the average menu price increase in fiscal 2017 over fiscal 2016 was approximately 3.5 % . franchise revenues decreased $ 32,000 in fiscal 2017 primarily due to a decrease in restaurant sales at the franchise locations . average good times restaurant sales for company-operated restaurants open the entire fiscal year for fiscal 2016 and 2017 were as follows : fiscal 2017 fiscal 2016 company-operated $ 1,095,000 $ 1,088,000 during fiscal 2017 , company-operated good times restaurants ' sales for restaurants that had been open a full fifteen months ranged from a low of $ 631,000 to a high of $ 1,939,000. bad daddy 's restaurant sales increased $ 12,854,000 to $ 47,706,000 in fiscal 2017 from $ 34,855,000 in fiscal 2016 , primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . bad daddy 's same store restaurant sales increased 1.6 % during fiscal 2017 compared to fiscal 2016. excluding the cherry creek location which continues to be severely impacted by construction in the surrounding area , bad daddy 's same store sales increased 2.2 % for the fiscal year . bad daddy 's restaurants are included in same store sales after they have been open a full eighteen months . the average menu price increase was 1.25 % in 2017 over 2016. there were fourteen restaurants included in the same store sales base at the end of the fiscal year . additionally , net revenues were reduced by $ 6,000 of lower franchise royalties and license fees compared to fiscal 2016. food and packaging costs : for fiscal 2017 , food and packaging costs increased $ 4,664,000 from $ 20,236,000 ( 31.8 % of restaurant sales ) in fiscal 2016 to $ 24,900,000 ( 31.8 % of restaurant sales ) . 25 good times food and packaging costs were $ 9,994,000 ( 32.6 % of restaurant sales ) in fiscal 2017 , up from $ 9,346,000 ( 32.4 % of restaurant sales ) in fiscal 2016. we experienced significant increases in commodity costs during our third and fourth fiscal quarters in 2017. the cost index on our weighted basket of goods increased approximately 9 % during the fiscal year . bad daddy 's food and packaging costs were $ 14,906,000 ( 31.2 % of restaurant sales ) in fiscal 2017 , up from $ 10,890,000 ( 31.2 % of restaurant sales ) in fiscal 2016. payroll and other employee benefit costs : for fiscal 2017 , payroll and other employee benefit costs increased $ 6,175,000 from $ 22,098,000 ( 34.7 % of restaurant sales ) in fiscal 2016 to $ 28,274,000 ( 36.1 % of restaurant sales ) . good times payroll and other employee benefit costs were $ 10,549,000 ( 34.4 % of restaurant sales ) in fiscal 2017 , up from $ 9,450,000 ( 32.7 % of restaurant sales ) in fiscal 2016. payroll and other employee benefits increased approximately $ 384,000 in fiscal 2017 due to one new restaurant opened in march 2017. the remaining $ 715,000 increase in payroll and other employee benefit expenses is primarily due to an increase in the average wage paid to our employees , which increased approximately 8.7 % in fiscal 2017 compared to fiscal 2016. the 8.7 % increase is attributable to a very competitive labor market in colorado and state mandated increases in the minimum wage rate . bad daddy 's payroll and other employee benefit costs were $ 17,725,000 ( 37.2 % of restaurant sales ) for fiscal 2017 , up from $ 12,648,000 ( 36.3 % of restaurant sales ) in fiscal 2016. the $ 5,077,000 increase was primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . the increase of 0.9 % in payroll and other employee benefit costs as a percentage of restaurant sales was mainly due to a higher percentage of restaurants in colorado than last year , which has a higher statutory minimum wage for tipped employees as compared to north carolina . we anticipate that our payroll and employee benefit costs at bad daddy 's will decrease as a percentage of sales as we open more restaurants outside of colorado . we estimate that the colorado minimum wage for tipped employees results in higher total labor costs of approximately 5.0 % of restaurant sales in colorado than in north carolina . occupancy costs : occupancy costs include rent , real and personal property taxes , common area maintenance expenses , licenses and insurance expense . for fiscal 2017 , occupancy costs increased $ 866,000 from $ 4,893,000 ( 7.7 % of restaurant sales ) in fiscal 2016 to $ 5,759,000 ( 7.3 % of restaurant sales ) . good times occupancy costs were $ 2,772,000 ( 9.0 % of restaurant sales ) in fiscal 2017 , up from $ 2,711,000 ( 9.4 % of restaurant sales ) in fiscal 2016. the $ 61,000 increase in occupancy and other costs is primarily attributable to one new restaurant that opened in march 2017. occupancy costs may increase as a percent of sales as new company-owned restaurants are developed due to higher rent associated with