Day 123 - 09 May 95 - Page 51


     
     1        a good working relationship with our franchisees; I think,
     2        in large part, we do.  There would be no reason why they
     3        would not want to share that information with us.  They are
     4        paying for it.  I mean, we are there to assist them.  We
     5        are there to help them be more successful.
     6
     7        So, if they are having problems in whatever area it might
     8        be, the more informed we are, the better able we are to
     9        provide assistance and counsel to them.  So for them to
    10        stonewall us on providing information about the operation
    11        of their business, I mean, that is in their -- that is
    12        certainly not in their best interests, so it has been my
    13        experience that they would be forthcoming with whatever
    14        information we would request.
    15
    16   Q.   But, I mean, if it came to a dispute about it, would you be
    17        able to say:  "We want to see those papers; you have to
    18        show them to us.  That is part of the agreement"?
    19        A.  Generally, no.  I mean, if we asked them to show us
    20        their labour schedule, you know, for last week, they do not
    21        have to give us that information.  If there is information
    22        that is pertinent to -- and that is important information
    23         -- but if there is information that is pertinent and
    24        important to ascertaining whether or not they are running
    25        the business effectively or, perhaps, violating some law
    26        with regard to that labour schedule, that they might be
    27        working minors passed a certain hour or above a certain
    28        maximum number of hours for a day or a week, then we would
    29        need to know that information.  We could require that
    30        information.
    31
    32        But, outside of that, outside of that, it is not our
    33        practice to demand that kind of information.  We give them,
    34        as I indicated earlier, broad parameters in which to
    35        operate, but just to make sure that they are not doing
    36        anything that would in any way impugn the good reputation
    37        of McDonald's, we could request certain documents, certain,
    38        you know, information.
    39
    40   Q.   So, you have the power to require documents if you
    41        reasonably believe you need to see them but, in general,
    42        you would not be using that power, you would be doing it
    43        based on trust?
    44        A.  That is right.
    45
    46   Q.   Is that fair?
    47        A.  We have a working relationship with them where there is
    48        a free sharing of information.  We give them information.
    49        They provide us with information.  They are a very, very
    50        valuable source of information to the McDonald's system. 
    51        By that I mean that many of the things that we do today are 
    52        the direct result of input that we have received from our 
    53        franchisees.
    54
    55        Some of the procedures, operating procedures, that have
    56        been implemented have really come at the suggestion of our
    57        franchisees.  So, there is a free sharing of information;
    58        it is not just one way, us giving them information and
    59        telling them how they ought to do things.  They have come
    60        back with us with many recommendations and embellishments

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