Supercuts 2006 Annual Report Download - page 23

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The Company’s company-owned and franchise hair restoration centers are located in markets representing 72 percent of all U.S.
television (TV) households. The Company’s hair restoration centers advertise on cable TV to over 93 million households, or 85 percent of
the total U.S. TV households. There is an opportunity to add a limited number of new centers in under penetrated markets. Additionally,
the Company is currently investigating international expansion opportunities.
Hair Restoration Acquisition Growth. The Company plans to supplement organic growth with opportunistic acquisition activity.
The hair restoration industry is comprised of a highly-fragmented group of 4,000 locations. This landscape provides an opportunity for
consolidation. Given the existing coverage of Hair Club locations, it is anticipated that transactions may involve the acquisition of
customer lists, rather than physical locations.
Corporate Trademarks:
The Company holds numerous trademarks, both in the United States and in many foreign countries. The most recognized trademarks are
“Regis Salons,” “Supercuts,” “MasterCuts,” “Trade Secret,” “SmartStyle,” “Cost Cutters,” “Hair Masters,” “Jean Louis David,” “Saint Algue,”
“First Choice Haircutters,” “Magicuts” and “Hair Club for Men and Women.”
“Vidal Sassoon” is a registered trademark of Procter & Gamble. The Company has a license agreement to use the Vidal Sassoon name for
existing salons and academies, and new salon development.
Although the Company believes the use of these trademarks is an element in establishing and maintaining its reputation as a national
operator of high quality hairstyling salons, and is committed to protecting these trademarks by vigorously challenging any unauthorized use,
the Company’s success and continuing growth are the result of the quality of its salon location selections and real estate strategies.
Corporate Employees:
During fiscal year 2006, the Company had approximately 59,000 full- and part-time employees worldwide, of which an approximately
52,000 employees were located in the United States. None of the Company’s employees are subject to a collective bargaining agreement and
the Company believes that its employee relations are amicable.
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