UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended April 1, 2006

                                       or

| |   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
      SECURITIES EXCHANGE OF 1934

For the transition period from        to

Commission File Number I-6836

                          Flanigan's Enterprises, Inc.
             (Exact name of registrant as specified in its charter)

            Florida                                   59-0877638
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                     Identification No.)


5059 N.E. 18th Avenue, Fort Lauderdale, Florida              33334
   (Address of principal executive offices)              (Zip Code)


Registrant's telephone number, including area code,      (954) 377-1961


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was required to file such reports),  and (2) has been the subject to such filing
requirements for the past 90 days.
Yes  |X|   No | |

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

   Large accelerated filer { ]  Accelerated filer [ ]  Non-accelerated [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act.) Yes [ ] No [X]

Indicate  the number of shares  outstanding  of each of the  issuers  classes of
Common  Stock as of the latest  practicable  date.  On May 15,  2006,  1,894,315
shares of Common Stock, $0.10 par value, were outstanding.

                                       1
<PAGE>

                  FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
                  ---------------------------------------------

                               INDEX TO FORM 10-Q
                               ------------------

                                  APRIL 1, 2006
                                  -------------

                         PART I.    FINANCIAL INFORMATION
                                    ---------------------

Item 1.  UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Income -- For the Thirteen and Twenty Six Weeks ended
April 1, 2006 and April 2, 2005. (Unaudited)

Consolidated  Balance Sheets -- As of April 1, 2006  (Unaudited)  and October 1,
2005.

Consolidated  Statements of Cash Flows - For the Twenty Six weeks ended April 1,
2006 and April 2, 2005.

Notes to Consolidated Financial Statements (Unaudited)

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 4.  CONTROLS AND PROCEDURES

                  PART II.    OTHER INFORMATION AND SIGNATURES
                              --------------------------------

Item 1.  Legal Proceedings

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.  Default upon Senior Securities

Item 4.  Submission of Matters to a Vote of Security Holders

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8K

Signatures

Exhibit -  31.1

Exhibit -  31.2

Exhibit -  32.1

Exhibit -  32.2

                                       2
<PAGE>
<TABLE>
<CAPTION>

                        FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
                    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                           (In Thousands Except Per Share Amounts)

                                                   Thirteen  Weeks         Twenty Six Weeks
                                                        Ended                    Ended

                                                 April 1     April 2     April 1      April 2
                                                   2006        2005        2006        2005
                                                   ----        ----        ----        ----
<S>                                              <C>         <C>         <C>         <C>
REVENUES:
   Restaurant food sales                         $  8,641    $  7,351    $ 16,035    $ 13,949
   Restaurant bar sales                             1,994       1,708       3,726       3,287
   Package good sales                               3,439       3,073       7,192       6,409
   Franchise related revenues                         285         200         546         450
   Owner's fee                                         38          37          75          75
   Other operating income                              80          80         151         104
                                                 --------    --------    --------    --------
                                                   14,477      12,449      27,725      24,274
                                                 --------    --------    --------    --------

COSTS AND EXPENSES:
  Cost of merchandise sold:
       Restaurant and lounges                       3,623       3,171       6,737       6,096
       Package goods                                2,449       2,205       5,168       4,604
  Payroll and related costs                         4,274       3,336       7,808       6,459
  Occupancy costs                                     783         669       1,537       1,365
  Selling, general and administrative expenses      2,830       2,470       5,296       4,813
                                                 --------    --------    --------    --------
                                                   13,959      11,851      26,546      23,337
                                                 --------    --------    --------    --------

Income from operations                                518         598       1,179         937
                                                 --------    --------    --------    --------

OTHER INCOME (EXPENSE):
Interest expense                                      (38)        (29)        (71)        (58)
Interest and other income                              16          64          38          87
Loss on abandonment of property and equipment          (6)         --          (6)         --
Insurance recovery, net of casualty loss              405          --         450          --
                                                 --------    --------    --------    --------
                                                      377          35         411          29
                                                 --------    --------    --------    --------

Income before Provision for Income Taxes              895         633       1,590         966
   and Minority Interest in Earnings of
    Consolidated Limited Partnerships

Provision for Income Taxes                           (262)       (109)       (447)       (189)

Minority Interest in Earnings of
Consolidated Limited Partnerships                     (51)       (197)       (199)       (210)
                                                 --------    --------    --------    --------

Net Income                                       $    582    $    327    $    944    $    567
                                                 ========    ========    ========    ========
</TABLE>

                                              3
<PAGE>
<TABLE>
<CAPTION>

                        FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
                    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                           (In Thousands Except Per Share Amounts)

                                         (Continued)

                                                Thirteen  Weeks               Twenty Six Weeks
                                                     Ended                          Ended

                                           April 1          April 2         April 1         April 2
                                             2006            2005            2006            2005
                                             ----            -----           ----            ----
<S>                                      <C>             <C>             <C>             <C>

Net Income Per Common Share:
         Basic                           $        0.31   $        0.17   $        0.50   $        0.30
                                         =============   =============   =============   =============
         Diluted                         $        0.30   $        0.17   $        0.50   $        0.29
                                         =============   =============   =============   =============

Weighted Average Shares and Equivalent
            Shares Outstanding
              Basic                          1,879,809       1,904,720       1,877,186       1,910,102
                                         =============   =============   =============   =============
              Diluted                        1,908,919       1,932,531       1,906,622       1,931,575
                                         =============   =============   =============   =============


       See accompanying notes to unaudited condensed consolidated financial statements.
</TABLE>

                                              4
<PAGE>


                  FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                  APRIL 1, 2006 (UNAUDITED) AND OCTOBER 1, 2005
                                 (In Thousands)


                                     ASSETS

                                                          APRIL 1      OCTOBER 1
                                                             2006          2005
                                                             ----          -----

Current Assets:

Cash and cash equivalents                                 $ 2,378        $ 2,674
Marketable securities                                         301            353
Notes and mortgages receivables,
    current maturities, net                                    21             16
Due from franchisees                                           37            119
Other receivables                                             718            189
Inventories                                                 2,173          1,990
Prepaid expenses                                            1,089            721
Deferred tax asset                                             29             29
                                                          -------        -------
         Total Current Assets                               6,746          6,091
                                                          -------        -------

Property and Equipment, Net                                13,418         13,127
                                                          -------        -------

Investment in Limited Partnerships                            135            122
                                                          -------        -------
Other Assets:

Liquor licenses, net                                          347            347
Notes and mortgages receivable, net                           104            116
Deferred tax asset                                            473            435
Other                                                       1,702            861
                                                          -------        -------
         Total Other Assets                                 2,626          1,759
                                                          -------        -------
         Total Assets                                     $22,925        $21,099
                                                          =======        =======

                                       5
<PAGE>

                  FLANIGAN'S ENTERPRISES, INC, AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                  APRIL 1, 2006 (UNAUDITED) AND OCTOBER 1, 2005

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                                 (In Thousands)

                                                          APRIL 1     OCTOBER 1,
                                                            2006         2005
                                                            ----         ----

Current Liabilities:

   Accounts payable and accrued expenses                  $  4,351     $  3,211
   Due to franchisees                                          575          493
   Current portion of long term debt                           154          174
   Deferred revenues                                            58           62
   Deferred rent                                                14           14
                                                          --------     --------
        Total Current Liabilities                            5,152        3,954
                                                          --------     --------

Long Term Debt, Net of Current Maturities                    1,326        1,383
                                                          --------     --------
Line of Credit                                                 762           --
                                                          --------     --------
Deferred Rent, Net of Current Portion                          230          241
                                                          --------     --------
Minority Interest in Equity of
 Consolidated Limited Partnerships                           4,874        5,248
                                                          --------     --------

Stockholders' Equity:

  Common stock, $.10 par value; 5,000,000 shares
    authorized; 4,197,642 shares issued                        420          420
  Capital in excess of par value                             6,204        6,148
  Retained earnings                                          9,758        9,472
  Accumulated other comprehensive income                        (2)          50
  Treasury stock, at cost, 2,303,327 shares
      at April 1, 2006 and 2,323,047
      shares at October 1, 2005                             (5,799)      (5,817)
                                                          --------     --------
      Total Stockholders' Equity                            10,581       10,273
                                                          --------     --------
     Total Liabilities and Stockholders' Equity           $ 22,925     $ 21,099
                                                          ========     ========

                  See accompanying notes to unaudited condensed
                       consolidated financial statements.

