ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On May 7, 2020, Good Times Restaurants Inc., a Nevada corporation, and three of its wholly-owned subsidiaries, Bad Daddy's International, LLC, Good Times Drive-Thru Inc. and BD of Colorado, LLC (each a "Borrower"), entered into unsecured loans in the aggregate principal amount of $11,645,000 (the "Loans") with Cadence Bank, N.A. (the "Lender") pursuant to the Paycheck Protection Program (the "PPP"), which is sponsored by the Small Business Administration (the "SBA"). The PPP is part of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act").

The Loans are evidenced by individual promissory notes of each of the Borrowers dated April 29, 2020 executed by each Borrower on May 7, 2020 (together, the "Notes") in favor of the Lender which Notes bear interest at the rate of 1.00% per annum. All or a portion of the Loans may be forgiven by the SBA upon application by the Borrowers accompanied by documentation of expenditures in accordance with SBA requirements under the PPP, which includes employees being kept on the payroll for eight weeks after the date of the Loans and the proceeds of such Loans being used for payroll, rent, mortgage interest or utilities.

The SBA and the Treasury continue to develop and issue new and updated guidance regarding the PPP loan application process, including guidance regarding required borrower certifications and requirements for forgiveness of loans made under the PPP. The Company continues to track the guidance as it is released and assess and re-assess various aspects of its application as necessary based on the guidance. However, in the absence of final guidance or regulations and based on the Company's projected ability to use the loan proceeds for qualifying expenses, the Company cannot give any assurance that the Loans will be forgivable in whole or in part.

In the event that any portion of the Loans are not forgiven in accordance with the PPP, following a deferral period that ends November 2, 2020, the Company will be required to pay the Lender monthly payments of principal and interest to repay the PPP Loan in full on or before April 29, 2022. The Loans may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Notes contain certifications and agreements related to the PPP, as well as customary default and other provisions.

The foregoing description of the Notes is qualified in its entirety by references to the Notes, copies of which are filed as Exhibits 10.1, 10.2, 10.3 and 10.4 to this Current Report on Form 8-K and incorporated herein by reference.


 ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN

           OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.



The information set forth above in Item 1.01 is hereby incorporated by reference into this Item 2.03.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.






(d) Exhibits.



Exhibit Number   Title

10.1               Promissory Note, dated as of May 7, 2020, by Good Times
                 Restaurants, Inc. in favor of Cadence Bank, NA

10.2               Promissory Note, dated as of May 7, 2020, by Bad Daddy's
                 International, LLC. in favor of Cadence Bank, NA

10.3               Promissory Note, dated as of May 7, 2020, by Good Times
                 Drive-Thru Inc. in favor of Cadence Bank, NA

10.4               Promissory Note, dated as of May 7, 2020, by BD of Colorado,
                 LLC. in favor of Cadence Bank, NA

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