FDD Talk: Average Sales, Expenses, and Operating Cash Flow for Supercuts Salons

Highlights of Supercuts’ Item 19 Financial Performance Representations (2011 FDD) – Part 1

Section I – Income and Expense Information

• Supercuts provides prospective franchisees with the following information regarding the actual average income and expenses of 948 Supercuts-owned salons that had been open and operating for at least 2 full years as of July 1, 2010. The information is based on the actual performance of such salons for the 12 months ended June 30, 2010. The information has not been audited.

• The gross sales, income, and/or expense information listed below should not be used as a measure of profitability. Your salon’s actual performance will be affected by the specific conditions in your salon’s market. These conditions include location, competition within the immediate market, amount of time in business, lease terms, financing costs, taxes, labor costs, supply costs, local economic and regulatory conditions, your management skills, the quality of the services provided to the salon’s customers, and the salon’s own marketing and sales efforts.

• Units opened less than two years tend to have lower average sales than those included in the averages below, particularly when developing units in a new market or one with few salons.

All Salons (948 salons)

Revenues

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