Free Notice (Other) - District Court of Colorado - Colorado

Case 1:04-cv-01062-ZLW-BNB
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2 3 4 5 6 7 Q.

Document 134-3
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Filed 02/14/2006
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D u r i n g t h e p e r i o d o f t i m e t h a t you were

1 owning a f r a n c h i s e .
Do you c o n s i d e r y o u r s e l f f r i e n d s today? Yes. I d o n ' t have any o t h e r q u e s t i o n s . Thank

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w o r k i n g under t h i s c o n t r a c t , d i d you f i n d t h a t Q u i z n o ' s d i d a n y t h i n g t o h i n d e r your a b i l i t y t o s e l l i n Alabama? A. Q. NO. I n g e n e r a l , have you found t h a t Q u i z n o ' s

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you v e r y much f o r your t i m e .

Mr. Silverman may
I d o n ' t know.

want t o ask you a q u e s t i o n o r two.

has done t h i n g s - - and I ' m i n t e n t i o n a l l y u s i n g a broad term t h e r e - - t h a t have h i n d e r e d your a b i l i t y t o s e l l i n A t l a n t a o r i n Alabama? A.
Q.

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M R . SILVERMAN: q u e s t i o n o r two. l i t t l e break? THE WITNESS:

Probably more than a Do Y O U want t o t a k e a

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NO. Do you b e l i e v e i n the p r o d u c t y o u ' r e

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12 13 14 15 16 17 18 19 20 21

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No.

Go ahead.

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s e l l i n g when you s e l l f r a n c h i s e s t o Q u i z n o ' s folks?
A.

CROSS EXAMINATION

Yes. D i d M r . Gwin express any c o m p l a i n t s t o

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BY MR. SILVERMAN: Q. When d i d you t a k e area d i r e c t o r

Q.

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you about Q u i z n o ' s d u r i n g t h e p e r i o d o f time you worked w i t h him? A. I ' m t h i n k i n g back.
I guess he was

training? A. Q.
I t was i n

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I b e l i e v e i t was 2002.

Not r e a l l y

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And was t h i s a t your own v o l i t i o n o r d i d

complaints.

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I guess I k i n d o f

somebody t e l l you you s h o u l d be d o i n g t h i s ? A.
I had the o p t i o n w i t h t h e gentleman t h a t

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f e l t t h e concern he had f o r h i s t e r r i t o r y . Q. A. What do you mean by t h a t ? The concern t h a t he m i g h t l o s e i t . D i d he express any c r i t i c i s m s . 82

I worked f o r i n A t l a n t a , and I took him up on the

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o p t i o n t o l e a r n more about i t .

Q

Q.

DO Y O U a c t u a l l y g e t a c e r t i f i c a t e when

1 c o m p l a i n t s - - I d o n ' t want t o t i e you t o a word.
2 3 b u t n e g a t i v e a s p e c t s , c o m p l a i n t s about Q u i z n o ' s as i t r e l a t e d t o h i s a b i l i t y t o s e l l o r develop t h e market, a n y t h i n g t h e y were d o i n g o r n o t doing? A. NO, because I f e l t

1 you complete?
2 A. Q. I d o n ' t remember. So n o t h i n g on your w a l l r i g h t now i n

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terms o f a diploma? A. I d o n ' t know i f i t would be on m w a l l . y Now. I want t o show you E x h i b i t 2 , which

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he f e l t l i k e he

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Q.

had addressed t h e s a l e s p o r t i o n w i t h t h e h i r i n g o f myself. Now, what I t y p i c a l l y d i d when I s o l [ And so as I sar

i s p a r t o f a manual c a l l e d How t o B u i l d a Market. Have you seen t h i s manual o r something l i k e i t ? A. NO. There i s t a l k about w i t h i n t h i s , and

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somebody i s t u r n i t over t o him.

s t o r e s g e t t i n g opened. I saw t h a t he was d o i n g

Q.

1 1 h i s job.
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1 1 t h i s comes up i n v a r i o u s Q u i r n o ' s l i t e r a t u r e .
12 13 14 15 16 17 18 19 20 phases. Phase one, i t says zero t o two s t o r e s .
It

Q.

A f t e r Q u i z n o ' s t e r m i n a t e d t h e area

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d i r e c t o r s h i p , d i d - - you d e s c r i b e d the phone c a l l wherein t h a t M r . Gwin communicated t h a t i n f o r m a t i o n t o you. D i d you have any

remember your f i r s t u n i t s must be r i g h t . t a l k s about where t o go i n phase one.

Id o n ' t

know i f you can read t h i s w i t h o u t your g l a s s e s . A. Q. I can see t h a t . And then i t t a l k s about phase two d u r i n g And then t h e r e i s a phase t h r e e

c o n v e r s a t i o n s w i t h him between today and t h a t phone c a l l ? A. Q. I t a l k e d t o him maybe t w i c e . And t e l l m what those c o n v e r s a t i o n s e

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your t r a i n i n g . and f o u r .

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Do you remember t h a t i t was broken up

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were about. A. J u s t k i n d o f c a t c h i n g up, because we J u s t s e e i n g w h a t ' s happening i n

i n t o phases d u r i n g t h a t t r a i n i n g p e r i o d ? A. NO, i t w a s n ' t . I t h i n k our course

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became f r i e n d s . o u r market.

w a s n ' t as i n t e n s e as t h e area d i r e c t o r t r a i n i n g f o r t h e a c t u a l area d i r e c t o r s . I t h i n k t h i s was

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He was s t i l l p a r t o f Q u i z n o ' s i n

2 1 of 32 sheets

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1 j u s t more l i k e a k i n d o f a r e - e d u c a t i o n .
2 3 4 5 6 7 8 9 10 t h e y r e a l l y d i d n ' t go i n t o t h a t p a r t . more s i g n i n g , c o n s t r u c t i o n ,

Case 1:04-cv-01062-ZLW-BNB

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And They d i d

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Filed 02/14/2006
A.

