Papa Johns 2002 Annual Report Download - page 13

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obtain, required licenses or approvals could delay or prevent the opening of a new restaurant in a
particular area. Our full-service QC Centers are licensed and subject to regulation by state and local
health and fire codes, and the operation of our trucks is subject to Department of Transportation
regulations. We are also subject to federal and state environmental regulations.
We are subject to Federal Trade Commission (“FTC”) regulation and various state laws regulating the
offer and sale of franchises. Several state laws also regulate substantive aspects of the franchisor-
franchisee relationship. The FTC requires us to furnish to prospective franchisees a franchise offering
circular containing prescribed information. Substantive state laws that regulate the franchisor-franchisee
relationship presently exist in a substantial number of states, and bills have been introduced in Congress
from time to time which would provide for federal regulation of the franchisor-franchisee relationship in
certain respects. The state laws often limit, among other things, the duration and scope of non-competition
provisions and the ability of a franchisor to terminate or refuse to renew a franchise. Some foreign
countries also have disclosure requirements and other laws regulating franchising and the franchisor-
franchisee relationship. Further government initiatives, such as “living wage” or other proposed increases
in minimum wage rates, could adversely affect Papa John’s as well as the restaurant industry. As we
expand internationally, we will be subject to applicable laws in each jurisdiction where franchised units
are established.
Trademarks
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.
Employees
As of December 29, 2002, we employed 15,327 persons, of whom approximately 13,224 were restaurant
team members, 725 were restaurant management and supervisory personnel, 588 were corporate
personnel and 790 were QC Center 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 open 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,