3 million for amortization of debt offering costs and $ 4.1 million for amortization of the original issue discount. The average annualized effective interest rate of the GFG Securitization Notes, including the amortization of debt offering costs and original issue discount, was 9.6 % during the fiscal year ended December 29, 2024.
 The GFG Securitization Notes are generally secured by a security interest in substantially all the assets of GFG Royalty and its subsidiaries.
 Twin Peaks Securitization
 In connection with the acquisition of Twin Peaks, on October 1, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, Twin Hospitality I, LLC (formerly Fat Brands Twin Peaks I, LLC), three tranches of fixed rate notes for an aggregate principal amount of $ 250.0 million, collectively the "Prior Securitization notes". The net proceeds from the sale of the Notes were used by the Company to finance the cash portion of the purchase price for the acquisition of Twin Peaks Buyer, LLC and its direct and indirect subsidiaries. Net proceeds totaled $ 236.9 million, which consisted of the combined face amount of $ 250.0 million, net of debt offering costs of $ 5.6 million and original issue discount of $ 7.5 million. Substantially all of the proceeds were used to acquire Twin Peaks. Immediately following the closing of the acquisition of Twin Peaks, the Company contributed the franchising subsidiaries of Twin Peaks to Twin Hospitality I, LLC, pursuant to a Contribution Agreement.
 On September 8, 2023, Twin Hospitality I, LLC issued an additional $ 98.0 million aggregate principal amount of two tranches of fixed rate secured notes to FAT Brands Inc., pending sale to third party investors. Of the $ 98.0 million aggregate principal amount, $ 48.0 million was sold privately during the third quarter of 2023 resulting in net proceeds of $ 45.2 million. A portion of the proceeds was used to purchase $ 14.9 million aggregate principal amount of outstanding Securitization Notes, which will be held pending re-sale to third party investors. In connection with the bonds repurchased, the Company recognized a $ 2.7 million net loss on extinguishment of debt. The remaining $ 50.0 million in aggregate principal of notes issued by Twin Hospitality I, LLC was issued to a wholly-owned subsidiary of FAT Brands, Inc., pending sale to third party investors.
 On March 20, 2024, Twin Hospitality I, LLC issued an additional $ 50.0 million aggregate principal amount of one tranche of fixed rate secured notes to FAT Brands Inc., pending sale to third party investors. Of the $ 50.0 million aggregate principal amount, $ 38.8 million was sold privately during the first quarter of 2024 resulting in net proceeds of $ 36.4 million. A portion of the proceeds was used to purchase $ 7.4 million aggregate principal amount of outstanding Securitization Notes, which will be held pending re-sale to third party investors. In connection with the bonds repurchased, the Company recognized a $ 0.4 million

 net gain on extinguishment of debt. During the second quarter of 2024, the remaining $ 11.2 million in aggregate principal of notes was sold privately to a third party investor resulting in net proceeds of $ 10.7 million.
 On November 21, 2024, Twin Hospitality I, LLC completed the issuance and sale in a private offering the following four tranches of fixed rate secured notes: (i) $ 12.0 million aggregate principal amount of 9.00 % Fixed Rate Super Senior Notes, Class A-2-I, (ii) $ 269.3 million aggregate principal amount of 9.00 % Fixed Rate Senior Notes, Class A-2-II, (iii) $ 57.6 million aggregate principal amount of 10.00 % Fixed Rate Senior Subordinated Secured Notes, Class B-2 and (iv) $ 77.7 million aggregate principal amount of 11.00 % Fixed Rate Subordinated Secured Notes, Class M-2, collectively the "Twin Securitization Notes."
 Net Proceeds from the issuance and sale of the Twin Securitization notes were $ 407.5 million, which consisted of the aggregate principal amount of $ 416.7 million, net of aggregate original issue discounts $ 3.2 million and debt offering costs of $ 6.0 million. The net proceeds from the sale of the Twin Securitization Notes was used to redeem all of the Prior Securitization Notes, which included principal of $ 388.8 million and accrued interest of $ 2.3 million, with the remainder to be used for working capital and general corporate purposes. The Company recognized a loss on extinguishment of debt of $ 2.4 million.
 As of December 29, 2024, the carrying value of the Twin Peaks Securitization Notes was $ 407.5 million (net of debt offering costs of $ 6.0 million and original issue discount of $ 3.2 million). The Company recognized interest expense on the Twin Peaks Securitization Notes of $ 33.7 million for year ended December 29, 2024, which includes $ 9.5 million for amortization of debt offering costs and $ 2.3 million for amortization of the original issue discount. The effective interest rate of the Twin Peaks Securitization Notes, including the amortization of debt offering costs and original issue discount, was 12.2 % during the year ended December 29, 2024.
 The Prior Twin Peaks Securitization Notes and the Twin Peaks Securitization Notes are generally secured by a security interest in substantially all the assets of Twin Hospitality I, LLC and its subsidiaries.
 Terms and Debt Covenant Compliance
 The Twin Securitization Notes require that the principal (if any) and interest obligations be segregated to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of monthly cash flow that exceeds the required monthly interest reserve is generally remitted to the Company. Interest payments are required to be made on a quarterly basis. The legal final maturity date of the Twin Securitization Notes is October 26, 2054; however, it is currently anticipated that, unless earlier prepaid to the extent permitted under the Base Indenture, the Twin Securitization Notes will be repaid on October 25, 2027 (which we refer to as the "Anticipated Repayment Date"). If the Twin Securitization Notes are not repaid or refinanced by the Anticipated Repayment Date, additional interest will accrue on the then outstanding balance of each class of the Twin Securitization Notes at a rate of 5.0 % per annum. Each class of the Twin Securitization Notes may be prepaid in whole or in part on any business day; provided that optional prepayment made after the Anticipated Repayment Date must be applied first to Class A-2-I, second to Class A-2-II, third to Class B-2 and fourth to Class M-2 of the Twin Securitization Notes.
 Additionally, pursuant to the Base Indenture, upon each "Qualified Equity Offering" (as defined in the Base Indenture), which is a public or private offering by Twin Hospitality Group Inc. of our common equity securities for cash, subject to certain limited exceptions, Twin Hospitality Group Inc. is required to deposit 75 % of the net proceeds from such offering into a segregated, non-interest bearing trust account to be used towards the repayment of the Twin Securitization Notes, until an aggregate of $ 75.0 million has been repaid in that manner. If the amount of net proceeds from our Qualified Equity Offerings used for repayment of the Twin Securitization Notes is not at least $ 25.0 million on or prior to each of April 25, 2025, July 25, 2025 and October 27, 2025, or is not at least $ 75.0 million on or prior to January 26, 2026, then under any such circumstance, a Cash Flow Sweeping Event (as defined in the Base Indenture) would occur, whereupon certain excess cash flows from our operations will be used to make additional principal payments, on a pro rata basis, on the three most senior classes of the Twin Securitization Notes.
 The material terms of the Twin Securitization Notes contain covenants which are standard and customary for these types of agreements, including the following financial covenants: (i) debt service coverage ratio, (ii) interest-only debt service coverage ratio and (iii) senior leverage ratio. As of December 29, 2024, the Company was in compliance with these covenants.
 In connection with the issuance and sale of the Twin Securitization Notes, we entered into a letter agreement, pursuant to which our subsidiary Twin Hospitality Group Inc. agreed to issue to the investors in the Twin Securitization Notes warrants (which we refer to as the "Noteholders' Warrants") exercisable for the aggregate number of shares of the subsidiary's Class A Common Stock equal to 5.0 % of the number of issued and outstanding shares of the subsidiary's Class A Common Stock at the time of the Spin-Off, which occurred on January 29, 2025 (See Note 19, Subsequent Events). The Noteholders' Warrants will be exercisable during the period commencing on October 25, 2025 and ending on the five-year anniversary of the date of issuance,

