Table:
|  | Company- |  |  |
| --- | --- | --- | --- |
|  | Operated | Franchise | Total |
| Company-owned restaurant buildings: |  |  |  |
| On company-owned land | 9 | 200 | 209 |
| On leased land | 54 | 581 | 635 |
| Subtotal | 63 | 781 | 844 |
| Company-leased restaurant buildings on leased land | 74 | 1,054 | 1,128 |
| Franchise directly-owned or directly-leased restaurant buildings | — | 271 | 271 |
| Total restaurant buildings | 137 | 2,106 | 2,243 |
Paragraphs:
Legislation and regulations regarding our products and ingredients, including the nutritional content of our products, could impact customer preferences and negatively impact our financial results.
Changes in government regulation and consumer eating habits may impact the ingredients and nutritional content of our menu offerings, or require us to disclose the nutritional content of our menu offerings. For example, a number of states, counties, and cities have enacted menu labeling laws requiring multi-unit restaurant operators to disclose certain nutritional information to customers, or have enacted legislation restricting the use of certain types of ingredients in restaurants. Furthermore, the Affordable Care Act requires chain restaurants to publish calorie information on their menus and menu boards. These and other requirements may increase our expenses, slow customers’ ordering process, or negatively influence the demand for our offerings; all of which can impact sales and profitability.
Compliance with current and future laws and regulations in a number of areas, including with respect to ingredients, nutritional content of our products, and packaging and serviceware may be costly and time-consuming. Additionally, if consumer health regulations change significantly, we may be required to modify our menu offerings or packaging, and as a result, may experience higher costs or reduced demand associated with such changes. Some government authorities are increasing regulations regarding trans-fats and sodium. While we have removed all artificial or “added during manufacturing” trans fats from our ingredients, some ingredients have naturally occurring trans-fats. Future requirements limiting trans-fats or sodium content may require us to change our menu offerings or switch to higher cost ingredients. These actions may hinder our ability to operate in some markets or to offer our full menu in these markets, which could have a material adverse effect on our business. If we fail to comply with such laws and regulations, our business could also experience a material adverse effect.
Failure to obtain and maintain required licenses and permits or to comply with food control regulations could lead to the loss of our food service licenses and, thereby, harm our business.
We are required, as a restaurant business, under state and local government regulations to obtain and maintain licenses, permits, and approvals to operate our businesses. Such regulations are subject to change from time to time. Any failure by us or our franchisees to obtain and maintain these licenses, permits, and approvals could adversely affect our financial results.
The following table sets forth information regarding our operating restaurant properties as of September 29, 2019:
Question:
What are the consequences if the company fails to obtain and maintain required licenses and permits or fails to comply with food regulations?
Answer: Loss of our food service licenses and, thereby, harm our business.