Jack In The Box 2006 Annual Report Download - page 26

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10
Regulation
Each restaurant is subject to regulation by federal agencies, as well as licensing and regulation by state and local
health, sanitation, safety, fire and other departments. Difficulties or failures in obtaining any required licensing or
approval could result in delays or cancellations in the opening of new restaurants.
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 franchises and may also apply
substantive standards to the relationship between franchisor and franchisee, including limitations on the ability of
franchisors to terminate franchisees and alter franchise arrangements. We believe we are operating in compliance
with applicable laws and regulations governing our operations.
We are subject to the Fair Labor Standards Act and various state laws governing such matters as minimum
wages, exempt status classification, overtime and other working conditions. A significant number of our food
service personnel are paid at rates related to the federal and state minimum wage, and, accordingly, increases in the
minimum wage increase our labor costs. Federal and state laws may also require us to provide paid and unpaid leave
to our employees, which could result in significant additional expense to us.
We are subject to certain guidelines under the Americans with Disabilities Act of 1990 (“ADA”) and various
state codes and regulations, which require restaurants to provide full and equal access to persons with physical
disabilities. To comply with such laws and regulations, the cost of remodeling and developing restaurants has
increased, principally due to the need to provide certain older restaurants with ramps, wider doors, larger restrooms
and other conveniences.
We are also subject to various federal, state and local laws regulating the discharge of materials into the
environment. The cost of developing restaurants has increased to comply with these laws. Additional costs relate
primarily to the necessity of obtaining more land, landscaping and below surface storm drainage and the cost of
more expensive equipment necessary to decrease the amount of effluent emitted into the air and ground.
Our QUICK STUFF convenience stores sell alcoholic beverages which require licensing. The regulations
governing licensing may impose requirements on licensees including minimum age of employees, hours of
operation, advertising and handling of alcoholic beverages. The failure of a QUICK STUFF convenience store to
obtain or retain a license could adversely affect the store’ s results of operations. We believe we are operating in
compliance with applicable laws and regulations governing alcoholic beverages.
Company Website
The Company’ s primary website can be found at www.jackinthebox.com. The Company makes available free of
charge at this website (under the caption “Investors — SEC Filings — SEC Filings by Jack in the Box Inc.”) all of
its reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, including its
Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K and
amendments to those reports. These reports are made available on the website as soon as reasonably practicable after
their filing with, or furnishing to, the Securities and Exchange Commission. Furthermore, we also make available on
our website, and in print to any shareholder who requests it, the Company’ s Corporate Governance Guidelines, the
Committee Charters for Audit, Compensation, and Nominating and Governance Committees, as well as the Code of
Ethics that applies to all directors, officers and employees of the Company. Amendments to these documents or
waivers related to the Code of Ethics will be made available on the Company’ s website as soon as reasonably
practicable after their execution.
Forward-Looking Statements
From time-to-time the Company makes oral and written statements that reflect the Company’ s current
expectations regarding future results of operations, economic performance, financial condition and achievements of
the Company. We try, whenever possible, to identify these forward-looking statements by using words such as
“anticipate,” “assume,” “believe,” “estimate,” “expect,” “goals,” “intend,” “plan,” “project,” “may,” “will,”
“would,” and similar expressions. Certain forward-looking statements are included in this Form 10-K, principally in