Einstein Bros 2008 Annual Report Download - page 7

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312509042707/d10k.htm[9/11/2014 10:10:56 AM]
currently are planning to open at 30 to 35 new license restaurants in 2009.
• Product Supply: Our franchisees and licensees are required to purchase proprietary products through our designated suppliers or directly
from us. Our Manhattan Bagel franchisees are not required to buy all of their non-proprietary products directly from us, but rather their
product sources must be approved by us.
• Seasonality: This segment is subject to the same seasonal fluctuations as our company-owned restaurant segment. Additionally, as
many of our license locations are on college and university campuses, they are impacted by school schedules which typically include a
summer break and the December holiday season. Because of the seasonality of the business and the industry, results for any quarter are
not necessarily indicative of the results that may be achieved for any other quarter or the full fiscal year.
• Dependence on a single customer: A significant concentration of our franchise and licensing revenues is with several large customers
who have licensed multiple locations. However, no single customer has accounted for 10% or more of our total Company revenues and,
therefore, the loss of any one customer would not have a material impact on our business.
• Government Regulation: Our franchise operations are subject to Federal Trade Commission (the “FTC”) regulation and various state
laws which regulate the offer and sale of franchises. Several state laws also regulate substantive aspects of the franchisor/franchisee
relationship. The FTC requires us to furnish to prospective franchisees a franchise disclosure document containing prescribed
information. A number of states in which we might consider franchising also regulate the sale of franchises and require registration of
the disclosure document with state authorities. Our ability to sell franchises in those states is dependent upon obtaining approval of our
disclosure document by those authorities.
• Competition: We compete against similar fast-casual and quick-casual restaurants which franchise and license their brands in the states
in which we operate.
• Associates: As of December 30, 2008, the Company had 7,698 associates, of whom 23 were corporate personnel who work primarily
with franchising and licensing. In addition, there were 210 corporate personnel, many of which assist in the segment in one way or
another.
Corporate Support
• Principal products/services sold: The support center is not a profit center and is designed to manage and support all of our company-
owned restaurants, the manufacturing facility and commissaries and support our franchisees and licensees as well as general corporate
governance.
• Associates: As of December 30, 2008, the Company had 7,698 associates, of whom 233 were corporate personnel.
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Table of Contents
Financial information about geographic areas:
Our manufacturing operations sell bagels to a wholesaler and a distributor who take possession in the United States and sell outside of the
United States. As the product is shipped FOB domestic dock, there are no international risks of loss or foreign exchange currency issues. Sales
shipped internationally are included in manufacturing and commissary revenue. Approximately $2.2 million, $3.3 million and $4.8 million for
2006, 2007, and 2008 respectively, were included in manufacturing revenue for these international shipments. All other revenues were from
external customers domiciled in the United States of America.
Available Information:
We are subject to the informational requirements of the Securities Exchange Act of 1934. We therefore file periodic reports, proxy statements
and other information with the Securities Exchange Commission (the “SEC”). Such reports may be obtained by visiting the Public Reference
Room of the SEC at 100 F Street, N.E., Washington, D.C. 20549, or by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an
internet site (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically.
Additionally, copies of our reports on Forms 10-K, 10-Q and 8-K and any amendments to such reports are available for viewing and copying
through our internet site (www.einsteinnoah.com), free of charge, as soon as reasonably practicable after filing such material with, or furnishing it
to the SEC. We typically post information about the Company on our website under the Financials & Media tab.
We also make available on our website and in print to any stockholder who requests it, the Charters for our Audit and Compensation
Committees, as well as the Code of Conduct that applies to all directors, officers, and associates of our company. Amendments to these documents
or waivers related to the Code of Conduct will be made available on our website as soon as reasonably practicable after their execution.
Executive Officers: