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

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26 1 Q And so far -- And you worked for them until, I 2 guess, 1981? 3 A Yes. 4 Q Did you have any responsibilities regarding 5 the franchise or franchisee relationship in that job 6 position? 7 A No. 8 Q Prior to 1981, did you have any training, 9 education, or job experience regarding the 10 franchisor-franchisee relationship? 11 A I did, but I didn't know it until I got into 12 franchising and saw that past experience was relevant. 13 Q Where did you get that past experience prior 14 to 1981? 15 A At the St. Joseph Educational Center and at 16 Batten, Batten, Hudson & Swab - both. 17 Q Were either one of those places franchisees or 18 franchisors? 19 A Well, interesting point: The Catholic church 20 can be called a franchise with the Bishop being the area 21 developer and the individual units being franchisees. 22 It fits the criteria in retrospect. 23 Q So, in your expert opinion, the Catholic 24 church is run like a franchise? 25 MR. LIGHTY: Objection. Form.
27 1 A Yes, as a matter of fact. When -- I think the 2 major newspaper in Toronto is the STAR - I'm not sure - 3 but it's the equivalent of the NEW YORK TIMES. They 4 have a magazine section. One time I was working in 5 Toronto. By coincidence, the magazine had the Cardinal 6 Archbishop of Toronto on front; and it said CEO of a 7 billion-dollar franchise. 8 MR. LAWDERMILK: I need to object to the 9 nonresponsive portion. 10 Q (By Mr. Lawdermilk) What did you do in 1981? 11 A Started Management 2000. 12 Q What is Management 2000? 13 A It is a consulting company that specializes in 14 multiunit retailing with a particular focus on multiunit 15 retailing as it pertains to the franchise business 16 strategy. 17 Q And you have to dumb it down for me. What 18 does that mean? What do you do? 19 A We help companies that already are franchised 20 that might be billion-dollar companies do a better job 21 at that. We help mid-range companies rewrite their 22 operations manuals, write business plans, marketing 23 plans, figure out who the best candidate would be for 24 their franchise to operate it, do various communication 25 strategies, and we help and assist people who have never
Page 1 and 2: NO. B-000119-C MELINDA MATTHEWS, IN
Page 3 and 4: 3 1 I N D E X 2 Page 3 Appearances
Page 5 and 6: 5 1 P R O C E E D I N G S 2 THE VID
Page 7 and 8: 7 1 Q Have you ever been to AA meet
Page 9 and 10: 9 1 A When you add philosophy to Go
Page 11 and 12: 11 1 proceedings regarding the divo
Page 13 and 14: 13 1 Q Okay. And nothing is in here
Page 15 and 16: 15 1 Q Well, awhile ago there was a
Page 17 and 18: 17 1 go call the Judge and we will
Page 19 and 20: 19 1 correct. 2 Q I asked you if th
Page 21 and 22: 21 1 A No, I did not. 2 MR. LAWDERM
Page 23 and 24: 23 1 A No. 2 Q Do you hold any cert
Page 25: 25 1 '75, '76. 2 Q Why did you leav
Page 29 and 30: 29 1 A Don't remember. 2 Q Don't re
Page 31 and 32: 31 1 franchises? 2 A The franchise
Page 33 and 34: 33 1 Q Have you ever been to it? 2
Page 35 and 36: 35 1 Q Are you saying that you are
Page 37 and 38: 37 1 Q So, then they would be diffe
Page 39 and 40: 39 1 Q (By Mr. Lawdermilk) You have
Page 41 and 42: 41 1 Q So, I'm going to take it tha
Page 43 and 44: 43 1 Q Let me just clean it up for
Page 45 and 46: 45 1 Q That's all I'm trying -- I'm
Page 47 and 48: 47 1 an employee. 2 Q So, this was
Page 49 and 50: 49 1 Exhibit 7 on it. 2 MR. LIGHTY:
Page 51 and 52: 51 1 A Brian Swift is the name. As
Page 53 and 54: 53 1 themselves, but for their cust
Page 55 and 56: 55 1 subsets below it, right? 2 A T
Page 57 and 58: 57 1 the invoice. I don't -- I assu
Page 59 and 60: 59 1 in nonlegal-related areas, and
Page 61 and 62: 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 and 114:
113 1 uses when it sends people int
Page 115 and 116:
115 1 A That would be American Dair
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
Page 197 and 198:
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
Page 203 and 204:
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
Page 219 and 220:
219 1 A Doesn't exist. 2 Q Okay. Wh
Page 221 and 222:
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
Page 267 and 268:
267 1 I, ROBERT A. GAPPA, have read
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