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

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68<br />

1 requir<strong>in</strong>g, correct?<br />

2 MR. LIGHTY: Object to <strong>the</strong> form.<br />

3 A Well, okay. Franchis<strong>in</strong>g is tak<strong>in</strong>g <strong>the</strong><br />

4 <strong>in</strong>tellectual property of a company that owns it and<br />

5 licens<strong>in</strong>g someone else. So, it is <strong>no</strong>t about power. It<br />

6 is about <strong>the</strong> franchisee say<strong>in</strong>g, "I accept this<br />

7 obligation. When I become your franchisee and when you<br />

8 license me, I accept <strong>the</strong> right I have to be obligated to<br />

9 your systems."<br />

10 So, <strong>the</strong> power th<strong>in</strong>g only comes <strong>in</strong> when I<br />

11 decide <strong>no</strong>t to do it because it is my <strong>in</strong>tellectual<br />

12 property, <strong>no</strong>t yours.<br />

13 Q And my question, I guess, was a bad question.<br />

14 If a franchisor requires someth<strong>in</strong>g be<br />

15 done, is that <strong>in</strong> your op<strong>in</strong>ion different than when <strong>the</strong>y<br />

16 can only recommend someth<strong>in</strong>g be done?<br />

17 A If <strong>the</strong> operat<strong>in</strong>g system recommends someth<strong>in</strong>g,<br />

18 <strong>the</strong>n it is <strong>no</strong>t a requirement.<br />

19 Q But what is a requirement?<br />

20 A Someth<strong>in</strong>g that is part of <strong>the</strong> operat<strong>in</strong>g<br />

21 system.<br />

22 Q What does it mean to be part of <strong>the</strong> operat<strong>in</strong>g<br />

23 system? Does it mean that <strong>the</strong>re is some - a control<br />

24 factor for <strong>the</strong> franchisor?<br />

25 A Well, <strong>the</strong>re is always a control factor because

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