Sally Beauty Supply 2006 Annual Report Download - page 17

Table of Contents
and local agencies regulate many aspects of our business. In markets outside of the United States, regulation is also focused and
comprehensive.
The franchisor-franchisee relationship poses a specific set of regulatory issues. We are subject to the regulation of offering and sale of
franchises in the United States and Mexico. The applicable laws and regulations affect our business practices, as franchisor, in a
number of ways, including restrictions placed upon the offering, renewal, termination and disapproval of assignment of franchises. To
date, these laws and regulations have not had a material effect upon operations. The FTC is considering major revisions to its
regulations governing the offer and sale of franchises in the U.S., although to date, these revisions have not been adopted.
Trademarks and Other Intellectual Property Rights
Our trademarks, certain of which are material to our business, are registered or legally protected in the United States, Canada and
other countries throughout the world in which we operate. We and our subsidiaries own over 200 trademarks in the United States. We
also rely upon trade secrets and know-how to develop and maintain our competitive position. We protect intellectual property rights
through a variety of methods, including reliance upon trademark, patent and trade secret laws, in addition to confidentiality
agreements with many vendors, employees, consultants and others who have access to our proprietary information. The duration of
our trademark registrations is generally 10, 15 or 20 years, depending on the country in which a mark is registered, and generally the
registrations can be renewed. The scope and duration of intellectual property protection varies by jurisdiction and by individual
product.
Access to Public Filings
Our annual report on Form 10-K, current reports on Form 8-K and amendments to such reports are, and, when filed with the SEC our
quarterly reports on Form 10-Q and any amendment to such reports will be, available, without charge, on our website,
www.sallybeautyholdings.com, as soon as reasonably possible after they are filed electronically with the Securities and Exchange
Commission (SEC) under the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act. We will provide
copies of such reports to any person, without charge, upon written request to our office of Investor Relations by writing to: our
Investor Relations Department at 3001 Colorado Blvd, Denton, TX 76210. The information found on our website shall not be
considered to be part of this or any other report filed with or furnished to the SEC.
In addition to our website, you may read and copy public reports we file with or furnish to the SEC at the SEC’ s Public Reference
Room at 100 F Street, NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains our reports, proxy and information statements,
and other information that we file electronically with the SEC at www.sec.gov.
ITEM 1A. RISK FACTORS
The following describes risks that we believe to be material to our business. If any of the following risks or uncertainties actually
occurs, our business, financial condition and operating results could be materially and adversely affected. There may be additional
risks, of which we are not aware or that we do not believe to be material, that could materially and adversely affect our business. This
report also contains forward-looking statements and the following risks could cause our actual results to differ materially from those
anticipated in such forward-looking statements.
Risks Relating to Our Business
We have no history as a stand-alone company and may be unable to make the changes necessary to operate effectively.
We recently separated from Alberto-Culver and became an independent publicly-traded company. There can be no assurance that the
separation from Alberto-Culver and the resulting absence of its general administrative assistance will not have an adverse impact on
our business, financial condition and results of operations. Apart from a limited
12