 at an exercise price of $ 0.01 per share. Under the letter agreement, we also agreed not to pay a dividend on our common stock until at least $ 25,000,000 in proceeds from Qualified Equity Offerings (as defined in the Base Indenture) have been used to prepay the Twin Securitization Notes.
 Fazoli's / Native Securitization
 In connection with the acquisition of Fazoli's and Native Grill & Wings, on December 15, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, FAT Brands Fazoli's Native I, LLC, of an aggregate principal amount of $ 193.8 million. Net proceeds totaled $ 180.6 million, which consisted of the combined face amount of $ 193.8 million, net of debt offering costs of $ 3.8 million and original issue discount of $ 9.4 million. The proceeds were used to close the acquisitions of Fazoli's and Native, and to provide working capital for the Company. Immediately following the closing of the acquisition of Fazoli's and Native, the Company contributed the franchising subsidiaries of these entities to FAT Brands Fazoli's Native I, LLC, pursuant to a Contribution Agreement.
 As of December 29, 2024, the carrying value of the Fazoli's-Native Securitization Notes was $ 188.6 million (net of debt offering costs of $ 2.5 million and original issue discount of $ 6.0 million). The Company recognized interest expense on the Fazoli's-Native Securitization Notes of $ 14.8 million for the fiscal year ended December 29, 2024, which includes $ 1.2 million for amortization of debt offering costs and $ 3.0 million for amortization of the original issue discount. The effective interest rate of the Fazoli's-Native Securitization Notes, including the amortization of debt offering costs and original issue discount, was 10.1 % during the year ended December 29, 2024.
 The Fazoli's-Native Securitization Notes are generally secured by a security interest in substantially all the assets of FAT Brands Fazoli's Native I, LLC and its subsidiaries.
 FB Resid Holdings I, LLC
 On July 8, 2023, FB Resid Holdings I, LLC ("FB Resid"), a special purpose, wholly-owned subsidiary of FAT Brands, completed the issuance of two tranches of fixed rate secured notes with a total aggregate principal amount of $ 150.0 million. Of the $ 150.0 million aggregate principal amount, $ 105.8 million was sold privately, resulting in net proceeds of $ 105.3 million. A portion of the proceeds was used to purchase $ 64.6 million of outstanding Securitization Notes, which will be held pending re-sale to third party investors. The remaining $ 44.2 million in aggregate principal of notes issued by FB Resid was issued to a wholly-owned subsidiary of FAT Brands, Inc., pending sale to third party investors.
 On November 21, 2024, the Company modified the terms of the outstanding notes issued by FB Resid pursuant to an Omnibus Amendment executed with the noteholders as well as with the Company's other whole business securitization subsidiaries, FAT Brands Royalty I, LLC, FAT Brands GFG Royalty I, LLC, Twin Hospitality I, LLC (f/k/a FAT Brands Twin Peaks I, LLC) and FAT Brands Fazoli's Native I, LLC (the "Existing Issuers"). The Omnibus Amendment amended the treatment of "Excess Amounts" under the Company's current securitization transactions, other than Twin Hospitality I, LLC, upon (i) the occurrence of an Event of Default under the FB Resid Indenture or (ii) if the Controlling Class Representative (currently 3|5|2 Capital ABS Master Fund LP) has notified the FB Resid Trustee that certain Excess Amounts are required to satisfy clauses (i) through (xiii) of the Priority of Payments on the next applicable Monthly Allocation Date under the FB Resid Indenture. In such event, all such Excess Amounts must be deposited into a segregated account to be included in Retained Collections and deposited in the Collection Account under the FB Resid Indenture for application in accordance with the waterfall of payments under Section 5.10 of the FB Resid Indenture. The Omnibus Amendment also amended the FB Resid Indenture to provide that with respect to (i) any Mandatory Prepayment Amount and/or (ii) from and after the occurrence of any Event of Default (as such terms are defined in the FB Resid Indenture), payments of interest and principal with respect to the Class A-1 Notes and the Class A-2 Notes shall be made in accordance with the Applicable Class A Payment Priority (defined in the Omnibus Amendment), and no amounts may be paid on the Class A-1B Notes or Class A-2B Notes until amounts then due and owing to the Class A-1A Notes and the Class A-2A Notes shall have been paid in full in cash.
 In addition, under the Omnibus Amendment, the Company and FB Resid agreed not to permit (i) any equity interests of any Existing Issuer to be sold, transferred or disposed, other than the transactions contemplated by the Twin Peaks Listing Event, or (ii) any Specified Additional Issuance (as defined in the FB Resid Indenture). In addition, the Omnibus Amendment added a new Event of Default under the FB Resid Indenture if the Issuer should fail, by July 31, 2026, to have prepaid or purchased at least $ 20,000,000 of Class A-1A Notes and Class A-2A Notes held by the Controlling Class Representative or its managed funds. Also under the Omnibus Amendment, the Company agreed not to sell or otherwise dispose of any of its equity interests of Twin Hospitality until Twin Hospitality has used at least $ 75,000,000 of aggregate Qualified Equity Offering Proceeds or other proceeds to prepay the new Notes issued under the TWNP Indenture. The Company also agreed not to declare or pay any dividend or distribution in the form of equity interests in Twin Hospitality (i) until the third anniversary of the Closing Date (ii)

 or if any Potential Rapid Amortization Event, Rapid Amortization Event, Default or Event of Default has occurred or would result therefrom under the indentures of any Existing Issuer.
 On November 21, 2024, the Company also entered into a Pledge and Security Agreement (the "Pledge Agreement") and Securities Account Control Agreement (the "Control Agreement") with UMB Bank, N.A., as trustee under the FB Resid Indenture and as securities intermediary (in such capacities, the "Pledge Trustee"). Under the Pledge Agreement, the Company pledged all of its shares of Class A Common Stock of Twin Hospitality (other than shares distributed to its shareholders at the time of the Twin Peaks Listing Event) (the "Pledged Shares") along with all proceeds of the Pledged Shares for the payment and performance of all obligations of FB Resid under the FB Resid Indenture. The Company agreed that the "Applicable Percentage" (a formula that is defined in the Pledge Agreement) of any (i) proceeds of the sale or other disposal of Pledged Shares, (ii) dividend, distribution, rights, warrants or other consideration with respect to the Pledged Shares, and (iii) proceeds of any loan secured by the Pledged Shares (collectively, the "Proceeds"), will be applied to purchase first the Class A-2A Notes, and then the Class A-1A Notes, issued under the FB Resid Indenture at par plus any accrued and unpaid interest thereon and interest paid in kind. The Company also agreed that, if Twin Hospitality has not raised at least $ 25,000,000 in Qualified Equity Proceeds and is sold, then so long as either (i) the Issuer has repaid its debt in full under the TWNP Indenture or (ii) the Issuer's noteholders have otherwise waived such payment and approved the sale in writing, then 50 % of the Proceeds from the sale of Twin Hospitality will be applied to purchase first the Class A-2A Notes, and then the Class A-1A Notes, issued under the FB Resid Indenture at par plus any accrued and unpaid interest thereon and interest paid in kind. Also under the Pledge Agreement, upon the occurrence and during the continuance of an Event of Default and following the Grace Period, if applicable, under the FB Resid Indenture, all rights of the Company to vote or give consent with respect to the Pledged Shares shall be vested in the Pledge Trustee. Under the Control Agreement, the Company agreed to deposit all of the Pledged Shares at the time of the Twin Peaks Listing Event into a controlled account maintained by the Pledge Trustee, and the Pledge Trustee will distribute Proceeds of the Pledged Shares held in such account according to the Pledge Agreement. The Company will be entitled to enter any market order to sell Pledged Shares in a brokers' transaction on an approved trading market, and may enter orders to sell Pledged Shares other than on a permitted trading market (i) with the prior written consent of the Pledge Trustee or (ii) in a trade to be executed within 5 % of the 5-trading day volume weighted average price and with a value of at least $ 15,000,000. Upon an Event of Default under the FB Resid Indenture, the Controlling Class Representative will be entitled to exercise sole control of the Pledged Shares and direct sales or other dispositions of the Pledged Shares held in the controlled account.
 Retained Notes
 During 2024, the Company repurchased certain of its securitized notes to be held for resale to third party investors and sold certain of its securitized notes previously repurchased or issued and not sold (collectively, the "Retained Notes"). During 2024, cash proceeds from the sale of Retained Notes and cash used to repurchase Retained Notes was $ 108.2 million and $ 36.4 million including accrued interest, respectively. The $ 108.2 million includes the sale of $ 30.9 million aggregate principal Twin Peaks Securitization notes issued in 2024 in addition to securitization notes previously held in wholly-owned subsidiaries of Fat Brands Inc. As of December 29, 2024, the Company held $ 164.8 million of Retained Notes, which have been eliminated in consolidation.
 Terms and Debt Covenant Compliance
 The FAT Royalty securitization notes, the GFG Royalty securitization notes, the Twin Peaks securitization notes, the Fazoli's/Native securitization notes and the FB Resid notes (collectively, the "Securitization Notes") require that the principal (if any) and interest obligations be segregated to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of monthly cash flow that exceeds the required monthly interest reserve is generally remitted to the Company. Interest payments are required to be made on a quarterly basis. Beginning July 26, 2023, additional interest equal to 1.0 % per annum and principal payments equal to 2.0 % per annum of the initial principal amount on the FAT Royalty securitization notes, the GFG Royalty securitization notes, the Twin Peaks securitization notes and the Fazoli's/Native securitization notes will be made on the scheduled quarterly payment dates.
 The material terms of the Securitization Notes contain covenants which are standard and customary for these types of agreements, including the following financial covenants: (i) debt service coverage ratio, (ii) leverage ratio, and (iii) senior leverage ratio. As of December 29, 2024, the Company was in compliance with these covenants.
 Elevation Note
 On June 19, 2019, the Company completed the acquisition of Elevation Burger. A portion of the purchase price included the issuance to the Seller of a convertible subordinated promissory note (the "Elevation Note") with a principal amount of $ 7.5

 million, bearing interest at 6.0 % per year and maturing in July 31, 2026. The Elevation Note is convertible under certain circumstances into shares of the Company's common stock at $ 12.00 per share. In connection with the valuation of the acquisition of Elevation Burger, the Elevation Note was recorded on the financial statements of the Company at $ 6.1 million, net of a loan discount of $ 1.3 million and debt offering costs of $ 0.1 million.
 As of December 29, 2024, the carrying value of the Elevation Note was $ 2.0 million which is net of the loan discount of $ 0.4 million and debt offering costs of $ 35,329. In June 2022, pursuant to the claw-back provision of the purchase agreement, the balance of the Elevation Note was reduced by $ 1.0 million to $ 6.5 million. The Company recognized interest expense relating to the Elevation Note during the fiscal year ended December 29, 2024 in the amount of $ 0.2 million, which included amortization of the loan discount of $ 10,191 and amortization of $ 132,949 in debt offering costs. The Company recognized interest expense relating to the Elevation Note during the year ended December 31, 2023 in the amount of $ 0.2 million, which included amortization of the loan discount of $ 0.2 million and amortization of $ 10,191 in debt offering costs. The effective interest rate for the Elevation Note during the year ended December 29, 2024 was 12.4 %.
 The Elevation Note is a general unsecured obligation of Company and is subordinated in right of payment to all indebtedness of the Company arising under any agreement or instrument to which Company or any of its Affiliates is a party that evidences indebtedness for borrowed money that is senior in right of payment.
 Equipment Financing (Twin Peaks)
 During 2022, one of our wholly-owned subsidiaries entered into certain equipment financing arrangements to borrow up to $ 1.4 million, the proceeds of which were used to purchase certain equipment for a company-owned restaurant that opened in 2022 and to retrofit certain existing company-owned restaurants with equipment (which we refer to as the "2022 Equipment Financings"). The 2022 Equipment Financings have maturity dates between May 5, 2027 and March 7, 2028 and bear interest at fixed rates between 7.99 % and 8.49 % per annum.

