Management Discussion & Analysis  Our Private Company Partners rely on key personnel A lack of funding for our Private Company Partners could have adverse consequences to them  Our Private Company Partners may suffer damage to their brand reputations Our Private Company Partners face intense competition  Additional franchises and franchise operations may be limited Alaris Royalty Corp. 2011 Annual Report   77  Company Partners' ability to finance their future operations and capital needs. As a result, their flexibility  to respond to changing business and economic conditions and to business opportunities may be limited. A  leveraged company's income and net assets will tend to increase or decrease at a greater rate than if  borrowed money was not used. Often, the success of a private business depends on the management talents and efforts of one or two  persons or a small group of persons. The death, disability or resignation of one or more of these persons  could have a material adverse impact on a Private Company Partner's operations or ability to access  additional capital qualified personnel, expand or compete. Each of our Private Company Partners will continue to require additional working capital to conduct their  existing marketing activities and to expand their businesses. Our Private Company Partners will need to  raise additional funds through collaborations with corporate partners or through private or public  financings to support their long-term growth efforts. If adequate funds are not available, our Private  Company Partners may be required to curtail their business objectives in one or more areas. There can be  no assurance that unforeseen developments or circumstances will not alter a Private Company Partner’s  requirements for capital, and no assurance can be given that additional financing will be available on  acceptable terms, if at all. Damage to the reputation of our Private Company Partners' brands, or the reputation of the brands of  suppliers of products that are offered by the Private Company Partners, could result from events out of the  control of our Private Company Partners. This damage could negatively impact consumer opinion of our  Private Company Partners or their related products and services, which could have an adverse effect on the  Private Company Partners' performance. Our Private Company Partners may face intense competition, including competition from companies with  greater financial and other resources, more extensive development, manufacturing, marketing, and other  capabilities, and a larger number of qualified managerial and technical personnel. There can be no  assurance that our Private Company Partners will be able to successfully compete against their respective  competitors or that such competition will not have a material adverse effect on their businesses, financial  condition, results of operations and cash flows and therefore the amount of or their ability to service their  obligations to Alaris.  One of our Private Company Partners, End of the Roll is a franchisor. The growth of revenues of this  company is largely dependent upon their ability to maintain and grow its franchise systems and to execute  its current growth strategy for both increasing the number of franchisees and increasing the number of  locations. If this company is unable to attract qualified franchisees, its operations could be adversely  affected. The slowing of growth could lead potential and existing franchisees to begin to look elsewhere for  better opportunities. The growth of the franchise network through adding new franchisees is somewhat  dependent upon available personnel. 