258 



accurately utilize such profitability data as an accurate indicator of a desirable level of 

 profitability for any other particular business. In my professional opinion, this is clearly the 

 case with regards to FST and the NPS's attempt to determine what FST's level of 

 profitability "should be". The NPS compared FST's audited financial statements, after 

 adjusting same to fictitiously increased net income levels, to net profit information classified 

 by SIC code in the D&B Industry Norms and RMA Statement Studies, which is neither 

 audited nor adjusted by D&B or NPS. This procedure is akin to comparing apples to 

 oranges and is clearly a flagrantly flawed process. Without question this NPS-48 process, 

 of necessity, would, with complete certainty, produce invalid fi-anchise fee calculations for 

 every concessioner, based upon such a fundamentally flawed process. 



Based upon the above observations alone, it is clear that the NPS-48 process should 

 be discontinued because it is inherently flawed, unreliable and completely inconsistent with 

 generally accepted statistical, accounting and business practices. There are compelling 

 reasons why this NPS-48 guideline, as it pertains to fi-anchise fee calculations, should be set 

 aside forthwith, along with any and all franchise fee increases based thereon. Upon basic 

 equitable principles, those in authority within our government, should immediately require 

 this most appropriate and proper action. 



^M^9^ 



Mark F. Hartley, D.B.A. 



SWORN TO BEFORE ME THIS 

 /t? day of J Illy, 1996. 



y.^.-^^-'^^^^^^- 



Not^ Public for the State of South Carolina 



My romm.ssion Expires: m o t ar v pg ^O R^-s^ ^^ABOnN^ 