 During 2023, one of our wholly-owned subsidiaries entered into certain equipment financing arrangements to borrow up to $ 1.4 million, the proceeds of which will be used to purchase certain equipment for a new company-owned restaurant (which we refer to as the "2023 Equipment Financing"). The 2023 Equipment Financing has maturity dates that are 48 months from the date of each draw, and bears interest at 11.5 % per annum.

 During 2024, one of our wholly-owned subsidiaries entered into certain equipment financing arrangements to borrow up to $ 4.2 million, the proceeds of which will be used to purchase certain equipment for three new company-owned Twin Peaks restaurants (which we refer to as the "2024 Equipment Financing"). The 2024 Equipment Financing has maturity dates that are 48 months from the date of each draw, and bears interest at 11.5 % per annum.

 The 2022 Equipment Financings, the 2023 Equipment Financing, and the 2024 Equipment Financing are secured by certain equipment of such respective company-owned restaurants. As of December 29, 2024, the total outstanding principal amount under them on a collective basis was $ 4.7 million, and as of December 31, 2023, the total outstanding principal amount was $ 1.9 million.
 Construction Loan Agreement (Twin Peaks)
 On December 28, 2023, an indirect subsidiary of the Company entered into a construction loan agreement to borrow up to $ 4.75 million, the proceeds of which will be used for a new corporate Twin Peaks in McKinney, TX (the "Construction Loan III"). The Construction Loan III has an initial maturity of December 28, 2024, with an optional 12 -month extension, bearing interest at Wall Street Journal Prime plus 100 basis per year and is secured by land and building. The Construction Loan III was paid in full on its maturity date on December 28, 2024.
 On September 20, 2024, an indirect subsidiary of the Company entered into a loan agreement to borrow $ 3.2 million with an initial maturity of October 1, 2025, bearing interest at 12.5 % per annum and is secured by land and building of a new corporate restaurant. As of December 29, 2024, the total amount outstanding on this loan was $ 3.2 million.

 Promissory Note (Twin Peaks)

 On December 4, 2023, an indirect subsidiary of the Company purchased all member interest units of a joint venture entity for $ 1.3 million in the form of a $ 0.3 million cash payment and 10 equal monthly payments of $ 0.1 million beginning in January

 2024. The $ 1.0 million promissory note bears interest of 5.3 % and has a maturity of October 4, 2024. As of December 29, 2024, the total outstanding amount on the promissory note was $ 0. This promissory note was paid in full on its maturity date.

 FAT Brands GFG Royalty I, LLC Promissory Note

 During 2024, one of our wholly-owned subsidiaries entered into a financing arrangement to borrow money, where the proceeds would be used for general corporate purposes. The total outstanding amount on the promissory note was $ 6.3 million. The FAT GFG LLC Promissory Note has a maturity date of July 25, 2026 and bears interest at fixed rates between 16.90 % and 18.65 % per annum.

 Scheduled Principal Maturities

 Scheduled principal maturities of long-term debt and redemptions of redeemable preferred stock (Note 12) for the next five fiscal years are as follows (in millions):

 Fiscal Year
 Long-Term Debt
 Redeemable Preferred Stock (Note 12)

 2025
 $
 49.2
 $
 91.8

 2026
 $
 34.0
 $
 —

 2027
 $
 136.8
 $
 —

 2028
 $
 26.0
 $
 —

 2029
 $
 25.4
 $
 —

 NOTE 11. PREFERRED STOCK
 Series B Cumulative Preferred Stock
 On July 13, 2020, the Company entered into an underwriting agreement (the "Underwriting Agreement") to issue and sell, in a public offering (the "Offering"), 360,000 shares of 8.25 % Series B Cumulative Preferred Stock ("Series B Preferred Stock") and 1,800,000 warrants, plus 99,000 additional warrants pursuant to the underwriter's overallotment option (the "2020 Series B Offering Warrants"), to purchase common stock at $ 5.00 per share (Note 15).
 In connection with the Offering, on July 15, 2020 the Company filed an Amended and Restated Certificate of Designation of Rights and Preferences of Series B Cumulative Preferred Stock with the Secretary of State of Delaware, designating the terms of the Series B Preferred Stock (the "Certificate of Designation").
 The Certificate of Designation amends and restates the terms of the Series B Cumulative Preferred Stock issued in October 2019 (the "Original Series B Preferred"). At the time of the Offering, there were 57,140 shares of the Original Series B Preferred outstanding, together with warrants to purchase 34,284 shares of the Company's common stock at an exercise price of $ 8.50 per share (the "Series B Warrants").
 Holders of Series B Cumulative Preferred Stock do not have voting rights and are entitled to receive, when declared by the Board, cumulative preferential cash dividends at a rate per annum equal to the 8.25 % multiplied by $ 25.00 per share stated liquidation preference of the Series B Preferred Stock. The dividends shall accrue without interest and accumulate, whether or not earned or declared, on each issued and outstanding share of the Series B Preferred Stock from (and including) the original date of issuance of such share and shall be payable monthly in arrears on a date selected by the Company each calendar month that is no later than twenty days following the end of each calendar month.
 If the Company fails to pay dividends on the Series B Preferred Stock in full for any twelve accumulated, accrued and unpaid dividend periods, the dividend rate shall increase to 10.0 % until the Company has paid all accumulated accrued and unpaid dividends on the Series B Preferred Stock in full and has paid accrued dividends during the two most recently completed dividend periods in full, at which time the 8.25 % dividend rate shall be reinstated.

 The Company may redeem the Series B Preferred Stock, in whole or in part, at the option of the Company, for cash, at the following redemption price per share, plus any unpaid dividends:
 i. After July 16, 2023 and on or prior to July 16, 2024: $ 26.00 per share.
 ii. After July 16, 2024 and on or prior to July 16, 2025: $ 25.50 per share.
 iii. After July 16, 2025: $ 25.00 per share.
 As a result of the amended and restated terms of the Series B Cumulative Preferred Stock, the Company classified the Series B Preferred Stock as equity as of July 15, 2020.
 In addition to the shares issued in the Offering, The Company concurrently engaged in the following transactions:
 • The holders of the outstanding 57,140 shares of Original Series B Preferred became subject to the new terms of the Certificate of Designation. At the time of the amendment and restatement of the Certificate of Designation, the adjusted basis of the Original Series B Preferred on the Company's books was $ 1.1 million, net of unamortized debt discounts and debt offering costs. As a result of the amendment and restatement of the Certificate of Designation, the recorded value of the new Series B Stock was $ 1.1 million with $ 0.3 million allocated to the 2020 Series B Offering Warrants, resulting in an aggregate loss on the exchange of $ 0.3 million. The original holders were also issued 3,537 shares of new Series B Preferred Shares in payment of $ 0.1 million accrued and outstanding dividends relating to the Original Series B Preferred at a price of $ 25.00 per share.
 • The Company entered into an agreement to exchange 15,000 shares of Series A Fixed Rate Cumulative Preferred Stock owned by FCCG for 60,000 shares of Series B Preferred Stock valued at $ 1.5 million, pursuant to a Settlement, Redemption and Release Agreement. At the time of the exchange, the adjusted basis of the Series A Preferred on the Company's books was $ 1.5 million, net of unamortized debt discounts and debt offering costs, and the Company recognized a loss on the exchange in the amount of $ 11,000. The Company also agreed to issue 14,449 shares of Series B Preferred Stock valued at $ 0.4 million as consideration for accrued dividends due to FCCG.
 • The Company entered into an agreement to exchange all of the outstanding shares of Series A-1 Fixed Rate Cumulative Preferred Stock for 168,001 shares of Series B Preferred Stock valued at $ 4.2 million, pursuant to a Settlement, Redemption and Release Agreement with the holders of such shares. At the time of the exchange, the adjusted basis of the Series A-1 Preferred Stock on the Company's books was $ 4.4 million, net of unamortized debt discounts and debt offering costs, and the Company recognized a gain on the exchange in the amount of $ 0.2 million.
 On June 22, 2021, the Company closed a second underwritten public offering of 460,000 shares of 8.25 % Series B Cumulative Preferred Stock at a price of $ 20.00 per share. The net proceeds to the Company totaled $ 8.3 million (net of $ 0.9 million in underwriting discounts and other offering expenses).

