Papa Johns 2005 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2005 Papa Johns annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 91

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91

17
Approximately 45 Company-owned restaurants are located in buildings we own on land either owned or
leased by us. These restaurants range from 1,100 to 3,000 square feet. Three of these restaurants are
located in multi-bay facilities. These multi-bay facilities contain from 2,800 to 5,000 square feet, and the
space not utilized by the Papa John’s restaurant in each facility is leased or held for lease to third party
tenants.
At December 25, 2005, we had 201 restaurants located in the United Kingdom (87 franchised and 2
Company-owned Papa John’s restaurants and 112 franchised Perfect Pizza restaurants). In addition to
leasing the 2 Company-owned restaurant sites, we lease and sublease to franchisees 162 of the 199
franchised restaurant sites. The initial lease terms on the Company and franchised sites are generally 10
to 15 years. The initial lease terms of the franchisee subleases are generally five to ten years. As more
fully described in Management’s Discussion and Analysis of Financial Condition and Results of
Operations, we have developed a plan to sell our Perfect Pizza operations located in the United Kingdom
during the next 12 months.
Information with respect to our leased QC Centers and other facilities as of December 25, 2005 is set
forth below.
Facility Square Footage
Raleigh, NC 61,000
Denver, CO 32,000
Phoenix, AZ 57,000
Des Moines, IA 43,000
Rotterdam, NY 45,000
Portland, OR 37,000
Pittsburgh, PA 52,000
We own approximately five acres in Orlando, Florida on which our 63,000 square foot full-service
commissary is located. We also own eight acres and a 175,000 square foot facility in Dallas, Texas, of
which 77,500 square feet is used by our full-service commissary and the remaining space is available for
future production or for leasing. In addition, we own approximately 72 acres in Louisville, Kentucky
with a 42,000 square foot building housing our printing operations and a 247,000 square foot building,
approximately 30% to 40% of which accommodates the Louisville QC Center operation and promotional
division. The remainder of the building houses our corporate offices.
The Papa John’s UK management team is located in 6,000 square feet of leased office space in London
with a remaining lease term of 10 years. In addition, Papa John’s UK leases a distribution center located
in a 30,000 square foot facility in Staffordshire, England.
Item 3. Legal Proceedings
We are subject to claims and legal actions in the ordinary course of our business. We believe that all such
claims and actions currently pending against us are either adequately covered by insurance or would not
have a material adverse effect on us if decided in a manner unfavorable to us.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.