Papa Johns 2007 Annual Report Download - page 27

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20
Approximately 49 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. Four 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 30, 2007, we had 94 Papa John’s restaurants located in the United Kingdom (88 franchised
and six Company-owned). In addition to leasing the six Company-owned restaurant sites, we lease and
sublease to franchisees 71 of the 88 franchised Papa John’s restaurant sites and 16 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 seven Company-owned restaurant sites in Beijing, China as of December 30, 2007.
Information with respect to our leased domestic QC Centers as of December 30, 2007 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 land in Orlando, Florida on which our 63,000 square foot full-service QC Center is located. We
also own land and a 175,000 square foot facility in Dallas, Texas, of which 77,500 square feet is used by
our full-service QC Center and the remaining space is leased to a third-party tenant. In addition, we own
land in Louisville, Kentucky, on which a portion of this land is located in 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 promotions division. The remainder of the
building houses our corporate offices.
The Papa John’s UK management team is located in a leased office near London with a remaining lease
term of eight years.
The Papa John’s China management team leases an office and a QC Center in Beijing, China. The Papa
John’s Mexico management team and QC Center lease a facility in Mexico City, Mexico and their QC
Center operation located in Cancun, Mexico.
Item 3. Legal Proceedings
We are subject to claims and legal actions in the ordinary course of our business. We believe that none of
the claims and actions currently pending against us would 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.