 On August 25, 2021, the Company redeemed the final 80,000 shares of outstanding Series A Preferred Stock held by Trojan Investments, LLC, with a redemption value of $ 8.0 million, plus accrued dividends thereon in the amount of $ 1.6 million, in exchange for 478,199 shares of Series B Preferred Stock valued at $ 10.8 million. The Company recognized a loss on extinguishment of debt in the amount of $ 1.2 million resulting from the redemption of the Series A Preferred Stock. The loss on extinguishment of debt was recognized during the fourth quarter of 2021 and was deemed by the Company to be immaterial to the third quarter 2021 financial statements. Following this transaction, the Company no longer has outstanding shares of its Series A Preferred Stock and has cancelled all shares. The Company had accounted for the Series A Preferred Stock as debt and recognized interest expense on the Series A Preferred Stock of $ 0.7 million for the fiscal year ended December 26, 2021.
 On November 1, 2021, the Company closed an additional underwritten public offering of 1,000,000 shares of 8.25 % Series B Cumulative Preferred Stock at a price of $ 18.00 per share. The net proceeds to the Company totaled $ 16.8 million (net of $ 1.2 million in underwriting discounts and other offering expenses).
 On November 14, 2022, we entered into an ATM Sales Agreement (the "ThinkEquity Sales Agreement") with ThinkEquity LLC (the "Agent"), pursuant to which we may offer and sell from time to time through the Agent up to 21,435,000 maximum aggregate offering price of shares of our Class A Common Stock and/or 8.25 % Series B Preferred Stock. The ThinkEquity Sales Agreement with the Agent was terminated in May 2024.
 On July 19, 2024, we entered into an Equity Distribution Agreement (the "Noble Sales Agreement") with Noble Capital Markets, Inc. (the "Sales Agent"), pursuant to which we may offer and sell from time to time through the Sales Agent shares (the "Placement Shares") of our Class A Common Stock and/or 8.25 % Series B Cumulative Preferred Stock. During fiscal year

 2024, pursuant to the Noble Sales Agreement, we sold and issued 238,823 shares of 8.25 % Series B Cumulative Preferred Stock, at a weighted average share price of $ 10.04, paid the Sales Agent commissions of $ 71,968 for such sales and received net proceeds of $ 2,326,278 (net of fees and commissions) for such sales.
 As of December 29, 2024, the Series B Preferred Stock consisted of 3,591,706 shares outstanding with a balance of $ 40.8 million. The Company declared preferred dividends to the holders of the Series B Preferred Stock totaling $ 7.8 million during the fiscal year ended December 29, 2024. As of December 31, 2023, the Series B Preferred Stock consisted of 3,591,804 shares outstanding with a balance of $ 44.1 million. The Company declared preferred dividends to the holders of the Series B Preferred Stock totaling $ 7.0 million during the fiscal year ended December 31, 2023. These amounts do not include 5,936,638 shares of Series B Preferred Stock classified as redeemable preferred stock due to associated put options granted to the holders by the Company (see Note 12).

 NOTE 12. REDEEMABLE PREFERRED STOCK

 GFG Preferred Stock Consideration

 On July 22, 2021, the Company completed the acquisition of GFG. A portion of the consideration paid included 3,089,245 newly issued shares of the Company's Series B Cumulative Preferred Stock valued at $ 67.3 million (the "GFG Preferred Stock Consideration"). Additionally, on July 22, 2021, the Company entered into a put/call agreement with the GFG sellers, pursuant to which the Company may purchase, or the GFG Sellers may require the Company to purchase, the GFG Preferred Stock Consideration for $ 67.5 million plus any accrued but unpaid dividends on or before August 20, 2022 (extended from the original date of April 22, 2022), subject to the other provisions of the Put/Call Agreement. Since the Company did not deliver the applicable cash proceeds to the GFG Sellers by that date, the amount accrues interest at the rate of 5 % per annum until repayment is completed. On March 22, 2022, the Company received a put notice on the GFG Preferred Stock Consideration and reclassified the GFG Preferred Stock Consideration from redeemable preferred stock to current liabilities on its consolidated balance sheet. As of December 29, 2024, the carrying value of the redeemable preferred stock was $ 67.5 million.

 On September 16, 2022, the Company entered into an agreement with one of the GFG sellers who held 1,544,623 put preferred shares. Pursuant to the agreement, effective August 23, 2022, the interest rate applicable to such holder's 1,544,623 put shares was increased from 5 % to 10 % per annum, payable monthly in arrears. During the fiscal year ended December 29, 2024, the Company paid $ 3.1 million in accrued interest.

 On March 9, 2023, the Company entered into an agreement with the second GFG seller who held 1,544,623 put preferred shares. Pursuant to the agreement, effective August 23, 2022, the interest rate applicable to such holder's 1,544,623 put shares was increased from 5 % to 10 % per annum, payable on the date of redemption.

 Twin Peaks Preferred Stock Consideration

 On October 1, 2021, the Company completed the acquisition of Twin Peaks. A portion of the consideration paid included 2,847,393 shares of the Company's Series B Cumulative Preferred Stock (the "Twin Peaks Preferred Stock Consideration") valued at $ 67.5 million.

 On October 1, 2021, the Company and the Twin Peaks Seller entered into a Put/Call Agreement (the "Put/Call Agreement") pursuant to which the Company was granted the right to call from the Twin Peaks Seller, and the Twin Peaks Seller was granted the right to put to the Company, the Initial Put/Call Shares at any time until March 31, 2022 for a cash payment of $ 42.5 million, and the Secondary Put/Call Shares at any time until September 30, 2022 for a cash payment of $ 25.0 million (the Initial Put/call Shares together with the Secondary Put/Call Shares total $ 67.5 million), plus any accrued but unpaid dividends on such shares. Unpaid balances, when due, accrue interest at a rate of 10.0 % per annum until repayment is completed. On October 7, 2021, the Company received a put notice on the Initial Put/Call Shares and the Secondary Put/Call Shares and, therefore, classified them in current liabilities in its consolidated balance sheet.
 On October 21, 2022, the Company entered into an Exchange Agreement with the Twin Peaks Seller and redeemed 1,821,831 shares of the Company's 8.25 % Series B Cumulative Preferred Stock at a price of $ 23.69 per share, plus accrued and unpaid dividends to the date of redemption in exchange for $ 46.5 million aggregate principal amount of secured debt ($ 43.2 million net of debt offering costs and original issue discount) as discussed in Note 10.
 As of December 29, 2024, the carrying value of the Twin Peaks Preferred Stock Consideration totaled $ 24.3 million. The Company recognized interest expense relating to the Twin Peaks Preferred Stock Consideration in the amount of $ 2.4 million during the year ended December 29, 2024.

 NOTE 13. STOCKHOLDERS' EQUITY AND DIVIDENDS ON COMMON STOCK

 On August 16, 2021, the Company filed its Second Amended and Restated Certificate of Incorporation (the "Amended Certificate") with the Secretary of State of the State of Delaware, which among other things, (i) authorized 50,000,000 shares of Class A Common Stock and 1,600,000 shares of Class B Common Stock, and (ii) reclassified the Company's outstanding shares of Common Stock as Class A Common Stock as of such date (the "Recapitalization"). Prior to the Recapitalization, the Company's authorized common shares totaled 51,600,000 in a single class.

 The terms of the Amended Certificate require equal or better treatment for the Class A Common Stock to the Class B Common Stock in transactions such as distributions, mergers, dissolution or recapitalization. Generally, each holder of shares of Class A Common Stock shall be entitled to 1 vote for each share of Class A Common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation, while each holder of shares of Class B Common Stock shall be entitled to 2,000 votes for each share of Class B Common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation. The foregoing is qualified in its entirety by reference to the full text of the Amended Certificate, which is filed as Exhibit 3.1 on the Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 19, 2021 and incorporated by reference herein.

 On October 15, 2021, the Board of Directors of the Company approved an amendment and restatement (the "Amendment") of the Company's Bylaws, effective as of the same date. The Amendment revised the stockholder voting provisions of the Bylaws to reflect the dual class common stock structure adopted by the Company in August 2021. In addition, the Amendment revised the provisions in the Bylaws for stockholder voting by written consent and the procedure for fixing the size of the Board of Directors and made certain other conforming changes.

 As of December 29, 2024 and December 31, 2023, the total number of authorized shares of Class A and Class B common stock was 51,600,000. There were 15,983,878 shares of Class A common stock and 1,270,805 shares of Class B common stock outstanding at December 29, 2024, and 15,629,294 shares of Class A common stock and 1,270,805 shares of Class B common stock issued and outstanding at December 31, 2023.

 Below are the changes to the Company's common stock during the fiscal year ended December 29, 2024:

 Warrants to purchase 302,474 shares of Class A common stock were exercised during the year ended December 29, 2024. The proceeds to the Company from the exercise of the warrants totaled $ 0.7 million.

