Burger King 2011 Annual Report Download - page 12

Table of Contents
restaurant is located. Our restaurant operations are also subject to domestic and international laws governing union organizing, working conditions, work
authorization requirements, health insurance, overtime and wages. Domestically, federal and state laws govern the rates at which our hourly employees are paid.
Internationally, many countries provide employees with significant protections regarding their salaries. We are also subject to the regulations of the U.S.
Citizenship and Immigration Services and U.S. Immigration and Customs Enforcement, and tariffs and regulations on imported commodities and equipment and
laws regulating foreign investment.
We are subject to laws relating to information security, privacy, cashless payments and consumer credit, protection and fraud. An increasing number of
governments and industry groups worldwide have established data privacy laws and standards for the protection of personal information, including social
security numbers and financial information.
In the U.S., our facilities must comply with the Americans with Disabilities Act, or the ADA, which requires that all public accommodations and
commercial facilities meet federal requirements related to access and use by disabled persons. As described more fully under “Item 3. Legal Proceedings,” we
recently reached a settlement in an action in California alleging that all of the Burger King restaurants in California leased by the Company and operated by
franchisees violated accessibility requirements under federal and state law.
The offer and sale of franchises are subject to the rules and regulations of the Federal Trade Commission, or the FTC, and various state laws and similar
foreign agencies. A number of states in which we are currently franchising regulate the sale of franchises and require registration of the franchise disclosure
document with state authorities and the delivery of a franchise disclosure document to prospective franchisees. We are currently operating under exemptions
from registration in several of these states based upon our net worth and experience. These state laws often limit, among other things, the duration and scope of
non-competition provisions, the ability of a franchisor to terminate or refuse to renew a franchise and the ability of a franchisor to designate sources of supply.
As a manufacturer and distributor of food products, we are subject to food safety regulations, including supervision by the U.S. Food and Drug
Administration and its international equivalents, which govern the manufacture, labeling, packaging and safety of food. In addition, we may become subject to
legislation or regulation seeking to tax and/or regulate high-fat, high-calorie and high-sodium foods, particularly in the United States, the U.K. and Spain. Certain
counties, states and municipalities, such as California, Vermont, New York City, and King County, Washington, have approved menu labeling legislation that
requires restaurant chains to provide caloric information on menu boards, and menu labeling legislation has also been adopted on the federal level. Regulators in
Canada and in other countries are proposing to take steps to reduce the level of exposure to acrylamide, a potential carcinogen that naturally occurs in the
preparation of foods such as french fries.
Public interest groups and lawmakers have increasingly focused on the marketing of high-calorie, high-fat and high-sodium foods to children in a stated
effort to combat childhood obesity. For example, regulators in the U.K. have adopted restrictions on television advertising of foods high in fat, salt or sugar
targeted at children. In addition, laws have been enacted in certain places that limit distribution of free toy premiums only to customers purchasing kids’ meals
that meet certain nutritional requirements. The federal public attorney in Sao Paulo, Brazil filed a civil lawsuit against Burger King and other fast food restaurant
companies in June 2009 to prohibit promotional sales of toys in our restaurants in Brazil. We have signed the EU Pledge, which is a voluntary commitment to the
European Commission to change our advertising to children under the age of 12 in the European Union.
Environmental Matters
We are subject to various federal, state and local environmental regulations. Various laws concerning the handling, storage and disposal of hazardous
materials and restaurant waste and the operation of restaurants in environmentally sensitive locations may impact aspects of our operations; however, compliance
with applicable
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