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

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204<br />

1 Franchis<strong>in</strong>g is like <strong>the</strong> way we operate<br />

2 our lives. We operate our lives on systems; and when<br />

3 you go outside a system, you get different results,<br />

4 usually <strong>no</strong>t as good. So, franchis<strong>in</strong>g is like life.<br />

5 It's based on <strong>the</strong> best results are gotten through<br />

6 systems that work.<br />

7 Q And do <strong>the</strong> franchis<strong>in</strong>g models have a good<br />

8 success rate <strong>in</strong> this country?<br />

9 A They do.<br />

10 Q As compared -- Would you compare that to<br />

11 bus<strong>in</strong>esses or start-up bus<strong>in</strong>esses <strong>in</strong> general?<br />

12 A The statistics that are commonly put out are<br />

13 that a franchise - that seven years after a franchisee<br />

14 is <strong>in</strong> bus<strong>in</strong>ess, about 90 percent of <strong>the</strong>m are still <strong>in</strong><br />

15 bus<strong>in</strong>ess.<br />

16 Q Now, how does that compare to <strong>no</strong>nfranchise<br />

17 bus<strong>in</strong>esses that are seven years outside <strong>the</strong>ir start-up<br />

18 time?<br />

19 A The published statistics are reversed -<br />

20 10 percent will still be <strong>in</strong> bus<strong>in</strong>ess - 7 to 10 percent<br />

21 of a <strong>no</strong>nfranchise start-up bus<strong>in</strong>ess will still be <strong>in</strong><br />

22 bus<strong>in</strong>ess.<br />

23 Q And what publications are you rely<strong>in</strong>g upon to<br />

24 base that <strong>in</strong>formation?<br />

25 A You see those periodically from <strong>the</strong> WALL

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