Buffalo Wild Wings 2011 Annual Report Download - page 9

9
We and our franchisees are also subject to laws governing our relationship with employees. Our failure or the failure
of our franchisees to comply with international, federal, state and local employment laws and regulations may subject us to
losses and harm our brands. The laws and regulations govern such matters as wage and hour requirements; workers’
compensation insurance; unemployment and other taxes; working and safety conditions, and citizenship and immigration
status. Significant additional government-imposed regulations under the Fair Labor Standards Act and similar laws related to
minimum wages, overtime, rest breaks, paid leaves of absence, mandated health benefits, may also impact the performance of
company and franchised operations. In addition, employee claims based on, among other things, discrimination, harassment,
wrongful termination, wage and hour requirements, and payments to employees who receive gratuities may divert financial
and management resources and adversely affect operations. The losses that may be incurred as a result of any violation of
such governmental regulations by the company or our franchisees are difficult to quantify.
We are also subject to licensing and regulation by state and local departments relating to the service of alcoholic
beverages, health, sanitation, and fire and safety standards. Compliance with these laws and regulations may lead to increased
costs and operational complexity and may increase our exposure to governmental investigations or litigation. We may also be
subject in certain states to “dram-shop” statutes, which generally allow a person injured by an intoxicated person to recover
damages from an establishment that wrongfully served alcoholic beverages to the intoxicated person. In addition, we are
subject to various state and federal laws relating to the offer and sale of franchises and the franchisor-franchisee relationship.
In general, these laws and regulations impose specific disclosure and registration requirements prior to the sale and marketing
of franchises and regulate certain aspects of the relationship between franchisor and franchisee.
Because of gaming operations in our Nevada facilities, the ownership and operation of those facilities are subject to
the Nevada Gaming Control Act and the regulations promulgated thereunder, as well as various local regulations related to
gaming. Our gaming operations are also subject to the licensing and regulatory control of the Nevada Gaming Commission,
the Nevada State Gaming Control Board and various county and city licensing agencies. These gaming laws, regulations,
and supervisory procedures are based upon declarations of public policy that are concerned with, among other things:
• the prevention of unsavory or unsuitable persons from having a direct or indirect involvement with gaming at any
time or in any capacity;
• the establishment and maintenance of responsible accounting practices;
• the maintenance of effective controls over the financial practices of licensees, including the establishment of
minimum procedures for internal fiscal affairs and the safeguarding of assets and revenues;
• providing reliable record keeping and requiring the filing of periodic reports with the gaming authorities;
• the prevention of cheating and fraudulent practices; and
• providing a source of state and local revenues through taxation and licensing fees.
Any change in such laws, regulations, and procedures could have an adverse effect on the gaming operations in our
Nevada facilities. Additional information regarding regulation related to gaming in our Nevada facilities can be found in
Exhibit 99.1 to this Form 10-K.
Team Members
As of December 25, 2011, we employed approximately 21,000 Team Members. We have 2,400 full-time and 18,300
part-time Team Members working in our company-owned restaurants and 300 Team Members based out of our home office
or field support management positions. Our Team Members are not covered by any collective bargaining agreement, and we
have never experienced an organized work stoppage or strike. We believe that our working conditions and compensation
packages are competitive and consider our relations with our Team Members to be good.