                                       6
<PAGE>

                  FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

         FOR THE TWENTY SIX WEEKS ENDED APRIL 1, 2006 AND APRIL 2, 2005
                                 (In Thousands)

                                                             APRIL 1    APRIL 2
                                                               2006       2005
                                                               ----       ----

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                                   $   944    $   567
Adjustments to reconcile net income to net cash
      provided by operating activities:
      Depreciation and amortization                              864        702
      Loss on abandonment of property and equipment                6         --
      Casualty Loss                                               58         --
      Deferred Income Tax                                        (38)        --
      Deferred Rent                                              (11)        --
      Minority interest in earnings of
         consolidated limited partnerships                       199        210
      (Income) Loss from unconsolidated limited partnership      (13)        11
      Recognition of deferred revenue                             (4)       (11)

      Changes in operating assets and liabilities:
       (Increase) decrease in:
              Due from franchises                                 82       (163)
              Other receivables                                 (529)        18
              Inventories                                       (183)      (422)
              Prepaid expenses                                  (368)      (431)
              Other assets                                      (874)      (232)
      Increase (decrease) in:
            Accounts payable and accrued expenses              1,140      1,424
            Due to franchises                                     82       (281)
                                                             -------    -------
          Net cash provided by operating activities            1,355      1,392
                                                             -------    -------
Cash Flows from Investing Activities:

         Collection on notes and mortgages receivable              7         12
         Purchase of property and equipment                   (1,116)      (881)
         Distributions from unconsolidated ltd partnerships       --         13
                                                             -------    -------
               Net cash used in investing activities          (1,109)      (856)


                                       7
<PAGE>


                  FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

         FOR THE TWENTY SIX WEEKS ENDED APRIL 1, 2006 AND APRIL 2, 2005
                                 (In Thousands)

                                                         APRIL 1      APRIL 2
                                                           2006        2005
                                                           ----        ----

Cash flows from Financing Activities:
     Payment of long term debt                               (147)       (228)
     Proceeds from long term debt                              --         313
     Proceeds from line of credit                             762          --
     Dividends paid                                          (658)       (609)
     Purchase of treasury stock                               (43)       (223)
     Purchase of minority limited partnership interest         (8)         --
     Distributions to limited partnership
         minority partners                                   (565)       (536)
     Proceeds from limited partnership interests               --       1,365
     Proceeds from exercise of stock options                  117           1
                                                         --------    --------
Net cash provided by (used in) financing activities          (542)         83
                                                         --------    --------

Net Increase (Decrease) in Cash                              (296)        619
and Cash Equivalents,
    Beginning of Period                                     2,674       2,936
                                                         --------    --------
    End of Period                                        $  2,378    $  3,555
                                                         ========    ========

Supplemental Disclosure for Cash Flow Information:
     Cash paid during period for:
         Interest                                        $     71    $     56
                                                         ========    ========
         Income taxes                                    $    424    $     81
                                                         ========    ========

Supplemental Disclosure of Non-Cash Investing
 and Financing Activities:
     Purchase of vehicle in exchange for debt            $ 70,000    $     --
                                                         ========    ========

           See accompanying notes to unaudited condensed consolidated
                              financial statements

                                       8
<PAGE>

                  FLANIGAN'S ENTERPRISES, INC. AND SUBSIDIARIES
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                  APRIL 1, 2006

(1) BASIS OF PRESENTATION:

The accompanying  financial information for the periods ended April 1, 2006, and
April 2, 2005 are  unaudited.  Financial  information  as of October 1, 2005 has
been derived from the audited financial  statements of the Company, but does not
include all disclosures required by generally accepted accounting principles. In
the opinion of  management,  all  adjustments,  consisting  of normal  recurring
adjustments,  necessary for a fair presentation of the financial information for
the periods indicated have been included.  For further information regarding the
Company's  accounting policies,  refer to the Consolidated  Financial Statements
and related notes included in the Company's  Annual Report on Form 10- K for the
year ended  October 1, 2005.  Operating  results  for  interim  periods  are not
necessarily indicative of results to be expected for a full year.

(2) EARNINGS PER SHARE:

Statements  of Financial  Accounting  Standards  ("SFAS") No. 128,  Earnings per
share  establishes  standards for computing  and  presenting  earnings per share
("EPS").  This statement requires the presentation of basic and diluted EPS. The
data on Page 4 shows the amounts  used in  computing  earnings per share and the
effects  on income  and the  weighted  average  number of shares of  potentially
dilutive common stock equivalents.

(3)  RECLASSIFICATION:

Certain amounts in the fiscal 2005 financial  statements have been  reclassified
to conform to the fiscal 2006 presentation.

(4) RECENT ACCOUNTING PRONOUNCEMENTS:

In November  2005,  the FASB issued  final FASB Staff  Position  ("FSP") FAS No.
123R-3,  "Transition  Election  Related  to  Accounting  for the Tax  Effects of
Share-Based   Payment  Awards."  The  FSP  provides  an  alternative  method  of
calculating  excess tax  benefits  from the method  defined in SFAS No. 123R for
share-based payments. A one-time election to adopt the transition method in this
FSP is  available  to those  entities  adopting  SFAS No. 123R using  either the
modified  retrospective or modified  prospective method. Up to one year from the
initial  adoption of SFAS No. 123R or  effective  date of the FSP is provided to
make this one-time  election.  However,  until an entity makes its election,  it
must follow the  guidance in SFAS No. 123R.  The FSP is  effective  upon initial
adoption  of SFAS No.  123R and became  effective  for the Company in the second
quarter  of  2006.  We  are  currently  evaluating  the  allowable  methods  for
calculating excess tax benefits and have not yet determined whether we will make
a one-time


                                       9
<PAGE>

election to adopt the transition  method described in this FSP, nor the expected
impact on our financial position or results of operation.

(5) INVESTMENT IN LIMITED PARTNERSHIPS:

Pinecrest, Florida

During the fourth quarter of fiscal year 2005,  building  permits were issued to
the limited  partnership to make the  structural  repairs.  Subsequent  thereto,
building  permits were also issued to the limited  partnership  for its interior
build-out, which is proceeding while the structural repairs are being completed.
It is anticipated that the renovated restaurant will be open for business by the
beginning of the fourth quarter of fiscal year 2006.

During the second quarter of fiscal year 2006, the limited partnership began its
private  offering  to raise  the sum of  $3,300,000  to  renovate  the  business
premises and provide working  capital.  During the second quarter of fiscal year
2006, the Company advanced the sum of $445,000 to the limited  partnership,  the
use of which  included,  but was not limited to  architectural  and  engineering
fees,  structural  repairs  and the cost of the build out paid to date.  Through
April 1, 2006,  the Company had  advanced the sum of  $1,828,000  to the limited
partnership.  The Company continues to act as a general partner and will also be
the owner of up to a fifty  (50%)  percent  limited  partnership  interest.  The
Company  has  increased  its  potential   ownership  interest  in  this  limited
partnership due to the amount of the private  offering,  which is  significantly
greater than any private offering to date, and to insure the sale of all limited
partnership  units.  As of May 15, 2006, the limited  partnership  had sold over
$1,700,000 in limited partnership units, or over fifty (50%) percent of the same
exclusive  of the  Company,  which  ensures  that the private  offering  will be
successful.

Davie, Florida

During  the first  quarter  of fiscal  year 2006,  the  Company,  as agent for a
limited  partnership  to be formed,  entered  into a  contract  to  purchase  an
existing restaurant in Davie, Florida to renovate and operate a restaurant under
the  "Flanigan's  Seafood  Bar and Grill"  servicemark.  The  purchase  price is
approximately  $650,000 and initial  estimates for  renovations  and pre-opening
expenses is an additional  $1,500,000.  A refundable deposit of $25,000 has been
paid pursuant to the terms of the  contract,  which deposit is recorded in other
assets on the balance sheet.  The funds  necessary for this limited  partnership
will be raised  through a private  offering.  The  Company  will act as  general
partner  and own up to forty  percent  of the  limited  partnership.  During the
second quarter of fiscal year 2006, the Company re-negotiated several provisions
of the lease for the business premises,  including but not limited to additional
renewal  options to extend the term of the same at fixed  rentals,  and prepared
preliminary  building plans,  including the addition of an outdoor seating area,
and submitted  the same to the landlord for  approval.  Upon receipt of landlord
approval, which is expected at the beginning of the third quarter of fiscal year
2006,  the limited  partnership  plans to submit its  application  for site plan
approval to the Town of Davie,  Florida.  The restaurant is expected to open for
business during the second quarter of fiscal year 2007.

