Jamba Juice 2013 Annual Report Download - page 23

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TABLE OF CONTENTS
employees sufficient to maintain a competitive position within our industry and to implement our strategic priorities would adversely affect
our results of operations.
We are highly dependent on the financial performance of stores concentrated in certain geographic areas.
Our financial performance is highly dependent on stores located in California. Stores located in California comprise over 93% of
Company Stores and generate a significant portion of our Company Store revenue. These stores also comprise over 28% of our total system
stores. In recent years, California and other states have experienced significant negative economic impact due to the distressed economic
climate. If geographic regions in which we have a high concentration of stores continue to experience significant economic pressures, our
sales and operating results could be negatively impacted. In addition, state and local laws, government regulations, weather conditions and
natural disasters affecting California and other regions where we have a high concentration of stores may have a material impact upon our
operating results.
We may not realize the anticipated benefits of any acquisitions, joint ventures and strategic investments.
We expect to continue to evaluate and consider a wide array of potential strategic transactions, including acquisitions, joint ventures and
strategic investments. At any given time, we may be engaged in discussions or negotiations with respect to one or more of these types of
transactions. Any of these transactions could be material to our financial condition and results of operations. We may not realize the
anticipated benefits of any or all of our acquisitions, joint ventures or strategic investments, or we may not realize them in the time frame
expected. Future acquisitions, joint ventures or strategic investments may require us to issue additional equity securities, spend a substantial
portion of our available cash, or incur debt or liabilities, amortize expenses related to intangible assets or incur write-offs of goodwill, which
could adversely affect our results of operations and dilute the economic and voting rights of our stockholders.
Governmental regulation may adversely affect our ability to open new stores or otherwise adversely affect our existing and future
operations and results.
We and our franchisees are subject to various federal, state and local regulations. Each of our stores is subject to state and local licensing
and regulation by health, sanitation, food and workplace safety and other agencies. We and our franchisees may experience material
difficulties or failures in obtaining the necessary licenses or approvals for new stores, which could delay planned store openings. In
addition, stringent and varied requirements of local regulators with respect to zoning, land use and environmental factors could delay or
prevent development of new stores in particular locations.
Our operations are also subject to the U.S. Fair Labor Standards Act, which governs such matters as minimum wages, overtime and
other working conditions, along with the U.S. Americans with Disabilities Act, family leave mandates and a variety of similar laws enacted
by the states that govern these and other employment law matters. In recent years, there has been an increased legislative, regulatory and
consumer focus on nutrition and advertising practices in the food industry. Establishments operating in the quick-service and fast-casual
segments have been a particular focus, and compliance with additional regulations can become costly and affect our operating results.
Our federal, state and local tax returns may, from time to time, be selected for audit by the taxing authorities, which may result in
tax assessments, interest or penalties that could have a material adverse impact on our results of operations and financial
position.
We are subject to federal, state and local taxes in the U.S. In making tax estimates and paying taxes, significant judgment is often
required. Although we believe our tax positions and estimates are reasonable, if a taxing authority disagrees with the positions taken by the
Company, we could have an additional tax liability, including interest and penalties. If material, payment of such additional amounts could
have a material impact on our results of operations and financial position.
We rely heavily on information technology and a material failure of that technology could impair our ability to efficiently operate
our business.
Our business operations rely heavily on information systems, including point-of-sale processing in our stores, management of our
supply chain and distribution system, vendor and franchisee invoicing, and various
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