Wendy's 2009 Annual Report Download - page 20

ARG’s subsidiaries was a defendant in a lawsuit alleging failure to comply with Title III of the ADA at
approximately 775 company-owned restaurants acquired as part of ARG’s July 2005 acquisition of the RTM
Restaurant Group. Under a court approved settlement of that lawsuit, we estimate that ARG will spend
approximately $1.15 million per year of capital expenditures over a seven-year period (which commenced in
2008) to bring these restaurants into compliance with the ADA, in addition to paying certain legal fees and
expenses.
We do not believe that the costs related to this matter or any other costs relating to compliance with the
ADA will have a material adverse effect on the Company’s consolidated financial position or results of
operations. We cannot predict the effect on our operations, particularly on our relationship with franchisees, of
any pending or future legislation.
Environmental Matters
Our past and present operations are governed by federal, state and local environmental laws and
regulations concerning the discharge, storage, handling and disposal of hazardous or toxic substances. These
laws and regulations provide for significant fines, penalties and liabilities, sometimes without regard to
whether the owner or operator of the property knew of, or was responsible for, the release or presence of the
hazardous or toxic substances. In addition, third parties may make claims against owners or operators of
properties for personal injuries and property damage associated with releases of hazardous or toxic substances.
We cannot predict what environmental legislation or regulations will be enacted in the future or how existing
or future laws or regulations will be administered or interpreted. We similarly cannot predict the amount of
future expenditures that may be required to comply with any environmental laws or regulations or to satisfy
any claims relating to environmental laws or regulations. We believe that our operations comply substantially
with all applicable environmental laws and regulations. Accordingly, the environmental matters in which we
are involved generally relate either to properties that our subsidiaries own, but on which they no longer have
any operations, or properties that we or our subsidiaries have sold to third parties, but for which we or our
subsidiaries remain liable or contingently liable for any related environmental costs. Our company-owned
Wendy’s and Arby’s restaurants have not been the subject of any material environmental matters. Based on
currently available information, including defenses available to us and/or our subsidiaries, and our current
reserve levels, we do not believe that the ultimate outcome of the environmental matters in which we are
involved will have a material adverse effect on our consolidated financial position or results of operations.
We are involved in litigation and claims incidental to our current and prior businesses. We and our
subsidiaries have reserved for all of our legal and environmental matters aggregating $6.3 million as of
January 3, 2010. Although the outcome of these matters cannot be predicted with certainty and some of these
matters may be disposed of unfavorably to us, based on currently available information, including legal
defenses available to us and/or our subsidiaries, and given the aforementioned reserves and our insurance
coverages, we do not believe that the outcome of these legal and environmental matters will have a material
adverse effect on our consolidated financial position or results of operations.
Employees
As of January 3, 2010, Wendy’s/Arby’s and its subsidiaries had approximately 67,500 employees,
including approximately 9,200 salaried employees and approximately 58,300 hourly employees. We believe
that our employee relations are satisfactory.
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