sale-leaseback operating leases , as well as increased property taxes on those locations . bad daddy 's occupancy costs were $ 2,987,000 ( 6.3 % of restaurant sales ) for fiscal 2017 , up from $ 2,182,000 ( 6.3 % of restaurant sales ) in fiscal 2016. the $ 805,000 increase was primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . story_separator_special_tag these costs typically include general construction to alter the layout of the restaurant , leasehold improvements , and other miscellaneous items . we capitalize leasehold improvements and record a deferred liability for the amount of cash received from the landlord , which is amortized on a straight-line basis over the lease term as defined above . the amortization of the deferred liability related to these tenant improvements is recorded as a reduction of rent expense . we make judgments regarding the probable term for each restaurant lease , which can impact the rent holiday and or escalations in payments that are taken into consideration when calculating the straight-line rent and the term over which leasehold improvements and deferred lease incentives for each restaurant are amortized . these judgments may produce materially different amounts of depreciation , amortization , and rent expense than would be reported if different assumed lease terms were used . non-controlling interests : non-controlling interests , previously called minority interests , are presented as a separate item in the equity section of the consolidated balance sheet . consolidated net income or loss attributable to non-controlling interests are presented on the face of the consolidated statement of operations . additionally , changes in a parent 's ownership interest in a subsidiary that do not result in deconsolidation are equity transactions , and that deconsolidation of a subsidiary is recorded as a gain or loss based on the fair value on the deconsolidation date . income taxes : we account for income taxes under the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . we provide a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . we continually review the realizability of our deferred tax assets , including an analysis of factors such as future taxable income , reversal of existing taxable temporary differences , and tax planning strategies . we assessed whether a valuation allowance should be recorded against our deferred tax assets based on consideration of all available evidence , using a “ more likely than not ” standard . in assessing the need for a valuation allowance , we considered both positive and negative evidence related to the likelihood of realization of deferred tax assets . in making such assessment , more weight was given to evidence that could be objectively verified , including recent cumulative losses . future sources of taxable income were also considered in determining the amount of the recorded valuation allowance . based on our review of this evidence , we determined that a full valuation allowance against all of our deferred tax assets was appropriate . as we increase earnings and utilize deferred tax assets in the future , it is possible the valuation allowance could be reduced or eliminated . 31 we are subject to taxation in various jurisdictions . we continue to remain subject to examination by u.s. federal authorities for the years 2014 through 2017. we believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition , results of operations , or cash flows . therefore , no reserves for uncertain income tax positions have been recorded . our practice is to recognize interest and or penalties related to income tax matters in income tax expense . we have accrued $ 0 for interest and penalties as of september 26 , 2017. variable interest entities : once an entity is determined to be a variable interest entity ( vie ) , the party with the controlling financial interest , the primary beneficiary , is required to consolidate it . we have three franchisees with notes payable and after analysis we have determined that , while the franchisees are vie 's , we are not the primary beneficiary of the entities , and therefore they are not required to be consolidated . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , “ revenue from contracts with customers ( topic 606 ) . ” this update was issued to replace the current revenue recognition guidance , creating a more comprehensive five-step model . in march 2016 , the fasb issued asu no . 2016-04 , “ liabilities – extinguishments of liabilities : recognition of breakage for certain prepaid stored-value products . ” this pronouncement provides guidance for the derecognition of prepaid stored-value product liabilities , consistent with the breakage guidance in topic 606. these amendments are effective for fiscal years beginning after december 15 , 2017 and interim periods within those fiscal years . we do not expect that the adoption of these new standards will have a material impact to our revenue recognition related to company-owned restaurant sales , recognition of royalty fees from our franchise agreements , or impact our recognition of gift card breakage . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) ” , which replaces the existing guidance in accounting standard codification 840 , leases . asu 2016-02 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2018. this pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases . both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability . the company is currently assessing the impact that adoption of asu 2016-02 will have on its consolidated financial position or results of

liquidity and capital resources cash and working capital : as of september 27 , 2017 , we had a working capital deficit of $ 850,000. our working capital position benefits from the fact that we generally collect cash from sales to customers the same day , or in the case of credit or debit card transactions , within a few days of the related sale , and we typically have two to four weeks to pay our vendors . this benefit may increase when new bad daddy 's and good times restaurants are opened . we believe that we will have sufficient capital to meet our working capital , long term debt obligations and recurring capital expenditure needs in fiscal 2018. as of september 26 , 2017 , we had total commitments outstanding of $ 558,000 related to construction contracts for bad daddy 's restaurants currently under development . we anticipate these commitments will be funded out of existing cash or future borrowings against the cadence bank credit facility . financing : bridge funding credit facility : on july 30 , 2014 drive thru entered into a development line loan and security agreement with united capital business lending , whose name was changed to bridge funding group in february 2016 ( “ lender ” ) , pursuant to which lender agreed to loan drive thru up to $ 2,100,000 ( the “ loan ” ) and entered into a collateral assignment of franchise agreements , management agreement and partnership interests with lender . in addition , on july 30 , 2014 , the company entered into a guaranty agreement ( the “ guaranty agreement ” ) with lender , pursuant to which the company guaranteed the repayment of the loan . the loan agreement , collateral assignment , notes ( as defined below ) and guaranty agreement are referred to herein as the “ loan documents. ” in connection with each disbursement under the loan agreement , drive thru executed a promissory note ( the “ notes ” ) in the full amount of each disbursement request .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources cash and working capital : as of september 27 , 2017 , we had a working capital deficit of $ 850,000. our working capital position benefits from the fact that we generally collect cash from sales to customers the same day , or in the case of credit or debit card transactions , within a few days of the related sale , and we typically have two to four weeks to pay our vendors . this benefit may increase when new bad daddy 's and good times restaurants are opened . we believe that we will have sufficient capital to meet our working capital , long term debt obligations and recurring capital expenditure needs in fiscal 2018. as of september 26 , 2017 , we had total commitments outstanding of $ 558,000 related to construction contracts for bad daddy 's restaurants currently under development . we anticipate these commitments will be funded out of existing cash or future borrowings against the cadence bank credit facility . financing : bridge funding credit facility : on july 30 , 2014 drive thru entered into a development line loan and security agreement with united capital business lending , whose name was changed to bridge funding group in february 2016 ( “ lender ” ) , pursuant to which lender agreed to loan drive thru up to $ 2,100,000 ( the “ loan ” ) and entered into a collateral assignment of franchise agreements , management agreement and partnership interests with lender . in addition , on july 30 , 2014 , the company entered into a guaranty agreement ( the “ guaranty agreement ” ) with lender , pursuant to which the company guaranteed the repayment of the loan . the loan agreement , collateral assignment , notes ( as defined below ) and guaranty agreement are referred to herein as the “ loan documents. ” in connection with each disbursement under the loan agreement , drive thru executed a promissory note ( the “ notes ” ) in the full amount of each disbursement request .
