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<p class=MsoTitle><b>&nbsp;</b></p>

<p class=MsoTitle><b>&nbsp;</b></p>









<p class=MsoTitle><b>&nbsp;</b></p>

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  <p class=MsoTitle><b>UNITED STATES</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Washington, D.C. 20549</p>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>FORM 8-K</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>CURRENT REPORT</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h3>Pursuant to Section 13 or 15(d) of the
  Securities Exchange Act of 1934</h3>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Date of Report (Date of earliest event reported)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>October 5, 2010</p>
  </td>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Good Times Restaurants Inc.</b></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(Exact name of registrant as specified in its
  charter)</p>
  </td>
 </tr>
</table>

</div>



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  <td width=225 valign=top style='width:169.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Nevada</p>
  </td>
  <td width=237 valign=top style='width:177.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>000-18590</p>
  </td>
  <td width=157 valign=top style='width:117.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>84-1133368</p>
  </td>
 </tr>
 <tr>
  <td width=225 valign=top style='width:169.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(State or other jurisdiction</p>
  </td>
  <td width=237 valign=top style='width:177.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(Commission</p>
  </td>
  <td width=157 valign=top style='width:117.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(IRS Employer</p>
  </td>
 </tr>
 <tr>
  <td width=225 valign=top style='width:169.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>of incorporation)</p>
  </td>
  <td width=237 valign=top style='width:177.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>File Number)</p>
  </td>
  <td width=157 valign=top style='width:117.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Identification No.)</p>
  </td>
 </tr>
</table>







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 style='border-collapse:collapse;border:none'>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>601 Corporate Circle, Golden, Colorado 80401</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(Address of principal executive offices)&nbsp;&nbsp; (Zip
  Code)</p>
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 </tr>
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  </td>
 </tr>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Registrant's telephone number, including area code:
  (303) 384-1400</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Not applicable</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>(Former name or former address, if changed since
  last report.)</p>
  </td>
 </tr>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Check the appropriate box
  below if the Form 8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions (see
  General Instruction A.2.):<br>
  <br>
  [_] Written communications pursuant to Rule 425 under the Securities Act (17
  CFR 230.425)<br>
  <br>
  [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
  CFR 240.14a-12)<br>
  <br>
  [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
  Exchange Act (17 CFR 240.14d-2(b))<br>
  <br>
  [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
  Act (17 CFR 240.13e-4(c))</p>
  </td>
 </tr>
</table>









<p class=MsoNormal align=center style='text-align:center'>1</p>



<br
clear=all style='page-break-before:always'>


<p class=MsoNormal><b>Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry
into a Material Definitive Agreement.</b></p>

<p class=MsoNormal style='text-autospace:none'><b>&nbsp;</b></p>

<p class=MsoNormal style='text-indent:.5in;text-autospace:none'>On October 3, 2010, Good Times Restaurants
Inc. (the &quot;Company&quot;) entered into a Term Sheet with Small Island Investments
Ltd (&quot;SII&quot;) for the sale of $2 million of its common stock.&nbsp; SII is based in Boston, MA and is an affiliate of a
company that owns and operates three restaurant brands operating in Canada and
the U.S. generating approximately $75 million in annual revenues.</p>



<p class=MsoNormal style='text-indent:.5in;text-autospace:none'>The sale of stock is subject to execution
of a definitive Stock Purchase Agreement, the completion of SII's due diligence
and fulfillment of various contingencies.&nbsp; The contingencies include, but are
not limited to, entering into an agreement satisfactory to SII with Wells Fargo
Bank NA to modify the loan covenants under the Company's current loan
agreement, satisfaction of Nasdaq's Capital Market continued listing
requirements and obtaining a third party fairness opinion and shareholder
approval of the transaction.&nbsp; </p>



<p class=MsoNormal style='text-indent:.5in;text-autospace:none'>Upon closing of the Stock Purchase
Agreement, SII will have a contractual right to designate four out of seven seats
on the Company's board of directors and the Agreement will contain other rights,
including anti-dilution provisions and stock registration rights. </p>





<p class=MsoNormal style='text-align:justify'><b>Item
9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</b></p>



