901495--3/31/2006--BACK_YARD_BURGERS_INC

related topics
{financial, litigation, operation}
{competitive, industry, competition}
{cost, contract, operation}
{personnel, key, retain}
{cost, regulation, environmental}
{property, intellectual, protect}
{condition, economic, financial}
{acquisition, growth, future}
{loan, real, estate}
{regulation, government, change}
The locations of our Company-owned and franchised restaurants are critical to our success. Our business is dependent on the availability and retention of qualified operating personnel. Our operations are susceptible to the cost of and changes in food availability. Changes in consumer preferences could negatively impact our results of operations. Health concerns relating to the consumption of beef or chicken could negatively impact our results of operations. We are subject to government regulation that may adversely hinder or impact the growth of our business. Our success depends on our ability to compete effectively in the quick service restaurant industry. If our franchisees cannot develop new restaurants, our growth and success may be impeded. Our expansion into new markets may present increased risks due to our unfamiliarity with the area. The acquisition of existing restaurants from our franchisees may have an adverse impact on our operating results or financial condition. Our restaurants are located primarily in the Southeast region of the United States and, as a result, we are sensitive to economic and other trends and developments in this region. Our franchisees could take actions that could harm our business. If we are not able to transition the role of CEO to a qualified person, our business could suffer. Our future success depends on our ability to protect our proprietary information. A significant increase in litigation could have a material adverse effect on our results of operations, financial condition and business prospects. Area Development and Franchise Agreements

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