Supercuts 2002 Annual Report Download - page 11

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Table of Contents
International Salons:
At June 30, 2002, the Company operated 2,066 hair care salons, including 1,684 franchised salons, located througout Europe, primarily in the
United Kingdom, France, Italy and Spain. The Company is currently positioned as the worldwide industry leader. During fiscal 2002, the
Company added to its existing international salon concepts — primarily Regis Hairstylists, Trade Secret, Hair Express and Supercuts — with
the acquisitions of the French franchisors, GGG and JLD. Salons associated with GGG operate under the brands Saint Algue, Coiff & Co.,
Intermede and City Looks. JLD operates primarily under the following concepts: JLD Diffusion, JLD Tradition and JLD Quick Service.
Company-owned salons in the international division operate in malls, leading department stores, high-street locations and grocery and retail
chains under license arrangements or real property leases, consistently focused on the value-priced, moderate and upscale hair care and beauty
market. The average sale at an international salon is approximately $34. Revenues from company-owned and franchise operations for
international salons grew to $105.5 million and $13.5 million, respectively, or 8.2 percent of the Company’s total revenues, in fiscal 2002. The
Company expects to build approximately 19 company-owned and open an additional 125 to 150 franchised salons internationally during fiscal
2003.
8
Other Franchise Concepts. This group of franchised salons includes primarily First Choice Haircutters, Magicuts and Haircrafters, as
well as other smaller brands which have been acquired in recent years. These concepts function primarily in the high volume, value-
priced hair care market segment, with key selling features of value, convenience, quality and friendliness, as well as a complete line of
professional hair care products. At June 30, 2002, the Company franchised 424 salons in this group, generating franchise revenue during
fiscal 2002 of $4.4 million, or 0.3 percent of the Company’s total revenues. In addition to these franchised salons, the Company operates
company
-
owned First Choice Haircutters and Magicuts salons, as previously discussed above.