Because as a f r a n c h i s e , when people t r y

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t o o b t a i n i n f o r m a t i o n about e a r n i n g s c l a i m s , t h e o n l y p l a c e t h e y can o b t a i n t h a t i n f o r m a t i o n i s through t h e f r a n c h i s e e s , and t h a t i s a v a l i d a t o r store.

real estate.

Q.

So more from a f t e r s i g n i n g o r - - oh.

l e s s from how t o b u i l d - A.
I t was more

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i t was more on the

Q.

And so I t h i n k we a l l know what t h a t i s .

l e g a l i t i e s of contracts. Q. A. A l l right. Ten day, t h e r e c e i p t page, a l l t h i n g s

b u t Since t h i s i s i n t h e r e c o r d , i s an e a r n i n g s c l a i m s a l l o w e d t o be made by t h e person s e l l i n g the f r a n c h i s e from the f r a n c h i s e r ' s v i e w p o i n t ? A. Q. NO. And what p r o h i b i t s a s e l l e r from making Do you know why he

l i k e t h a t , how do you s i g n a c o r p o r a t i o n as

1 1 opposed t o e n t i t i e s , o r e n t i t i e s o r i n d i v i d u a l s .
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I t r e a l l y d i d n ' t go i n t o t h e phases o f stages o f

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an e a r n i n g s c l a i m s ? A. The s e l l e r ? Yes.

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markets.

Q.

W e l l , when w e ' r e t a l k i n g about - -

Q.
A.

Do you know why he c a n ' t ?

e a r l i e r you t a l k e d about the t h r e e phases, t h e t h r e e p o s s i b l e phases of s e l l i n g , s i t e m o t i v a t e s . t h e n you s a i d t h a t g e n e r a l l y i t would go t o a p e c k i n g o r d e r and then i t would go t o t a r g e t A. Q. A. Markets.

I t ' s r e g u l a t e d by t h e F e d e r a l Trade I t ' s against the law.

Commission. Q.

And j u s t f o r m i n f o r m a t i o n , how would y

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you C a t e g o r i z e o r summarize what an e a r n i n g s claims i s ? A. When someone asks you how much t h e y can

- - markets.
And t h a t ' s p r e t t y much what I ' v e seen And I ' v e had t h e freedom t o

make o r what percentage o f t h e money they c o u l d t a k e home, because we c a n ' t d i s c l o s e t h e n a t i o n a ' average, we cannot d i s c l o s e a percentage o r a ne. 88

and what I ' v e done.

do my market t h a t way. 86

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Q.

A l l right.

I s t h a t , as a g e n e r a l r u l e .

1 o f t h a t n a t i o n a l average.
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t h e progression ify o u ' r e s t a r t i n g i n a f r e s h m a r k e t , t h a t you go i n i n t h a t o r d e r ? A.
I t h i n k i t ' s a good i d e a , yes.

Q

And from your knowledge, was i t r o u t i n e

b o t h i n A t l a n t a and i n Alabama t o make use o f an e x i s t i n g franchisee t o give t h a t information? A. NO. W e l l , I d i d n ' t mean through the

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Q.

Now, d u r i n g your t r a i n i n g , d i d you ever

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hear somebody l e c t u r e from Q u i z n o ' s , o r o t h e r w i s e i n p a r t , t h a t t h e f i r s t u n i t s must be c a r e f u l l y Chosen and they must be r i g h t as v a l i d a t o r s ? t h a t come up d u r i n g your t r a i n i n g i n 20021 A. I d o n ' t remember those words, no. Does t h a t make sense t o you t h a t the Did

Q.

f r a n c h i s e r , b u t from your knowledge, i s i t wrong i f a p r o s p e c t asks t h a t q u e s t i o n o f an i n d i v i d u a l franchisee? A. Yes, t h a t ' s f i n e . NOW, i s t h e r e a l s o i n t h e v a l i d a t i o n

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Q.

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Q.

f i r s t s t o r e s may be d u r i n g the s i t e m o t i v a t e d p a r t where you s a i d you p i c k o u t a r e a l good s i t e , t h a t t h a t i s a r u l e o f thumb? A. Absolutely. And by t h e t i m e you came i n March o f

process any b e n e f i t i n s e e i n g an open s t o r e f o r ; p r o s p e c t i v e f r a n c h i s e e and be a b l e t o touch t h e product? A. Q. A. AS opposed t o h a v i n g no s t o r e s open? Yes. Yes. And w h a t ' s t h e b e n e f i t ? The b e n e f i t i s t o see t h e system. Now, these

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16 17 18 19 20 21 22 23 in.

Q.

2001, i t was. y o u ' r e remembering 10 s t o r e s , so i t was beyond the s i t e m o t i v a t e d p a r t ? A.
Ifi t i s i n t h e 10 s t o r e s when I came

Q.
A.

Q.

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when you d i d have
I know

Q.