 On January 9, 2024, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on March 1, 2024 to stockholders of record as of February 15, 2024, for a total of $ 2.4 million.

 On April 17, 2024, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on May 31, 2024 to stockholders of record as of May 15, 2024, for a total of $ 2.4 million.

 On July 9, 2024, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on August 30, 2024 to stockholders of record as of August 15, 2024, for a total of $ 2.4 million.

 On October 29, 2024, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on November 29, 2024 to stockholders of record as of November 15, 2024, for a total of $ 2.4 million.

 Below are the changes to the Company's common stock during the fiscal year ended December 31, 2023:

 Warrants to purchase 342,290 shares of Class A common stock were exercised during the year ended December 31, 2023. The proceeds to the Company from the exercise of the warrants totaled $ 0.7 million.

 The Company granted 25,000 restricted shares of Class A common stock to an employee. One-third of the shares vested immediately and the remaining shares will vest over the next 2 years in equal installments at the anniversary date of grant. The value of the restricted stock grant was $ 0.1 million and will be amortized as compensation expense over the vesting period.

 A total of 126,134 shares of Class A common stock were issued.

 On January 3, 2023, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on March 1, 2023 to stockholders of record as of February 15, 2023, for a total of $ 2.3 million.

 On April 4, 2023, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on June 1, 2023 to stockholders of record as of May 15, 2023, for a total of $ 2.3 million.

 On July 11, 2023, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on September 1, 2023 to stockholders of record as of August 15, 2023, for a total of $ 2.3 million.

 On October 3, 2023, the Board of Directors declared a cash dividend of $ 0.14 per share of Class A and Class B common stock, payable on December 1, 2023 to stockholders of record as of November 15, 2023, for a total of $ 2.4 million.

 NOTE 14. SHARE-BASED COMPENSATION
 Effective September 30, 2017, the Company adopted the 2017 Omnibus Equity Incentive Plan (the "Plan"). The Plan was amended on December 20, 2022 to increase the number of shares available for issuance under the Plan. The Plan is a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands Inc. and its subsidiaries. The Plan provides a maximum of 5,000,000 shares available for grant.
 The Company has periodically issued stock options under the Plan. All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually. The Company's stock option activity for fiscal year ended December 29, 2024 can be summarized as follows:

 Number of Shares
 Weighted
Average
Exercise
Price
 Weighted Average Remaining Contractual
Life (Years)

 Stock options outstanding at December 31, 2023
 2,890,172
 $
 9.39
 7.8

 Grants
 326,360
 $
 7.08
 9.2

 Forfeited
 ( 76,772)
 $
 9.68
 7.6

 Stock options outstanding at December 29, 2024
 3,139,760
 $
 9.15
 7.1

 Stock options exercisable at December 29, 2024
 2,303,336
 $
 10.18
 6.5

 The range of assumptions used in the Black-Scholes valuation model to value to options granted in fiscal years 2024 and 2023 are as follows:

 2024
 2023

 Expected dividend yield
 7.9 % - 11.0 %

 7.9 % - 10.4 %

 Expected volatility
 77.0
 %
 %

 Risk-free interest rate
 4.2 % - 4.7 %

 3.4 % - 4.9 %

 Expected term (in years)
 6.0
 6.0

 The Company recognized share-based compensation expense in the amount of $ 2.3 million and $ 3.6 million during the fiscal years ended December 29, 2024 and December 31, 2023, respectively. As of December 29, 2024, there remains $ 0.9 million of share-based compensation expense relating to non-vested grants, which will be recognized over the remaining vesting period of 2.5 years, subject to future forfeitures.

 NOTE 15. WARRANTS
 As of December 29, 2024, the Company had issued outstanding warrants to purchase shares of its Class A common stock as follows:
 Issue Date
 Number of Warrants Outstanding
 Commencement Date
 Termination Date
 Exercise Price
 Value at Grant Date (In Thousands)

 06/19/2019
 46,875
 12/24/2020
 06/19/2024
 $
 7.27
 N/A (1)

 07/16/2020
 680,381
 12/24/2020
 07/16/2025
 $
 3.76
 $
 1,163

 07/16/2020
 18,648
 12/24/2020
 07/16/2025
 $
 3.76
 $

 745,904

 (1) Values were not calculated at the issue date because the warrants were only exercisable in the event of a merger involving the Company and FCCG.
 In addition to the warrants to purchase common stock described above, the Company has also granted warrants issued on July 16, 2020, to purchase 3,600 shares of the Company's Series B Preferred Stock at an exercise price of $ 24.95 per share, exercisable beginning on the earlier of one year from the date of issuance, or the consummation of a merger or other similar business combination transaction involving the Company and FCCG, and will expire on July 16, 2025.
 The Company's activity in warrants to purchase Class A common stock for the fiscal year ended December 29, 2024 was as follows:

 Number of
Shares
 Weighted
Average
Exercise Price
 Weighted
Average
Remaining
Contractual
Life (Years)

 Warrants outstanding at December 31, 2023
 1,048,438
 $
 2.95
 1.6

 Exercised
 ( 302,474)
 $
 2.43
 0.8

 Expired
 ( 60)
 $
 7.73
 —

 Warrants outstanding at December 29, 2024
 745,904
 $
 2.53
 0.6

 Warrants exercisable at December 29, 2024
 745,904
 $
 2.53
 0.6

 (1)
 Exercise price adjusted due to cash dividends and Class B stock dividend.

 During the fiscal year ended December 29, 2024, a total of 302,474 warrants were exercised in exchange for 302,474 shares of common stock with net proceeds to the Company of $ 0.7 million.
 The range of assumptions used to establish the initial value of the warrants using the Black-Scholes valuation model were as follows:

 Warrants

 Expected dividend yield
 4.00 % - 6.63 %

 Expected volatility
 30.23 % - 31.73 %

 Risk-free interest rate
 0.99 % - 1.91 %

 Expected term (in years)
 3.8 - 5.0

 NOTE 16. COMMITMENTS AND CONTINGENCIES
 Litigation and Investigations
 Government Investigations and Litigation

 In December 2021, the U.S. Attorney's Office for the Central District of California (the "U.S. Attorney") and the U.S. Securities and Exchange Commission (the "SEC") informed the Company that they had opened investigations relating to the Company and our former CEO, Andrew Wiederhorn, and were formally seeking documents and materials concerning, among other things, the Company's December 2020 merger with Fog Cutter Capital Group Inc. ("FCCG"), transactions between those entities and Mr. Wiederhorn, as well as compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family from those entities prior to the merger.

 On May 10, 2024, the U.S. Department of Justice ("DOJ") indicted the Company on two violations of Section 402 of the Sarbanes-Oxley Act for directly and indirectly extending and/or arranging for the extension of credit in 2019 and 2020 to former CEO Andrew Wiederhorn in the amount of $ 2.65 million. These charges allege that the Company, through its subsidiary Fatburger N.A., transferred approximately $ 600,000 to Mr. Wiederhorn in the form of a personal loan on January 30, 2019, and lent approximately $ 2 million in 2020 to its former parent company FCCG which indirectly funded a personal loan from FCCG to Mr. Wiederhorn. The indictment also includes charges against Mr. Wiederhorn, the Company's former CFO, Rebecca Hershinger, and the Company's former tax advisor, William Amon, on violations of various federal tax and other laws related to loans from FCCG to Mr. Wiederhorn.

 Concurrently with the DOJ's charges, the SEC filed a complaint against the Company, claiming violations of Section 17(a)(2) of the Securities Act of 1933; Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), 13(k), and 14(a) of the Securities Exchange Act of 1934; and Rules 10b-5(b), 12b-20, 13a-1, 13a-13, 14a-3, and 14a-9 thereunder. The SEC's claims pertain principally to allegations that, for fiscal periods covering 2017 through 2020, the Company failed to disclose certain related party transactions, failed to disclose the salaries of Mr. Wiederhorn's adult children working at the Company, failed to maintain proper books and records and internal accounting controls, made false or misleading statements regarding the Company's liquidity and use of proceeds from certain transactions, and directly or indirectly extended credit to Mr. Wiederhorn in the form of a personal loan. The SEC's complaint also names Mr. Wiederhorn, Ms. Hershinger, and the Company's SVP of Finance, Ron Roe, as defendants. The SEC is seeking injunctive relief, disgorgement, and civil monetary penalties.

 The Company is evaluating these charges and intends to vigorously defend itself against them.

