Papa Johns 2009 Annual Report Download - page 19

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addition, many casual diners and other restaurants are emphasizing carryout and curbside offerings.
Finally, supermarkets continue to increase fresh and frozen pizza offerings to consumers.
With respect to the sale of franchises, we compete with many franchisors of restaurants and other
business concepts. In general, there is also active competition for management personnel and attractive
commercial real estate sites suitable for our restaurants.
Government Regulation
We, along with our franchisees, are subject to various federal, state and local laws affecting the operation
of our respective businesses. Each Papa John’s restaurant is subject to licensing and regulation by a
number of governmental authorities, which include health, safety, sanitation, building and fire agencies
in the state or municipality in which the restaurant is located. Difficulties in obtaining, or the failure to
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. The laws of several states also regulate substantive aspects of the franchisor-
franchisee relationship. The FTC requires us to furnish to prospective franchisees a franchise disclosure
document 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 that would provide for federal regulation of the franchisor-franchisee
relationship in certain respects if such bills were enacted. 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 national, state and local government
initiatives, such as mandatory health insurance coverage, “living wage” or other proposed increases in
minimum wage rates and nutritional guidelines or disclosure requirements, 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. We are aware of the use by other persons in certain geographical areas of names and marks
that 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.