                                       10
<PAGE>

Pembroke Pines, Florida

Subsequent to the end of the second quarter of fiscal year 2006, the Company, as
agent for a  limited  partnership  to be  formed,  entered  into a  contract  to
purchase  an existing  restaurant  in Pembroke  Pines,  Florida to renovate  and
operate a restaurant under the "Flanigan's  Seafood Bar and Grill"  servicemark.
The  purchase  price  is  approximately   $500,000  and  initial  estimates  for
renovations  and  pre-opening  expenses is an additional  $1,500,000.  The funds
necessary  for  this  limited  partnership  will be  raised  through  a  private
offering. The Company will act as general partner and own up to forty percent of
the limited  partnership.  The contract is subject to  customary  contingencies,
including  but not  limited to  landlord  approval  of lease  modifications  and
planned  renovations  and the Company  applying for and  receiving the necessary
zoning approvals, variances and/or special use permits for its contemplated use.
The  restaurant  is expected to open for business  during the second  quarter of
fiscal year 2007.

(6) INVESTMENT IN MANAGEMENT AGREEMENT:

Deerfield Beach, Florida

During  the first  quarter of fiscal  year  2006,  the  Company  entered  into a
management  agreement  to operate an existing  restaurant  in  Deerfield  Beach,
Florida  under its current  format,  "The  Whale's  Rib",  and to be entitled to
one-half  (1/2) of the net profit  from the  operation  of the same.  During the
first quarter of fiscal year 2006,  the Company paid a $50,000  deposit  towards
the  management  rights  and at the start of the second  quarter of fiscal  year
2006, paid the balance of $450,000 and assumed the management of the restaurant.
The term of the management  agreement is (10) years, with four (4) five (5) year
renewal  options.  The renewal options are exercisable at the sole discretion of
the Company upon the same terms and  conditions,  including rent. The management
agreement is being amortized  straight line over the life of the initial term of
the  agreement,  ten (10)  years.  As of April 1,  2006,  the  $500,000,  net of
accumulated   amortization  of   approximately   $4,200,   is  included  in  the
accompanying balance sheet in other assets.  During the second quarter of fiscal
year 2006, the Company advanced  approximately $100,000 for capital expenditures
and working  capital,  which funds were  reimbursed in full from net profit from
the operation of the  restaurant  by April 1, 2006 as defined in the  management
agreement.  As of  April  1,  2006,  the  Company  accrued  management  fees  of
approximately  $28,000 which represents the amount earned by the Company for the
thirteen weeks ended April 1, 2006,  which is included in other operating income
in the accompanying statement of income.

(7) INVESTMENTS:

Investments  in equity  securities  that have  readily  determinable  values are
classified   and   accounted  for  as   available-for-sale.   Available-for-sale
securities are carried at fair value with  unrealized  gains and losses recorded
as a separate  component of accumulated  other  comprehensive  income.  Realized
gains and losses are calculated based on the specific  identification method and
recorded in "other income" on the income  statement.  At April 1, 2006, the cost
of $303,000  exceeded  the fair  market  value of  $301,000  and  resulted in an
unrealized loss of $2,000.

                                       11
<PAGE>

(8) LINE OF CREDIT:

During  the  second  quarter  of  fiscal  year  2006,  the  Company  closed on a
$2,000,000  line of credit.  The line of credit has a  variable  interest  rate,
which is at prime and is payable in monthly installments of interest only on the
outstanding  principal  balance,  with a two (2) year  maturity.  As of April 1,
2006, the line of credit had a principal balance of $762,000.

(9) INCOME TAXES:

Financial  Accounting  Standards Board Statement No. 109,  Accounting for Income
Taxes, requires among other things,  recognition of future tax benefits measured
at enacted  rates  attributable  to  deductible  temporary  differences  between
financial  statement and income tax basis of assets and  liabilities  and to tax
net operating loss  carryforwards and tax credits to the extent that realization
of said tax  benefits  is more  likely  than  not.  The  deferred  tax asset was
$502,000 as of April 1, 2006 and $464,000 as of October 1, 2005.

(10) STOCK OPTION PLANS

The Company has several stock option plans under which  qualified  stock options
may be granted to officers and other employees of the Company.  The option price
for  qualified  stock options must be issued at 110% of the fair market value of
the  Company's  Common  Stock on the date the options are  granted.  In general,
options  granted under the Company's  stock option plans expire after a five (5)
year  period  and  generally  vest no later  than one (1) year  from the date of
grant. As of April 1, 2006, there were approximately 45,000 shares available for
grant under the Company's stock option plans.

No stock  options  were granted  during the six months ended April 1, 2006,  nor
were stock options granted during the six months ended April 2, 2005.

Stock option  exercises during the twenty six weeks ended April 1, 2006 resulted
in cash inflows to the Company of $117,000. The corresponding intrinsic value as
of exercise  date of the 24,070 stock  options  exercised  during the twenty six
weeks ended April 1, 2006 was $124,210.

Stock option activity during the six months ended April 1, 2006 was as follows:

                                                                Weighted
                                                    Total       Average
                                                   Options   Exercise Price

Outstanding at October 1, 2005                      100,810     $   5.75

Granted                                                   0           --
Exercised                                           (24,070)    $   4.83
Canceled                                                  0           --
                                                   --------
Outstanding at April 1, 2006                         76,740     $   6.04
                                                   ========     ========
Options exercisable at April 1, 2006                 76,740     $   6.04
                                                   ========     ========

                                       12
<PAGE>

The  weighted-average  remaining  contractual terms of stock options outstanding
and stock  options  exercisable  at April 1, 2006 was 2.8 years.  The  aggregate
intrinsic value of options outstanding and stock options exercisable at April 1,
2006 was approximately $301,640.

In December 2004,  the FASB issued SFAS No. 123R,  "Share-Based  Payment".  This
statement  is  a  revision  of  SFAS  No.  123,   "Accounting   for  Stock-Based
Compensation",  supersedes  Accounting  Principles Board ("APB") Opinion No. 25,
"Accounting for Stock Issued to Employees" and amends SFAS No. 95, "Statement of
Cash Flows." The statement eliminates the alternative to use the intrinsic value
method of accounting that was provided in SFAS No. 123, which generally resulted
in no  compensation  expense  recorded in  financial  statements  related to the
issuance of equity  awards to employees.  The  statement  also requires that the
cost resulting from all  share-based  payment  transactions be recognized in the
financial statements.  It establishes fair value as the measurement objective in
accounting  for  share-based  payment  arrangements  and generally  requires all
companies  to apply a  fair-value-based  measurement  method in  accounting  for
share-based  payment  transactions with employees.  The Company adopted SFAS No.
123R  effective  January  1,  2006,  using a  modified  version  of  prospective
application in accordance  with the  statement.  This  application  requires the
Company to record  compensation  expense for all awards granted to employees and
directors  after the adoption  date and for the unvested  portion of awards that
are  outstanding  at the date of  adoption.  The Company  had no unvested  stock
options  as of October  1, 2005 and  granted no stock  options in the twenty six
weeks  ended  April  1,  2006,  so there is no  impact  of SFAS No.  123R on the
Company's condensed  consolidated  financial statements for the twenty six weeks
ending April 1, 2006. In accordance  with the modified  prospective  transaction
method, the Company's  consolidated  financial statements for prior periods have
not been restated to reflect and do not include the impact of SFAS No. 123R.

(11) COMMITMENTS AND CONTINGENCIES:

Guarantees

The Company guarantees various leases for franchisees,  limited partnerships and
locations sold in prior years. Remaining rental commitments required under these
leases  are  approximately  $2,648,000.  In the event of a default  under any of
these agreements,  the Company will have the right to repossess the premises and
operate  the  business to recover  amounts  paid under the  guarantee  either by
liquidating assets or operating the business.

Litigation

The corporate offices consist of a two (2) story building,  with space initially
set aside on the ground floor for a package liquor store. The Company filed suit
against  the  adjacent  shopping  center to  determine  the  Company's  right to
non-exclusive  parking in the shopping center.  During fiscal year 2005, summary
judgment  was  granted in favor of the  adjacent  shopping  center  denying  the
Company  non-exclusive  parking rights in the shopping  center.  The Company has
continued pursuing its claim against the seller of the building,  its individual
partners  and its  attorney  for  damages  for  failing  to  disclose  documents
pertaining to the release of the non-exclusive  parking rights. During the first
quarter  of fiscal  year  2006,  summary  judgment  was  granted in favor of the
sellers'  attorney,  but denied as to the seller  and its  individual  partners.
Subsequent  to the end of the second  quarter of fiscal  year 2006,  the summary
judgment  granted in favor of the  sellers'  attorney was reversed by the court.
The case was  scheduled  for trial during the third quarter of fiscal year 2006,
but was  removed  from the court's  trial  docket  during the second  quarter of
fiscal  year 2006 in order to permit the  Company to appeal the  granting of the
summary judgment in favor of

                                       13
<PAGE>

the adjacent  shopping  center.  The appeal is necessary to proceed  against the
seller and its  individual  partners  even though the Company no longer plans to
use the ground floor for a package liquor store.