 Derivative Litigation
 James Harris and Adam Vignola, derivatively on behalf of FAT Brands, Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc., and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2021-0511-NAC). On June 10, 2021, plaintiffs James Harris and Adam Vignola, putative stockholders of the Company, filed a stockholder derivative action ("Harris I") in the Delaware Court of Chancery nominally on behalf of the Company against the Company's current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn) and the Company's current and former majority stockholders, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc. Plaintiffs assert claims of breach of fiduciary duty, unjust enrichment and waste of corporate assets arising out of the Company's December 2020 merger with Fog Cutter Capital Group, Inc. Since it was originally filed, the parties engaged in motion practice and substantial discovery, and the Company's Board appointed a Special Litigation Committee. On June 3, 2024, the Court granted the United States' request to extend the stay of all proceedings in this matter pending resolution of the charges in United States v. Wiederhorn, et al., 2:24-CR-295-RGK (C.D. Cal.). In January 2025, the principal parties to this matter participated in a mediation in Wilmington, DE and agreed in principle to settle this matter and the Harris II litigation. The settlement is subject to final documentation and approval of the Delaware court, as well as non-objection by the United States. We are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 James Harris and Adam Vignola, derivatively on behalf of FAT Brands, Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc., and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2021-0511-NAC). On June 10, 2021, plaintiffs James Harris and Adam Vignola, putative stockholders of the Company, filed a stockholder derivative action ("Harris I") in the Delaware Court of Chancery nominally on behalf of the Company against the Company's current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn) and the Company's current and former majority stockholders, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc. Plaintiffs assert claims of breach of fiduciary duty, unjust enrichment and waste of corporate assets arising out of the Company's December 2020 merger with Fog Cutter Capital Group, Inc. Since it was originally filed, the parties engaged in motion practice and substantial discovery, and the Company's Board appointed a Special Litigation Committee. On June 3, 2024, the Court granted the United States' request to extend the stay of all proceedings in this matter pending resolution of the charges in United States v. Wiederhorn, et al., 2:24-CR-295-RGK (C.D. Cal.). In January 2025, the principal parties to this matter participated in a mediation in Wilmington, DE and agreed in principle to settle this matter and the Harris II litigation. The settlement is subject to final documentation and approval of the Delaware court, as well as non-objection by the United States. We are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 Richard Collura v. Andrew A. Wiederhorn, et al. (Delaware Chancery Court, Case No. 2024-1305-NAC). In December 2024, plaintiff Richard Collura, a putative stockholder of the Company, filed a stockholder derivative action in the Delaware Court of Chancery nominally on behalf of the Company against certain of the Company's current and former officers and directors

 (Andrew Wiederhorn, Kenneth Kuick, Robert Rosen, Ron Roe, John Allen, Kenneth Anderson, Donald Berchtold, Tyler Child, Lynne Collier, Mark Elenowitz, James Ellis, Peter Feinstein, Amy Forrestal, Matthew Green, Squire Junger, John Metz, James Neuhauser, Edward Rensi, Carmen Vidal, Mason Wiederhorn, Taylor Wiederhorn and Thayer Wiederhorn), and the Company's majority stockholder, Fog Cutter Holdings, LLC. Plaintiff alleges that Mr. Wiederhorn and certain of the other defendants engaged in an unlawful scheme to distribute money to Mr. Wiederhorn and his family for their own personal benefit through 2020, which they allege attracted the attention of the U.S. Attorney's office and the SEC, and that the Company indicated in public statements and filings that it was cooperating with the government investigations but allegedly was not actually cooperating and investigating the scheme, which caused the Company's stock price to fall. Defendants dispute the premises and allegations of the lawsuit and intend to vigorously defend against the claims. We cannot predict the outcome of this lawsuit. This lawsuit does not assert any claims against the Company. However, subject to certain limitations, we are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management.

 Other Litigation

 Mitchell Kates v. FAT Brands, Inc., Andrew Wiederhorn, Kenneth J. Kuick and Robert G. Rosen (United States District Court for the Central District of California, Case No. 2:24-cv-04775-MWF-MAA). On June 7, 2024, plaintiff Mitchell Kates, a putative investor in the Company, filed a putative class action lawsuit against the Company, Andrew Wiederhorn, Kenneth J. Kuick and Robert G. Rosen, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and Rule 10b-5 promulgated thereunder, alleging that the defendants made false and misleading statements and omitted material facts necessary to make statements not misleading in the Company's reports filed with the SEC under the 1934 Act related to the subject matter of the government investigations and litigation discussed above, the Company's handling of these matters and its cooperation with the government. Plaintiff alleges that the Company's public statements wrongfully inflated the trading price of the Company's common stock, preferred stock and warrants. Plaintiff is seeking to certify the complaint as a class action and is seeking compensatory damages in an amount to be determined at trial. Plaintiff's motion for appointment as lead plaintiff, filed on August 6, 2024, remains sub judice. As this matter is still in the early stages, we cannot predict the outcome of this lawsuit.
 Stratford Holding LLC v. Foot Locker Retail Inc. (U.S. District Court for the Western District of Oklahoma, Case No. 5:12-cv-772-HE). In 2012 and 2013, two property owners in Oklahoma City, Oklahoma sued numerous parties, including Foot Locker Retail Inc. and our subsidiary Fog Cutter Capital Group Inc. (now known as Fog Cutter Acquisition, LLC), for alleged environmental contamination on their properties, stemming from dry cleaning operations on one of the properties. The property owners seek damages in the range of $ 12.0 million to $ 22.0 million. From 2002 to 2008, a former Fog Cutter subsidiary managed a lease portfolio, which included the subject property. Fog Cutter denies any liability, although it did not timely respond to one of the property owners' complaints and several of the defendants' cross-complaints and thus is in default. The parties are currently conducting discovery. The court has vacated the current trial date and has not yet reset the trial date. The Company is unable to predict the ultimate outcome of this matter, however, reserves have been recorded on the balance sheet of FAT Brands relating to this litigation. There can be no assurance that the defendants will be successful in defending against these actions.
 SBN FCCG LLC v FCCGI (Los Angeles Superior Court, Case No. BS172606). SBN FCCG LLC ("SBN") filed a complaint against Fog Cutter Capital Group, Inc. ("FCCG") in New York state court for an indemnification claim (the "NY case") stemming from an earlier lawsuit in Georgia regarding a certain lease portfolio formerly managed by a former FCCG subsidiary. In February 2018, SBN obtained a final judgment in the NY case for a total of $ 0.7 million, which included $ 0.2 million in interest dating back to March 2012. SBN then obtained a sister state judgment in Los Angeles Superior Court, Case No. BS172606 (the "California case"), which included the $ 0.7 million judgment from the NY case, plus additional statutory interest and fees, for a total judgment of $ 0.7 million. In May 2018, SBN filed a cost memo, requesting an additional $ 12,411 in interest to be added to the judgment in the California case, for a total of $ 0.7 million. In May 2019, the parties agreed to settle the matter for $ 0.6 million, which required the immediate payment of $ 0.1 million, and the balance to be paid in August 2019. FCCG wired $ 0.1 million to SBN in May 2019, but has not yet paid the remaining balance of $ 0.5 million. The parties have not entered into a formal settlement agreement, and they have not yet discussed the terms for the payment of the remaining balance.
 SBN FCCG LLC v FCCGI (Supreme Court of the State of New York, County of New York, Index No. 650197/2023). On January 13, 2023, SBN filed another complaint against FCCG in New York state court for an indemnification claim stemming from a lawsuit in Oklahoma City regarding the same lease portfolio formerly managed by Fog Cap (the "OKC Litigation"), and a bankruptcy proceeding involving Fog Cap (the "Bankruptcy Proceeding"). SBN alleges that under a February 2008 stock purchase agreement, Fog Cutter is required to indemnify SBN and its affiliates. According to the complaint, SBN has, at the time of filing the complaint, incurred costs subject to indemnification of approximately $ 12 million. On March 11, 2024, the court issued an order granting FCCG's motion to dismiss SBN's complaint without prejudice to refile the complaint, if at all,

 once the underlying proceedings (the OKC Litigation and the Bankruptcy Proceeding) were complete. On April 10, 2024, SBN filed a notice of appeal of the trial court's order dismissing SBN's complaint. We are unable at this time to express any opinion as to the eventual outcome of this matter or the possible range of loss, if any.
 The Company is involved in other claims and legal proceedings from time-to-time that arise in the ordinary course of business, including those involving the Company's franchisees. The Company does not believe that the ultimate resolution of these actions will have a material adverse effect on its business, financial condition, results of operations, liquidity or capital resources. As of December 29, 2024, the Company had accrued an aggregate of $ 5.1 million for the specific matters mentioned above and claims and legal proceedings involving franchisees as of that date.
 Operating Leases (See Also Note 9)
 Our corporate headquarters, including our principal administrative, sales and marketing, customer support, and research and development operations, are located in Beverly Hills, California, comprising approximately 15,000 square feet of space, pursuant to a lease that expires on January 31, 2031.

 Our subsidiary, GFG Management, LLC, leases an approximately 16,000 square foot warehouse location in Atlanta, GA under a lease expiring on May 31, 2029.

 Our subsidiary, GAC Supply, LLC, owns and operates an approximately 40,000 square foot manufacturing and production facility in Atlanta, Georgia and the underlying real property, which supplies our franchisees with cookie dough, pretzel dry mix and other ancillary products.

 Our subsidiary, Twin Restaurant Holding, LLC, leases offices in Dallas, TX comprising approximately 8,300 square feet under a lease expiring on April 30, 2025.

 Our subsidiary, Fazoli's Holdings, LLC, leases offices located in Lexington, KY comprising approximately 19,200 square feet under a lease expiring on April 30, 2027.

 Our subsidiary, Smokey Bones, LLC, leases offices located in Plantation, Florida comprising approximately 6,000 square feet under a lease expiring in February 2033.

 In addition to the above locations, certain of our subsidiaries directly own and operate restaurant locations, substantially all of which are located in leased premises. As of December 29, 2024, we owned and operated 181 restaurant locations. The leases have remaining terms ranging from less than 1 year to 25.8 years.

