Highlights of Supercuts’ Item 19 Financial Performance Representations (2011 FDD) – Part 2

Section II – Average Salon Gross Sales Information

• The following information addresses average salon gross sales during the 12-month period ending June 30, 2011 for 848 franchised Supercuts salons operating throughout the United States.

• The salons whose gross sales were included in order to calculate the average were open for at least 2 full years as of July 1, 2010, the beginning of the period for which the numbers were calculated (meaning that they were open for at least 3 full years as of June 30, 2011).

• As of June 30, 2011, there were an additional 125 franchised Supercuts salons operating throughout the United States. However, their gross sales were not included in this calculation because they either were not open at all as of July 1, 2010, the beginning of the period for which the numbers were calculated, or had not been open for 2 full years as of that date.

• The following information has been compiled from the figures reported by the franchisees of these 848 franchised salons on sales and royalty statements.  While Supercuts believes this information to be accurate and complete, Supercuts has not audited this information or otherwise verified its accuracy.

• The products and services offered by each franchised Supercuts salon are essentially the same. These franchised salons are substantially similar to the franchises Supercuts currently offers in all states. These salons receive substantially the same services from Supercuts.

• The 848 franchised salons included in this sample are located in the following states:

1. 
   
   
   
   Alabama (11)
2. Arkansas (8)
3. Arizona (28)
4. California (225)
5. Connecticut (3)
6. District of Columbia (1)
7. Florida (40)
8. Georgia (14)
9. Idaho (8)
10. Illinois (31)
11. Indiana (9)
12. Iowa (2)
13. Kansas (3)
14. Kentucky (2)
15. Louisiana (18)
16. Maine (8)
17. Massachusetts (58)
18. Michigan (1)
19. Minnesota (2)
20. Missouri (5)
21. Mississippi (5)
22. Nebraska (10)
23. New Hampshire (20)
24. New Jersey (17)
25. New Mexico (16)
26. New York (4)
27. North Carolina (4)
28. North Dakota (3)
29. Oklahoma (46)
30. Oregon (14)
31. Pennsylvania (68)
32. South Carolina (5)
33. Tennessee (8)
34. Texas (96)
35. Vermont (1)
36. Virginia (5)
37. Washington (49)
38. Wisconsin (2)

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