During the fourth quarter of fiscal year 2004, the Company  exercised the option
to purchase contained in the Sublease  Agreement for the combination  restaurant
and  package  liquor  store  located  at 4 North  Federal  Highway,  Hallandale,
Florida,  (Store #31). The purchase includes real property and the assignment of
a ground  lease for a small  portion of the  property.  The  option to  purchase
contains a formula  whereby each party  retains an  appraiser  to determine  the
"fair market  value" for the purchase of the property and if the two  appraisers
cannot  agree  upon  the  same,  then  a  third  appraiser  is  selected,  whose
determination  of the "fair market price" is binding.  During the fourth quarter
of fiscal year 2005, the parties agreed upon a third  appraiser to determine the
purchase  price.  During the  second  quarter  of fiscal  year  2006,  the third
appraiser completed his appraisal, which determined that the "fair market value"
of the  property  exceeded  the  "fair  market  value"  of the  initial  two (2)
appraisals combined.  The Company objected to the third appraisal on the grounds
that it was not prepared in accordance with the terms of the option to purchase,
including but not limited to failing to value the property as of the date of the
exercise of the option to purchase by the Company,  (August 18, 2004), and/or to
value the property  with its existing  structures.  Subsequent to the end of the
second quarter of fiscal year 2006, the landlord filed suit against the Company,
including  in its  complaint  counts for  ejectment,  specific  performance  and
declaratory relief. The Company filed its response to the landlord's  complaint,
including its  counterclaim  for declaratory  relief.  Subsequent to the Company
filing its response to the  landlord's  complaint,  the parties  agreed to go to
mediation  in an effort to resolve the  dispute.  Mediation is scheduled to take
place during the third quarter of fiscal year 2006.  While the Company  believes
that it should  prevail on the  merits of the case and that the third  appraisal
will be declared  invalid by the court,  an adverse ruling could have a material
financial impact on the Company's purchase of the property.

Certain states have "liquor  liability"  laws which allow a person injured by an
"intoxicated person" to bring a civil suit against the business (or social host)
who served intoxicating  liquors to an already "obviously  intoxicated  person",
known as "dram shop" claims. Dram shop claims normally involve traffic accidents
and the Company generally does not learn of dram shop claims until after a claim
is filed and then the Company  vigorously  defends  these  claims on the grounds
that its employee did not serve an "obviously  intoxicated  person".  Damages in
most dram shop cases are  substantial.  At the present  time,  there are no dram
shop cases pending against the Company.  The Company maintains general liability
insurance.  See Item 1, "Insurance" on page 13 of the Company's Annual Report on
Form 10-K for the fiscal year ended  October 1, 2005 for a discussion of general
liability insurance.

Except as provided above, there is no material pending legal proceedings,  other
than ordinary  routine  litigation  incident to the business,  none of which the
Company believes is material.

                                       14
<PAGE>

Hurricane Wilma; Windstorm Claims

As of April 1, 2006,  the Company had  submitted  claims  totaling  $876,500 for
damages caused when  Hurricane  Wilma impacted South Florida on October 24, 2005
and received an advance of  $250,000,  ($300,000  less the $50,000  deductible),
from its insurance  company on account of damages to the corporate office alone.
At the start of the third quarter of fiscal year 2006,  the Company  received an
additional  advance of $450,000 from the insurance carrier on account of damages
to its  properties.  The additional  advance,  ($450,000),  has been recorded in
other   receivables  and  insurance   recovery  net  of  casualty  loss  in  the
accompanying  consolidated  financial  statements.  Subsequent to the end of the
second  quarter of fiscal  year 2006,  the  Company  also  submitted a claim for
business  interruption  for one of its  limited  partnerships  and is  preparing
claims  for  business   interruption   for  several  Company  owned   locations.
Notwithstanding  the filing of these  claims,  the  Company  has not  received a
response  from its  insurance  carrier  other  than the  advances,  which in the
aggregate  amount  to  $700,000  and as a  result,  the  ultimate  amount of the
insurance recovery cannot be accurately estimated at this time.

(12) BUSINESS SEGMENTS

The Company  operates  principally  in two segments - retail  package stores and
restaurants. The operation of package stores consists of retail liquor sales.

Information  concerning  the revenues and operating  income for the thirteen and
twenty six weeks ended April 1, 2006 and April 2, 2005, and identifiable  assets
for the two segments in which the Company  operates,  are shown in the following
table.  Operating  income is total  revenue  less cost of  merchandise  sold and
operating expenses relative to each segment. In computing operating income, none
of the following items have been included: interest expense, other non-operating
income and expense and income  taxes.  Identifiable  assets by segment are those
assets that are used in the  Company's  operations  in each  segment.  Corporate
assets are  principally  cash,  notes and mortgages  receivable,  real property,
improvements,  furniture,  equipment and vehicles. The Company does not have any
operations  outside of the United States and  intersegment  transactions are not
material.

<TABLE>
<CAPTION>
                                                             Thirteen Weeks  Thirteen Weeks
                                                                 Ending          Ending
                                                                April 1,        April 2,
                                                                  2006            2005
                                                                  ----            ----
<S>                                                             <C>             <C>
Operating Revenues:
   Restaurants                                                  $ 10,635        $  9,059
   Retail package stores                                           3,439           3,073
   Other revenues                                                    403             317
                                                                --------        --------
      Total operating revenues                                  $ 14,477        $ 12,449
                                                                ========        ========

Operating Income Reconciled to Income Before Income Taxes and
Minority Interests in Earnings of Consolidated
Limited Partnerships

                                       15
<PAGE>

    Restaurants                                                 $  1,591        $    697
    Retail package stores                                            249             255
                                                                --------        --------
                                                                   1,840             952
    Corporate expenses, net of other
       Revenues                                                   (1,322)           (354)
                                                                --------        --------
    Operating income                                                 518             598
    Other income (expense)                                           377              35
                                                                --------        --------
Income Before Income Taxes and Minority Interests in
Earnings of Consolidated  Limited Partnerships                  $    895        $    633
                                                                ========        ========




Depreciation and Amortization:
   Restaurants                                                  $    303        $    231
   Retail package stores                                              57              32
                                                                --------        --------
                                                                     360             263
   Corporate                                                          74              61
                                                                --------        --------
Total Depreciation and Amortization                             $    434        $    324
                                                                ========        ========

Capital Expenditures:
   Restaurants                                                  $    479        $    512
   Retail package stores                                              53              80
                                                                --------        --------
                                                                     532             592
   Corporate                                                         128             (34)*
                                                                --------        --------
Total Capital Expenditures                                      $    660        $    558
                                                                ========        ========
</TABLE>

*includes ($72,000) transfers of furniture and fixtures from Corporate warehouse
to retail package stores.

<TABLE>
<CAPTION>
                                                                 Twenty Six Weeks  Twenty Six Weeks
                                                                      Ending           Ending
                                                                     April 1,         April 2,
                                                                       2006             2005
                                                                       ----             ----
<S>                                                                     <C>              <C>
Operating Revenues:
   Restaurants                                                       $ 19,761         $ 17,236
   Retail package stores                                                7,192            6,409
   Other revenues                                                         772              629
                                                                     --------         --------
      Total operating revenues                                       $ 27,725         $ 24,274
                                                                     ========         ========

Operating  Income  Reconciled  to Income  Before  Income Taxes and
Minority Interests in Earnings of Consolidated
Limited Partnerships
    Restaurants                                                      $  2,684         $  1,355
    Retail package stores                                                 582              450
                                                                     --------         --------
                                                                        3,266            1,805
    Corporate expenses, net of other
       Revenues                                                        (2,087)            (868)
                                                                     --------         --------
    Operating income                                                    1,179              937
    Other income (expense)                                                411               29
                                                                     --------         --------
Income Before Income Taxes and Minority Interests in
Earnings of Consolidated Limited Partnerships                        $  1,590         $    966
                                                                     ========         ========

                                       16
<PAGE>

Depreciation and Amortization:
   Restaurants                                                       $    596         $    548
   Retail package stores                                                  112               63
                                                                     --------         --------
                                                                          708              611
   Corporate                                                              156               91
                                                                     --------         --------
Total Depreciation and Amortization                                  $    864         $    702
                                                                     ========         ========

Capital Expenditures:
   Restaurants                                                       $    652         $    763
   Retail package stores                                                   75               89
                                                                     --------         --------
                                                                          727              852
   Corporate                                                              459               29*
                                                                     --------         --------
Total Capital Expenditures                                           $  1,186         $    881
                                                                     ========         ========
</TABLE>

*includes ($72,000) transfers of furniture and fixtures from Corporate warehouse
to retail package stores.

