3. ACQUISITIONS

On March 7, 2018, the Company entered into an agreement to purchase two BGR franchise locations in Maryland. The Company closed on the purchase of the Annapolis, MD location in the first quarter of 2018 and the results of that store are included in the accompanying condensed consolidated financial statements. The Company closed on the Colombia, MD location as of October 1, 2018, subsequent to the date of the accompanying condensed consolidated financial statements.

Total consideration consisted of $30,000 in cash paid and a seller note of $9,580 upon the closing of the first location (reflected in the accompanying condensed consolidated financial statements) and $20,000 in cash and a seller note of $186,767 upon closing of the second location in October (not reflected in the accompanying condensed consolidated financial statements as of September 30, 2018).

The Company allocates the purchase price as of the date of acquisition based on the estimated fair value of the acquired assets and assumed liabilities. The purchase accounting for the Annapolis location was considered preliminary as of September 30, 2018 and is expected to be finalized in the fourth quarter in connection with completion of the transaction to purchase the Colombia location. No proforma information was included as the proforma impact of the acquisition is not material to the condensed consolidated financial statements as of September 30, 2018.