no. b-000119-c melinda matthews, individually ) in the district court ...

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114 1 THE REPORTER: "QUESTION: In the 2 American Dairy Queen system, failing a QVSC is a 3 material default for the local store? 4 "ANSWER: I would like to check the 5 franchise agreement to see if that's what it says - if 6 it says material." 7 Q (By Mr. Lawdermilk) And I'll ask it again. 8 Does American Dairy Queen consider 9 failing the QVSC as a material default for a local 10 store? 11 A The license agreement doesn't approach it that 12 way. 13 Q And you are talking about the Strickland Drive 14 Dairy Queen -- 15 A Yes. 16 Q -- license agreement? 17 A Yes. 18 Q And, so, is failing -- If the Strickland Drive 19 Dairy Queen fails a QVSC, is that a material default? 20 A It is an option in the license agreement that 21 not following prescribed systems can result in a 22 default. 23 Q And who prescribes those systems? 24 A That would be the franchisor. 25 Q And that would be American Dairy Queen?
115 1 A That would be American Dairy Queen. 2 Q And my question, sir, is: Is failing a QV -- 3 If the Strickland Drive Dairy Queen fails a QVSC, is 4 that a material default? 5 A It could be. 6 Q Based upon what? Why -- When could it not be? 7 A The license agreement says it is an option of 8 the franchisor to make that decision. 9 Q So, American Dairy Queen gets to decide what 10 is a material default? 11 A In that agreement. 12 Q Now, American Dairy Queen -- Do you know if 13 American Dairy Queen has decided that failing a QVSC at 14 the Strickland Dairy Queen would be a material default? 15 A No. 16 Q You just don't know, right? 17 A I answered no to your question. 18 Q Right. You answered, no, you do not know? 19 A I'm not aware of it. 20 Q Okay. Now, one of the things that a QVSC 21 checks for on the playgrounds is that all equipment must 22 be properly and safely maintained. Do you know that, or 23 do you not? 24 A In my report what I'm pointing out - and it is 25 my opinion - that it doesn't deal with -- What it says
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NO. B-000119-C MELINDA MATTHEWS, IN
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3 1 I N D E X 2 Page 3 Appearances
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5 1 P R O C E E D I N G S 2 THE VID
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7 1 Q Have you ever been to AA meet
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9 1 A When you add philosophy to Go
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11 1 proceedings regarding the divo
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13 1 Q Okay. And nothing is in here
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15 1 Q Well, awhile ago there was a
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17 1 go call the Judge and we will
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19 1 correct. 2 Q I asked you if th
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21 1 A No, I did not. 2 MR. LAWDERM
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23 1 A No. 2 Q Do you hold any cert
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25 1 '75, '76. 2 Q Why did you leav
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27 1 A Yes, as a matter of fact. Wh
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29 1 A Don't remember. 2 Q Don't re
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31 1 franchises? 2 A The franchise
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33 1 Q Have you ever been to it? 2
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35 1 Q Are you saying that you are
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37 1 Q So, then they would be diffe
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39 1 Q (By Mr. Lawdermilk) You have
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41 1 Q So, I'm going to take it tha
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43 1 Q Let me just clean it up for
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45 1 Q That's all I'm trying -- I'm
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47 1 an employee. 2 Q So, this was
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49 1 Exhibit 7 on it. 2 MR. LIGHTY:
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51 1 A Brian Swift is the name. As
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53 1 themselves, but for their cust
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55 1 subsets below it, right? 2 A T
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57 1 the invoice. I don't -- I assu
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59 1 in nonlegal-related areas, and
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61 1 A $350. 2 Q What are your othe
Page 63 and 64: 63 1 use the word standard. Use cor
Page 65 and 66: 65 1 language. 2 Q So, now y'all we
Page 67 and 68: 67 1 When a franchisor requires som
Page 69 and 70: 69 1 it is their intellectual prope
Page 71 and 72: 71 1 obligation. 2 You have an obli
Page 73 and 74: 73 1 they realize they can't cut co
Page 75 and 76: 75 1 MR. LAWDERMILK: The list. 2 A
Page 77 and 78: 77 1 your opinion still the same fo
