Highlights of Cost Cutters’ Item 19 Financial Performance Representations (2011 FDD)

Cost Cutters businesses provide value priced hair care services for men, women, and children, and sell a complete line of hair care products, merchandise, and appliances.

The total investment necessary to begin operation of a Cost Cutters business is $114,800 to $179,400.

Average Sales of Franchised Cost Cutters Businesses (Fiscal Year Ended June 30, 2010)

The following section shows the average annual sales for franchised Cost Cutters businesses by region, for Cost Cutters’ fiscal year ended June 30, 2010.

The average sales figures are derived from sales reports from those franchised Cost Cutters businesses that were in operation for at least 104 weeks as of July 1, 2009, and that provided Cost Cutters with weekly statements of gross revenues for all of the last 52 weeks for the period ending June 30, 2010.

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