<p class=MsoNormal style='text-indent:.5in'>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.&nbsp;
The following exhibits are filed as part of this report:</p>



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  <td width=67 valign=top style='width:50.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>Exhibit</p>
  <p class=MsoNormal align=center style='text-align:center'><u>Number</u></p>
  </td>
  <td width=461 valign=top style='width:345.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><u>&nbsp;</u></p>
  <p class=MsoNormal><u>Description</u></p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:50.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=461 valign=top style='width:345.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:50.15pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>10.1</p>
  </td>
  <td width=461 valign=top style='width:345.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Term Sheet dated October 3,
  2010 between Good Times Restaurants Inc. and Small Island Investments Ltd.</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:50.15pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=461 valign=top style='width:345.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
</table>

















<p class=MsoNormal align=center style='text-align:center'>2</p>







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</div>





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</div>



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<h3><b>SIGNATURES</b></h3>



<p class=MsoBodyTextIndent3>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</p>





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 style='border-collapse:collapse;border:none'>
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  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GOOD
  TIMES RESTAURANTS INC.</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Date:&nbsp; October 5, 2010&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:
  &nbsp;<i><u>/s/ Boyd E. Hoback</u></i></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Boyd
  E. Hoback</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President
  and Chief Executive Officer</p>
  </td>
 </tr>
</table>





<p class=MsoNormal align=center style='text-align:center'>3</p>



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<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

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</html>
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{"company-data": {"conformed-name": "GOOD TIMES RESTAURANTS INC", "cik": "0000825324", "assigned-sic": "5812", "irs-number": "841133368", "state-of-incorporation": "NV", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18590", "film-number": "101108412"}, "business-address": {"street1": "601 CORPORATE CIRCLE", "city": "GOLDEN", "state": "CO", "zip": "80401", "phone": "3033841400"}, "mail-address": {"street1": "601 CORPORATE CIRCLE", "city": "GOLDEN", "state": "CO", "zip": "80401"}, "former-company": {"former-conformed-name": "PARAMOUNT VENTURES INC", "date-changed": "19900205"}}
_
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
  Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 5, 2010
Good Times Restaurants Inc.
(Exact name of registrant as specified in its
  charter)
Nevada
000-18590
84-1133368
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
601 Corporate Circle, Golden, Colorado 80401
(Address of principal executive offices)   (Zip
  Code)
Registrant's telephone number, including area code:
  (303) 384-1400
Not applicable
(Former name or former address, if changed since
  last report.)
Check the appropriate box
  below if the Form 8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions (see
  General Instruction A.2.):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
  CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
  CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
  Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
  Act (17 CFR 240.13e-4(c))
1
Item 1.01        Entry
into a Material Definitive Agreement.
On October 3, 2010, Good Times Restaurants
Inc. (the "Company") entered into a Term Sheet with Small Island Investments
Ltd ("SII") for the sale of $2 million of its common stock.  SII is based in Boston, MA and is an affiliate of a
company that owns and operates three restaurant brands operating in Canada and
the U.S. generating approximately $75 million in annual revenues.
The sale of stock is subject to execution
of a definitive Stock Purchase Agreement, the completion of SII's due diligence
and fulfillment of various contingencies.  The contingencies include, but are
not limited to, entering into an agreement satisfactory to SII with Wells Fargo
Bank NA to modify the loan covenants under the Company's current loan
agreement, satisfaction of Nasdaq's Capital Market continued listing
requirements and obtaining a third party fairness opinion and shareholder
approval of the transaction.
Upon closing of the Stock Purchase
Agreement, SII will have a contractual right to designate four out of seven seats
on the Company's board of directors and the Agreement will contain other rights,
including anti-dilution provisions and stock registration rights.
Item
9.01        Financial Statements and Exhibits.
(d)        Exhibits. 
The following exhibits are filed as part of this report:
Exhibit
Number
Description
10.1
Term Sheet dated October 3,
  2010 between Good Times Restaurants Inc. and Small Island Investments Ltd.
2
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
GOOD
  TIMES RESTAURANTS INC.
Date:  October 5, 2010                                    By:
/s/ Boyd E. Hoback
Boyd
  E. Hoback
President
  and Chief Executive Officer
3