Supercuts 2009 Annual Report Download - page 24

Table of Contents
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.
The Company maintains an ownership interest in EEG. 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.
(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 16 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 100 F Street NE, Washington, DC 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 Information 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 1A. Risk Factors
Our business and our industry are affected by cyclical and global economic factors, including the risk of a prolonged recession.
Our financial results are substantially dependent upon overall economic conditions in the United States and in Europe. A prolonged or a
deepening recession in the United States, or globally, could substantially further decrease the demand for our products and services below
current levels and adversely affect our business. Our industry has historically been vulnerable to significant declines in consumption and product
and service pricing during prolonged periods of economic downturn such as at present.
Recessions and other periods of economic dislocation typically result in a lower level of discretionary income for consumers. To the extent
discretionary income declines, consumers may be more likely to reduce discretionary spending. This could result in our salon customers
foregoing salon treatments or using home treatments as a substitute. It could also result in our hair restoration patients decreasing the amount
spent on hair restoration treatments.
22