Supercuts 2005 Annual Report Download - page 25

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.
Governmental regulations surrounding franchise operations in Europe are similar to those in the United States. The Company believes it is
operating in substantial compliance with applicable laws and regulations governing all of its operations.
Beauty schools derive a significant portion of their revenue from student financial assistance originating from the U.S. Department of
Education’s Title IV Higher Education Act of 1965. For the students to receive financial assistance at the school, the beauty schools must
maintain eligibility requirements established by the U.S. Department of Education. The Company thoroughly researches each potential
acquisition to ensure they remain in good standing with the U.S. Department of Education. The Company believes each of its existing schools
are compliant.
(d) Financial Information about Foreign and North American Operations
Financial information about foreign and North American markets is incorporated herein by reference to Management’s Discussion and
Analysis of Financial Condition and Results of Operations in Part II, Item 7 and segment information in Note 11 to the Consolidated Financial
Statements in Part II, Item 8 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.
Financial and other information can be accessed in the Investor section of the Company’s website at www.regiscorp.com . The Company
makes available, free of charge, copies of its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after
filing such material electronically or otherwise furnishing it to the SEC.
Item 2.
Properties
The Company’s corporate offices are headquartered in a 170,000 square foot, three building complex in Edina, Minnesota owned by the
Company. On May 2, 2005, the Company entered into a ten-year operating lease agreement for a 102,448 square foot building, also located in
Edina. The Company plans to expand into this fourth building during the latter half of fiscal year 2006. This new lease agreement includes an
option to purchase the property or extend the original term for two successive periods of five
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