Great Clips provides prospective franchisees with information regarding the average sales, expenses and cash flows of certain franchised GREAT CLIPS® units. Great Clips will substantiate the information set forth in this Item 19, upon reasonable request, provided, however, that such substantiation shall not disclose the sales, expenses or cash flows of any specific franchised unit without the written authorization of the franchisee, except as required by any applicable state or federal registration authorities.

OTHER THAN AS SPECIFICALLY DISCLOSED IN THIS ITEM 19, GREAT CLIPS DOES NOT MAKE ACTUAL, AVERAGE, PROJECTED OR FORECASTED SALES, EXPENSES, PROFITS, CASH FLOW OR EARNINGS INFORMATION AVAILABLE TO PROSPECTIVE FRANCHISEES. THERE IS NO GUARANTY THAT ANY NEW FRANCHISEE WILL ATTAIN THE AVERAGE SALES, EXPENSES, PROFITS, CASH FLOW OR EARNINGS LEVELS ATTAINED BY ANY EXISTING FRANCHISEES.

GREAT CLIPS HAS COMPILED THESE AVERAGE SALES, EXPENSES, PROFITS, CASH FLOW OR EARNINGS FIGURES FROM INFORMATION SUPPLIED BY GREAT CLIPS® FRANCHISEES AND THEY SHOULD NOT BE CONSIDERED AS THE ACTUAL OR POTENTIAL SALES, EXPENSES, PROFITS, CASH FLOW, OR EARNINGS THAT WILL BE REALIZED BY ANY OTHER FRANCHISEE. GREAT CLIPS DOES NOT REPRESENT THAT ANY FRANCHISEE CAN EXPECT TO ATTAIN THESE SALES, EXPENSES, PROFITS, CASH FLOW OR EARNINGS. A NEW FRANCHISEE'S INDIVIDUAL FINANCIAL RESULTS ARE LIKELY TO DIFFER FROM THE AVERAGE FIGURES PRESENTED BELOW. IF GREAT CLIPS INCLUDED SALONS THAT WERE ONLY OPEN FOR ONE YEAR, THESE NUMBERS WOULD BE SUBSTANTIALLY DIFFERENT.

The average sales, expenses and cash flows of the GREAT CLIPS® units were obtained from operating statements submitted to Great Clips by its franchisees. Most franchisees use a cash versus accrual system for producing their financial statements, which may produce slight differences between the actual date of occurrence of expenses and the date such expenses are reported on the franchisee's financial statements. Neither Great Clips nor its independent certified public accountants have independently audited or verified these franchisee statements. The information received in these statements, to the best of Great Clips' knowledge, is accurate and complete.

All GREAT CLIPS® units offer substantially the same services and products to the public. The actual sales, expenses, and cash flow results of any franchised GREAT CLIPS® unit may vary substantially from these averages. Sales, expenses and cash flow results depend upon many independently variable factors including, but by no means limited to, the location and visibility of the unit, local traffic patterns, the demographic composition, age of the market and trends of the market area served by the unit, the competitive environment, public awareness of and goodwill associated with the name "GREAT CLIPS®", the region and market area in which the unit is located, the length of time the unit has been in operation, the quality of the management and service at the unit, the individual skills of the franchisee and other factors. This information is therefore limited in its usefulness and should only be utilized as a reference for you to use in conducting your own independent analysis of the business.

THE FOLLOWING TABLE CONTAINS INFORMATION RELATING SOLELY TO HISTORICAL SALES, EXPENSE AND CASH FLOW DATA COMPILED FROM EXISTING FRANCHISED GREAT CLIPS® UNITS. THE TABLE IS QUALIFIED IN ITS ENTIRETY BY ALL THE INFORMATION, NOTES, CAUTIONARY STATEMENTS AND QUALIFICATIONS CONTAINED IN THIS ITEM 19.

GENERAL DESCRIPTION AND METHODOLOGY

The following statement (hereinafter referred to as the "Average Operating Cash Flow Statement") consists of the average sales, expenses and operating cash flow of certain GREAT CLIPS® units. The statement is based on a sample of 722 units that were open two years or longer as of January 1, 2005, and operating as of the date of this offering circular.

The total eligible sample of units opened for two years or longer, as of January 1, 2005, consisted of 1513 salons. The sample was reduced by eliminating any unit for which Great Clips had insufficient data to be reasonably assured of having accurate and complete expense information (791 units).

The 791 units eliminated due to insufficient data were not distributed evenly over the entire database, based on total sales. Of the missing salons, 330 had total sales at or above the median for the total sample and 461 had total sales below the median for the total sample. If all 791 of these salons had been included in the sample, it would have reduced the median total sales in the sample by 5.8% and the net operating cash flow by a somewhat larger percent.

The sales and expense data used in the preparation of this table was taken from actual unit operating statements, provided by the franchisee, for each unit in the sample. The time frame or accounting period of these operating statements was the most current available to Great Clips, but, in some cases, did not match the exact time frame from which sales figures were drawn. Therefore some information was annualized to extract a full year worth of data.

The methodology used was to calculate each unit's reported expenses as a percentage of total sales, then to apply this expense percentage to the total sales for 2005 to compute the operating cash flow figure. Great Clips feels that this is the method that produces the fairest representation of the current operating averages for these sample units.