And why, from your p e r s p e c t i v e , i s i t

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p r o s p e c t s , what was your g e n e r a l r o u t i n e ?

i m p o r t a n t t o have what you c a l l the v a l i d a t o r store?

you t a l k e d t o them a t an open house, those 75 p e r c e n t t h a t you met through open houses.
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Case 1:04-cv-01062-ZLW-BNB
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2 A. uh-huh. Yes.

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Filed 02/14/2006
faster. Q. A. A l l right.

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Q.

I f t h e y were s t i l l i n t e r e s t e d , what was

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generally the next step? A. What I would do i s I would

Quizno's i s the best a t t h a t . A t what s t a g e i n December of 2003

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1 would do

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most o f my c o n s u l t a t i o n by phone.

And a f t e r t h e

know you s a i d i t was an emerging m a r k e t , b u t do you b e l i e v e i t reached a c r i t i c a l mass i n terms o f t h e f l o w would be e a s i e r ? A. Yes. AS we add s t o r e s and we have more

10 days; I would s e t up meetings t o c l o s e . Because I was coming so r a r e l y t o Alabama. I would t r y t o do as much as I c o u l d o v e r t h e phone. Q. D i d you h e l p make arrangements d u r i n g

brand r e c o g n i t i o n . I b e l i e v e t h a t t h e - e v e r y t h i n g goes w i t h t h e l e a d s . The l e a d s go up

1 1 t h a t i n t e r i m p e r i o d f o r them t o v i s i t t h e s t o r e ? 12
13 1 4 15 16 17 18 19 20 21 22 23 A. Q. NO. Do you know i f t h e y , i n g e n e r a l , v i s i t e d

then the q u a l i f i e d leads o f the people t h a t s i g n e d up go up. The more s t o r e s t h a t a r e o u t

t h e r e , y o u ' r e g o i n g t o have good and bad v a l i d a t o r s , so t h e r e i s more t o go t o . Q. A. 4. A l l right. So. y e s . W i t h t h a t i n mind, where would you say

the store? A. Q. A. Q. A. NO. You d o n ' t know one way o r a n o t h e r ? Sometimes t h e y d o n ' t . Sometimes t h e y do? Correct. Okay. Most t i m e s t h e y d i d ,

t h e market was i n December o f 2004 i n terms o f r e a c h i n g a c r i t i c a l mass? A. Q. What's t h e p o p u l a t i o n o f Birmingham? D i d I say - -

b u t you never know, because you c a n ' t d i r e c t the1 where t o go. Q. list? 90 W e l l , do you make a v a i l a b l e t o them a

MR. MACPHEE:

Io b i e c t t o the form

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A. Q.

The l i s t i s i n t h e UFOC. And i t would show t h e opened s t o r e s

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MR. SILVERMAN:

I n which

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how can

I cure i t ?
MR. MACPHEE:

t e r r i t o r y by t e r r i t o r y ? A. Q. Yes. And does t h e l i s t i n t h e UFOC c o n t a i n

By g e t t i n g t h e r i g h t

year.
MR. SILVERMAN:

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T h a t ' s a good way.

o t h e r i d e n t i f i e d i n f o r m a t i o n so t h a t t h e y can a c t u a l l y g e t t h e r e , l i k e phone number? A. Q. A. 9. Yes. And a name? Yes. I ' m g e t t i n g t h e f e e l i n g when y o u ' r e

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Q.

I n December o f 2003. where was t h e

m a r k e t i n y o u r v i e w i n terms o f t h i s c r i t i c a l mass? A.
I d o n ' t know.

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12 of 126

Q.

You mentioned t h a t M r . Gwin was v e r y I n what areas d i d you see him as

t a l k i n g about emerging m a r k e t s and green m a r k e t s t h a t t h e r e a r e some c r i t i c a l mass i n terms o f t h t f r a n c h i s e e s a l e s where i t becomes e a s i e r a t a C e r t a i n p o i n t where you have a c e r t a i n number of Stores. A. A I p i c k i n g t h a t up a c c u r a t e l y ? m Yes. It's

knowledgeable.

v e r y knowledgeable? A. I t h o u g h t M r . Gwin complimented

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or I

complimented what he d i d , because I

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I guess I

can s e l l t h e v i s i o n and p u t p e o p l e i n b u s i n e s s and t h e n he a c t u a l l y has t o do t h e work t o p u t them i n b u s i n e s s . that. So t h a t was h i s p o r t i o n o f

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when you g e t s t a r t e d , i t ' s But when you g e t t o g o i n g

a l l about l o c a t i o n .

s t r o n g , you can a c t u a l l y do what we t a l k e d about e a r l i e r , which i s a l i s t . I t ' s harder t o s e l l

Q.

Did

YOU

e v e r have any c o m p l a i n t s come

somebody t o g e t on a l i s t t h a n i t i s t o g e t an actual location. And so as y o u ' r e g r o w i n g and

back t o you a f t e r you t u r n e d p e o p l e o v e r t o him t o continue the process? D i d anyone e v e r c a l l

23 b u i l d i n g , you go t o t h a t so you can develop 23 of 32 sheets Page 89 1

you and c o m p l a i n t o you about h i s p r o f e s s i o n a l i s m

1 or attention t o d e t a i l ?
2 3 A.
Q

Case 1:04-cv-01062-ZLW-BNB
NO.

Document 134-3

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So you m i g h t as w e l l

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g e t them w o r k i n g f o r you.

D i d anyone ever compliment him i n t h a t

Q.

D i d t h a t k i n d of synergy work i n A t l a n t a

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a r e a , o f t h e people t h a t you worked w i t h ? A. NO. I d i d n ' t have c o n t a c t w i t h them.

