Papa Johns 2012 Annual Report Download - page 24

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18
International Restaurants (continued):
Company
Franchised
Oman............................................................................................
-
6
Panama..........................................................................................
-
4
Peru...............................................................................................
-
19
Philippines....................................................................................
-
13
Puerto Rico...................................................................................
-
14
Qatar.............................................................................................
-
10
Russia............................................................................................
-
40
Saudi Arabia.................................................................................
-
6
South Korea..................................................................................
-
72
Trinidad........................................................................................
-
6
Turkey...........................................................................................
-
17
United Arab Emirates...................................................................
-
21
United Kingdom...........................................................................
-
212
Venezuela.....................................................................................
-
29
Total International Papa John’s Restaurants............................
48
911
Note: Company-owned Papa John’s restaurants include restaurants owned by majority-owned
subsidiaries. There were 182 such restaurants at December 30, 2012 (22 in Colorado, 26 in Maryland, 30
in Minnesota, 78 in Texas, and 26 in Virginia).
Most Papa John’s restaurants are located in leased space. The initial term of most domestic restaurant
leases is generally five years with most leases providing for one or more options to renew for at least one
additional term. Generally, the leases are triple net leases, which require us to pay all or a portion of the
cost of insurance, taxes and utilities. Additionally, we lease our Company-owned restaurant sites in
Beijing and North China. At December 30, 2012, we leased and subleased to franchisees in the United
Kingdom 142 of the 212 franchised Papa John’s restaurant sites. The initial lease terms on the franchised
sites are generally 10 to 15 years. The initial lease terms of the franchisee subleases are generally five to
ten years. In connection with the 2006 sale of our former Perfect Pizza operations in the United Kingdom,
we remain contingently liable for payment under approximately 40 lease arrangements, primarily
associated with Perfect Pizza restaurant sites.
Seven of our ten domestic QC Centers are located in leased space, including the following locations:
Raleigh, NC; Denver, CO; Phoenix, AZ; Des Moines, IA; Portland, OR; Pittsburgh, PA; and Cranbury,
NJ. Our remaining three locations are in buildings we own, located in: Orlando, Florida; Dallas, Texas;
and Louisville, Kentucky. Additionally, our corporate headquarters and our printing operations are
located in Louisville, KY in buildings owned by us. Internationally, we own a full-service QC Center in
the United Kingdom and lease office space near London. We also lease our QC Centers and office space
in Beijing, China and Mexico City, Mexico.
Item 3. Legal Proceedings
The information contained under the heading “Litigation” in “Note 17” of “Notes to Consolidated
Financial Statements” is incorporated by reference into this Item 3. We are party to various legal
proceedings arising in the ordinary course of business, but, except as set forth in the items herein, are not
currently a party to any legal proceeding that management believes could have a material adverse effect
on the Company.
Item 4. Mine Safety Disclosures
None.