Wendy's 2009 Annual Report Download - page 35

Country/Territory Company Franchise Company Franchise
Wendy’s Arby’s
Aruba.............................................. — 3 — —
Bahamas ........................................... — 8 — —
Canada............................................. 136 235 — 112
Cayman Islands..................................... — 3 — —
Costa Rica ......................................... — 5 — —
Dominican Republic ................................ — 4 — —
El Salvador......................................... — 14 — —
Guam.............................................. — 2 — —
Guatemala.......................................... — 7 — —
Honduras .......................................... — 29 — —
Indonesia........................................... — 25 — —
Jamaica............................................ — 2 — —
Malaysia ........................................... — 8 — —
Mexico............................................. — 24 — —
New Zealand....................................... — 15 — —
Panama ............................................ — 5 — —
Philippines......................................... — 30 — —
Puerto Rico ........................................ — 66 — —
Singapore .......................................... — 1 — —
Qatar.............................................. — — — 1
Turkey............................................. — — — 8
United Arab Emirates............................... — — — 1
Venezuela .......................................... — 40 — —
U. S. Virgin Islands................................. — 2 — —
International Subtotal............................. 136 528 — 122
Grand Total ................................... 1,391 5,150 1,169 2,549
Item 3. Legal Proceedings.
In November 2002, Access Now, Inc. and Edward Resnick, later replaced by Christ Soter Tavantzis, on
their own behalf and on the behalf of all those similarly situated, brought an action in the United States
District Court for the Southern District of Florida against RTM Operating Company (“RTM”), which became
a subsidiary of ours following our acquisition of the RTM Restaurant Group in July 2005. The complaint
alleged that the approximately 775 Arby’s restaurants owned by RTM and its affiliates failed to comply with
Title III of the ADA. The plaintiffs requested class certification and injunctive relief requiring RTM and such
affiliates to comply with the ADA in all of their restaurants. The complaint did not seek monetary damages,
but did seek attorneys’ fees. Without admitting liability, RTM entered into a settlement agreement with the
plaintiffs on a class-wide basis, which was approved by the court on August 10, 2006. The settlement
agreement calls for the restaurants owned by RTM and certain of its affiliates to be brought into ADA
compliance over an eight year period at a rate of approximately 100 restaurants per year. The settlement
agreement also applies to restaurants subsequently acquired by RTM and such affiliates. ARG estimates that it
will spend approximately $1.15 million per year of capital expenditures over a seven-year period (which
commenced in 2008) to bring the restaurants into compliance under the settlement agreement, in addition to
paying certain legal fees and expenses.
In addition to the legal matter described above, we are involved in other litigation and claims incidental
to our current and prior businesses. We and our subsidiaries have reserves 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 our
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.
Item 4. (Removed and Reserved).
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