Page 79 and 80: 79 1 correct? 2 A Correct. 3 Q And
Page 81 and 82: 81 1 me, it is about what somebody
Page 83 and 84: 83 1 Q Thank you. 2 And all of the
Page 85 and 86: 85 1 mailings to franchisors. 2 Q S
Page 87 and 88: 87 1 layman in the field. 2 Q So, a
Page 89 and 90: 89 1 ask me a particular requiremen
Page 91 and 92: 91 1 Q And if it wasn't restricted
Page 93 and 94: 93 1 paragraph? 2 Q Third full para
Page 95 and 96: 95 1 compliance even if it is outsi
Page 97 and 98: 97 1 the new franchisees are requir
Page 99 and 100: 99 1 entered into a security agreem
Page 101 and 102: 101 1 Q Anyone else? 2 A No. 3 Q So
Page 103 and 104: 103 1 A Ask me that again. 2 Q Do y
Page 105 and 106: 105 1 A I can't -- I can't speak to
Page 107 and 108: 107 1 A I don't know. 2 Q Well, you
Page 109 and 110: 109 1 A Yes. But to make sure we co
Page 111 and 112: 111 1 guidelines on Texas Dairy Que
Page 113: 113 1 uses when it sends people int
Page 117 and 118: 117 1 doesn't -- It relates to very
Page 119 and 120: 119 1 equipment as it was on Octobe
Page 121 and 122: 121 1 read. 2 Q Well, is it accordi
Page 123 and 124: 123 1 this report, thought how many
Page 125 and 126: 125 1 QVSC - the performance of the
Page 127 and 128: 127 1 before Tyler's death? 2 A All
Page 129 and 130: 129 1 Q The very last one at the bo
Page 131 and 132: 131 1 A If my memory serves me corr
Page 133 and 134: 133 1 Q Where did you get the langu
Page 135 and 136: 135 1 Q That American Dairy Queen c
Page 137 and 138: 137 1 Q Did the Dairy Queen on Stri
Page 139 and 140: 139 1 Q Is that a "yes"? 2 A Yes. 3
Page 141 and 142: 141 1 Q Is that a "yes"? 2 A -- to
Page 143 and 144: 143 1 Strickland Drive Dairy Queen'
Page 145 and 146: 145 1 you know that? 2 MR. LIGHTY:
Page 147 and 148: 147 1 MR. LIGHTY: Object to the for
Page 149 and 150: 149 1 occurs, that clause is in the
Page 151 and 152: 151 1 the playground project for AD
Page 153 and 154: 153 1 record. The time is 3:44, Aug
Page 155 and 156: 155 1 comply with the standards of
Page 157 and 158: 157 1 Department will decide what b
Page 159 and 160: 159 1 playgrounds are so dangerous,
Page 161 and 162: 161 1 Q Okay. Do you agree that the
Page 163 and 164: 163 1 MR. LAWDERMILK: Go off the re
Page 165 and 166:
165 1 A I don't know that. When McD
Page 167 and 168:
167 1 Q Now, ADQ voluntarily undert
Page 169 and 170:
169 1 A Well, what I can do is simp
Page 171 and 172:
171 1 It states: The non-core opera
Page 173 and 174:
173 1 monthly. Sometimes lawyers ar
Page 175 and 176:
175 1 survey. 2 Q Have you ever don
Page 177 and 178:
177 1 MR. LIGHTY: Object to the for
Page 179 and 180:
179 1 to Brochure 100 and other ins
Page 181 and 182:
181 1 have to take your word for it
Page 183 and 184:
183 1 will do it. Thank you. I pass
Page 185 and 186:
185 1 whatever it says in the curre
Page 187 and 188:
187 1 Q -- for the Strickland Dairy
Page 189 and 190:
189 1 Q American Dairy Queen and In
Page 191 and 192:
191 1 own consulting company 20 yea
Page 193 and 194:
193 1 A Went to work for a consulti
Page 195 and 196:
195 1 Q Okay. Are you a member of a
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197 1 occasions have you been retai
Page 199 and 200:
199 1 Q Do you have any other repor
Page 201 and 202:
201 1 partnerships and the focus is
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203 1 Mr. Gappa? 2 A The first is t
Page 205 and 206:
205 1 STREET JOURNAL to FORTUNE to
Page 207 and 208:
207 1 Q Do they qualify under that
Page 209 and 210:
209 1 Q And who is that? 2 A The --
Page 211 and 212:
211 1 A What we got was the right t
Page 213 and 214:
213 1 Q And in simple terms what is
Page 215 and 216:
215 1 at 5:25. 2 (RECESS TAKEN FROM
Page 217 and 218:
217 1 signed and entered into by th
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219 1 A Doesn't exist. 2 Q Okay. Wh
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221 1 required. So, they can make a
Page 223 and 224:
223 1 A It can be revoked or suspen
Page 225 and 226:
225 1 Q Okay. First let's have that
Page 227 and 228:
227 1 And compliance of one person
Page 229 and 230:
229 1 Q And what is that? 2 A In fr
Page 231 and 232:
231 1 A Not anything contractual an
Page 233 and 234:
233 1 that under the category of co
Page 235 and 236:
235 1 A No. 2 Q And is that true fo
Page 237 and 238:
237 1 and how to make and serve the
Page 239 and 240:
239 1 franchisor. 2 Q And what are
Page 241 and 242:
241 1 Q So, the field representativ
Page 243 and 244:
243 1 Q And what do you make that d
Page 245 and 246:
245 1 Q And specific to the playgro
Page 247 and 248:
247 1 Franchiser, American Dairy Qu
Page 249 and 250:
249 1 A The findings are that 64 pe
Page 251 and 252:
251 1 went out between November '96
Page 253 and 254:
253 1 I signed?" 2 Q Do you find an
Page 255 and 256:
255 1 Q And those have been documen
Page 257 and 258:
257 1 Q Awhile ago you said that th
Page 259 and 260:
259 1 A Personal meetings would hav
Page 261 and 262:
261 1 Q Tell me -- 2 A I can't. I w
Page 263 and 264:
263 1 NO. B-000119-C 2 MELINDA MATT
Page 265 and 266:
265 1 FURTHER CERTIFICATION UNDER R
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267 1 I, ROBERT A. GAPPA, have read
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