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from t i m e t o t i m e i n terms o f h a v i n g r e a l e s t a t e b r o k e r s h e l p you c l o s e ? A. Every d e a l . Now, you a t t e n d e d , you s a i d , f o u r BAM's What year d i d yc

Q.

D i d you end up as p a r t of t h e process

meeting any o f t h e e x i s t i n g f r a n c h i s e e s ? A. Yes. And about how many of them d i d you meet? TWO. 00 you remember t h e i r names? One bought a second l o c a t i o n . Hodges? H i s name was Hemant. No. He bought two

Q.

a year, o r approximately t h a t . f i r s t b e g i n t o a t t e n d BAM's? A. Q. A. January o f 2001. Now

Q.
A.

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I

Q.
A.

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-January 2002. Now. I d o n ' t know i f you can

I ' m sorry. Okay.

Q.
A.

Q.

remember one B M from another BAM, b u t i n t h i s A case t h e r e has been some d i s c u s s i o n about a BAN i n 2002, December o f 2002, i n which Mr. Schaeffe addressed groups o f people who may have been thought t o be on t h e bubble, t h a t i s area directors. A. Yes. Do you have any r e c o l l e c t i o n o f a

new ones. Q. A. A l l right. And t h e o t h e r one had a s t o r e on 280.

I t was a p r e s e n t f r a n c h i s e e t h a t I t a l k e d t o once
about a second l o c a t i o n .

Q

D i d you have a chance t o g e t any

i n f o r m a t i o n from them as t o how M r . Gwin s e r v i c e d them and whether they were s a t i s f i e d w i t h h i s s e r v i c e s as area d i r e c t o r ?

Q.

meeting around t h a t t i m e where M r . S c h a e f f e r may have addressed t h e group about Q u i z n o ' s a t t i t u d e 96

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A.

NO. D i d t h e y make any c o m p l a i n t s t o you

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towards area d i r e c t o r s who may n o t have been up t o quota a t t h a t t i m e ? A. Yes. What do you r e c a l l about t h a t meeting

Q.

about h i s s e r v i c e s as area d i r e c t o r ? A. NO. You mentioned a Mr. Mead as a r e a l

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Q

Q.

and what d i d he say? A. I remember they t o l d m t o l e a v e - e Oh.

estate broker. A. Yes. Where d i d you f i n d him? Through M r . Gwin. Had Mr. Gwin a l r e a d y been working w i t h

Q
A.

Q.
A.

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- - because I wasn't on t h e c o n t r a c t .
A l l right. Because t h e r e has been ~ u then you a t t

Q

Q.

testimony about t h a t meeting.

1 1 him by the t i m e you came onboard?
12 13 14 A. Yes. And what was h i s l e v e l o f

1 1 l e a s t remember t h e b e g i n n i n g o f i t ?
12 A. That's r i g h t . Now, t h e r e has been some t e s t i m o n y from
YOU

Q.

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I know you

13 14

Q.
- - do
A.

p r o b a b l y met a l o t o f r e a l e s t a t e agents i n your life. How do you rank him i n terms o f Mr. Meads'

know Steve S c h a e f f e r ?

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Yes. And who do you b e l i e v e him

p r o f e s s i o n a l i s m and commitment? A.
I t h i n k he was v e r y good and I t h i n k he

Q.

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I know

h e ' s a s s o c i a t e d w i t h Q u i z n o ' s , b u t what f u n c t i o n does he now serve a t Q u i z n o ' s ? A. He's the president o f Quizno's. I n 2002 and 2003. do you know what

p r o b a b l y helped m c l o s e t h r e e d e a l s j u s t through e h i s r e a l e s t a t e knowledge.

I'

Q.
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And i s t h a t a f u n c t i o n t h a t you see

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21 22

Q.

o t h e r r e a l e s t a t e b r o k e r s do i n c o n j u n c t i o n w i t h y o u r s k i l l s , h e l p you c l o s e a d e a l ? A. Yes, because t h e r e a l e s t a t e b r o k e r

f u n c t i o n he served? A. He was an e x e c u t i v e v i c e p r e s i d e n t . And d e a l i n g w i t h what area? 24 of 32 sheets

20

23

23 Page 93 to 96 of 126

Q.

1
2 3 4

Case 1:04-cv-01062-ZLW-BNB
A.

Document 134-3
1 2
3 4

97

Filed 02/14/2006
MR. MACPHEE: Go ahead.

Page 5 of 21

99

I b e l i e v e he was i n the development.
And t h a t would be t h e same you were

Object t o relevance.

Q.

working i n , t r y i n g t o s e l l stores? A. Q. Correct. D i d you ever hear him use the term

A. Q. A.

I n ' 0 4 , i t was about 50/50. And l e t ' s go back. '03?

5
6 7 8 9 10

5
6 7

" c l o s i n g t h e gap" w i t h r e s p e c t t o quotas o r h a v i n g people meet t h e i r o b l i g a t i o n s i n terms o f numbers o f s t o r e s t o open? A. Q. NO. How

' 0 3 , i t was p r o b a b l y 75 f r a n c h i s i n g

c o r p o r a t i o n . 25 r e a l e s t a t e c o r p o r a t i o n .

8
9

Q

NOW, you - - t h e c o n t r a c t w i t h M r . Gwin

i s signed, o r w i t h t h e e n t i t y , was signed March 17th. '03. And y o u ' r e on t h e j o b t h e n . I s that

- - you've gone through your
How i m p o r t a n t was your background i n

10

1 1 background i n d e t a i l i n answer t o M r . MacPhee's
12 13 14 15 16 17 18 19 questions.