 We believe that our existing facilities are in good operating condition and adequate to meet our current and foreseeable needs. Additional information related to our operating leases are disclosed in Note 9.

 NOTE 17. GEOGRAPHIC INFORMATION AND MAJOR FRANCHISEES
 Revenues by geographic area are as follows (in millions):

 Fiscal Year Ended December 29, 2024

 Fiscal Year Ended December 31, 2023

 United States
 $
 579.8
 $
 469.6

 Other countries

 12.9
 10.9

 Total revenues

 $
 592.7
 $
 480.5

 Revenues are shown based on the geographic location of our licensee restaurants. All of our owned restaurant assets are located in the United States.
 During the fiscal years ended December 29, 2024 and December 31, 2023, no individual franchisee accounted for more than 10% of the Company's revenues.

 NOTE 18. SEGMENT INFORMATION

 We manage our business activities on a consolidated basis and operate as a single reporting segment as our businesses contain similar products and services managed by the Company, and are economically similar, and share similar types of customers, production and distribution: We primarily derive our revenue in the United States through the sale of food and beverages at our company restaurants and the collection of royalties, franchise fees and advertising revenue from sales of food and beverages at our franchised restaurants. The accounting policies of the single reporting segment are the same as those described in Note 2. Summary of Significant Accounting Policies.

 Our Chief Operating Decision Maker ("CODM") is made up of both our Co-Chief Executive Officers. Our CODMs regularly review and use the consolidated net loss, as reported on our Consolidated Statements of Operations in evaluating the overall performance of our single reporting segment and determining how to allocate resources of the Company as a whole, including investing in our existing company owned restaurants, acquisition strategy and stockholder return programs. The CODMs do not review assets in evaluating the results of our single reporting segment, and therefore, such information is not presented.

 Geographically, we have no assets in a foreign country requiring separate disclosure. We have no single major customer representing greater than 10% of our total revenues. For more information regarding our domestic revenues and revenues generated in the foreign countries refer to Note 17, Geographic information and Major Franchisees. Foreign revenues are based on the country in which the legal subsidiary is domiciled.

 NOTE 19. SUBSEQUENT EVENTS
 On January 16, 2025, the Company's Board of Directors declared a special stock dividend to the Company's common stockholders of shares of Class A Common Stock ("Twin Common Stock") of Twin Hospitality Group Inc., a Delaware corporation ("Twin Hospitality"), the operating unit for the Company's Twin Peaks and Smokey Bones restaurant brands. The distribution ("Spin-Off") of shares of Twin Common Stock was made on a pro rata basis to all holders of the Company's Class A Common stock and Class B Common Stock of the Company as of the close of trading on January 27, 2025 (the "record date"). The distribution took the form of a special dividend of 0.1520207 share of Twin Common Stock distributed with respect to each one share of the Company's Class A Common Stock and Class B Common Stock outstanding as of the record date.

 On January 29, 2025, the Company completed the previously announced distribution of approximately 5.0 % of the fully-diluted shares of Class A Common Stock, par value $ 0.0001 per share Twin Common Stock, as a pro rata dividend to holders of Class A common stock and Class B common stock of the Company of record as of January 27, 2025. Following the completion of the Spin-Off, Twin Hospitality became an independent, publicly traded company, and the Twin Common Stock began trading on the Nasdaq Global Market under the ticker symbol "TWNP".

 In connection with the Spin-Off, on January 24, 2025, the Company entered into a Master Separation Agreement (the "Master Separation Agreement") and Tax Matters Agreement (the "Tax Matters Agreement") with Twin Hospitality, which provide a framework for Twin Hospitality's on-going relationship with FAT Brands following the Spin-Off.

 Master Separation Agreement

 Pursuant to the Master Separation Agreement, on January 24, 2025, the Company exchanged its initial founder's shares in Twin Hospitality (representing 100 % of the issued and outstanding capital stock of Twin Hospitality) for 47,298,271 shares of Twin Hospitality's Class A Common Stock and 2,870,000 shares of Twin Hospitality's Class B Common Stock. In connection with the Spin-Off, on January 29, 2025, FAT Brands distributed 2,659,412 of its shares of Twin Hospitality Class A Common Stock to the FAT Brands Common Stockholders in the Distribution.

 Tax Matters Agreement

 The Tax Matters Agreement governs the rights, responsibilities and obligations of the Company and Twin Hospitality with respect to tax liabilities, tax attributes, tax returns, tax audits, and certain other tax matters following the completion of the Spin-Off. For so long as the Company maintains at least 80 % aggregate ownership of Twin Hospitality's Common Stock, Twin Hospitality will continue to be included in the income tax returns filed by the Company' consolidated group for U.S. federal income tax purposes ("FAT Brands Consolidated Group"), as well as in certain other consolidated, combined or unitary groups that include the Company and/or certain of its subsidiaries (each such group, a "FAT Brands Tax Group"). Each member of a consolidated group during any part of a consolidated return year is jointly and severally liable for the tax on the consolidated return of such year and for any subsequently determined deficiency thereon. Similarly, in some jurisdictions, each member of a consolidated, combined or unitary group for state, local or foreign income tax purposes is jointly and severally liable for the

 state, local or foreign income tax liability of each other member of such consolidated, combined or unitary group. The Tax Matters Agreement allocates tax liabilities between Twin Hospitality and the Company for any period in which Twin Hospitality or any of its subsidiaries (the "Twin Group") was included in the FAT Brands Consolidated Group.

 Under the Tax Matters Agreement, Twin Hospitality will generally make payments to the Company such that, with respect to tax returns for any taxable period in which any of the Twin Group are included in the FAT Brands Consolidated Group or any FAT Brands Tax Group, the amount of taxes to be paid by Twin Hospitality will be determined by computing the excess (if any) of any taxes due on any such tax return over the amount that would otherwise be due if such return were recomputed by excluding the Twin Group. The Tax Matters Agreement also provides that the Company will generally have the right to control audits or other tax proceedings with respect to any tax returns of the FAT Brands Consolidated Group or a FAT Brands Tax Group. Twin Hospitality will generally have the right to control any audits or other tax proceedings with respect to tax returns that include only the Twin Group, provided that, as long as the Company is required to consolidate the results of operations and financial position of the Twin Group in its financial statements, the Company will have certain oversight and participation rights with respect to such audits or other tax proceedings.

 SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
 FOR THE FISCAL YEAR ENDED DECEMBER 29, 2024

 Dollars (In Millions)

 Balance at
Beginning of
Period
 Charged to
Costs and
Expenses
 Deductions/ Recoveries/Acquisitions
 Balance at
End of Period

 Allowance for:

 Trade notes and accounts receivable

 $
 4.6
 $
 2.4
 $
 ( 2.4)
 $
 4.6

 ITEM 16. FORM 10-K SUMMARY
 Not applicable.

 SIGNATURES
 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 By:
 /s/ Kenneth J. Kuick

 Co-Chief Executive Officer (Principal Executive Officer)

 By:
 /s/ Robert G. Rosen

 Co-Chief Executive Officer (Principal Executive Officer)

 The undersigned directors and officers of FAT Brands Inc. do hereby constitute and appoint Kenneth J. Kuick and Robert G. Rosen, and each of them, with full power of substitution and resubstitution, as their true and lawful attorneys and agents, to do any and all acts and things in our name and behalf in our capacities as directors and officers and to execute any and all instruments for us and in our names in the capacities indicated below, which said attorney and agent, may deem necessary or advisable to enable said corporation to comply with the Securities Exchange Act of 1934, as amended and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with this Annual Report on Form 10-K, including specifically but without limitation, power and authority to sign for us or any of us in our names in the capacities indicated below, any and all amendments (including post-effective amendments) hereto, and we do hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue hereof.
 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 DATE
 NAME AND TITLE

 /s/ Kenneth J. Kuick

 Co-Chief Executive Officer and Chief Financial Officer (Principal Executive Officer, Principal Financial and Accounting Officer)

 /s/ Robert G. Rosen

 Co-Chief Executive Officer (Principal Executive Officer)

 /s/ Andrew A. Wiederhorn

 Andrew A. Wiederhorn, Director

 /s/ John S. Allen

 John S. Allen, Director

 /s/ Donald J. Berchtold

 Donald J. Berchtold, Director

 /s/ Tyler B. Child

 Tyler B. Child, Director

 /s/ Lynne L. Collier

 Lynne L. Collier, Director

 /s/ Mark Elenowitz

 Mark Elenowitz, Director

 /s/ James G. Ellis

 James G. Ellis, Director

 /s/ Peter R. Feinstein

 Peter R. Feinstein, Director

 /s/ Matthew H. Green

 Matthew H. Green, Director

 /s/ John C. Metz

 John C. Metz, Director

 /s/ Carmen Vidal

 Carmen Vidal, Director

 /s/ Mason A. Wiederhorn

 Mason A. Wiederhorn, Director

 /s/ Taylor A. Wiederhorn

 Taylor A. Wiederhorn, Director

 /s/ Thayer D. Wiederhorn

 Thayer D. Wiederhorn, Director

 EXHIBIT INDEX

 Exhibit Number
 Description
 Incorporated By Reference to
 Filed
Herewith

 Form
 Exhibit
 Filing Date

 3.1
 Second Amended and Restated Certificate of Incorporation, filed on August 16, 2021

 3.1
 08/19/2021

 3.2
 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation, filed on August 24, 2021

