39135--3/17/2006--FRIENDLY_ICE_CREAM

related topics

{competitive, industry, competition}

{operation, natural, condition}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{condition, economic, financial}

{acquisition, growth, future}

{cost, contract, operation}

{property, intellectual, protect}

{personnel, key, retain}

{control, financial, internal}

{financial, litigation, operation}

{cost, operation, labor}

{customer, product, revenue}

We operate in a highly competitive business environment. Increases in the prices of, or interruptions in the supply of, raw materials and other essential food supplies may increase the costs of our products, create shortages in the manufacturing of products or cause interruptions in the supply of products to our customers. Increases in the prices of, or interruptions in the supply of, fuel may increase the costs of our products, or cause interruptions in the supply of products to our customers. Changes in consumer preferences and economic conditions could adversely affect our financial performance. Our business may be harmed by highly publicized incidents at one or more of our restaurants. We may not be able to successfully continue the development and implementation of our franchising program. Our operations are highly concentrated in the Northeast region. Our cash flows may fluctuate due to seasonality. The locations where we have restaurants may cease to be attractive which could negatively affect our sales at these locations. Our franchisees and we may experience delays in restaurant openings, which could adversely affect our ability to increase revenues and profitability. If our manufacturing and distribution operation is damaged or otherwise interrupted for any prolonged period of time, our operations would be harmed. The restaurant and food distribution industries are heavily regulated. Increasing labor costs could adversely affect our profitability. A failure to attract and retain qualified employees may adversely affect us. We may not be able to protect our trademarks and other proprietary rights. Our substantial debt could harm our business, results of operations, financial position and cash flows. The instruments governing our 8.375% senior notes and other debt impose restrictions. We are exposed to potential risks as a result of the internal control testing and evaluation process mandated by Section 404 of the Sarbanes-Oxley Act of 2002. We have incurred and may incur significant additional and unforeseen expenses and costs to defend or pursue litigation and related matters.

Full 10-K form ▸

39135--3/17/2006--FRIENDLY_ICE_CREAM_CORP