11 10 months o r 7 1 / 2 months a p p r o x i m a t e l y ?
12 13 14 A. Q. However t h e numbers work, y e s . I w a s n ' t d o i n g i t q u i c k enough. Do you

terms o f h a v i n g p a s t experience as a f r a n c h i s e r and g o i n g t o r e a l e s t a t e school and e v e r y t h i n g b e f o r e you s t a r t e d w o r k i n g f o r t h e f o l k s i n Atlanta? How i m p o r t a n t was t h a t i n terms o f your

remember when you f i r s t had your f i r s t f o r a y o f t h e market? I t ' s signed March 1 7 t h . Do you knol

15
16 17 18 19 20

i f t h e r e was then a month l e a d t i m e b e f o r e you were a b l e t o g e t up t o speed, o r d i d you b e g i n immediately? A. NO. I t ' s a p r e t t y simple p r o j e c t . They

a b i l i t y t o do your j o b ? A. Q. A.
I t was c r i t i c a l .

And why? Because I developed a f r a n c h i s e and I

20
21 22

j u s t send m t h e l e a d s and I make phone c a l l s . e So I ' m s u r e i t happened i m m e d i a t e l y . Q. Now, whatever t h e number i s , 11 s t o r e s

closed a franchise.

I saw t h e ups and downs and

21
22 23

how one should be r a n .

23
)

Q

From your v i e w p o i n t , i f somebody had

o r 12 s t o r e s s o l d , you d i d t h a t i n t h e number o f 100

98

1 never been i n t h e f r a n c h i s e business b e f o r e and
2 3 4 became an area d i r e c t o r , do you have any views o r o p i n i o n s as t o whether t h e y c o u l d g e t o f f t h e ground r u n n i n g ?

1 months from March t o December?
2
3 4 5 A.
Q.

Correct. And then M r . MacPhee asked you what you

t h o u g h t , based on your p a s t e x p e r i e n c e , you caul( have done i n 2004 and 2005. a t l e a s t t h a t many.

5
6 7 8 9 10 Q. A. Go ahead. I t h i n k i t would be d i f f i c u l t . And y o u ' r e s t i l l p a r t i c i p a t i n g i n t h e You MR. MACPHEE: f o r speculation. Objection.
I t calls

I b e l i e v e you s a i d

6 7

Would t h a t be a conservative

estimation o r a l i b e r a l estimation? A.
I t would be conservative..

8
9 10

Again, i f I

c o u l d donate t i m e .

Q.

W e l l , t h a t depends on what o t h e r t i m e i s

11
12 13 14 15 16 17 18 19 20 21 22 23
25 of 32 sheets

Q.

1 taken i n your r e a l e s t a t e business o r i n your 1
12 13 14 15 16 I 17 18 19 20 21 22 A t l a n t a business? A. Q. Correct. But. i s n ' t i t also

sense o f s e l l i n g Q u i z n o ' s p r o s p e c t s .

mentioned t h a t your t i m e was spent about 30 p e r c e n t on - - o u t of o r about a 50-hour week, 30 p e r c e n t was on f r a n c h i s e s a l e s ? A. Yes. And about 20 was on your r e a l e s t a t e .

--

do you t h i n k

--

l e t ' s say t h a t i t had come t o an end consensually between you and Mr. Gwin i n December o f ' 0 3 and

Q.

i t was a f r i e n d l y p a r t i n g .
A. Q. Uh-huh.
DO you t h i n k you

d o n ' t want t o ask you how much you a r e making, b u t o f t h e t o t a l t h a t you have been making i n the l a s t few y e a r s , how much r e l a t e s t o the f r a n c h i s i n g s i d e o f your business percentage and how much o f t h e r e a l e s t a t e s i d e ?

- - how do you t h i n k . i f

he then were n o t t e r m i n a t e d , how t h e market was f o r h i s continued a c t i v i t y i n i t ?

23 Page 97 to 100 of 126

MR. MACPHEE:

Objection.

Case 1:04-cv-01062-ZLW-BNB
1
2 3 4 5 6 7 8 9 A. Q. Speculation.

Document 134-3
2

Filed 02/14/2006

Page 6 of 21

1 t e r r i t o r y o f t h e Gwins versus i n t h e t e r r i t o r y
where y o u ' v e been w o r k i n g f o r t h e o t h e r area developer? A. I would - - I know t h a t Alabama, o r

I t h i n k i t was prime f o r development.

3 4 5

Now, i n terms o f Q u i z n o ' s , you mentioned

how M r . Turka was t e r m i n a t e d b e f o r e M r . Gwin was terminated, correct? Are you aware t h e r e had

Birmingham, i s n o t as l a r g e as A t l a n t a , so I ' m sure t h e r e a r e l o t s .
Q.

6
7

been o t h e r t e r m i n a t i o n s o f area d i r e c t o r s i n the Alabama area b e s i d e s Mr. Turka and M r . Gwin? A. Q. No. Through your attendance a t B M and o t h e r A

How many o f t h e l o c a t i o n s t h a t you d i d

8
9
10

s e l l , 10 o r 11, were l o c a t e d i n r e s e a r c h and development p a r k s ? A. Q. A. Q.
I d o n ' t know.