                                                      April 1,      October 1,
Identifiable Assets:                                    2006           2005
                                                        ----           ----
   Restaurants                                         $10,328        $10,277
   Retail package store                                  3,670          3,527
                                                       -------        -------
                                                        13,998         13,804
   Corporate                                             8,927          7,295
                                                       -------        -------
Consolidated Totals                                    $22,925        $21,099
                                                       =======        =======

Item 2. MANAGEMENTS  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
        OF OPERATIONS:

Reported  financial  results may not be indicative  of the financial  results of
future  periods.  All  non-historical  information  contained  in the  following
discussion constitutes  forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Words such as "anticipates,  appears,  expects, trends, intends, hopes,
plans, believes,  seeks, estimates, may, will," and variations of these words or
similar expressions are intended to identify forward-looking  statements.  These
statements  are not  guarantees  of future  performance  and involve a number of
risks and  uncertainties,  including  but not  limited  to  customer  demand and
competitive  conditions.  Factors  that  could  cause  actual  results to differ
materially  are  included  in,  but not  limited  to,  those  identified  in the
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations,"  in the Annual  Report on Form 10-K for the  Company's  fiscal year
ended  October 1, 2005 and in this  Quarterly  Report on Form 10-Q.  The Company
undertakes  no  obligation  to publicly  release the results of any revisions to
these forward-looking  statements that may reflect events or circumstances after
the date of this report.

The Company owns and/or operates full service restaurants, package liquor stores
and an entertainment oriented club (collectively the "units"). At April 1, 2006,
the Company operated 20 units and had equity interests in seven units which have
been franchised by the Company. The table below sets out the changes, if any, in
the type and number of units being operated.

                                       17
<PAGE>

                                 April 1      Oct. 1      April  2   Note
                                  2006          2005        2005     Number
                                  ----          ----        ----     ------
Types of Units
--------------------------------------------------------------------------------
Company owned:
   Combination package
   and restaurant                   4            4            4
   Restaurant only                  2            2            2
   Package store only               5            5            5

Company Managed
Restaurants Only:
     Limited Partnerships           6            6            5 (1) (2) (3) (4)
     Franchise                      1            1            1
     Unrelated Third Party          1           --           -- (5)

Company Owned Club:                 1            1            1

Total Company
Owned/Operated Units               20           19           18

Franchised Units                    7            7            7 (6)

Notes:

(1)  During the third  quarter of fiscal  year  2003,  the  Company,  as general
partner of the limited  partnership,  entered into a Sale of Business  Agreement
for  the  purchase  of  an  existing  business  in  Pinecrest,   Florida,  which
transaction closed during the first quarter of fiscal year 2004. The Company, as
general  partner  of the  limited  partnership,  is  proceeding  with  necessary
structural  repairs,  while  preserving  its right to pursue a claim against the
landlord  for  its  contribution  to  the  additional   structural  repairs  and
reimbursement  of rent  paid  while  the  processing  of its  building  plans is
delayed. The structural repairs have been substantially completed, but while the
limited partnership has been proceeding with its interior build-out,  additional
structural repairs have been required by the Town of Pinecrest,  Florida.  It is
anticipated  that the  renovated  restaurant  will be open for  business  by the
beginning  of the fourth  quarter of fiscal year 2006 and is not included in the
table of units.

(2) During the fourth  quarter of fiscal year 2004,  a limited  partnership  was
formed with the Company as general partner. The limited partnership entered into
a lease  agreement to own and operate a restaurant in Wellington,  Florida under
the "Flanigan's Seafood Bar and Grill" service mark. During the first quarter of
fiscal  year  2005,  the  limited  partnership  raised  funds  through a private
offering to renovate  the  business  premises  for  operation  as a  "Flanigan's
Seafood Bar and Grill" restaurant.  The Company acts as general partner and owns
a twenty six percent limited  partnership  interest.  The restaurant  opened for
business on May 27, 2005.

(3) During the first  quarter of fiscal year 2006,  the Company,  as agent for a
limited  partnership  to be formed,  entered  into a  contract  to  purchase  an
existing  restaurant  location  in Davie,  Florida,

                                       18
<PAGE>

to  renovate  and operate a  restaurant  under the  "Flanigan's  Seafood Bar and
Grill"  servicemark.  The restaurant is expected to open for business during the
second quarter of fiscal year 2007, provided the landlord's approval of building
plans and all necessary zoning  approvals,  variances and/or special use permits
are received. This restaurant is not included in the table of units.

(4)  Subsequent  to the end of the  second  quarter  of fiscal  year  2006,  the
Company,  as agent  for a  limited  partnership  to be  formed,  entered  into a
contract to purchase an existing restaurant location in Pembroke Pines, Florida,
to  renovate  and operate a  restaurant  under the  "Flanigan's  Seafood Bar and
Grill"  servicemark.  The restaurant is expected to open for business during the
second quarter of fiscal year 2007, provided the landlord's approval of building
plans and all necessary zoning  approvals,  variances and/or special use permits
are received. This restaurant is not included in the table of units.

(5) During the second quarter of fiscal 2006, the Company assumed the management
of an existing restaurant in Deerfield Beach,  Florida under its current format,
"The  Whale's  Rib",  pursuant to a management  agreement.  This  restaurant  is
included in the table of units.

 (6) The Company  manages the restaurant for one (1) franchisee  with respect to
one (1) of the seven (7) franchised units. The franchised restaurant is included
in the table of units as a restaurant  operated by the Company and the franchise
is also  included as a unit  franchised  by the Company and in which the Company
has an interest.

         Results of Operation
         --------------------

                                      Thirteen Weeks Ended
                                  April 1,             April 2,
                                    2006                 2005
                             Amount   Percent     Amount   Percent
                             -----------------   -----------------
                               (In Thousands)       (In Thousands)

Restaurant food sales        $ 8,641     61.40   $ 7,351     60.59
Restaurant bar sales           1,994     14.17     1,708     14.07
Package goods sales            3,439     24.43     3,073     25.34
                             -------   -------   -------   -------

Total sales                  $14,074    100.00   $12,132    100.00

Franchise related revenues       285                 200
Owners fee                        38                  37
Other operating income            80                  80
                             -------             -------

Total Revenue                $14,477             $12,449
                             =======             =======


                                       19
<PAGE>

                                    Twenty Six Weeks Ended
                                  April 1,             April 2,
                                    2006                 2005
                             Amount   Percent     Amount   Percent
                             -----------------   -----------------
                               (In Thousands)       (In Thousands)


Restaurant food sales        $16,035     59.49   $13,949     59.00
Restaurant bar sales           3,726     13.82     3,287     13.88
Package goods sales            7,192     26.67     6,409     27.12
                             -------   -------   -------   -------
Total sales                  $26,953    100.00   $23,645    100.00

Franchise related revenues       546                 450
Owners fee                        75                  75
Other operating income           151                 104
                             -------             -------
Total Revenue                $27,725             $24,274
                             =======             =======

Comparison of Thirteen Weeks Ended April 1, 2006 and April 2, 2005.
------------------------------------------------------------------

As the table above illustrates, total revenues in the thirteen weeks ended April
1, 2006  increased by 16.29% as compared to the total  revenues for the thirteen
weeks ended April 2, 2005 primarily due to the restaurant in Wellington, Florida
being open for the fiscal  quarter.  Total revenues are expected to increase due
to the restaurant in Wellington,  Florida being open for the entire fiscal year;
the management by the Company of the restaurant in Deerfield  Beach,  Florida as
of January 9, 2006 and the  anticipated  opening of the restaurant in Pinecrest,
Florida by the beginning of the fourth quarter of fiscal year 2006.

Restaurant  food sales  represented  61.40% of total sales in the thirteen weeks
ended April 1, 2006 as compared to 60.59% of total sales in the  thirteen  weeks
ended April 2, 2005.  The weekly  average of same store  restaurant  food sales,
which now includes five (5) limited partnership  restaurants,  were $610,222 and
$565,462  for the  thirteen  weeks  ended  April  1,  2006 and  April  2,  2005,
respectively, an increase of 7.92%. The increase in restaurant food sales is due
to the restaurant in Wellington, Florida being open for the fiscal quarter, menu
price  increases and the continued  increase in the weekly average of same store
restaurant food sales.  Restaurant food sales should continue to increase due to
the restaurant in Wellington, Florida being open for the entire fiscal year; the
anticipated opening of the restaurant in Pinecrest,  Florida by the beginning of
the fourth quarter of fiscal year 2006; and the continued increase in the weekly
average of same store restaurant food sales.

