Supercuts 2003 Annual Report Download - page 22

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Table of Contents
In the United States, the Company’s franchise operations are subject to the Federal Trade Commission’s Trade Regulation Rule on Franchising
(the “FTC Rule”) and by state laws and administrative regulations that regulate various aspects of franchise operations and sales. The
Company’s franchises are offered to franchisees by means of an offering circular/disclosure document containing specified disclosures in
accordance with the FTC Rule and the laws and regulations of certain states. The Company has registered its offering of franchises with the
regulatory authorities of those states in which it offers franchises and in which such registration is required. State laws that regulate the
franchisor-franchisee relationship presently exist in a substantial number of states and, in certain cases, apply substantive standards to this
relationship. Such laws may, for example, require that the franchisor deal with the franchisee in good faith, may prohibit interference with the
right of free association among franchisees, and may limit termination of franchisees without payment of reasonable compensation. The
Company believes that the current trend is for government regulation of franchising to increase over time. However, such laws have not had,
and the Company does not expect such laws to have, a significant effect on the Company’s operations.
In Canada, the Company’s franchise operations are subject to both the Alberta Franchise Act and the Ontario Franchise Act. The offering of
franchises in Canada occurs by way of a disclosure document, which contains certain disclosures required by the Ontario and Alberta Franchise
Acts. Both the Ontario and Alberta Franchise Acts primarily focus on disclosure requirements, although each requires certain relationship
requirements such as a duty of fair dealing and the right of franchisees to associate and organize with other franchisees.
The Company believes it is operating in substantial compliance with applicable laws and regulations governing its operations.
(d) Financial Information about Foreign and Domestic Operations
Financial information about foreign and domestic markets is incorporated herein by reference to Management’s discussion and analysis of
financial condition and results of operations in Part II, Item 7, pages 41 through 43 and Segment information in Part II, Item 8, page 76 of this
Form 10-K.
(e) Available Information
The Company is subject to the informational requirements of the Securities and Exchange Act of 1934 (“Exchange Act”). The Company
therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”). Such reports
may be obtained by visiting the Public Reference Room of the SEC at 450 Fifth Street, NW, Washington, D.C. 20549, or by calling the SEC at
1-800-SEC-0330. In addition, the SEC maintains an internet site (http://www.sec.gov) that contains reports, proxy and information statements
and other information regarding issuers that file electronically.
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