10

1 meetings, has t h e r e e v e r been any d i s c u s s i o n 1
12 13 14 15 16 17 18 19 20 21 22 23 c o n c e r n i n g whether t h e company would change i n i t ' s emphasis away from area d i r e c t o r s t o what i s c a l l e d d i r e c t development markets? A. Just through speculation o f

11
12 13 14 15 16

Because you d i d n ' t have t h a t p a r t ? Correct. But Y O U were - - I thought you were

moving i n t o t h e t a r g e t market area - - o r you h a d n ' t moved t h e r e y e t i n terms o f - A. I was.

conversations.

I t d i d n ' t mean I had t o know

Q.

Well, f i r s t

--

o f c o u r s e . we lawyers

17 18 19 20 21 22 23

what they were. Q. t o me. Okay. W e l l , then j u s t e x p l a i n i t then

d o n ' t t o t a l l y want t o r e l y on t h e word s p e c u l a t i o n , so I d o n ' t mind your u s i n g i t , b u t we want t o go f u r t h e r than t h a t . Have you t a l k e d

I thought t h a t when you had a t a r g e t

market, you had t o know where i t was. A. I knew where i t was.
I t was i n Royce

w i t h p e o p l e i n t h e know, such as e x e c u t i v e s . o r heard them t a l k o f Q u i z n o ' s about what p o l i c y i s o f d i r e c t d e v e l o p m e n t markets versus area 102

Gwin's t e r r i t o r y .

And i f the f r a n c h i s e e l i k e d i t

and Royce l i k e d i t , I d i d n ' t r e a l l y go any 104

!
1 director?
2 3 4 5 6 7 8 9 A. No.

1 further.
2 3 4 Q. A l l right. Then maybe I s h o u l d change

Q.

Then where - - when you say you have

the q u e s t i o n around.
A.

p i c k e d up something, what t y p e o f ' i n d i v i d u a l s o r persons i s i t t h a t y o u ' r e h e a r i n g t h a t from? A. That would be from o t h e r area d i r e c t o r s

Okay.
Of

5
6
7

Q

t h e people t h a t brought up t o you

l o c a t i o n s t h e y wanted t o go, were any t h a t you r e c a l l i n research and development p a r k s ? A. Q.

or their staff.

Q.

When you - - I ' m g o i n g t o - - I r e a l i z e

8
9

I assume.

I ' m sure t h a t occurred.

you d i d n ' t a t t e n d t h i s t y p e o f t r a i n i n g t h a t ' s i n E x h i b i t 2 , b u t I want t o ask you some q u e s t i o n s P r o f i l e 1 locations

Were any i n h i g h d e n s i t y o f f i c e

10

10 1 1
12 13 14

b u i l d i n g s i n t h e Alabama market? A. M r e c o l l e c t i o n i s people d i d go i n the y

1 1 about i t and see what f i t s .
12 13 14

a r e l i s t e d i n t h e Q u i z n o ' s m a t e r i a l as the most d e s i r a b l e l o c a t i o n s , i s where you s t a r t w i t h a daytime business l o c a t i o n p r o v i d i n g d a i l y l u n c h and h i g h d e n s i t y employment c o r r i d o r s such as C e n t r a l business d i s t r i c t s , suburban h i g h d e n s i t y o f f i c e or tech centers. F i r s t o f a l l , how does

downtown area.

Q.

But do you know i f i t was i n a h i g h

density o f f i c e building? A. I d o n ' t know. Were you i n v o l v e d a t a l l i n d o i n g

15
16 17 18 19

15
16 17 18 19 20 21 22 23

4.
A.

t r a f f i c counts? NO. Were you i n v o l v e d a t a l l i n terms o f

t h i s Alabama t e r r i t o r y compare t o t h e A t l a n t a t e r r i t o r y i n terms o f those c h a r a c t e r i s t i c s ? A. I t h i n k i t ' s very s i m i l a r . You l o o k f o r

Q.

20
21 22 23

c h a r t i n g what r e s i d e n t i a l p o p u l a t i o n s were i n a r a d i u s o r proposed l o c a t i o n ? A. No.

a r e a s , l i k e i t s a i d , of daytime p o p u l a t i o n .

9.

About how many areas o f h i g h daytime

p o p u l a t i o n , i f you know, a r e t h e r e i n t h e Alabama

9 . I n d o i n g your work i n t h e Alabama
26 of 32 sheets

Page 101 to 104 of 126

Case 1:04-cv-01062-ZLW-BNB
1
2 3 4 t e r r i t o r y , d i d you d e a l w i t h mentioned a few f o l k s a t Q u i z n o ' s . d e a l w i t h N a t a l i e Henson? A.
Q.

Document 134-3
1
2 D i d you ever

Filed 02/14/2006
prototype store.
MR.

Page 7 of 21

107

- - I know you

s e c r e t a t t h i s moment w i t h r e s p e c t t o t h e

3
4

SILVERMAN:

A l l right.

Yes. And i n what f u n c t i o n ? She was m u n d e r w r i t e r f o r new s t o r e s . y And d i d you ever d e a l w i t h Jay

5
6 7

5
6

A.

T h a t ' s t h e o n l y t h i n g I ' v e heard i n the
I mean, they t a l k e d about s m a l l

A.
Q.

s m a l l market.

7
8 9

markets, b u t I remember t h e s m a l l market p r o t o t y p e . as w e l l .
Q. And havc you ever seen t h e d e t a i l s o f

8

Carpenter? A.
Q.

9 10
11
12 13 14

Yes. And what d i d he do? He was t h e gentleman t h a t was i n charge

10

t h e s m a l l market p r o t o t y p e ? A. Q. NO. And when do you f i r s t r e c a l l t a l k t h a t How l o n g ago?

