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

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1 Q Do they qualify under that definition?
2 A Yes.
3 Q And why is that?
4 A Because they have the elements of a franchise
5 system. They have a business format franchise system.
6 Q And can you explain to the jury how a
7 franchisor such as ADQ conducts their business --
8 MR. LAWDERMILK: Object to the form.
9 Q -- develops their business and increases their
10 business?
11 MR. LAWDERMILK: Object to the form.
12 A Well, a company like ADQ increases its
13 business by a couple of different ways. The first thing
14 is -- The first rule of thumb is everything begins and
15 ends with the person to whom you grant the franchise.
16 If you grant a franchise to the right person, then you
17 are going to have higher average in a volume, better
18 customer service. That will create higher volumes and
19 higher revenues for the franchisor who makes money when
20 the franchisee makes money, and they get a share of the
21 customer's money called a royalty. The more successful
22 units there are, the more they make money and the more
23 the brand means positive things.
24 Q Let me hand you what has been marked as Gappa
25 Exhibit 13. If you will, turn that over and identify