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
