Papa Johns 2001 Annual Report Download - page 16

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Our rights in our principal trademarks and service marks are a significant part of our business. We are the
owner of the federal registration of the trademark “Papa John’s.” We have also registered “Pizza Papa
John’s and design” (our logo), “Better Ingredients. Better Pizza.” and “Pizza Papa John’s Better
Ingredients. Better Pizza. and design” as trademarks and service marks. We also own federal registrations
for several ancillary marks, principally advertising slogans. We have also applied to register our primary
trademark, “Pizza Papa John’s and design,” in more than 90 foreign countries and the European
Community. The “Perfect Pizza” trademark is also registered in the United Kingdom. We are aware of the
use by other persons in certain geographical areas of names and marks which are the same as or similar to
our marks. It is our policy to pursue registration of our marks whenever possible and to oppose vigorously
any infringement of our marks. See “Item 3. Legal Proceedings” and “Note 4” of “Notes to Consolidated
Financial Statements” for additional information.
Employees
As of December 30, 2001, we employed 16,336 persons, of whom approximately 14,097 were restaurant
team members, 725 were restaurant management and supervisory personnel, 619 were corporate
personnel and 895 were commissary and support services personnel. Most restaurant team members work
part-time and are paid on an hourly basis. None of our team members is covered by a collective
bargaining agreement. We consider our team member relations to be excellent.
Forward-Looking Statements
This Form 10-K contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the “Act”), including information within Management’s Discussion and
Analysis of Financial Condition and Results of Operations. The following cautionary statements are
being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the
“safe harbor” provisions of the Act. Although we believe that our expectations are based on reasonable
assumptions, actual results may differ materially from those in the forward-looking statements as a result
of various factors, including but not limited to, the following:
1. The ability of the Papa John’s system to continue to expand through the opening of new restaurants
is affected by a number of factors, many of which are beyond our control. These factors include, among
other things, selection and availability of suitable restaurant locations, increases in food, paper, labor and
insurance costs, negotiation of suitable lease or financing terms, constraints on permitting and
construction of restaurants, higher than anticipated construction costs, and the hiring, training and
retention of management and other personnel. Accordingly, there can be no assurance that system-wide,
Papa John’s will be able to meet planned growth targets, open restaurants in markets now targeted for
expansion, or continue to operate in existing markets.
2. The restaurant industry is intensely competitive with respect to price, service, location and food
quality, and there are many well-established competitors with substantially greater financial and other
resources than the Papa John’s system. Some of these competitors have been in existence for a
substantially longer period than Papa John’s and may be better established in the markets where
restaurants operated by us or our franchisees are, or may be, located. A change in the pricing or other
marketing or promotional strategies of one or more of our major competitors could have an adverse
impact on sales and earnings of our system-wide restaurant operations.
3. An increase in the cost of cheese or other commodities could adversely affect the profitability of
our system-wide restaurant operations. Cheese, which has historically represented 35% to 40% of our
food cost and other commodities are subject to seasonal fluctuations, weather, availability, demand and
other factors that are beyond our control. Additionally, sustained increases in fuel and utility costs could
adversely affect profitability of our restaurant and QC Center businesses.