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The Company has included in Part 1, Item 1A of Part 1 of its Annual Report on Form 10-K for the year ended December 31, 2024, a description of certain risks and uncertainties that could affect the Company's business, future performance or financial condition (the “Risk Factors”).
−Removed: There have been no material changes to the Risk Factors, except as set forth in our Form 10-Q for the quarter ended June 30, 2024 under the caption Item 1.A.
−Removed: Risk Factors, which disclosure is incorporated by reference herein.
+Added: There have been no material changes to the Risk Factors we previously disclosed in our filings with the SEC, except as described below.
Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently consider immaterial to our business.
+Added: Changes in trade policies, including tariffs, could adversely affect our business.
+Added: In first quarter 2025, we observed significant shift in U.S.
+Added: trade policy, with increased tariffs and the imposition of new tariffs that could impact our supply chain and our business.
+Added: While certain of such tariffs have been paused, ultimately trade policy decisions are outside of our control and may have consequences for our and franchisees’ businesses.
+Added: Changes in trade policies, such as new tariffs or increases in tariffs, or reactionary measures including retaliatory tariffs, legal challenges, or currency manipulation, could adversely impact us and our franchisees.
+Added: Certain of our vendors source materials, components, or finished goods, from countries, such as China, which have been in the past, are currently subject to or may in the future be subject to tariffs imposed by the U.S.
+Added: The imposition of future tariffs or the increase in existing tariffs could result in these vendors increasing their prices, resulting in increased costs for us and our franchisees.
+Added: If our franchisees’ costs are greater than expected, franchisees may need to outperform their operational plan to achieve their targeted return.
+Added: In addition, increased costs may make our business model less attractive to new franchisees.
+Added: The ultimate impact of tariffs and other trade restrictions will depend on various factors, including how long such trade policies remain in place, the ultimate levels of trade restrictions and how other countries respond to the U.S.
+Added: trade policies.
+Added: While we are evaluating the potential impacts of the trade policies, as well as our ability to mitigate their related impacts, changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, could have a material adverse effect on our business, financial condition and results of operations.
+Added: Activist investors could cause us to incur substantial costs, divert management’s attention, and have an adverse effect on our business.
+Added: Publicly-traded companies have increasingly become subject to activist investor campaigns.
+Added: We have in the past received, and we may in the future be subject to, communications by activist investors urging us to take certain corporate actions.
+Added: Activist investors may propose changes to our board composition, executive compensation, or other governance practices.
+Added: Responding to actions of an activist investor may be a significant distraction for our management and staff and could require us to expend significant time and resources, including legal fees and potential proxy solicitation expenses.
+Added: Any of these conditions could materially adversely affect our business, results of operations, cash flows and financial condition.
Unregistered Sales of Equit y Securities and Use of Proceeds.
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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.