Popeye's 2013 Annual Report Download - page 21

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and sandwich restaurants, other purveyors of carry-out food and convenience dining establishments, including national
restaurant and grocery chains. Many of our competitors possess substantially greater financial, marketing, personnel
and other resources than we do.
Government Regulation
We are subject to various federal, state and local laws affecting our business, including various health, sanitation,
labor,fire and safety standards. Newly constructed or remodeled restaurants are subject to state and local building code
and zoning requirements. In connection with the re-imaging and alteration of our company-operated restaurants, we
may be required to expend funds to meet certain federal, state and local regulations, including regulations requiring
that remodeled or altered restaurants be accessible to persons with disabilities. Difficulties or failures in obtaining the
required licenses or approvals could delay or prevent the opening of new restaurants in particular areas.
We are also subject to the Fair Labor Standards Act and various other laws governing such matters as minimum
wage requirements, overtime and other working conditions and citizenship requirements. A significant number of our
foodservice personnel are paid at rates related to the federal or state minimum wage, and increases in the minimum
wage have increased our labor costs.
Many states and the Federal Trade Commission, as well as certain foreign countries, require franchisors to transmit
specified disclosure documents to potential franchisees before granting a franchise. Additionally,some states and certain
foreign countries require us to register our franchise disclosure documents before we may offer a franchise.
We have franchise agreements related to the operation of restaurants located on various U.S. military bases which
are with certain governmental agencies and are subject to renegotiation of profits or termination at the election of the
U.S. government. During 2013, royalty revenues from these restaurants were approximately $2.0 million.
Enterprise Risk Management
The Company has developed and implemented an Enterprise Risk Management program. The purpose of the program
is to provide the Company with asystematic approach to identify and evaluate risks to the business, and provide the
Company an effective manner of risk management and control. The Enterprise Risk Management program is designed
to integrate risk management into the culture and strategic decision making of the Company, and to help the organization
more effectively and efficiently drive performance. The Enterprise Risk Management program encompasses all aspects
of the Company's business, including, without limitation, financial, operational, reputational, societal, and cyber security
risks.
Environmental Matters
We are subject to various federal, state and local laws regulating the discharge of pollutants into the environment.
We believe that we conduct our operations in substantial compliance with applicable environmental laws and regulations.
Certain of our current and formerly owned and/or leased properties are known or suspected to have been used by prior
owners or operators as retail gas stations and a few of these properties may have been used for other environmentally
sensitive purposes. Certain of these properties previously contained underground storage tanks (“USTs”) and some of
these properties may currently contain abandoned USTs. It is possible that petroleum products and other contaminants
may have been released at these properties into the soil or groundwater. Under applicable federal and state environmental
laws, we, as the current or former owner or operator of these sites, may be jointly and severally liable for the costs of
investigation and remediation of any such contamination, as well as any other environmental conditions at our properties
that are unrelated to USTs. We have obtained insurance coverage that we believe is adequate to cover any potential
environmental remediation liabilities.
Available Information
We file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K, and all
amendments to those reports with the Securities and Exchange Commission (the “SEC”). You may obtain copies of
these documents by accessing the SEC’s website at http://www.sec.gov. In addition, as soon as reasonably practicable
after such materials are filed with, or furnished to, the SEC, we make copies of these documents (except for exhibits)
available to the public free of charge through our web site at www.investor.popeyes.com or by contacting our Secretary