7. Advertising Costs
Costs incurred in connection with the advertising and marketing of the Company are included in selling, general, and administrative expenses and expensed as incurred or when the advertisement first runs. Such costs amounted to $7.9 million and $16.8 million for the twelve weeks and twenty-eight weeks ended July 10, 2011, respectively, and $6.4 million and $16.9 million, respectively, for the twelve and twenty-eight weeks ended July 11, 2010.
Under the Companys franchise agreements, both the Company and the franchisees must contribute a minimum percentage of revenues to two marketing and national media advertising funds (the Marketing Funds). These Marketing Funds are used to develop and distribute Red Robin® branded marketing materials, for media purchases and for administrative costs. The Companys portion of costs incurred by the Marketing Funds is recorded as selling, general, and administrative expenses in the Companys financial statements. Restricted cash represents contributed funds held for future use.