Shake Shack 2016 Annual Report Download - page 17

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Table of Contents
INTELLECTUAL PROPERTY
Since our inception, we have undertaken to strategically and proactively develop our intellectual property portfolio by registering our trademarks and service marks
worldwide. As of December 30, 2015 , we had 19 registered marks domestically, including registrations in our core marks ("Shake Shack," "Shack Burger," "
" and " ") and certain other marks, such as Stand for Something Good. Internationally, we have registered our core marks in over 80 countries
spanning six continents. These marks are registered in multiple international trademark classes, including for restaurant services, food services, non-alcoholic
beverages and apparel. We also own the domain www.shakeshack.com as well as over 80 other domain names for use in other markets.
In addition, we have agreements with the suppliers of our proprietary products stating that the recipes and production processes associated with those products are
our property, confidential to us, and may not be provided to any other customer. Our proprietary products include the burger recipe for our whole muscle blend and
the patty grinding procedure and the product formulations for our ShackSauce, 'Shroom Burger, chicken breast, chicken breader and buttermilk herb mayo, cheese
sauce, unflavored custard base, chocolate custard base, and certain toppings and custard mix-ins. We also have exclusive arrangements with our suppliers of
ShackMeister Ale, Shack Red wine, Shack White wine, all-natural hot dog and all-natural chicken sausage, relish and cherry peppers.
GOVERNMENT REGULATION AND ENVIRONMENTAL MATTERS
We are subject to extensive federal, state, local and foreign laws and regulations, as well as other statutory and regulatory requirements, including those related to,
among others, nutritional content labeling and disclosure requirements, food safety regulations, local licensure, building and zoning regulations, employment
regulations and laws and regulations related to our licensed operations. New laws and regulations or new interpretations of existing laws and regulations may also
impact our business. The costs of compliance with these laws and regulations are high and are likely to increase in the future and any failure on our part to comply
with these laws may subject us to significant liabilities and other penalties. See "Regulatory and Legal Risks" in Item 1A, Risk Factors for more information.
We are not aware of any federal, state or local provisions that have been enacted or adopted regulating the discharge of materials into the environment, or
otherwise relating to the protection of the environment, that have materially affected, or are reasonably expected to materially affect, our results of operations,
competitive position, or capital expenditures.
SEASONALITY
Our business is subject to seasonal fluctuations in that our Shack sales are typically nominally higher during the summer months, affecting our second and third
quarters in a fiscal year.
15 | Shake Shack Inc. Form 10-K