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

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52<br />

1 A Actually it is a little bit broader than that.<br />

2 The standards are a reflection and a documentation of<br />

3 <strong>the</strong> operat<strong>in</strong>g system. So, <strong>the</strong>y are a subset of <strong>the</strong><br />

4 operat<strong>in</strong>g system; and what is really happen<strong>in</strong>g -<br />

5 particularly <strong>in</strong> <strong>the</strong> Marble Slab case - is <strong>the</strong><br />

6 standards - <strong>the</strong> lack of follow<strong>in</strong>g <strong>the</strong> standards<br />

7 reflected that <strong>the</strong> operat<strong>in</strong>g system itself was <strong>no</strong>t be<strong>in</strong>g<br />

8 implemented, damag<strong>in</strong>g <strong>the</strong> customer experience and,<br />

9 <strong>the</strong>refore, <strong>the</strong> purpose of be<strong>in</strong>g <strong>in</strong> bus<strong>in</strong>ess.<br />

10 The philosophy of default - which you<br />

11 would f<strong>in</strong>d if you had to read that article - is that <strong>the</strong><br />

12 franchisor makes decisions after <strong>the</strong> franchisee makes<br />

13 <strong>the</strong>irs so that <strong>the</strong> franchisee <strong>in</strong> <strong>the</strong> philosophy of that<br />

14 article and our company, <strong>the</strong> franchisee is really by<br />

15 <strong>the</strong>ir actions or <strong>in</strong>actions requir<strong>in</strong>g and ask<strong>in</strong>g that<br />

16 <strong>the</strong>y be defaulted.<br />

17 The franchisor really has <strong>no</strong> choice often<br />

18 <strong>in</strong> <strong>the</strong> matter because a franchise relationship is <strong>no</strong>t<br />

19 l<strong>in</strong>ear. It is contextual and an <strong>in</strong>dividual franchisee<br />

20 can't go after a<strong>no</strong><strong>the</strong>r franchisee who is out of<br />

21 compliance. That's <strong>the</strong> function and role and<br />

22 responsibility of <strong>the</strong> franchisor to <strong>the</strong> rest of <strong>the</strong><br />

23 community of ei<strong>the</strong>r company-operated stores or franchise<br />

24 locations.<br />

25 Q So, <strong>in</strong> fact, a franchisor - <strong>no</strong>t just for

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