Day 120 - 03 May 95 - Page 43


     
     1        issue with us.
     2
     3   Q.   Why should somebody running a restaurant chain in Ireland
     4        need your advice on -- as an English person who has no
     5        idea about the rate of pay in Ireland unless you look into
     6        it specifically -- why should he be looking for your
     7        advice, why cannot he work those things out for himself?
     8        A.  He can, but I did look into them, and I did make myself
     9        knowledgeable of Irish rates of pay in the industry
    10        generally, and I did discuss where he was with his rates of
    11        pay.
    12
    13   Q.   That is because McDonald's dictates to its franchisees?
    14        A.  No, we do not dictate.
    15
    16   Q.   It sets down the conditions for them being allowed to have
    17        franchises, and if they do not comply with those conditions
    18        then they do not get their contracts renewed at the end of
    19        it?
    20        A.  That is in compliance with our method of running
    21        restaurants.
    22
    23   Q.   Which includes personnel matters?
    24        A.  No, he is an independent businessman.  He is not a
    25        personnel man, and we will guide and advise him.  We do not
    26        tell where -- we do not tell any franchisee, in fact --
    27        they may buy their products.  We tell them from where they
    28        may not buy their products, but if they can find a supplier
    29        who we can approve.
    30
    31   Q.   You have to approve them first?
    32        A.  The supplier.
    33
    34   Q.   They cannot actually pick and choose who they want as their
    35        supplier.
    36        A.  No, they can pick and choose and say: "Look, we do not
    37        want to get our buns from Golden West.  I have a baker here
    38        in Dublin" -- which is what he did --"who can produce them
    39        in as good a quality as Golden West, and I do not have the
    40        transportation charges".  So our purchasing people would go
    41        over, our quality control people would go over, make sure
    42        they do meet our standards as baker, and then approve them
    43        as a supplier.  From then on he can use that supplier.
    44
    45   Q.   You could have said no?
    46        A.  We could have said no.
    47
    48   MR. JUSTICE BELL:  Have you actually asked for a copy of the
    49        franchise agreement between this company and-----
    50 
    51   MISS STEEL:  We did not really know they were going to try and 
    52        deny any responsibility and disclaim this. 
    53
    54   MR. RAMPTON:  I object to that most strongly.  If the Defendants
    55        would care to do so, I suggest they read the statement, for
    56        example, of Mr. Stan Stein, and some of the documents that
    57        go with it, then they will understand perfectly well what
    58        the relationship between McDonald's and its franchisees is.
    59        They would understand that if a franchisees steps, what
    60        I might call " seriously out of line" the Corporation will

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