Day 140 - 22 Jun 95 - Page 49


     
     1        not pay attention that closely to those numbers.
     2
     3   Q.   Do you know about what kind of profit the franchisees make?
     4        A.  It will vary from no profit to profit.
     5
     6   Q.   Is it fair to say that -- obviously, that is not profits --
     7        but gross on average 1.6 million a year, at that time?
     8        A.  You are talking about sales?
     9
    10   Q.   Does that ring true of sales?  Have you seen any kind of
    11        figure for that time about how much either they took in
    12        sales on average or they made in gross profit on average?
    13        A.  I would not see gross profit but, with regard to sales,
    14        1.5, 1.6 would be correct.
    15
    16   Q.   You do not have any idea about the profits?
    17        A.  No, I do not, because they will vary tremendously from
    18        folks losing money to people making money; and I should
    19        back up a little bit, because the current sales average is
    20        about 1.5/1.6.  I do not know what it was back then.  So
    21        I do have to correct myself.
    22
    23   MR. JUSTICE BELL:  Just reading the words as they appear there
    24        -- I do not know what the basis for them is -- that would
    25        cover, at the one end, a businessman or woman who had
    26        franchise and one restaurant and another who had a
    27        franchise and a dozen restaurants?
    28        A.  Yes, my Lord.
    29
    30   Q.   It is taken as the average of them all?
    31        A.  That is what I assume, my Lord.
    32
    33   MS. STEEL:  If you can go on to tab 85, page 1455, in the third
    34        column?
    35        A.  You are at 1445?
    36
    37   Q.   55 -- The Philadelphia Daily News on 17th November 1989.
    38        Have you got that?
    39        A.  OK.
    40
    41   Q.   In the third column, at the bottom, there is a quote
    42        attributed to Frank Geeghan.  I do not know whether I have
    43        pronounced it right.
    44
    45   MR. JUSTICE BELL:  Does that name ring any bells?
    46        A.  Yes.  He would have been the marketing manager at that
    47        time in the Philadelphia region.
    48
    49   MS. STEEL:  What is attributed to him there?
    50        A.  I think the words speak for themselves.  I do not know 
    51        if he said it or not, but the words are there. 
    52 
    53   Q.   Would you say that was an explanation that you would adopt?
    54        A.  Not necessarily.  This is a marketing guy talking.
    55
    56   Q.   What reasons would you give for the difference in wages in
    57        the suburbs and inner cities?
    58        A.  I do not think there is a -----
    59
    60   MR. RAMPTON:  My Lord, with respect, what difference?

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