Company: BTBDW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002248
Chunk: 876

Company: BT Brands, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 876
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 including competition for restaurant sites; ·obtaining licenses or permits for development projects on a timely basis; ·the proximity of potential restaurant sites to existing restaurants; ·anticipated infrastructure development near the potential restaurant site and ·availability of acceptable acquisition or lease terms and arrangements. 

 11Table of Contents

The acquisition of existing restaurants is risky and could negatively impact our financial results.

We are evaluating our strategy of expanding our business by acquiring existing restaurant businesses. In the event we make restaurant acquisitions in the future, any such business may be in geographic regions in which we have not operated and may offer food concepts significantly different from our existing business. Our strategy to pursue expansion through the acquisition of existing restaurant businesses is subject to risks and uncertainties, including all the risks of our current operations as outlined in this Annual Report and other factors, including:

 ·investigating a potential acquisition, including negotiating and drafting agreements and documents, requires substantial management time and costs. If we do not complete a target acquisition, the costs incurred likely would not be recoverable; ·a target business may be a privately held company with very information available; ·the business that we acquire may be financially unstable; ·we may not be able to retain the management or other key personnel of the business that we acquire; ·our corporate culture could differ from the corporate culture of the business that we acquire, making the integration of the acquired target business difficult; ·our ability to assess the management of a target business may be limited; ·we may experience impairment of acquired tangible and intangible assets and goodwill;   the target business may have unknown liabilities; ·we may incur debt to complete an acquisition, and debt could have a variety of adverse effects, including:  oforeclosure on our assets if our operating revenues are insufficient to repay our debt obligations;  oimmediate payment of all principal and accrued interest if the debt security is payable on demand;  osuch debt may include covenants that prohibit us from paying dividends on our common stock;  ousing a substantial portion of our cash flow to pay principal and interest on our debt, reducing funds available for dividends on our common stock, our ability to pay expenses, make capital expenditures and acquisitions, and fund other general corporate purposes;  olimitations on our flexibility in planning for changes in our business and the industry;  oincreased vulnerability to adverse changes in general economic and competitive conditions and adverse changes in government regulation;  osuch