Day 139 - 21 Jun 95 - Page 03

     2   Q.   Do you have a consulting responsibility with all countries?
     3        A.  I have a general overall consulting responsibility.
     4        Some of those countries, I have not been to, personally,
     5        but I have an overall responsibility.
     7   Q.   Right; and that responsibility is providing them with
     8        advice and things like that?
     9        A.  Yes.
    11   Q.   What else does it cover?
    12        A.  That is what it covers.
    14   Q.   Just giving them advice on the Company's policies; is that
    15        correct?
    16        A.  That is correct.
    18   Q.   Would it be taking some kind of action if they strayed
    19        beyond the bounds of what the Company considered
    20        acceptable?
    21        A.  I do not have the authority to take action against
    22        someone, no.
    24   Q.   Who would have that authority?
    25        A.  It depends upon the licensing agreement.  If you are
    26        talking about our president -- I am not sure exactly what
    27        you are talking about.
    29   Q.   Well, if ----
    31   MR. JUSTICE BELL:  Give an example of something you have in
    32        mind.
    34   MS. STEEL:  If a branch in a particular country was not adhering
    35        to your set standards, who would take that decision?
    36        A.  I would -- obviously, I would speak with the
    37        individual, I would counsel with them, advise them what
    38        I thought was appropriate.  I think I have mentioned
    39        earlier that they are the managing directors of their
    40        countries and they have a right to make the decision as
    41        relates to their country.
    43   Q.   But if they were not adhering to your policies, you can --
    44        not you, personally, but the Company -- cut them off and
    45        say: "Hey, we do not want you running this any more"?
    46        A.  No, I do not agree with that.  I think one of the
    47        things that I mentioned yesterday was that the reasons for,
    48        say, in the joint venture area, for having these folks was
    49        that they should manage their country.  We should provide
    50        them with our advice and counsel, but their laws are 
    51        different, their culture is different; and the purpose of 
    52        them being there is to make decisions. 
    54   Q.   In the franchise agreements that you have, you set down
    55        certain conditions, do you not, that they are to follow
    56        your instruction manual, and things like that?
    57        A.  They are obligated to produce certain standards of
    58        quality, service and cleanliness.  They are not required to
    59        follow precise manuals, or things such as that.

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