Day 139 - 21 Jun 95 - Page 51


     
     1
     2   Q.   Lay all their attention to?
     3        A.  My Lord, I think I can help you?
     4
     5   Q.   Yes?
     6        A.  My understanding is that Mr. Gibson moved to Puerto
     7        Rico.  He sold out totally his stores.  Again, this
     8        predates me but just to move this thing along I will give
     9        you my understanding of what happened.  My understanding is
    10        that Goldstein and Gibson had several franchises in the
    11        Washington DC area.  They sold all of those franchises to
    12        the Company.  In return for that, obviously they received
    13        some money, but they were also granted the right to go to
    14        Puerto Rico and to also licence McDonald's stores in
    15        central America.  Mr. Gibson, again it is hearsay, moved to
    16        Puerto Rico to run his stores.
    17
    18   MR. MORRIS:  When you came on the scene in 1974, Mr. Gibson you
    19        have said sold his terminated franchise to Don Miller?
    20        A.  Yes.
    21
    22   Q.   How long had Mr. Gibson been running the stores in Puerto
    23        Rico then, approximately?
    24        A.  For years, 10 years, 12 years.  My problem is I know a
    25        lot of that happened in the 60s, I do not know if it was
    26        63, I do not know if it was 65, I do not know if it was 68.
    27          I just know in general what has been articulated around
    28        the Company is that in the 60s.
    29
    30   Q.   So it is not unusual when you opened up in a place, or when
    31        new markets have been developed, for people to run stores
    32        who were not living in ----
    33        A.  That is not what I said.  That is not what I said.
    34
    35   Q.   Mr. Gibson was opening up, or had the right to open up
    36        franchises ----
    37
    38   MR. JUSTICE BELL:  Can you speak about what the practice was in
    39        the 60s?
    40        A.  I can tell you in the 70s.
    41
    42   Q.   We are not talking about the 70s.  Can you say what the
    43        practice was in the 60s?
    44        A.  I am assuming it is the same as existed in the 70s
    45        because I have never heard anything to the contrary, that
    46        if, in fact, you are going to operate a store in a
    47        particular area, you may not have been living in that area
    48        but you had better well move to it.  For example, if
    49        someone is living in Chicago and is awarded a franchise in
    50        California, that person has to move to that community in 
    51        California otherwise we will not give them the restaurant. 
    52 
    53   MS. STEEL:  It says in your statement about Mr. Gibson selling
    54        his terminated franchise to Don Miller in 1974?
    55        A.  Correct.
    56
    57   Q.   Mr. Gibson had already been terminated by then?
    58        A.  Yes, that is a legal proceeding.
    59
    60   Q.   What involvement did McDonald's have in the selling of that

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