IHOP 2009 Annual Report Download - page 45
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Please find page 45 of the 2009 IHOP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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regulatory sanctions and other actions by third parties which can, in turn, negatively impact the
perceived quality of our restaurants and the overall goodwill of our brands, regardless of the nature
and type of product involved. Any such actions could have a material adverse effect on our business, by
virtue of, among other things, reducing the public’s acceptance of Applebee’s or IHOP restaurants,
thereby reducing restaurant revenues and corresponding franchise payments to us.
We are heavily dependent on information technology and any material failure of that technology could
impair our ability to efficiently operate our business. We rely heavily on information systems across our
operations, including, for example, point-of-sale processing in our restaurants, management of our
supply chain, collection of cash, payment of obligations and various other processes and procedures.
Our ability to efficiently manage our business depends significantly on the reliability and capacity of
these systems. The failure of these systems to operate effectively, problems with maintenance,
upgrading or transitioning to replacement systems, or a breach in security of these systems could cause
delays in customer service and reduce efficiency in our operations. Significant capital investments might
be required to remediate any problems.
Failure to protect the integrity and security of individually identifiable data of customers, vendors or
employees may subject us to loss and harm our brands. We might receive and maintain, for varying
lengths of time, certain personal or business information about customers, vendors and employees. The
use of this information by us is regulated by federal and state laws, as well as by certain third-party
agreements. If our security and information systems are compromised or our employees or if
franchisees fail to comply with these laws and regulations, and this information is obtained by
unauthorized persons or used inappropriately, it could adversely affect our reputation and could result
in costs to defend or settle litigation, to pay judgments awarded from litigation, or pay penalties
resulting from violation of federal and state laws and payment card industry regulations. As privacy and
information security laws and regulations change, we may incur additional costs to ensure that we
remain in compliance with said laws and regulations.
Item 1B. Unresolved Staff Comments.
None.
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