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 Suspicious Activity Report : the average menu price increase in fiscal 2017 over fiscal 2016 was approximately 3.5 % . franchise revenues decreased $ 32,000 in fiscal 2017 primarily due to a decrease in restaurant sales at the franchise locations . average good times restaurant sales for company-operated restaurants open the entire fiscal year for fiscal 2016 and 2017 were as follows : fiscal 2017 fiscal 2016 company-operated $ 1,095,000 $ 1,088,000 during fiscal 2017 , company-operated good times restaurants ' sales for restaurants that had been open a full fifteen months ranged from a low of $ 631,000 to a high of $ 1,939,000. bad daddy 's restaurant sales increased $ 12,854,000 to $ 47,706,000 in fiscal 2017 from $ 34,855,000 in fiscal 2016 , primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . bad daddy 's same store restaurant sales increased 1.6 % during fiscal 2017 compared to fiscal 2016. excluding the cherry creek location which continues to be severely impacted by construction in the surrounding area , bad daddy 's same store sales increased 2.2 % for the fiscal year . bad daddy 's restaurants are included in same store sales after they have been open a full eighteen months . the average menu price increase was 1.25 % in 2017 over 2016. there were fourteen restaurants included in the same store sales base at the end of the fiscal year . additionally , net revenues were reduced by $ 6,000 of lower franchise royalties and license fees compared to fiscal 2016. food and packaging costs : for fiscal 2017 , food and packaging costs increased $ 4,664,000 from $ 20,236,000 ( 31.8 % of restaurant sales ) in fiscal 2016 to $ 24,900,000 ( 31.8 % of restaurant sales ) . 25 good times food and packaging costs were $ 9,994,000 ( 32.6 % of restaurant sales ) in fiscal 2017 , up from $ 9,346,000 ( 32.4 % of restaurant sales ) in fiscal 2016. we experienced significant increases in commodity costs during our third and fourth fiscal quarters in 2017. the cost index on our weighted basket of goods increased approximately 9 % during the fiscal year . bad daddy 's food and packaging costs were $ 14,906,000 ( 31.2 % of restaurant sales ) in fiscal 2017 , up from $ 10,890,000 ( 31.2 % of restaurant sales ) in fiscal 2016. payroll and other employee benefit costs : for fiscal 2017 , payroll and other employee benefit costs increased $ 6,175,000 from $ 22,098,000 ( 34.7 % of restaurant sales ) in fiscal 2016 to $ 28,274,000 ( 36.1 % of restaurant sales ) . good times payroll and other employee benefit costs were $ 10,549,000 ( 34.4 % of restaurant sales ) in fiscal 2017 , up from $ 9,450,000 ( 32.7 % of restaurant sales ) in fiscal 2016. payroll and other employee benefits increased approximately $ 384,000 in fiscal 2017 due to one new restaurant opened in march 2017. the remaining $ 715,000 increase in payroll and other employee benefit expenses is primarily due to an increase in the average wage paid to our employees , which increased approximately 8.7 % in fiscal 2017 compared to fiscal 2016. the 8.7 % increase is attributable to a very competitive labor market in colorado and state mandated increases in the minimum wage rate . bad daddy 's payroll and other employee benefit costs were $ 17,725,000 ( 37.2 % of restaurant sales ) for fiscal 2017 , up from $ 12,648,000 ( 36.3 % of restaurant sales ) in fiscal 2016. the $ 5,077,000 increase was primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . the increase of 0.9 % in payroll and other employee benefit costs as a percentage of restaurant sales was mainly due to a higher percentage of restaurants in colorado than last year , which has a higher statutory minimum wage for tipped employees as compared to north carolina . we anticipate that our payroll and employee benefit costs at bad daddy 's will decrease as a percentage of sales as we open more restaurants outside of colorado . we estimate that the colorado minimum wage for tipped employees results in higher total labor costs of approximately 5.0 % of restaurant sales in colorado than in north carolina . occupancy costs : occupancy costs include rent , real and personal property taxes , common area maintenance expenses , licenses and insurance expense . for fiscal 2017 , occupancy costs increased $ 866,000 from $ 4,893,000 ( 7.7 % of restaurant sales ) in fiscal 2016 to $ 5,759,000 ( 7.3 % of restaurant sales ) . good times occupancy costs were $ 2,772,000 ( 9.0 % of restaurant sales ) in fiscal 2017 , up from $ 2,711,000 ( 9.4 % of restaurant sales ) in fiscal 2016. the $ 61,000 increase in occupancy and other costs is primarily attributable to one new restaurant that opened in march 2017. occupancy costs may increase as a percent of sales as new company-owned restaurants are developed due to higher rent associated with sale-leaseback operating leases , as well as increased property taxes on those locations . bad daddy 's occupancy costs were $ 2,987,000 ( 6.3 % of restaurant sales ) for fiscal 2017 , up from $ 2,182,000 ( 6.3 % of restaurant sales ) in fiscal 2016. the $ 805,000 increase was primarily attributable to the six new restaurants opened in fiscal 2017 and a full year of operations for restaurants opened in the prior fiscal year . story_separator_special_tag