Papa Johns 2006 Annual Report Download - page 20

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17
space not utilized by the Papa John’s restaurant in each facility is leased or held for lease to third-party
tenants.
At December 31, 2006, we had 85 Papa John’s restaurants located in the United Kingdom (82 franchised
and three Company-owned). In addition to leasing the three Company-owned restaurant sites, we lease
and sublease to franchisees 65 of the 82 franchised Papa John’s restaurant sites and 36 sites to former
Perfect Pizza franchisees. 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. Additionally,
we leased five Company-owned restaurant sites in Beijing and three Company-owned restaurant sites in
Mexico as of December 31, 2006.
Information with respect to our leased domestic QC Centers as of December 31, 2006 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 leased to a
third-party tenant. 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 near London
with a remaining lease term of nine years.
The Papa John’s China management team leases 4,822 square feet of office space and a QC Center
located in a 6,135 square foot facility in Beijing, China. The Papa John’s Mexico management team and
QC Center lease a 4,088 square foot facility in Mexico City, Mexico.
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 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.