Restaurant  bar sales  represented  14.17% of total sales in the thirteen  weeks
ended April 1, 2006 as compared to 14.07% of total sales in the  thirteen  weeks
ended April 2, 2005. The weekly average of same store  restaurant bar sales were
$139,324 and  $131,385  for the thirteen  weeks ended April 1, 2006 and April 2,
2005,  respectively,  an increase of 6.04%. The increase in restaurant bar sales
is due to the  restaurant  in  Wellington,  Florida  being  open for the  fiscal
quarter  ended  April 1, 2006 and the  promotions  introduced  during  the third
quarter  of  fiscal  year  2005  to  increase  restaurant  bar  sales,   without
jeopardizing  the Company's  perception as a family  restaurant.  Restaurant bar
sales should  continue to increase due to the restaurant in Wellington,

                                       20
<PAGE>

Florida being open for the entire fiscal year;  the  anticipated  opening of the
restaurant  in  Pinecrest,  Florida by the  beginning  of the fourth  quarter of
fiscal year 2006; and the continued increase in the weekly average of same store
restaurant bar sales.

Package  goods sales  represented  24.43% of total sales in the  thirteen  weeks
ended April 1, 2006, as compared to 25.34% of total sales in the thirteen  weeks
ended April 2, 2005.  The weekly  average of same store package goods sales were
$264,563 and  $236,432  for the thirteen  weeks ended April 1, 2006 and April 2,
2005,  respectively,  an increase of 11.90%.  The increase was  primarily due to
increased volume. Package good sales are expected to continue increasing through
the  balance of fiscal  year 2006 due to the  continued  increase  in the weekly
average of same store package sales.

The gross profit margin for restaurant  food and bar sales was 65.93% and 65.00%
for the thirteen weeks ended April 1, 2006 and April 2, 2005, respectively.  The
1.43%  increase  in gross  profit  for  restaurant  and bar sales for the second
quarter of fiscal 2006 was primarily due to menu price increases.

The gross profit  margin for package  goods stores was 28.78% and 28.25% for the
thirteen  weeks ended April 1, 2006 and April 2, 2005,  respectively.  The gross
profit  margin for package goods stores is expected to remain  constant  through
the balance of fiscal year 2006.

Operating Costs and Expenses

Operating  costs and expenses were  $13,959,000 and $11,851,000 for the thirteen
weeks  ended  April 1, 2006 and April 2,  2005,  respectively,  an  increase  of
17.79%.  The increase is due to the operation of the  restaurant in  Wellington,
Florida  for the  fiscal  quarter,  as well as a  general  increase  in  overall
operating  costs and  expenses.  Operating  costs and  expenses  are expected to
continue increasing through the balance of fiscal year 2006 with the anticipated
opening of the  restaurant in Pinecrest,  Florida by the beginning of the fourth
quarter of fiscal year 2006 and a general  increase in overall  operating  costs
and expenses.

Payroll and related costs were  $4,274,000  and  $3,336,000  the thirteen  weeks
ended April 1, 2006 and April 2, 2005, respectively,  an increase of 28.12%. The
increase is attributed to the operation of the restaurant in Wellington, Florida
for the fiscal  quarter ended April 1, 2006,  the impact of the Florida  minimum
wage  which was  effective  during  the third  quarter  of fiscal  year 2005 and
further impacted by its first annual cost of living increase  effective  January
1, 2006 and the  accrual of  officers'  bonus in fiscal  year  2006.  During the
balance of fiscal year 2006  payroll and related  costs are expected to increase
due to the  anticipated  opening of the restaurant in Pinecrest,  Florida by the
beginning of the fourth quarter of fiscal year 2006.

Occupancy costs which include rent, common area  maintenance,  repairs and taxes
were $783,000 and $669,000 for the thirteen  weeks ended April 1, 2006 and April
2, 2005,  respectively,  an increase of 17.04%. The increase is accounted for by
increased  accruals  for real  property  taxes and the  payment  of rent for the
restaurant in Wellington, Florida during the second quarter of fiscal year 2006.

                                       21
<PAGE>

Selling,  general and administrative expenses were $2,830,000 and $2,470,000 for
the  thirteen  weeks  ended  April 1, 2006 and April 2, 2005,  respectively,  an
increase of 14.57%. The increase in selling,  general and administrative expense
is accounted for by the operation of the restaurant in  Wellington,  Florida for
the fiscal  quarter;  expenses  associated  with the  restaurant  in  Pinecrest,
Florida; and an overall increase in expenses.

Other Income and Expense

Other income and expenses  were income of $377,000 for the thirteen  weeks ended
April 1, 2006 as  compared  to income of $35,000  for the  thirteen  weeks ended
April 2, 2005. Other income and expenses  includes  insurance  recovery,  net of
casualty loss, ($405,000),  which includes the deletion of the net book value of
property and equipment as a result of Hurricane  Wilma,  ($15,000) and repair of
damage  ($30,000)  caused by Hurricane  Wilma,  offset by an advance of $450,000
from the Company's insurance carrier against anticipated insurance recoveries.


Comparison of Twenty Six Weeks Ended April 1, 2006 and April 2, 2005.
--------------------------------------------------------------------

As the table  above  illustrates,  total  revenues in the twenty six weeks ended
April 1, 2006  increased  by 14.21% as  compared to the total  revenues  for the
twenty  six  weeks  ended  April 2,  2005  primarily  due to the  restaurant  in
Wellington,  Florida being open for the twenty six weeks ended April 1, 2006 and
menu price  increases  made during the third  quarter of fiscal  year 2005.  The
increase in total  revenues also occurred  notwithstanding  an estimated loss of
$550,000 in restaurant food and beverage  revenue as a result of Hurricane Wilma
which impacted South Florida on October 24, 2005. Total revenues are expected to
increase due to the restaurant in Wellington,  Florida being open for the entire
fiscal year; the management by the Company of the restaurant in Deerfield Beach,
Florida as of January 9, 2006 and the  anticipated  opening of the restaurant in
Pinecrest, Florida by the beginning of the fourth quarter of fiscal year 2006.

Restaurant food sales represented  59.49% of total sales in the twenty six weeks
ended April 1, 2006 as compared to 59.00% of total sales in the twenty six weeks
ended April 2, 2005.  The weekly  average of same store  restaurant  food sales,
which now includes five (5) limited partnership  restaurants,  were $562,982 and
$536,500  for the  twenty  six weeks  ended  April 1,  2006 and  April 2,  2005,
respectively, an increase of 4.93%. The increase in restaurant food sales is due
to the restaurant in Wellington,  Florida being open for the quarter, menu price
increases  and the  continued  increase  in the  weekly  average  of same  store
restaurant food sales. This increase occurred  notwithstanding an estimated loss
of $450,000 in restaurant food sales as a result of Hurricane Wilma.  Restaurant
food sales should  continue to increase  due to the  restaurant  in  Wellington,
Florida being open for the entire fiscal year;  the  anticipated  opening of the
restaurant  in  Pinecrest,  Florida by the  beginning  of the fourth  quarter of
fiscal year 2006; and the continued increase in the weekly average of same store
restaurant food sales.

Restaurant bar sales  represented  13.82% of total sales in the twenty six weeks
ended April 1, 2006 as compared to 13.88% of total sales in the twenty six weeks
ended April 2, 2005. The weekly average of same store  restaurant bar sales were
$129,518  and $126,423 for the twenty six

                                       22
<PAGE>

weeks ended April 1, 2006 and April 2, 2005, respectively, an increase of 2.44%.
The increase in restaurant  bar sales is due to the  restaurant  in  Wellington,
Florida being open for the fiscal quarter and the promotions  introduced  during
fiscal year 2005 to increase  restaurant  bar sales,  without  jeopardizing  the
Company's  perception  as a  family  restaurant.  This  increase  also  occurred
notwithstanding an estimated loss of $100,000 in restaurant  beverage sales as a
result of Hurricane Wilma.  Restaurant bar sales should continue to increase due
to the restaurant in Wellington,  Florida being open for the entire fiscal year;
the anticipated opening of the restaurant in Pinecrest, Florida by the beginning
of the fourth  quarter of fiscal year 2006;  and the  continued  increase in the
weekly average of same store restaurant bar sales.

