Popeye's 2015 Annual Report Download - page 20

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Fiscal Year and Seasonality
During 2015, 2014 and 2013, the fiscal year included 52 weeks and our fiscal year was composed of 13 four-week accounting
periods and ended on the last Sunday in December. The first quarter of our fiscal year has four periods, or 16 weeks. All other
quarters have three periods, or 12 weeks.
Seasonality has little effect on our operations.
Employees
As of January 24, 2016, we had approximately ,784 hourly employees working in our company-operated restaurants.
Additionally, we had approximately 83 employees involved in the management of our company-operated restaurants, comprised
of restaurant managers, multi-unit managers and field management employees. We also had approximately 263 employees
responsible for corporate administration, franchise services and business development.
None of our employees are covered by a collective bargaining agreement. We believe that the dedication of our employees
is critical to our success and that our relationship with our employees is good.
Intellectual Property and Other Proprietary Rights
We own a number of trademarks and service marks that have been registered with the U.S. Patent and Trademark Office, or
for which we have made application to register, including “Popeyes,” “Popeyes Chicken & Biscuits,” and the brand logos for
Popeyes and Popeyes Louisiana Kitchen. In addition, we have registered, or made application to register, one or more of these
marks and others, or their linguistic equivalents, in foreign countries in which we do business, or are contemplating doing
business. There is no assurance that we will be able to obtain the registration for the marks in every country where registration
has been sought. We consider our intellectual property rights to be important to our business and we actively defend and enforce
them.
In 2014, the Company purchased the recipes and formulas (the “formulas”) it uses in the preparation of many of its core
menu items from Diversified Foods and Seasonings, L.L.C. (“Diversified”). The formulas were previously licensed to the
Company.
International Operations
We continue to expand our international operations through franchising. As of December 27, 2015, we had 569 franchised
international restaurants. During 2015, franchise revenues from these operations represented approximately 10.6% of our total
franchise revenues. For each of 2015, 2014, and 2013, international revenues represented 5.9%, 5.7% and 6.4% of total revenues,
respectively.
Insurance
We carry property, general liability, business interruption, crime, director's and officer’s liability, privacy and network liability,
employment practices liability, environmental and workers’ compensation insurance policies, which we believe are customary
for businesses of our size and type. Pursuant to the terms of their franchise agreements, our franchisees are also required to
maintain certain types and levels of insurance coverage, including commercial general liability insurance, workers’ compensation
insurance, special perils property and automobile insurance.
Competition
The foodservice industry, and particularly the QSR industry, is intensely competitive with respect to price, quality, name
recognition, service and location. We compete against other QSRs, including chicken, hamburger, pizza, 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
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