Day 138 - 20 Jun 95 - Page 77
1 into a criminal matter. They resolved amicably, I am going
2 to call it a cease and desist remedial type agreement.
3
4 Q. Like a prohibition notice?
5 A. Yes. There was what we call a non-admission clause,
6 and that is what was agreed to was that by agreeing to all
7 this there was no finding of any unfair, illegal practices.
8
9 Q. And no admission of MaCale that he had been guilty of
10 anything?
11 A. That is correct. There had been no real adjudication.
12 It was handled administratively.
13
14 Q. Was it actually cured by him or by your people and did it
15 happen again?
16 A. It was cured by him. Our people provided him with the
17 systems and processes and the education and know-how, but
18 he implemented what we suggested he implemented and there
19 has been no recurrence since that time.
20
21 Q. Did he hang on to all 12 stores?
22 A. No, he did not.
23
24 Q. Did you reduce?
25 A. Yes, it was in order to ensure that he could manage his
26 business successfully we amicably agreed that he should
27 reduce the number of stores to ensure, not just in the area
28 that we are talking about but there were some other issues
29 with regard to standards, and we felt that he should reduce
30 the number of stores and there was agreement to do that.
31
32 Q. He greed to that do that?
33 A. Yes.
34
35 Q. Do you know what he went down to in number of stores?
36 A. I believe he went down to four restaurants.
37
38 Q. You said "amicably"?
39 A. Yes, we would have approached him and said that
40 obviously we are very concerned, we will not countenance
41 folks who are not paying attention to what they need to pay
42 attention to. It was not intentional on his part, but he
43 needs to pay attention to what is going on in his
44 business. Since he did not seem to be able to manage 12
45 very well, we seriously recommended to him that he should
46 reduce the number of stores and sell some of those stores
47 to other operators who could, in fact, ensure better
48 management.
49
50 Q. You said "amicably". To be serious for a moment, did you
51 have to lean on him at all?
52 A. Initially we did. Initially we told him how unhappy we
53 were with him and that we would consider some default
54 proceedings, but that we would hope that we could work it
55 out within the McDonald's family so that he could continue
56 as an operator but in a reduced capacity.
57
58 Q. Is he still in business?
59 A. Yes, he is.
60