A.

11 12
13 14

o f c r e d i t approvals a t t h a t t i m e . Q. And how f r e q u e n t l y i n t h a t number o f

t h e r e might be one? A. Q.

months between March and t h r o u g h December d i d yo8 have c o n t a c t w i t h these f o l k s ? A. week. Q. O u r i n g t h a t t i m e , d i d they ever make any I would say a minimum o f t h r e e times a

I ' d say a p p r o x i m a t e l y one y e a r . Now, i f t h e r e had been a s m a l l market

15
16 17 18 19

15
16 17 18 19 20 21 22 23

p r o t o t y p e , how would t h a t have impacted t h e number o f s a l e s t h a t you were a t t e m p t i n g t o o b t a i n i n the Gwin market?

n e g a t i v e comments about t h e i r i n t e r a c t i o n s w i t h t h e Gwins i n t h e p a s t ? A. Q. NO. D i d you r e c e i v e any i n f o r m a t i o n from

20
21 22 23

MR. MACPHEE:

Objection.

It calls

f o r speculation.

them t h a t somehow t h e y ' d had p a s t d i f f i c u l t i e s i~ 106

Q.

L e t me back up a l i t t l e b i t .

You s a i d 108

1 d e a l i n g w i t h t h e Gwins o r h a v i n g t h e Gwins f o l l o l 2
3
4 t h e system? A. Q. NO. Have you ever heard a t any o f t h e B M A

1 you had t o q u a l i f y people on f i n a n c i a l statement 2
3
4 and t h e i r c r e d i t w o r t h i n e s s - A. Yes.

Q.

- - t o get a loan.

Was one o f t h e

5
6
7 8 9

meetings t h a t y o u ' v e a t t e n d e d t h e concept o f s m a l l market, t h a t Q u i z n o ' s m i g h t have s m a l l markets, and t h e n o t h e r k i n d s o f markets? A.
I know t h e y t a l k e d o f a s m a l l market

5
6 7 8 9 10

f a c t o r s i n the c r e d i t worthiness the cost o f build-out? A. Absolutely. What i m p a c t . i f any, would i t have had

Q.

prototype. Q. A. And what have you heard about t h a t ? I t ' s a Q u i z n o ' s t h a t c o s t s around

on t h e a v a i l a b l e p o o l o f people who c o u l d q u a l i f y i f t h e c o s t o f t h e s t o r e was l e s s ?

10

1 1
12 13 14 15 16 17 18 19 20 21 22 23 27 of 32 sheets

1 1
12 13 14 15 16 A. I t ' s a larger population. So MR. MACPHEE: f o r speculation. Objection.
I t calls

$150.000.00 t o g e t g o i n g . Q. A. Versus

--

Versus $220,000.00. I n what c o n t e x t does i t come up?

Q.

I t has l e s s

money than more money.

--

i t would go up.

MR. MACPHEE:

Sir,

f o r the r e c o r d ,

17 18 19

Q.

From your knowledge i n those number of

I ' d ask t h a t we agree t h a t t h i s p o r t i o n
Of

months i n t h e t e r r i t o r y , and your a b i l i t y t o s e l l 11 o r 12 s t o r e s , do you b e l i e v e t h a t i f t h e c o s t of t h e s t o r e had been l e s s you c o u l d have s o l d more, based on t h e p r o s p e c t s t h a t you met and t a l k e d w i t h , t h a t you c o u l d have s o l d and

the record, i n c l u d i n g t h a t l a s t

q u e s t i o n and answer, be deemed c o n f i d e n t i a l p u r s u a n t t o our c o n f i d e n t i a l i t y s t i p u l a t i o n agreement. because I b e l i e v e i t ' s considered a t r a d e

20
21 22

23 q u a l i f i e d more f r a n c h i s e e s i f t h e s t o r e p r o t o t y p e Page 105 to 108 of 126

1 had been a t t h a t $150.000.00 l e v e l ?
2 I 3 4 5 MR. MACPHEE: Speculation. Objection.

Case 1:04-cv-01062-ZLW-BNB

Document 134-3

109

1

Filed 02/14/2006

Page 8 of 21

111

t o r e a d t h i s i n t o t h e r e c o r d some day. MR. SILVERMAN: W e l l , i t m i g h t be.

What I would l i k e t o do i s t a k e a s m a l l b r e a k and see i f I have any o t h e r questions.

6
7 8 9 10

A.

I would have d e f i n i t e l y had more t o I c a n ' t s p e c u l a t e i f I ' d s o l d them o r

MR. MACPHEE:

Okay.

Ithink I ' m

qualify. not. Q.

g o i n g t o have about t h r e e f o l l o w - u p t o p i c s , which w o n ' t t a k e l o n g . But we

But t h a t ' s t h e f i r s t - - o r i f t h a t ' s a

can go o f f

the record.

That's fine.

s t e p , a m a j o r s t e p a l o n g t h e way A. That's correct.

-I suppose we

MR. SILVERMAN:

So w e ' r e g o i n g t o

1 1
12 13 14 15 16 17 18 19 20 21

And I d i d n ' t e v e r see

t a k e a f i v e - m i n u t e b r e a k and h o p e f u l l y we can f i n i s h t h i s up.

i t as a b a r r i e r f o r n o t s e l l i n g .

