secwatch.observer — SEC 8-K summary
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Issuer:     Good Times Restaurants Inc. (GTIM)
CIK:        0000825324
Form:       8-K
Filed at:   2025-10-03T23:59:59+00:00
Accession:  0001214659-25-014561
Event type: debt
Sentiment:  negative
Materiality: 0.60
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Good Times closes 2 Bad Daddy's units; lender relaxes leverage covenant to 5.65x
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- Closure of Bad Daddy's in Roswell, GA and Broomfield, CO; lease terminations with $250k maximum EBITDA addback.
- Consolidated Leverage Ratio covenant raised to 5.65:1 for quarters ending Sep 2025 through Mar 2026, then 5.25:1.
- Restricted period through Dec 29, 2026 bans dividends, share repurchases, and other restricted payments.
- EBITDA phased addbacks of $280k (Sep 2025), $210k (Dec 2025), $140k (Mar 2026), $70k (Jun 2026) from closures.
- Applicable Rate fixed at 3.25% (SOFR) and 2.25% (Base) for fiscal quarters through Jun 2026, then performance-based.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/825324/000121465925014561/0001214659-25-014561-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/825324/000121465925014561/u1022508k.htm
  HTML page:      https://secwatch.observer/filing/0001214659-25-014561

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