SuperCoups Uses Fuzzy Math in Entrepreneur 500

In Entrepreneur Magazine’s recent Franchise 500, SuperCoups cooperative direct mail franchise is listed at #382, even though they dropped from #247 the previous year, they had still increased the number of franchises from 231 to 287, or did they?

In Entrepreneur Magazines’ print edition there is a footnote that reads: SuperCoups 2006 units affected by new definition of territory size from 80,000 households per unit to 60,000 households per unit.

It appears SuperCoups redefined territory size so as to inflate the number of franchise units. A 25% reduction of territory size resulted in a 24% increase in number of units.

My math reveals that in 2005 they had 231 units at 80,000 households which equal 18,480,000 households, in 2006 they had 287 units at 60,000 which equal 17,200,000 they actually dropped 1.2 million households. Is that what they are trying to hide?

In the online edition of Entrepreneur Franchise 500 there is no mention or footnote of the change, yet it represented that SuperCoups has over 425 franchise units (even though it only lists the number at 287). Even Entrepreneur Magazine is confused by SuperCoups fuzzy math.

I’ve been involved with SuperCoups for over 20 years, in many different capacities. For the last 15 years I’ve worked for the largest franchisee of Super Coups, that mails 2.5 million households (SuperCoups calculates that this franchise contains 41.6 franchise units).

Press releases found on the SuperCoups website reveal that they added two franchisees in 2006 (not even close to the 56 their fuzzy math created).

Because of this new definition in territory size they were listed as #80 in Entrepreneur Magazines Fastest Growing Franchises. This distinction was awarded to SuperCoups by selling only 2 franchises? Being on Entrepreneurs Fastest Growing Franchise list should require more growth than 2 sold franchises, or am I missing something?

There are some legitimate fast growing franchises listed on Entrepreneur 100 but SuperCoups doesn’t belong even with its fuzzy math. I’m sure Number 101 (which doesn’t appear on the list) sold more franchises then SuperCoups.

Maybe SuperCoups really grew in envelopes mailed? I investigated that and came across an article that appeared in Direct in 2000 Super Coup for Super Coups where then President and COO Don McKenzie stated ”The company drops 75 million envelopes across seven mailings a year to 12 million unduplicated households, claiming 35% growth.”

On its website Super Coups claims: “Presently, SuperCoups mails nearly 65 million envelopes across 19 states and Puerto Rico and continues to sell franchises across the United States.” Well rapid growth certainly isn’t happening in envelopes mailed according to their own statements, in 6 years they have lost 10 million envelopes.

By the way Puerto Rico is no longer a SuperCoups franchisee, does fuzzy math now extend to fuzzy claims?

SuperCoups, is a wholly owned subsidiary of ADVO. Advo is one of the nation’s leading direct mail media company, with annual revenues of nearly $1.4 billion. Advo is being purchased by Valassis you may remember that in August 2006 Valassis sued Advo to stop the acquisition. Valassis tried to rescind its offer to merge charging that Advo misrepresented its financial status. Earlier this month it was announced that Valassis and Advo had agreed to merge with revised terms.