Burger King 2011 Annual Report Download - page 26

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Table of Contents
Compliance with or cleanup activities required by environmental laws may hurt our business.
We are subject to various federal, state, local and foreign environmental laws and regulations. These laws and regulations govern, among other things,
discharges of pollutants into the air and water as well as the presence, handling, release and disposal of and exposure to, hazardous substances. These laws and
regulations provide for significant fines and penalties for noncompliance. If we fail to comply with these laws or regulations, we could be fined or otherwise
sanctioned by regulators. Third parties may also make personal injury, property damage or other claims against us associated with releases of, or actual or alleged
exposure to, hazardous substances at, on or from our properties.
Environmental conditions relating to prior, existing or future restaurants or restaurant sites, including franchised sites, may have a material adverse effect
on us. Moreover, the adoption of new or more stringent environmental laws or regulations could result in a material environmental liability to us and the current
environmental condition of the properties could be harmed by tenants or other third parties or by the condition of land or operations in the vicinity of our
properties.
We are owned and controlled by 3G Capital and its interests may conflict with other stakeholders.
We are 99% owned by 3G, which in turn is controlled by 3G Capital. As a result 3G Capital has the power to elect all of the members of our board of
directors and effectively has control over major decisions regardless of whether other stakeholders believe that any such decisions are in their own best interests.
The interests of 3G Capital as equity holder may conflict with the interests of the other stakeholders. 3G Capital may have an incentive to increase the value of its
investment or cause us to distribute funds at the expense of our financial condition and affect our ability to make payments on the Senior Notes. In addition, 3G
Capital may have an interest in pursuing acquisitions, divestitures, financings, capital expenditures or other transactions that it believes could enhance its equity
investments even though such transactions might involve risks to other stakeholders. 3G Capital is in the business of making investments in companies and may
from time to time acquire and hold interests in businesses that compete directly or indirectly with us.
We outsource certain aspects of our business to third party vendors which subjects us to risks, including disruptions in our business and increased costs.
We have outsourced certain administrative functions, including account payment and receivable processing, to a third-party service provider. We also
outsource certain information technology support services and benefit plan administration, and may outsource other functions in the future to achieve cost
savings and efficiencies. If the service providers to which we outsource these functions to do not perform effectively, we may not be able to achieve the expected
cost savings and may have to incur additional costs in connection with such failure to perform. Depending on the function involved, such failures may also lead
to business disruption, transaction errors, processing inefficiencies, the loss of sales and customers, the loss of or damage to intellectual property through security
breach, and the loss of sensitive data through security breach or otherwise. Any such damage or interruption could have a material adverse effect on our business,
cause us to face significant fines, customer notice obligations or costly litigation, harm our reputation with our customers or prevent us from paying our suppliers
or employees or receiving payments on a timely basis.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our global restaurant support center and U.S. headquarters is located in Miami, Florida and consists of approximately 213,000 square feet which we lease.
We extended the Miami lease for our global restaurant support center in May 2008 through September 2018 with an option to renew for one five-year period. We
lease properties
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