Package  goods sales  represented  26.67% of total sales in the twenty six weeks
ended  April 1, 2006,  as  compared  to 27.12% of total  sales in the twenty six
weeks ended April 2, 2005. The weekly average of same store package goods sales,
which now includes all nine (9) Company owned package stores,  were $276,612 and
$246,508  for the  twenty  six weeks  ended  April 1,  2006 and  April 2,  2005,
respectively, an increase of 12.20%. The increase was primarily due to increased
volume.  Hurricane  Wilma had no adverse affect upon package goods sales because
all Company-owned  package good stores were open for business,  without electric
power,  by  October  26,  2005 or  within  two (2) days of  Hurricane  Wilma and
notwithstanding  curfews  limiting  hours of  operation.  Package good sales are
expected to continue  increasing  through the balance of fiscal year 2006 due to
the continued increase in the weekly average of same store package sales.

The gross profit margin for restaurant  food and bar sales was 65.91% and 64.63%
for the twenty six weeks  ended  April 1, 2006 and April 2, 2005,  respectively.
The 1.98%  increase in gross profit for  restaurant and bar sales for the second
quarter of fiscal year 2006 was primarily due to menu price increases.

The gross profit  margin for package  goods stores was 28.14% and 28.16% for the
twenty six weeks ended April 1, 2006 and April 2, 2005, respectively.  The gross
profit  margin for package goods stores is expected to remain  constant  through
the balance of fiscal year 2006.

Operating Costs and Expenses

Operating costs and expenses were $26,546,000 and $23,337,000 for the twenty six
weeks  ended  April 1, 2006 and April 2,  2005,  respectively,  an  increase  of
13.75%.  The increase is due to the operation of the  restaurant in  Wellington,
Florida  for the twenty  six weeks  ended  April 1,  2006,  as well as a general
increase in overall  operating costs and expenses.  Operating costs and expenses
are expected to continue increasing through the balance of fiscal year 2006 with
the anticipated opening of the restaurant in Pinecrest, Florida by the beginning
of the fourth  quarter  of fiscal  year 2006 and a general  increase  in overall
operating costs and expenses.

Payroll and related costs were  $7,808,000  and  $6,459,000 the twenty six weeks
ended April 1, 2006 and April 2, 2005, respectively,  an increase of 20.89%. The
increase is attributed to the operation of the restaurant in Wellington, Florida
for the twenty six weeks ended April 1, 2006, the impact of the Florida  minimum
wage which was  effective  during the third  quarter of fiscal year 2005 and the
further impact of its first annual cost of living increase  effective January 1,

                                       23
<PAGE>

2006 and the accrual of officers' bonus in fiscal year 2006.  During the balance
of fiscal year 2006  payroll and related  costs are  expected to increase due to
the anticipated opening of the restaurant in Pinecrest, Florida by the beginning
of the fourth quarter of fiscal year 2006.

Occupancy costs which include rent, common area  maintenance,  repairs and taxes
were  $1,537,000 and $1,365,000 for the twenty six weeks ended April 1, 2006 and
April 2, 2005,  respectively,  an increase of 12.60%.  The increase is accounted
for by increased  accruals for real  property  taxes and the payment of rent for
the  restaurant in  Wellington,  Florida for the twenty six weeks of fiscal year
2006.

Selling,  general and administrative expenses were $5,296,000 and $4,813,000 for
the twenty six weeks  ended  April 1, 2006 and April 2, 2005,  respectively,  an
increase of 10.04%. The increase in selling,  general and administrative expense
is accounted for by the operation of the restaurant in  Wellington,  Florida for
the  twenty  six  weeks  ended  April  1,  2006;  expenses  associated  with the
restaurant in Pinecrest, Florida; and an overall increase in expenses.

Other Income and Expense

Other income and expenses were income of $411,000 for the twenty six weeks ended
April 1, 2006,  as  compared  to $29,000 for the twenty six weeks ended April 2,
2005. Other income and expenses  includes  insurance  recovery,  net of casualty
loss, ($450,000),  which includes the deletion of the net book value of property
and  equipment  as a result  of  Hurricane  Wilma,  ($58,000),  repair of damage
($131,000)  and food  waste  ($61,000)  caused  by  Hurricane  Wilma,  offset by
advances of $700,000,  ($750,000 less a $50,000 deductible),  from the Company's
insurance carrier against anticipated insurance recoveries.

New Limited Partnership Restaurants

As the Company opens new limited partnership restaurants on a more regular basis
the Company's  income from operations  will be adversely  affected by the higher
costs associated with the opening of the same. The higher costs include, but are
not limited to pre-opening  rent. For the second quarter of fiscal year 2006, as
well as the second  quarter of fiscal year 2005, the  pre-opening  rent paid and
expensed for the new limited  partnership  restaurant in Pinecrest,  Florida was
approximately  $51,000,  which is the full rent  provided in the lease.  For the
twenty six weeks of fiscal year 2006,  as well as the twenty six weeks of fiscal
year  2005,  the  pre-opening  rent  paid  and  expensed  for  the  new  limited
partnership restaurant in Pinecrest,  Florida was approximately $102,000,  which
is also the full rent provided in the lease.

During the balance of fiscal year 2006, income from operations will be adversely
affected  by the  pre-opening  costs  still to be  incurred  for the new limited
partnership restaurant in Pinecrest, Florida.


                                       24
<PAGE>

Trends

During  the  next  twelve  months  management  expects  continued  increases  in
restaurant  sales,  due primarily to the opening of the restaurant in Pinecrest,
Florida and continued  increases in same store  restaurant  sales.  Package good
sales are also  expected to increase  due  primarily  to increases in same store
package goods sales. At the same time,  management expects higher food costs and
overall  expenses to increase.  The Company has already  raised some of its menu
prices  to  offset  higher  food  costs  and  will  continue  to do so  wherever
competitively  possible.  During the next twelve months,  management projects an
increase in overall profit before income tax.

Liquidity and Capital Resources

Cash Flows

The following  table is a summary of the Company's cash flows for the twenty six
weeks of fiscal years 2006 and 2005.

                                                         Twenty Six Weeks Ended
                                                         April 1,       April 2,
                                                           2006           2005
                                                         -------        -------
                                                             (In Thousands)
Net cash provided by
  operating activities                                   $ 1,355        $ 1,392

Net cash (used in)
  investing activities                                    (1,109)          (856)

Net cash provided by (used in)
  financing activities                                      (542)            83
                                                         -------        -------
Net Increase (Decrease) in Cash and
  Cash Equivalents                                          (296)           619
Cash and Cash Equivalents, Beginning                       2,674          2,936
                                                         -------        -------
Cash and Cash Equivalents, Ending                        $ 2,378        $ 3,555
                                                         =======        =======

On January 13, 2006, the Company  declared a cash dividend of 35 cents per share
payable on February 15, 2006 to shareholders of record on January 31, 2006.

On December 9, 2004, the Company  declared a cash dividend of 32 cents per share
payable on January 28, 2005 to the shareholders of record on January 14, 2005.

                                       25
<PAGE>

Capital Expenditures

The Company had cash  additions to property and equipment of  $1,116,000  during
the twenty six weeks ended April 1, 2006,  including $101,000 as a direct result
of Hurricane Wilma, as compared to $881,000 for the twenty six weeks ended April
2, 2005 and  $2,095,000  for the fiscal year ended  October 1, 2005.  During the
twenty six weeks ended April 1, 2006, the Company purchased one (1) vehicle, for
a purchase price of $70,000, which vehicle was 100% financed.  During the fiscal
year ended October 1, 2005, the Company also purchased  three (3) vehicles,  for
an aggregate purchase price of $302,000, which vehicles were 100% financed.

All of the Company's  units  require  periodic  refurbishing  in order to remain
competitive.  The budget  for fiscal  year 2006 is  $700,000,  exclusive  of any
expenditures  attributed to Hurricane  Wilma.  The Company expects the funds for
these  improvements  to  be  provided  from  operations.   In  addition,  it  is
anticipated that one (1) limited partnership, (Pinecrest, Florida), will require
approximately  $1,300,000  in  additional  funds  for  capital  expenditures  to
complete its  renovations  and prepare for opening as a "Flanigan's  Seafood Bar
and Grill"  restaurant,  which funds will be raised through a private  offering.
The private offering will also raise funds to reimburse the Company for advances
made in excess of its planned investment in this limited partnership.

Long Term Debt

As of April 1, 2006, the Company had long term debt of  $2,242,000,  as compared
to $1,399,000 as of April 2, 2005, and $1,557,000 as of October 1, 2005.

