Wendy's 2010 Annual Report Download - page 36

Wendy’s Arby’s
Country/Territory Company Franchise Company Franchise
Aruba ................................................... — 3 — —
Bahamas ................................................. — 9 — —
Cayman Islands ............................................ — 3 — —
Costa Rica ................................................ — 7 — —
Curacao .................................................. — 1 — —
Dominican Republic ........................................ — 5 — —
El Salvador ............................................... — 14 — —
Guam ................................................... — 3 — —
Guatemala ................................................ — 9 — —
Honduras ................................................ — 29 — —
Indonesia ................................................. — 27 — —
Jamaica .................................................. — 3 — —
Malaysia ................................................. — 8 — —
Mexico .................................................. — 25 — —
New Zealand .............................................. — 16 — —
Panama .................................................. — 6 — —
Philippines ............................................... — 31 — —
Puerto Rico ............................................... — 72 — —
Singapore ................................................ — 8 — —
Qatar .................................................... — — — 1
Turkey .................................................. — — — 14
United Arab Emirates ....................................... — 5 — 5
Venezuela ................................................ — 39 — —
U. S. Virgin Islands ......................................... — 2 — —
International Subtotal ....................................... — 325 — 20
Grand Total .............................................. 1,394 5,182 1,144 2,505
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 Arby’s
following Arby’s 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. Arby’s 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. As of January 2, 2011, Wendy’s/Arby’s Restaurants had reserves for all legal and
environmental matters aggregating $3.7 million, which are included in the $3.9 million reserved by Wendy’s/Arby’s
for all legal and environmental matters. 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 given the aforementioned reserves and 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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