 3.1
 08/30/2021

 3.3
 Certificate of Increase of Series B Cumulative Preferred Stock, filed on September 15, 2021

 3.1
 09/16/2021

 3.4
 Certificate of Increase of Series B Cumulative Preferred Stock, filed on October 28, 2021

 3.1
 10/28/2021

 3.5
 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation, filed with the Delaware Secretary of State on December 20, 2022

 3.1
 12/23/2022

 3.6
 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation of FAT Brands Inc., effective December 26, 2024

 3.1
 12/30/2024

 3.7
 Amended and Restated Bylaws, effective as of May 2, 2023

 3.1
 5/8/2023

 4.1
 Warrant Agency Agreement, dated July 16, 2020, between the Company and VStock Transfer, LLC, to act as the Warrant Agent (including the form of Warrant Certificate)

 10.1
 07/16/2020

 4.2
 Base Indenture, dated March 6, 2020, and amended and restated as of April 26, 2021, by and between FAT Brands Royalty I, LLC and UMB Bank, N.A., as trustee and securities intermediary

 4.1
 04/26/2021

 4.3
 Series 2021-1 Supplement to the Base Indenture, dated April 26, 2021, by and between FAT Brands Royalty I, LLC and UMB Bank, N.A., as trustee

 4.2
 04/26/2021

 4.4
 Series 2022-1 Supplement to the Base Indenture, dated July 6, 2022, by and between FAT Brands Royalty I, LLC and UMB Bank, N.A., as trustee and securities intermediary

 4.2
 10/25/2022

 4.5
 Base Indenture, dated July 22, 2021, by and between FAT Brands GFG Royalty I, LLC, and UMB Bank, N.A., as trustee and securities intermediary

 4.1

 4.6
 Series 2021-1 Supplement to the Base Indenture, dated July 22, 2021, by and between FAT Brands GFG Royalty I, LLC, and UMB Bank, N.A., as trustee and securities intermediary

 4.2

 4.7
 Series 2022-1 Supplement to the Base Indenture, dated December 15, 2022, by and between FAT Brands GFG Royalty I, LLC, and UMB Bank, N.A., as trustee and securities intermediary

 4.2
 01/31/2023

 4.8
 Base Indenture, dated November 21, 2024, by and among Twin Hospitality I, LLC, and UMB Bank, N.A., as trustee and securities intermediary.

 4.1

 4.9
 Series 2024-1 Supplement to Base Indenture, dated November 21, 2024, by and among Twin Hospitality I, LLC, and UMB Bank, N.A., as trustee and securities intermediary.

 4.2

 4.10
 Base Indenture, dated December 15, 2021, by and among FAT Brands Fazoli's Native I, LLC, and UMB Bank, N.A., as trustee and securities intermediary

 4.1

 4.11
 Series 2021-1 Supplement to Base Indenture, dated December 15, 2021, by and among FAT Brands Fazoli's Native I, LLC, and UMB Bank, N.A., as trustee and securities intermediary

 4.2

 4.12
 Base Indenture, dated July 10, 2023, by and among FB Resid Holdings I, LLC and UMB Bank, N.A., as trustee and securities intermediary

 4.1
 7/13/2023

 4.13
 Series 2023-1 Supplement to Base Indenture, dated July 10, 2023, by and among FB Resid Holdings I, LLC and UMB Bank, N.A., as trustee and securities intermediary

 4.1
 7/13/2023

 4.14
 Description of Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934

 X

 10.1
 Form of Indemnification Agreement, dated October 20, 2017, between the Company and each director and executive officer

 1-A
 6.3
 09/06/2017

 10.2*
 Amended and Restated 2017 Omnibus Equity Incentive Plan

 Schedule 14A
 (proxy statement)

 Appendix A
 11/03/2023

 10.3
 Amended and Restated Office Lease, dated November 18, 2019, by and among Duesenberg Investment Company, LLC, Fatburger North America, Inc., Fog Cutter Capital Group Inc., and Fatburger Corporation

 10.12
 04/28/2020

 10.4
 Management Agreement, dated March 6, 2020, and amended and restated as of April 26, 2021, by and among FAT Brands Inc., FAT Brands Royalty I, LLC, each of the Securitization Entities named therein, and UMB Bank, N.A., as Trustee

 10.2
 04/26/2021

 10.5
 Management Agreement, dated July 22, 2021, by and among FAT Brands Inc., FAT Brands GFG Royalty I, LLC, each of the Franchise Entities named therein, and UMB Bank, N.A., as trustee

 10.2

 10.6
 Management Agreement, dated November 21, 2024, by and among Twin Hospitality Group Inc., Twin Hospitality I, LLC, each of the Guarantors named therein and UMB Bank, N.A., as trustee.

 10.2

 10.7
 Management Agreement, dated December 15, 2021, by and among FAT Brands Inc., FAT Brands Fazoli's Native I, LLC, each of the Guarantors named therein and UMB Bank, N.A., as trustee

 10.2

 10.8
 Back-Up Management and Consulting Agreement, dated December 15, 2021, by and among FAT Brands Inc., FAT Brands Fazoli's Native I, LLC, each of the Guarantors named therein, UMB Bank, N.A., as trustee, and FTI Consulting, Inc., as back-up manager

 10.3

 10.9
 Management Agreement, dated July 10, 2023, by and among FAT Brands Inc., FB Resid Holdings I, LLC, and UMB Bank, N.A., as trustee

 10.1
 7/13/2023

 10.10
 Guarantee and Collateral Agreement, dated April 26, 2021, by and among each of the Securitization Entities named therein, as Guarantors, in favor of UMB Bank, N.A., as Trustee

 10.1
 04/26/2021

 10.11
 Guarantee and Collateral Agreement, dated July 22, 2021, by and among the Guarantors named therein in favor of UMB Bank, N.A., as trustee

 10.1

 10.12
 Guarantee and Collateral Agreement, dated November 21, 2024, by and among the Guarantors named therein in favor of UMB Bank, N.A., as trustee.

 10.1

 10.13
 Guarantee and Collateral Agreement, dated December 15, 2021, by and among the Guarantors named therein in favor of UMB Bank, N.A., as trustee

 10.1

 10.14
 Put/Call Agreement, dated July 22, 2021, by and between FAT Brands Inc. and LS Global Franchise L.P.

 10.3

 10.15
 Put/Call Agreement, dated October 1, 2021, by and between FAT Brands Inc. and Twin Peaks Holdings, LLC

 10.3
 10/06/2021

 10.16
 Exchange Agreement, dated October 21, 2022, by and between FAT Brands Inc. and Twin Peaks Holdings, LLC.

 10.1
 10/25/2022

 10.17
 Equity Distribution Agreement, dated July 19, 2024, by and between the Company and Noble Capital Markets, Inc.

 10.1
 7/19/2024

 10.18*
 Employment Agreement, effective as of May 5, 2023, between FAT Brands Inc. and Kenneth Kuick

 10.1
 5/10/2023

 10.19*
 Employment Agreement, effective as of May 5, 2023, between FAT Brands Inc. and Robert Rosen

 10.1
 5/10/2023

 10.20*
 Separation, Cooperation, and Release Agreement, dated July 19, 2023, by and between FAT Brands Inc. and Andrew A. Wiederhorn

 10.1
 7/21/2023

 10.21*
 Consulting Agreement, dated July 19, 2023, by and among FAT Brands Inc., Fog Cutter Consulting Corp. and Andrew A. Wiederhorn

 10.2
 7/21/2023

 10.22
 Omnibus Amendment, dated November 21, 2024, by and among FAT Brands Inc., FB Resid Holdings I, LLC, each of FAT Brands Royalty I, LLC, FAT Brands GFG

 4.3

 10.23
 Pledge and Security Agreement, dated November 21, 2024, by and among FAT Brands Inc. and UMB Bank, N.A., as trustee and securities intermediary.

 10.3

 10.24
 Securities Account Control Agreement, dated November 21, 2024, by and among FAT Brands Inc. and UMB Bank, N.A., as trustee and securities intermediary.

 10.4

 10.25
 Master Separation and Distribution Agreement, dated as of January 24, 2025, by and between FAT Brands Inc. and Twin Hospitality Group Inc.

 2.1
 8-K filed by Twin Hospitality Group Inc. on 01/30/2025

 10.26
 Tax Matters Agreement, dated as of January 24, 2025, by and between FAT Brands Inc. and Twin Hospitality Group Inc.

 10.1
 8-K filed by Twin Hospitality Group Inc. on 01/30/2025

 19.1
 Insider Trading Policy

 X

 21.1
 Significant Subsidiaries

 X

 23.1
 Consent of Independent Registered Public Accounting Firm

 X

 31.1
 Certification of Co-Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 X

 31.2
 Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 X

 32.1
 Certifications of the Co-Chief Executive Officers and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 X

 97.1
 Clawback Policy

 10.22
 3/12/2024

 101.INS
 X

 101.SCH
 X

 101.CAL
 X

 101.DEF
 X

 101.LAB
 X

 101.PRE
 X

 • Indicates management contract or compensatory plan or arrangement.