Papa Johns 2008 Annual Report Download - page 24

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17
including cheese, could adversely affect the financial results of our QC Centers, including the
recoverability of the BIBP cheese purchasing entity deficit.
We may be required to resort to litigation to protect our intellectual property rights, which could
negatively affect our results of operations.
We depend on our Papa John’s brand name and we rely on a combination of trademarks, copyrights,
service marks and similar intellectual property rights to protect our brand. We believe that the success of
our business depends on our continued ability to use our existing trademarks and service marks to
increase brand awareness and further develop our brand, both domestically and abroad. We may not be
able to adequately protect our intellectual property rights and we may be required to resort to litigation to
enforce such rights. Litigation could result in high costs and diversion of resources, which could
negatively affect our results of operations, regardless of the outcome.
Our international operations are subject to increased risks and other factors that may make it more
difficult to achieve or maintain profitability or meet planned growth rates.
Our international operations could be negatively impacted by significant changes in international
economic, political and health conditions in the countries in which the Company or its franchisees
operate. In addition, our international operations are subject to additional factors, including compliance
with foreign laws, currency regulations and fluctuations, differing business and social cultures and
consumer preferences, diverse government regulations and structures, availability and cost of land and
construction, ability to source high-quality ingredients and other commodities in a cost-effective manner,
and differing interpretation of the obligations established in franchise agreements with international
franchisees. Accordingly, there can be no assurance that our international operations will achieve or
maintain profitability or meet planned growth rates.
Item 1B. Unresolved Staff Comments
None.