Supercuts 2002 Annual Report Download - page 18
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Table of Contents
Franchise Sales
Franchise expansion will continue to be a significant focus of the Company in the future. Existing franchisees and new franchisees that open
multiple salons may receive a reduction in initial franchise fees.
Franchisee Training
The Company provides new franchisees with training, focusing on the various aspects of store management, including operations, personnel
management, marketing fundamentals and financial controls. Existing franchisees receive training, counseling and information from the
Company on a continuous basis. In addition, the Company provides store managers and stylists with extensive technical training for Supercuts
franchises. For further description of the Company’s education and training programs, see the “Salon Training Programs” section of this
document.
Markets and Marketing
The Company maintains various advertising, sales and promotion programs for its salons, budgeting a predetermined percent of revenues for
such programs. The Company has developed promotional tactics and institutional sales messages for each of its divisions targeting certain
customer types and positioning each concept in the marketplace. Print, radio, television and billboard advertising are developed and supervised
at the Company’s headquarters, but most advertising is done in the immediate area of the particular salon.
The primary franchise brands maintain separate Advertising Funds (the “Funds”), managed by the Company, that provide comprehensive
advertising and sales promotion support for each system. All stores, company-owned and franchised, contribute to the Funds, the majority of
which are allocated to the contributing market for media placement and local marketing activities. The remainder is allocated for the creation of
national advertising campaigns and system-
wide activities. This intensive advertising program creates significant consumer awareness, a strong
brand image and high loyalty.
Salon Training Programs
The Company has an extensive hands-on training program for its hairstylists which emphasizes both technical training in hairstyling and
cutting, hair coloring, perming and hair treatment regimes as well as customer service and product sales. The objective of the training programs
is to ensure that customers receive professional and quality service which the Company believes will result in more repeat customers, referrals
and product sales.
The Company has full- and part-
time artistic directors who teach and train the salon operators in techniques for providing the salon services and
who instruct the stylists in current styling trends. The Company also has an audiovisual based training system in its salons designed to enhance
technical skills of hairstylists.
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