Jack In The Box 2015 Annual Report Download - page 11

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The restaurant business is highly competitive and is affected by local and national economic conditions, including unemployment levels, population and
socioeconomic trends, traffic patterns, competitive changes in a geographic area, changes in consumer dining habits and preferences, and new information
regarding diet, nutrition and health that affect consumer spending habits. Key elements of competition in the industry are the quality and innovation in the
food products offered, price and perceived value, quality of service experience, including technological innovations, speed of service, personnel, advertising
and other marketing efforts, name identification, restaurant location, and image and attractiveness of the facilities.
Each Jack in the Box and Qdoba restaurant competes directly and indirectly with a large number of national and regional restaurant chains, some of which
have significantly greater financial resources, as well as with locally-owned and/or independent restaurants in the quick-service and the fast-casual segments,
and other “food away from home” consumer options including catering and delivery services. In selling franchises, we compete with many other restaurant
franchisors, some of whom have substantially greater financial resources.
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The Company’s primary website can be found at www.jackinthebox.com. We make available free of charge at this website (under the caption “Investors —
SEC Filings”) all of our reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, including our Annual Report on
Form 10-K, our Quarterly Reports on Form 10-Q and our 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 (“SEC”). You may read and
copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains our reports, proxy and
information statements, and other information at www.sec.gov.
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Each restaurant is subject to regulation by federal agencies, as well as licensing and regulation by state and local health, sanitation, safety, fire, zoning,
building, taxing and other agencies and departments. Restaurants are also subject to rules and regulations imposed by owners and/or operators of shopping
centers, college campuses, airports, military bases or other locations in which a restaurant is located. Difficulties or failures in obtaining and maintaining any
required permits, licenses or approvals, or difficulties in complying with applicable rules and regulations, could result in restricted operations, closures of
existing restaurants, delays or cancellations in the opening of new restaurants, increased cost of operations or the imposition of fines and other penalties.
We are also subject to federal, state and international laws regulating the offer and sale of franchises, as well as judicial and administrative interpretations
of such laws. 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 for company employees. Many 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 labor costs for us and our franchisees. Federal and state laws may also require us to
provide paid and unpaid leave to our employees, or healthcare or other employee benefits, which could result in significant additional expense to us. We are
also subject to federal immigration laws requiring compliance with work authorization documentation and verification procedures.
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.
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.
Some 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, and advertising and handling of alcoholic beverages. The failure of a Qdoba 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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