The Puyallup restaurant is the final Red Robin® restaurant to be acquired under the previously announced acquisition of 13 restaurants operated by Great Western Dining. This restaurant has been operated by the Company under a management services agreement since July 10, 2006, when the company acquired the first 11 restaurants. The net proceeds paid at the final closing for the Puyallup restaurant were approximately $5.0 million, which were paid in cash.
The Company expects to record a one-time charge of approximately $0.01 per diluted share in the fourth quarter of fiscal 2006 relating to the termination of the franchise agreement for the Puyallup restaurant as it operated at a royalty rate lower than current market royalty rates. For accounting purposes, the financial results from all 13 restaurants have been consolidated in the Company's financial results since July 10, 2006.
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