Papa Johns 2013 Annual Report Download - page 24

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16฀
Our฀results฀of฀operations฀could฀be฀materially฀impacted฀as฀a฀result฀of฀the฀credit฀risk฀of฀operators฀of฀leases฀
for฀which฀we฀remain฀contingently฀liable.฀
฀
We฀remain฀contingently฀liable฀for฀certain฀restaurant฀and฀commissary฀leases฀previously฀operated฀by฀us฀and฀
subsequently฀sold฀or฀refranchised.฀฀We฀enter฀into฀these฀arrangements฀as฀part฀of฀the฀process฀of฀disposing฀of฀
or฀refranchising฀our฀stores฀in฀the฀ordinary฀course฀of฀business.฀While฀the฀new฀operators฀are฀the฀primary฀
obligors฀under฀such฀assigned฀leases,฀we฀could฀be฀liable฀in฀the฀event฀that฀one฀or฀more฀new฀operators฀are฀
unwilling฀ or฀ unable฀ to฀ make฀ any฀ required฀ lease฀ payments.฀ Continuing฀ weakness฀ in฀ the฀ economy฀ and฀
difficulty฀ in฀ credit฀ markets฀ could฀ make฀ it฀ difficult฀ for฀ these฀ operators฀ to฀ meet฀ their฀ contractual฀
commitments.฀ If฀ these฀ operators฀ default฀ on฀ the฀ leases฀ and฀ we฀ are฀ unable฀ to฀ sublease฀ the฀ properties฀ for฀
which฀we฀remain฀contingently฀liable,฀it฀could฀have฀a฀material฀impact฀on฀our฀results฀of฀operations.฀
฀
Item฀1B.฀฀Unresolved฀Staff฀Comments฀
฀
None.฀฀
฀
Item฀2.฀฀Properties฀
฀
As฀of฀December฀29,฀2013,฀there฀were฀4,428฀Papa฀John’s฀restaurants฀system-wide.฀The฀following฀tables฀
provide฀the฀locations฀of฀our฀restaurants.฀We฀define฀“North฀America”฀as฀the฀United฀States฀and฀Canada฀and฀
“domestic”฀as฀the฀contiguous฀United฀States.฀
฀
North฀America฀Restaurants:฀
฀ Company฀ Franchised฀ Total
฀
Alabama…………………………………………………………฀-฀ 79฀ 79
฀
Alaska...........................................................................................฀-฀ 6฀ 6
฀
Arizona฀………………………………………………………….฀39฀ 36฀ 75
฀
Arkansas………………………………………………………...฀ -฀ 24฀ 24
฀
California………………………………………………………..฀ -฀ 210฀ 210
฀
Colorado………………………………………………………...฀ 25฀ 24฀ 49
฀
Connecticut……………………………………………………...฀ -฀ 16฀ 16
฀
Delaware………………………………………………………...฀ -฀ 15฀ 15
฀
District฀of฀Columbia…………………………………………….฀ -฀ 11฀ 11
฀
Florida…………………………………………………………...฀ 47฀ 227฀ 274
฀
Georgia฀………………………………………………………….฀ 89฀ 62฀ 151
฀
Hawaii...........................................................................................฀ -฀ 14฀ 14
฀
Idaho…………………………………………………………….฀ -฀ 11฀ 11
฀
Illinois...........................................................................................฀ 6฀ 116฀ 122
฀
Indiana..........................................................................................฀ 41฀ 84฀ 125
฀
Iowa..............................................................................................฀ -฀ 25฀ 25
฀
Kansas...........................................................................................฀ 13฀ 21฀ 34
฀
Kentucky………………………………………………………...฀ 43฀ 70฀ 113
฀
Louisiana………………………………………………………..฀ -฀ 61฀ 61
฀
Maine……………………………………………………………฀ -฀ 7฀ 7
฀
Maryland………………………………………………………...฀ 60฀ 40฀ 100
฀
Massachusetts…………………………………………………...฀ -฀ 19฀ 19
฀
Michigan………………………………………………………...฀ -฀ 45฀ 45
฀
Minnesota.....................................................................................฀ 33฀ 17฀ 50
฀
Mississippi....................................................................................฀ -฀ 32฀ 32
฀
Missouri........................................................................................฀ 41฀ 32฀ 73
฀
Montana........................................................................................฀ -฀ 10฀ 10
฀
Nebraska.......................................................................................฀ -฀ ฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀17฀ 17
฀