Supercuts 2009 Annual Report Download - page 14

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Table of Contents
(1)
TOTAL SYSTEM WIDE SALONS: 2009 2008 2007 2006 2005
Franchise salons:
Open at beginning of period
2,163
3,742
3,774
3,902
3,924
Salons constructed
93
179
253
257
285
Acquired(2)
—
93
—
—
7
Less relocations
(14
)
(12
)
(20
)
(18
)
(13
)
Salon openings
79
260
233
239
279
Conversions
1
3
—
4
6
Franchise buybacks
(83
)
(150
)
(97
)
(142
)
(139
)
Affiliated joint ventures
—
(
1,587
)
—
—
—
Salons sold
(57
)
—
—
—
—
Salons closed
(58
)
(105
)
(168
)
(229
)
(168
)
Total franchise salons
2,045
2,163
3,742
3,774
3,902
Total Salons
10,026
10,745
11,881
11,333
10,879
Canadian and Puerto Rican salons are included in the Regis Salons, MasterCuts, Supercuts, and Promenade and not included in the
international salon totals.
(2)
Represents primarily the acquisition of franchise networks.
(3)
Represents European operating subsidiaries contributed to Franck Provost Salon Group.
(4) On February 16, 2009, the Company announced the completion of the sale of its Trade Secret retail product division. As a result of this
transaction, the Company reported the Trade Secret operations as discontinued operations for all periods presented. Forty-three franchise
salons were not included in the sale of Trade Secret to the purchaser of Trade Secret and are not reported as discontinued operations.
These franchise salons are now included in Promenade salons.
In the preceding table, relocations represent a transfer of location by the same salon concept and conversions represent the transfer of one
concept to another concept.
Regis Salons. Regis Salons are primarily mall based, full service salons providing complete hair care and beauty services aimed at
moderate to upscale, fashion conscious consumers. In recent years, the Company has expanded its Regis Salons into strip centers. As of June 30,
2009, of the 1,071 total Regis salons, 158 Regis Salons were located in strip centers. The customer mix at Regis Salons is approximately
78 percent women and both appointments and walk-in customers are common. These salons offer a full range of custom styling, cutting, hair
coloring and waving services as well as professional hair care products. Service revenues represent approximately 84 percent of the concept's
total revenues. The average ticket is approximately $40. Regis Salons compete in their existing markets primarily by emphasizing the high
quality of the services provided. Included within the Regis Salons concept are various other trade names, including Carlton Hair, Sassoon, Mia &
Maxx Hair Studios, Hair by Stewarts and Heidi's.
The average initial capital investment required for a new Regis Salon is approximately $150,000 to $200,000, excluding average opening
inventory costs of approximately $18,000. Average annual salon revenues in a Regis Salon which has been open five years or more are
approximately $431,000.
MasterCuts. MasterCuts is a full service, mall based salon group which focuses on the walk-in consumer (no appointment necessary)
that demands moderately priced hair care services. MasterCuts salons emphasize quality hair care services, affordable prices and time saving
services for the entire family. These salons offer a full range of custom styling, cutting, hair coloring and waving services as well as professional
hair care products. The customer mix at MasterCuts is split relatively evenly between men and women. Service revenues compose approximately
82 percent of the concept's total revenues. The average ticket is approximately $19.
12