#1 sub shop franchise, blog entry on Blue Mau Mau

Submitted by Fayaz on Tue, 06/02/2009 - 10:58am.

 

Two very interesting comments on the Blue Mau Mau website that should be read. They are unrelated, but are of the same blog entry

 
On the Subway selection process:
For several decades, the test was whether your check cleared. That changed in the mid-90s (due to the publicity pressure) and DAI instituted a basic test of English and math skills (the Wonderlic test). For some time, the franchisee questionaire has required you to answer "Yes" or "No" to questions as to whether you have sought legal advice. If you answer "No" you are required to provide a written explanation. But every franchisee whom I have ever met answered "Yes" to all the questions, because they thought that if they answered "No" that they would be denied the franchise. Now, if a franchisee is that determined to buy the franchise, I'm not sure that someone should be in the business of "protecting" them--they need momma, not a regulator.
This "accountant letter" stuff began at the beginning of 2007. My understanding is that it was the brainchild of someone in the DAI legal department who thought she was protecting Fred's butt. As I recall, Janet Sparks did an interview with Andy Selden on the topic, and every CPA that I have spoken to says that they would not sign it--apart from the unprofessional language (which sounds like something from a marketing person rather than an attorney) there is the simple matter that a CPA who is doing a valuation analysis would use proper methodology and would not say "I recommend they complete" or "Together...we agree" on the price.
If this nonsense were to come from an attorney at Schmucatelli Subs, we'd all be poking fun at her. But since she works for DAI, few people see this for the foolishness it is.

 

mrfranchiseman comments: The acountant's letter is also referred to as an Accountant's "Comfort letter" in other blogs elsewhere. I issue them when I have evaluated the deal in its entirety and if I agree to the deal. Remember, I apply special knowledge to the scenario after 22 years working with this brand. Maybe my opinion is worth more than another's ??!!!!

 

 

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