During the second  quarter of fiscal  2006,  the Company  closed on a $2,000,000
line of credit. The line of credit, which had a principal balance of $762,000 as
of  April  1,  2006,  has  provided  cash  flow  while  the  Company  waits  for
reimbursement  from its insurance carrier of the cost incurred to repair damages
and business  interruption  caused by Hurricane Wilma and further advances to be
made by the Company to the limited partnership,  (Pinecrest,  Florida),  for the
completion of its renovations  prior to the completion of its private  offering.
The line of credit does not prohibit  dividends,  provided the Company is not in
default of the same. As of April 1, 2006, the Company is in compliance  with the
affirmative covenants contained in the loan documents.

Property Insurance Coverage; Deductibles

For the policy  year  commencing  December  30,  2005,  the  Company's  property
insurance has a deductible of $25,000 - $50,000 per location, per occurrence. In
the event a casualty, such as another hurricane, impacted every location whereby
property  damage and  business  interruption  claims  reached or exceeded  every
deductible,  then the Company and its limited  partnerships would face a maximum
exposure of  $825,000.  The Company  intends to build its cash  balances  during
hurricane  season,  (June 1 - November 1 each  year),  to  protect  the  Company
against  losses as a result of a hurricane or other casualty loss, as well as to
maintain a line of credit as additional protection against the same.

                                       26
<PAGE>

Working Capital

The table below summarizes the current assets, current liabilities,  and working
capital  for the fiscal  quarters  ended  April 1,  2006,  April 2, 2005 and the
fiscal year ended October 1, 2005.

                                         April 1,        Apr. 2,        Oct. 1,
         Item                              2006           2005           2005
                                          ------         ------         ------
                                                    (In Thousands )

Current Assets                            $6,746         $7,475         $6,091
Current Liabilities                        5,152          4,902          3,954
                                          ------         ------         ------
Working Capital                            1,594          2,573          2,137

Working  capital for the fiscal quarter ending April 1, 2006 decreased by 38.05%
from the working  capital  for the fiscal  quarter  ending  April 2, 2005 and by
25.41%  from the working  capital  for the fiscal  year ending  October 1, 2005.
Working  capital  for the  quarter  ended  April 1,  2006 was  still  negatively
impacted by the cost of repairs to damages  caused by Hurricane  Wilma while the
Company  waits for  reimbursement  of a part of such losses  from its  insurance
carrier;  payment of the balance due for the  management  rights to "The Whale's
Rib";  further  advances  to the  limited  partnership  in  Pinecrest,  Florida;
advances  for the new  location  in Davie,  Florida;  and  payment of the annual
dividend. The decrease in working capital for the fiscal quarter ending April 1,
2006 when  compared to the fiscal  quarter  ending April 2, 2005 was also due to
the  completion of the private  offering by the limited  partnership  owning the
restaurant in Wellington, Florida during the second quarter of fiscal year 2005,
which private  offering  reimbursed the Company for advances made to the limited
partnership in excess of its investment in the same.

Through the remainder of fiscal year 2006 and into fiscal year 2007,  management
projects that working capital will be adversely  affected by investments  and/or
further  advances  to be made  by the  Company  to the  limited  partnership  in
Pinecrest,  Florida and for the new  locations  in Davie,  Florida and  Pembroke
Pines,  Florida,  further  repair of damages  caused by Hurricane  Wilma and the
closing of its option to  purchase  the real  property  and ground  lease of one
location  currently  leased by the  Company,  if it  closes  prior to the end of
fiscal year 2006. Management believes that over the balance of fiscal year 2006,
working  capital  will  increase  by  the  amount  of any  insurance  recoveries
received;  and any  reimbursement  of  funds  advanced  by the  Company  for the
renovations of the restaurant in Pinecrest,  Florida in excess of its investment
once the limited partnership completes its private offering.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company  does not  ordinarily  hold market risk  sensitive  instruments  for
trading  purposes but as of April 1, 2006 holds one equity security at a cost of
$303,000 to receive dividend payments and for the Company to satisfy debt in the
future. There is no assurance that market price will increase or decrease in the
next year. Even if the price of the equity  security  decreased by 10% below its
cost,  results of operations would be reduced by $30,000,  an amount  management
considers immaterial.

                                       27
<PAGE>

Interest Rate Risk

At April 1, 2006,  the Company has two debt  arrangements  which have a variable
interest  rate. For one of these  instruments,  a mortgage note, the Company has
entered into an interest  rate swap  agreement to hedge the interest  rate risk.
The  mortgage  note has an  outstanding  principal  balance  at April 1, 2006 of
$800,000. The second instrument,  the secured $2,000,000 line of credit received
by the Company  during the second  quarter of fiscal  year 2006,  has a variable
interest rate, which is at prime. During the second quarter of fiscal year 2006,
the Company paid the unsecured  promissory note which had an original  principal
balance  of  $100,000  in full,  using  funds from its  secured  line of credit.
Increases  in  interest  rates  may  have a  material  affect  upon  results  of
operations,  depending  upon the  outstanding  principal  balance on the line of
credit from time to time.

At April 1, 2006, the Company's cash resources earn interest at variable  rates.
Accordingly,  the Company's return on these funds is affected by fluctuations in
interest  rates.  Any decrease in interest rates will have a negative  effect on
the Company's earnings.

There is no assurance  that  interest  rates will  increase or decrease over the
next fiscal year.

Item 4.  Controls and Procedures

      (a) Evaluation of Disclosure Controls and Procedures

Our President and Chief Financial Officer, with the participation of management,
evaluated the  effectiveness of Company's  "disclosure  controls and procedures"
(as  defined  in the  Securities  Exchange  Act of 1934  ("Exchange  Act")  Rule
13a-15(e)  or  15d-15(e))  as of April 1, 2006.  It is the  opinion of our Chief
Executive Officer and Chief Financial Officer that such disclosure  controls and
procedures  operate  such  that  important   information  flows  to  appropriate
collection  and  disclosure  points  in a timely  manner  and are  effective  in
ensuring that material information is accumulated and communicated to management
and made  known to the  Chief  Executive  Officer  and Chief  Financial  Officer
particularly   during  the  period  in  which  this  report  was  prepared,   as
appropriate, to allow timely decisions regarding timely disclosure. In designing
and evaluating the disclosure  controls and  procedures,  management  recognizes
that any system of controls  and  procedures,  no matter how well  designed  and
operated,  is subject to limitations,  including the exercise of our judgment in
evaluating the same. As a result,  there can be no assurance that our disclosure
controls and procedures will prevent all errors.

      (b) Change in Internal Control over Financial Reporting

During the second quarter of fiscal year 2006,  the Company  continued to assess
the  effectiveness  of our "internal  controls over  financial  reporting" on an
account by account  basis as a part of our  on-going  accounting  and  financial
reporting  review process.  The assessments  were made by management,  under the
supervision of our Chief Financial  Officer.  We made no changes in our internal
control over financial  reporting during the fiscal quarter ending April 1, 2006
that materially  affected,  or are reasonably likely to materially  affect,  the
Company's  internal  control

                                       28
<PAGE>

over financial  reporting.  Notwithstanding,  the effectiveness of our system of
internal control over financial  reporting is subject to limitations,  including
the exercise of our judgment in evaluating  the same. As a result,  there can be
no assurance that our internal control over financial reporting will prevent all
errors.


                           PART II - OTHER INFORMATION

Item 1 - Legal Proceedings:  See "Litigation" on page 13 of this report and Item
1 and Item 3 to Part 1 of the  Annual  Report on Form 10-K for the  fiscal  year
ended  October 1, 2005 for a discussion of other legal  proceedings  resolved in
prior years.

Item 2- Unregistered Sales of Equity Securities and Use of Proceeds:     None

Item 3- Defaults Upon Senior Securities:             None

Item 4- Submission of Matters to a Vote of Security Holders:           None

Item 5- Other Information:                  None

Item 6- Exhibits and Reports on Form 8-K:

         (a) Exhibits:     Exhibits 31.1, 31.2, 32.1 and 32.2 (Certifications)
         (b) Form 8-K:     None


                                   SIGNATURES

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned  thereto duly  authorized.  The information  furnished  reflects all
adjustments to the statement of the results for the interim period.


                                         FLANIGAN'S ENTERPRISES, INC.

                                         /s/ James G. Flanigan
                                         ----------------------------------
                                         JAMES G. FLANIGAN,
                                         Chief Executive Officer and
                                           President

Date: May 16, 2006
      ------------

                                         /s/ Jeffrey D. Kastner
                                         ---------------------------
                                         JEFFREY D. KASTNER
Date: May 16, 2006                       Chief Financial Officer and Secretary
      ------------


                                       29