11. RELATED PARTY TRANSACTIONS

Due to related parties

The Company has received non-interest bearing, short-term advances from Chanticleer Investors, LLC, a related party, in the amount of $191,226 and $191,580 as of September 30, 2018 and December 31, 2017, respectively. The amount owed to Chanticleer Investors LLC is related to cash distributions received from Chanticleer Investors LLC’s interest in Hooters of America which is payable to the Company’s co-investors in that investment.

Transactions with Board Members

Larry Spitcaufsky, a significant shareholder and member of the Company’s board of directors, is also a lender to the Company for $2 million of the Company’s $6 million in notes payable due December 31, 2018. In connection with this note, the Company made payments of interest to the board member and related entities as required under the notes for the three and nine months ended September 30, 2018 of $40,000 and $120,000, respectively, and $0 during the same periods of 2017.

The Company has also entered into a franchise agreement with entities controlled by Mr. Spitcaufsky providing him with the franchise rights for Little Big Burger in the San Diego area and an option for additional franchise rights in southern California. The Company received royalties of $2,762 and $6,486 during the three and nine months ended September 30, 2018, respectively, and $0 in the same periods of 2017. The Company also received franchise fees of $0 during the three and nine months ended September 30, 2018 and $60,000 for the three and nine month periods of 2017.