1 unchanged sentence
The Company is a defendant in various lawsuits and claims arising out of the normal course of business.
−Removed: Like certain other franchisors, the Company currently faces, and in the past has faced, allegations of franchise regulation violations, breach of franchise agreements, fraud and unfair or deceptive trade practices.
−Removed: These claims have increased following the Company's franchising of its company-owned locations.
−Removed: Additionally, the Company currently faces, and in the past has faced, allegations of non-payment of rent and associated charges pursuant to leases in which the Company is the tenant under a master lease for a location subleased to a franchisee.
−Removed: These claims have increased since the advent of COVID-19 and can be attributed in part to decreases in salon revenue causing franchisees to fail to pay rent or cease operations.
−Removed: The Company has incurred judgments and settled some lawsuits and claims, and others remain pending.
+Added: Like certain other franchisors, the Company has been faced with allegations of franchise regulation and agreement violations.
+Added: Additionally, because the Company may be the tenant under a master lease for a location subleased to a franchisee, the Company faces allegations of non-payment of rent and associated charges.
Litigation is inherently unpredictable, and the outcome of these matters cannot presently be determined.
−Removed: Although the actions are being vigorously defended, in the future, the Company could incur judgments or settle claims that could have a material adverse effect on its results of operations in any particular period.
+Added: Although the actions are being vigorously defended, the Company could, in the future, incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.