Jack In The Box 2010 Annual Report Download - page 11

Table of Contents
maintaining any required permits, licensing or approval could result in closures of existing restaurants or 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 franchises and alter franchise arrangements.
We are subject to the federal Fair Labor Standards Act and various state laws governing such matters as minimum wages, exempt
status classification, overtime, breaks and other working conditions. A significant number of our food service personnel are paid at rates
based on 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 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.
We are also subject to various federal, state and local laws regulating the discharge of materials into the environment. The cost of
complying with these laws increases the cost of operating existing restaurants and developing new restaurants. Additional costs relate
primarily to the necessity of obtaining more land, landscaping, storm drainage control and the cost of more expensive equipment
necessary to decrease the amount of effluent emitted into the air, ground and surface waters.
Many of our Qdoba restaurants 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 Qdoba Mexican Grill restaurant to obtain or retain a license could adversely affect the store’s results of operations.
We have processes in place to monitor compliance with applicable laws and regulations governing our operations.
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From time to time, we make oral and written forward-looking statements that reflect our current expectations regarding future results of
operations, economic performance, financial condition and achievements of the Company. A forward-looking statement is neither a
prediction nor a guarantee of future events. Whenever possible, we try to identify these forward-looking statements by using words such
as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,”
“would,” and similar expressions. Certain forward-looking statements are included in this Form 10-K, principally in the sections
captioned “Business,” “Legal Proceedings,” “Consolidated Financial Statements” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” including statements regarding our strategic plans and operating strategies. Although we
believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, such expectations may
prove to be materially incorrect due to known and unknown risks and uncertainties.
In some cases, information regarding certain important factors that could cause actual results to differ materially from any forward-
looking statement appears together with such statement. In addition, the factors described under “Risk Factors” and “Critical Accounting
Estimates,” as well as other possible factors not listed, could cause actual results and/or goals to differ materially from those expressed in
forward-looking statements. As a result, investors should not place undue reliance on such forward-looking statements, which speak only
as of the date of this report. The Company is under no obligation to update forward-looking statements, whether as a result of new
information or otherwise.
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