EXHIBIT 99.3 ------------ REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS We have audited in accordance with generally accepted auditing standards, the consolidated financial statements of Mrs. Fields' Original Cookies, Inc. and subsidiaries as of December 28, 1996 and January 3, 1998 and for the period from inception (September 18, 1996) to December 28, 1996 and for the year ended January 3, 1998 included in this registration statement and have issued our report thereon dated June 10, 1998. Our audits were made for the purpose of forming an opinion on the basic consolidated financial statements taken as a whole. Schedule II, "Valuation and Qualifying Accounts", is the responsibility of the Company's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not part of the basic consolidated financial statements. This schedule has been subjected to the auditing procedures applied in the audits of the basic consolidated financial statements and, in our opinion, fairly states in all material respects the financial data required to be set forth therein in relation to the basic consolidated financial statements taken as a whole. Arthur Andersen LLP Salt Lake City, Utah June 10, 1998 MRS. FIELDS' ORIGINAL COOKIES, INC. AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS BALANCE AT BEGINNING BALANCE AT DESCRIPTION OF PERIOD ADDITIONS DEDUCTIONS END OF PERIOD - ----------------------------------------- ------------- -------------- -------------- --------------- ALLOWANCE FOR DOUBTFUL ACCOUNTS: Period from Inception (September 18, 1996) through December 28, $ 269,000 119,000 - $ 388,000 1996............................... Year Ended January 3, 1998............. 388,000 481,000 255,000 614,000 Period from January 3, 1998 through July 4, 1998......................... 614,000 145,000 176,000 583,000 STORE CLOSURE RESERVE: Period from Inception (September 18, 1996) through December 28, 1996...... 5,060,000 - 305,000 4,755,000 Year Ended January 3, 1998............. 4,755,000 3,257,000 2,546,000 5.466,000 Period from January 3, 1998 through July 4, 1998......................... 5,466,000 - 1,157,000 4,309,000