periods up to 25 years and include a renewal option if certain  conditions are met. Master franchise rights are typically granted to a  franchisee for an entire country or countries. Continuing franchise  fees are based on a percentage of sales made by the franchisees’  stores and are recognized as revenue at the time of those sales. Commercial revenue: Commercial revenue includes the company’s  transactions with other businesses, mainly through wholesale  and licensing transactions. Revenue from wholesale product sales  includes revenue from merchandise sold at stores operated by  third parties under licensing agreements like Landry’s restaurants.  Revenue from licensing activities is generally based on a percentage  of sales made by licensees to third parties and is recognized at the  time the product is shipped by the licensee or at the point of sale.  We have entered into a number of licensing arrangements whereby  third parties manufacture merchandise carrying the Build-A-Bear  Workshop trademark and sell it to other retailers.  Cost of merchandise sold and retail gross margin:  Cost of  merchandise sold includes the cost of the merchandise, including  royalties paid to licensors of third party branded merchandise;  store occupancy cost, including store depreciation and store  asset impairment charges; cost of warehousing and distribution;  packaging; stuffing; damages and shortages; and shipping and  handling costs incurred in shipment to customers. Retail gross  margin is defined as net retail sales less the cost of retail merchandise  sold, which excludes cost of wholesale merchandise sold.  Selling, general and administrative expense:  These expenses  include store payroll and benefits, advertising, credit card fees, store  supplies and preopening expenses as well as central office general  and administrative expenses, including costs for management  payroll, benefits, stock-based compensation, normal store closings,  travel, information systems, accounting, insurance, legal and public  relations. These expenses also include depreciation and amortization  of central office leasehold improvements, furniture, fixtures and  equipment as well as the amortization of intellectual property costs.  In 2009, we achieved $22 million in savings in selling, general and  administrative expenses including marketing, central office payroll  and outside services. We were able to maintain these savings in 2010  and 2011. In 2012, we saved an additional $4 million in selling, general  and administrative expenses that were used to support sales driving  marketing initiatives. In 2013, we continued to reduce expenses as  we reduced selling, general and administrative expenses in both  dollars and as a percent of revenue. Other store expenses such as  credit card fees and supplies historically have increased or decreased  proportionately with net retail sales.  Company-owned stores:  The number of Build-A-Bear Workshop  stores in the United States, Canada, Puerto Rico, the United Kingdom  and Ireland for the last two fiscal years along with the projections for  fiscal 2014 can be summarized as follows:  Stores Costs and Expenses  Fifty-two Weeks Ended December 29, 2012 December 31,  2011 Opened Closed December 29,  2012 North America  Traditional 287 2 (6) 283 Non-traditional 11 1 (4) 8 298 3 (10) 291 Europe Traditional 56 2 - 58 Non-traditional 2 - - 2 58 2 - 60 Total 356 5 (10) 351 Fifty-two Weeks Ended December 28, 2013 December 29,  2012 Opened Closed December 28,  2013 North America  Traditional 283 3 (34) 252 Non-traditional 8 5 (2) 11 291 8 (36) 263 Europe Traditional 58 1 (1) 58 Non-traditional 2 - - 2 60 1 (1) 60 Total 351 9 (37) 323 Fifty-three Weeks Ended January 3, 2015 - Projected December 28,  2013 Opened Closed January 3,  2015 North America  Traditional 252 1 (12) 241 Non-traditional 11 3 (1) 13 263 4 (13) 254 Europe Traditional 58 - - 58 Non-traditional 2 - - 2 60 - - 60 Total 323 4 (13) 314 BUILD-A-BEAR WORKSHOP, INC.  2013 FORM 10-K 19