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

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140<br />

1 American Dairy Queen withhold approval of a transfer of<br />

2 a Texas Dairy Queen over <strong>no</strong>ncompliance of a <strong>no</strong>ncore<br />

3 systems?"<br />

4 A One of <strong>the</strong> examples of that could be <strong>the</strong><br />

5 person - <strong>the</strong> person wouldn't qualify as a candidate for<br />

6 <strong>the</strong> transfer, and that wouldn't be part of <strong>the</strong> operat<strong>in</strong>g<br />

7 system <strong>in</strong> <strong>the</strong> manual. So, it would be a <strong>no</strong>ncore item;<br />

8 but <strong>the</strong> person may <strong>no</strong>t qualify.<br />

9 Q Is that <strong>in</strong> <strong>the</strong> franchise agreement?<br />

10 A What <strong>the</strong> franchise agreement says is: To<br />

11 protect licenser from an assignment of <strong>the</strong> rights<br />

12 hereunder to some person or persons <strong>no</strong>t meet<strong>in</strong>g <strong>the</strong>se<br />

13 requirements, it is agreed and understood that <strong>no</strong><br />

14 assignment by licensee of <strong>the</strong> rights hereunder shall be<br />

15 made without <strong>the</strong> prior written approval and consent of<br />

16 licenser hav<strong>in</strong>g been obta<strong>in</strong>ed. It is understood and<br />

17 agreed that licenser is <strong>the</strong> sole and exclusive owner of<br />

18 <strong>the</strong> franchise.<br />

19 Q So, <strong>the</strong> person <strong>the</strong>y are sell<strong>in</strong>g it to has to<br />

20 also meet American Dairy Queen's requirements, right?<br />

21 A Whatever is meant by that vague termi<strong>no</strong>logy.<br />

22 Q And <strong>the</strong> people that decide what is meant by<br />

23 that vague termi<strong>no</strong>logy are American Dairy Queen, aren't<br />

24 <strong>the</strong>y?<br />

25 A And that is even --

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