Business Description

PRO-CUTS provides professional haircuts for the whole family at affordable prices in a neighborhood environment. PRO-CUTS exhibits a friendly, yet professional atmosphere. Our franchisees are provided with support and training in ALL phases of operation, as well as on-going training and support for employees.

Franchisor Background

Year Established:  1982

Franchising Since:  1984

Operating Units:
Franchised Units:	176	100%
Company-Owned Units:	0	0%
Total Operating Units:	176	100.0%
Geographic Distribution: U.S.: 176 100% In 12 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 176 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Texas	130
2. Oklahoma	17
3. New Mexico	7

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:
Minimum Net Worth:	$300K/100K Liq
Cash Investment:	$30K
Total Investment:	$74.5-158K
Average Total Investment:	$116K
Fees:
Initial Franchise Fee:	$22.5K 1st
Average Franchise Fee:	$22K
On-Going Royalty:	4% 1st Yr./6% succ. Yrs.
Average Royalty:	6%
Advertising Fee:	5%

Average Number of Employees: 6 Full-time, 2 Part-time

Space Needs (in square footage): 900-1,200

Preferred Sites: Free-standing Building, Strip Center

Other Sites:

Encourage Conversions? No

Earnings Claims Provided?: No

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	5
Specific Industry Experience:	1
Formal Education:	3
Psychological Profile:	3
Personal Interview(s):	4
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	Yes
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	900
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	Ad Slicks, Brochures, Catalogs, Coupons/rebates, Direct Mailers, Emails, Promotional Items, Radio Ads, Site Signs, Television Ads, Trade Show Exhibits, Videos
Additional Services:	Grand Opening, In-house Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases, Sales Strategies
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Included in Fees
Training:
1. Franchise Support Office	3-5 Days
2. Field Training	5 Days
Expansion Plans
Projected New Units Over Next 12 months:	10
U.S.:	Yes, All United States
Canada:	No
Overseas:	No