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Exhibit 18
Mr. Brian D. Lane
Vice President, Chief Financial Officer
Blimpie International, Inc.
1775 The Exchange, Suite 600
Atlanta, Ga. 30339
Dear Sir:
Note 2 of Notes to the consolidated financial statements of Blimpie
International, Inc. included in its Form 10-K for the year ended June 30, 1999
describes a change in the method of accounting for subfranchisor and master
license fee revenues from recognizing such fees when collected or due to
recognizing such fees on a straight-line basis over ten years. You have advised
us that you believe that the change is to a preferable method in your
circumstances because the new revenue recognition policy results in a better
matching of revenues and related expenses incurred in the earnings process
related to such revenues.
We conclude that the change in the method of accounting for subfranchisor and
master license fee revenues is to an acceptable alternative method which, based
on your business judgment to make this change for the reason cited above, is
preferable in your circumstances.
Very truly yours,
/s/ Ernst & Young LLP
Atlanta, Georgia
December 13, 1999
