FLANIGANS ENTERPRISES INC

(ii) · a 4,600 square foot stand-alone building located in Hallandale, Florida that we purchased in July 2006 and which since September 1968 has housed our Hallandale, Florida Company-owned combination restaurant and package liquor store (Store #31);

(iii) · a 4,120 square foot stand-alone building in Hollywood, Florida we constructed in November 2003, upon real property we acquired in September 2001 pursuant to a 25 year ground lease interest, (a portion of this building is leased to an unaffiliated third party), and which since November 2003 has housed our Hollywood, Florida Company-owned package liquor store (Store #4);

(iv) · a 4,500 square foot stand-alone building located in Hollywood, Florida that we purchased in October 2009 and which housed our Hollywood, Florida Company-owned combination restaurant and package liquor store (Store #19) from March, 1972 until it was destroyed by fire on October 2, 2018 and the vacant parcel of real property adjacent thereto which we purchased in February 2015. Subsequent to the fire, (i) we constructed a 3,000 square foot stand-alone building on the vacant parcel of real property for the operation of our Company-owned package liquor store (Store #19P), which opened for business during the first quarter of our fiscal year 2024; and (ii) we constructed a 4,500 square foot stand-alone building here for the operation of the Company-owned restaurant, (Store #19R), which opened for business during the second quarter of our fiscal year 2024;

(v) · a 4,600 square foot stand-alone building located in Fort Lauderdale, Florida that we purchased in August 2010 and which since December 1968 has housed our Fort Lauderdale, Florida Company-owned restaurant (Store #22);

(vi) · a 5,100 square foot stand-alone building in North Miami, Florida that we purchased in November 2010; the two parcels of real property adjacent thereto which we purchased in December 2012, one of which is contiguous to the real property and which we previously leased for non-exclusive parking and the vacant parcel of real property adjacent to the two parcels of real property which we purchased in March 2017. The stand-alone building housed our North Miami, Florida Company-owned combination restaurant and package liquor store, (Store #20), from July 1968 until June 2017 when the package liquor store was re-located to a new building we constructed on the adjacent property;

(vii) · a 23,678 square foot two building shopping center in Miami, Florida that we purchased in November 2010: (A) one stand-alone building, approximately 18,828 square feet, (i) houses our package liquor store #45 and (ii) is otherwise leased to ten unaffiliated third party retailers; and (B) the second stand-alone building, approximately 4,850 square feet, has housed our limited partnership owned Kendall, Florida based restaurant since April 4, 2000, (Store #70);

(viii) · a 6,400 square foot building in Fort Lauderdale, Florida that we purchased in February 2014, 4,000 square feet of which has been leased to a related franchisee (Store #15) since April 1, 1997 and the balance (2,400 square feet) of which we use as storage. In August 2018 we purchased the real property and quadraplex adjacent thereto to insure adequate parking for the franchised restaurant in the future, if needed;

(ix) · a 6,000 square foot stand-alone building in Fort Lauderdale, Florida and the vacant real property diagonally adjacent that we purchased in October 2015, which we use as office and warehouse space, covered parking for our food truck and as a storage yard;

(x) · a 6,900 square foot stand-alone building in Sunrise, Florida, which we purchased in March 2021 and houses our limited partnership owned Sunrise, Florida based restaurant, (Store #85), which opened for business in March 2022;

(xi) · a 6,000 square foot commercial space in Miami, Florida, which we purchased in April 2023 and in which we operate our package liquor store and warehouse (Store #47), through a sublease agreement from a sale-leaseback arrangement in January 1974;

(xii) · a 5,450 square foot three building shopping center in Hallandale Beach, Florida (adjacent to our combination package store and restaurant in Hallandale Beach, Florida (Store #31)), that we purchased in April 2023: (A) one stand-alone building, approximately 1,450 square feet, of which 950 square feet is leased to one unaffiliated third party retailer and 500 square feet which is occupied by us; (B) the second stand-alone building, approximately 1,500 square feet, which is leased to one unaffiliated third party retailer and (C) the third stand-alone building, approximately 2,500 square feet, which is leased to one unaffiliated third party retailer, (collectively Store #38); and

(xiii) · we are developing a 6,400 square foot stand-alone building in Cutler Bay, Florida, which vacant property we purchased in May 2025 and will house our limited partnership owned Cutler Bay, Florida based restaurant, (Store #3), which we anticipate will open for business during our fiscal year 2027.

All of our units require periodic refurbishing in order to remain competitive. We have budgeted $750,000 for our refurbishing program for fiscal year 2026, although capital expenditures of our refurbishing program for our fiscal year 2026 may be significantly higher. See Item 7, “Liquidity and Capital Resources” for discussion of the amounts spent in fiscal year 2025.

• Changes in customer tastes and preferences, spending patterns and demographic trends could cause sales to decline and adversely affect financial performance.
• Our success depends substantially on the value of our brands and our reputation for offering guests a satisfactory experience.
• Our marketing and advertising strategies may not be successful, which could adversely impact our business.
• Labor shortages, an increase in labor costs, or inability to attract employees could harm our business.
• Due to our geographic locations, restaurants are subject to climate conditions that could affect operations.
• If we were to experience widespread difficulty renewing existing leases on favorable terms, our revenue or occupancy costs could be adversely affected.
• Due to our geographic locations, we may not be able to acquire windstorm insurance coverage or adequate windstorm insurance coverage at a reasonable rate.
• Our inability or failure to execute a comprehensive business continuity plan at our restaurant support centers following a disaster or force majeure event could have a material adverse impact on our business.
• Inability to attract and retain customers could affect results of operations.
• A failure to comply with governmental regulations could harm our business and our reputation.
• We may face liability under dram shop statutes.
• Concerns relating to pandemics and other diseases, food safety and food-borne illness could reduce customer traffic to our restaurants, disrupt our food supply chain or cause us to be the target of litigation, which could materially adversely affect our financial performance.
• If we are unable to protect our customers’ credit card data, we could be exposed to data loss, litigation and liability, and our reputation could be significantly harmed.
• If we experience a significant failure in or interruption of certain key information technology systems, our business could be adversely impacted.
• The effect of changes to U.S. healthcare laws may increase our healthcare costs and negatively impact our financial results.
• Governmental regulation in one or more of the following areas may adversely affect our existing and future operations and results, including by harming our ability to open new restaurants or increasing our operating costs.
• Employment and immigration regulations
• Americans with disabilities act and similar state laws
• Nutrition and food regulation
• Privacy/Cybersecurity
• Local licensure, zoning and other regulation
• Environmental laws
• We could be party to litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material money damages and other remedies.
• Our success may depend on the continued service and availability of key personnel.
• We are exposed to risks related to cybersecurity.
• If there is a material failure in our information technology systems, our business operations and profits could be negatively affected and our systems may be inadequate to support our future growth strategies.
• Acts of violence at or threatened against our restaurants or the centers in which they are located, including active shooter situations and terrorism, could unfavorably impact our restaurant sales, which could materially adversely affect our financial performance.
• Social media impact on customer perceptions of our brand.
• Our digital business has become an increasingly significant part of our business.
• Changes in interest rates.