Popeye's 2015 Annual Report Download - page 21

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 2015, royalty revenues from these restaurants were approximately $2.2 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 a systematic 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 reasonable to manage any potential risks related to 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 website at www.investor.popeyes.com or by contacting our Secretary at our principal offices, which are located at
400 Perimeter Center Terrace, Suite 1000, Atlanta, Georgia 30346, telephone number [phone].
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