Panera Bread 2005 Annual Report Download - page 13

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Our Internet address is www.panerabread.com. We make available at this address, free of charge, nutritional information, press
releases, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports
filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act as soon as reasonably practicable after
electronically filing such material with, or furnishing it to, the Securities and Exchange Commission. In addition, we provide periodic
investor relations updates at our Internet address.
GOVERNMENT REGULATION
Each fresh dough facility and Company-owned and franchise-operated bakery-cafe is subject to regulation and licensing by federal
agencies as well as to licensing and regulation by state and local health, sanitation, safety, fire, and other departments. Difficulties or
failures in obtaining and retaining the required licensing or approval could result in delays or cancellations in the opening of fresh
dough facilities and bakery-cafes as well as fines and possible closure relating to existing fresh dough facilities and bakery-cafes. In
addition, we are subject to the Fair Labor Standards Act and various state laws governing such matters as minimum wages, overtime,
and other working conditions.
We are also subject to federal and state laws regulating the offer and sale of franchises. Such laws impose registration and
disclosure requirements on franchisors in the offer and sale of the franchises and may also apply substantive standards to the
relationship between franchisor and franchisee.
We are subject to various federal, state, and local environmental regulations. Compliance with applicable environmental
regulations is not believed to have a material effect on capital expenditures, financial condition, results of operations, or our
competitive position.
The Americans with Disabilities Act prohibits discrimination in employment and public accommodations on the basis of disability.
Under the Americans with Disabilities Act, we could be required to expend funds to modify our Company-owned bakery-cafes to
provide service to, or make reasonable accommodations for the employment of, disabled persons. Compliance with the requirements
of the Americans with Disabilities Act is not believed to have a material effect on our financial condition or results of operations.
ITEM 1A. RISK FACTORS
The following important factors, among others, could cause our actual operating results to differ materially from those indicated or
suggested by forward-looking statements made in this Form 10-K or presented elsewhere by management from time to time.
Our growth strategy, our business and our ability to increase our revenue and operating profits could be adversely affected if
we are unable to execute our growth strategy.
Our growth strategy consists of new market development and further penetration of existing markets, both by us and our
franchisees. The success of our growth strategy depends on numerous factors that are not completely controlled by us or involve risks
that may impact the development, or timing of development, of our bakery-cafes. Our ability to grow successfully will depend on a
number of factors, including:
• identification and availability of suitable locations for new bakery-cafes on acceptable terms including obtaining waivers of
exclusive use restrictions from landlords and tenants, as needed, and within appropriate delivery distances from our fresh
dough facilities;
• competition for restaurant sites;
• variations in the number and timing of bakery-cafe openings as compared to our construction schedule;
• management of the costs of construction of bakery-cafes, particularly factors outside our control, such as the timing of delivery
of a leased location by the landlord;
• securing required governmental approvals and permits and complying with applicable zoning, land use and environmental
regulations; and
• general economic conditions.