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

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