American Home Shield 2009 Annual Report Download - page 11

Table of Contents
Franchise Matters
TruGreen LawnCare, Terminix, ServiceMaster Clean, AmeriSpec, Furniture Medic and Merry Maids are subject to various federal, state and
international laws and regulations governing franchise sales, marketing and licensing and franchise trade practices generally, including applicable rules and
regulations of the Federal Trade Commission. These laws and regulations generally require disclosure of business information in connection with the sale and
licensing of franchises. Certain state regulations also affect the ability of the franchisor to revoke or refuse to renew a franchise. ServiceMaster seeks to
comply with regulatory requirements and deal with franchisees and licensees in good faith. From time to time, ServiceMaster and one or more franchisees
may become involved in a dispute regarding the franchise relationship, including payment of royalties or fees, location of branches, advertising, purchase of
products by franchisees, compliance with ServiceMaster standards and franchise renewal criteria. There can be no assurance that compliance problems will
not be encountered from time to time or that material disputes with one or more franchisees will not arise.
Environmental Matters
ServiceMaster's businesses are subject to various federal, state and local laws and regulations regarding environmental matters. Terminix, TruGreen
LawnCare and TruGreen LandCare are regulated under many federal and state environmental laws, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA"), commonly known as Superfund, the Superfund Amendments and Reauthorization Act of 1986, the
Federal Environmental Pesticide Control Act of 1972, the Federal Insecticide, Fungicide and Rodenticide Act of 1947, the Resource Conservation and
Recovery Act of 1976, the Clean Air Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Oil Pollution Act of 1990 and the Clean
Water Act of 1977. ServiceMaster cannot predict the effect on its operations of possible future environmental legislation or regulations. During 2009, there
were no material capital expenditures for environmental control facilities, and there are no material expenditures anticipated for 2010 or 2011 related to such
facilities.
INSURANCE
We maintain insurance coverage that we believe is appropriate for our business, including workers' compensation, auto liability, general liability,
umbrella and property insurance. In addition, we provide various insurance coverages, including deductible reimbursement policies, to our business units
through our wholly owned captive insurance company, which is domiciled in Vermont.
EMPLOYEES
The average number of persons employed by ServiceMaster during 2009 was approximately 27,000. Due to the seasonal nature of some of the
Company's businesses, employee headcount can fluctuate during the course of a year, reaching approximately 30,000 during peak service periods.
AVAILABLE INFORMATION
ServiceMaster maintains a website at http://www.svm.com that includes a hyperlink to a website maintained by a third party where ServiceMaster's
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports are available without
charge as soon as reasonably practicable following the time that they are filed with or furnished to the Securities and Exchange Commission (the "SEC").
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