these costs typically include general construction to alter the layout of the restaurant , leasehold improvements , and other miscellaneous items . we capitalize leasehold improvements and record a deferred liability for the amount of cash received from the landlord , which is amortized on a straight-line basis over the lease term as defined above . the amortization of the deferred liability related to these tenant improvements is recorded as a reduction of rent expense . we make judgments regarding the probable term for each restaurant lease , which can impact the rent holiday and or escalations in payments that are taken into consideration when calculating the straight-line rent and the term over which leasehold improvements and deferred lease incentives for each restaurant are amortized . these judgments may produce materially different amounts of depreciation , amortization , and rent expense than would be reported if different assumed lease terms were used . non-controlling interests : non-controlling interests , previously called minority interests , are presented as a separate item in the equity section of the consolidated balance sheet . consolidated net income or loss attributable to non-controlling interests are presented on the face of the consolidated statement of operations . additionally , changes in a parent 's ownership interest in a subsidiary that do not result in deconsolidation are equity transactions , and that deconsolidation of a subsidiary is recorded as a gain or loss based on the fair value on the deconsolidation date . income taxes : we account for income taxes under the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . we provide a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . we continually review the realizability of our deferred tax assets , including an analysis of factors such as future taxable income , reversal of existing taxable temporary differences , and tax planning strategies . we assessed whether a valuation allowance should be recorded against our deferred tax assets based on consideration of all available evidence , using a “ more likely than not ” standard . in assessing the need for a valuation allowance , we considered both positive and negative evidence related to the likelihood of realization of deferred tax assets . in making such assessment , more weight was given to evidence that could be objectively verified , including recent cumulative losses . future sources of taxable income were also considered in determining the amount of the recorded valuation allowance . based on our review of this evidence , we determined that a full valuation allowance against all of our deferred tax assets was appropriate . as we increase earnings and utilize deferred tax assets in the future , it is possible the valuation allowance could be reduced or eliminated . 31 we are subject to taxation in various jurisdictions . we continue to remain subject to examination by u.s. federal authorities for the years 2014 through 2017. we believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition , results of operations , or cash flows . therefore , no reserves for uncertain income tax positions have been recorded . our practice is to recognize interest and or penalties related to income tax matters in income tax expense . we have accrued $ 0 for interest and penalties as of september 26 , 2017. variable interest entities : once an entity is determined to be a variable interest entity ( vie ) , the party with the controlling financial interest , the primary beneficiary , is required to consolidate it . we have three franchisees with notes payable and after analysis we have determined that , while the franchisees are vie 's , we are not the primary beneficiary of the entities , and therefore they are not required to be consolidated . recent accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , “ revenue from contracts with customers ( topic 606 ) . ” this update was issued to replace the current revenue recognition guidance , creating a more comprehensive five-step model . in march 2016 , the fasb issued asu no . 2016-04 , “ liabilities – extinguishments of liabilities : recognition of breakage for certain prepaid stored-value products . ” this pronouncement provides guidance for the derecognition of prepaid stored-value product liabilities , consistent with the breakage guidance in topic 606. these amendments are effective for fiscal years beginning after december 15 , 2017 and interim periods within those fiscal years . we do not expect that the adoption of these new standards will have a material impact to our revenue recognition related to company-owned restaurant sales , recognition of royalty fees from our franchise agreements , or impact our recognition of gift card breakage . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) ” , which replaces the existing guidance in accounting standard codification 840 , leases . asu 2016-02 is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2018. this pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases . both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability . the company is currently assessing the impact that adoption of asu 2016-02 will have on its consolidated financial position or results of