Only had one p r o t o t y p e a t t h a t t i m e , and we s t i l l have one. So I d i d n ' t

--

you j u s t l o o k f o r t h e

(A s h o r t break was t a k e n . )

p e o p l e t h a t meet your c r i t e r i a . Q. But you mentioned, o r t h a t you saw t h a t MR. SILVERMAN: c o u p l e more. I do have j u s t a

--

w e l l , f i r s t , t h a t more s t o r e s , more W e l l , more v a l i d a t o r s , more l e a d s - -

validators? A. Q. leads? A. Q. NO.

Uh-huh. I s t h e r e a n y t h i n g wrong w i t h h a v i n g more

B MR. SILVERMAN: Y Q. I n o t i c e d i n some o f y o u r l i t e r a t u r e

t h a t you communicate w i t h p e o p l e t h r o u g h a quiznos.com e - m a i l address? 23 A. Yes. 112

22
23

And you mentioned t h a t . I b e l i e v e , t h a t 110

1 t h e r e would be more l e a d s i n terms o f q u a l i f i e d
2 3 people i f the cost of g e t t i n g the operation going was l e s s ? A. Okay. Yes.

1
2 3

Q
use i t ? A.

T e l l me how t h a t came t o be and how you

Okay.

W i t h e v e r y a r e a d i r e c t o r , t h e way

4
5
6
7 8 9 10

4 5

Q u i z n o ' s b r i n g s t h e l e a d s i n i s t h e y , once t h e y r e g i s t e r f o r an open house o n - l i n e , Q u i z n o ' s w i l l send o u t a response. area d e v e l o p e r . catalog. And i t ' s tagged w i t h t h e

MR. MACPHEE: Leading.

Object t o form.

6

7
8 L e t me t r y n o t t o l e a d . I'm

Which a c t u a l l y I ' m i n t h e

But i t ' s tagged w i t h t h e p e r s o n t h a t And so t h a t ' s why my name i s on

Q.

A l l right.

9 10

does t h e s a l e s .

t r y i n g t o u n d e r s t a n d what t h e impact i s i n terms

t h e r e , r t r o t t e r @ q u i z n o s . c o m , because t h a t ' s who

1 of b u i l d i n g leads of having lower cost t o get 1
12 13 14 15 16 17 18 19 20
M R . MACPHEE:

11 t h e p e o p l e would c a l l when t h e y wanted 12
13 14 15 16 17 18 i n f o r m a t i o n about b u y i n g a Q u i z n o ' s . They d o n ' t

i n t o the deal. A.

Would you d e s c r i b e t h a t t o me?

I would t h i n k t h a t i f you had a t y o u r

want t o b o t h e r t h e p e o p l e I work f o r i n A t l a n t a o r M r . Gwin, because t h e y would have t o , i n t u r n . send them t o me.

a v a i l a b i l i t y a p r o t o t y p e model t h a t i s l e s s e x p e n s i v e , t h a t we would have more q u a l i f i e d p e o p l e . I d o n ' t know about t h a t . would h e l p w i t h s a l e s .

I think that

Q.
A.

Andso-. And so i t ' s Q u i z n o ' s t h a t a c t u a l l y d i d

t h a t t o make i t s i m p l e r f o r t h e a r e a d e v e l o p e r s .

Objection.

Move t o

19 20 21 22

Q.

SO,

I guess t h e n ,

I take i t t h a t

s t r i k e on s p e c u l a t i o n . MR. SILVERMAN: Well, there i s

Q u i z n o ' s knew what f u n c t i o n you were s e r v i n g i n t h e Gwin m a r k e t ? A. Yes. Oh, y e s , because I spoke w i t h ,

nobody h e r e t o s t r i k e i t so - 23
MR.

MACPHEE:

J u s t i n case you want

23 l i k e you s a i d , N a t a l i e and J i m , whoever. Page 109 to 112 of 126 28 of 32 sheets

1
2 3

Case 1:04-cv-01062-ZLW-BNB
Q.

113 Document 134-3

Filed 02/14/2006
Q. p e r s o n ' s name? do? A.

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115

And somebody s e t i t up so t h a t y o u ' d g e t

1
2 3 4

Would you n e c e s s a r i l y mention the I s t h a t not a c r i t i c a l t h i n g t o

t h e l e a d s d i r e c t l y , i s what you t e s t i f i e d t o ? A. As I r e c a l l , I d o n ' t t h i n k I ever g o t And we w e r e n ' t q u i t e as computer

4

them d i r e c t .

Not a c r i t i c a l t h i n g t o do. J u s t , a g a i n , so I make sure I have t h i s

5
6 7 8

savvy i n '03 as we a r e now.

5
6 7 8 9 10
YOU

Q.

Q.

While on t h a t , i f M r . Gwin were t o

down, i t was Q u i z n o ' s t h a t d i r e c t e d somehow t h a t you go i n t o t h e t a r g e t market mode? A. Yes. And i s t h a t f o r t h e Gwin t e r r i t o r y t h a t

t e s t i f y - - when you g o t t h e l e a d s , c o u l d you t e l l

--

you s a i d you g o t them from Mr. Gwin d u r i n g

9
10

that period, that f a i r l y short period o f A.
Q.

--

Q.

Yes.

were d i r e c t e d t o do t h a t ? A. As I r e c a l l , i t was f o r t h e A t l a n t a

1 1
12 13 14 15 16 17 18 19 20 21 22 23

-- i n '031

Could you t e l l by any

11
12 13 14 15 16 17 18 19 20 21 22 23

d e s i g n a t i o n on those l e a d s whether they came from Q u i z n o ' s o r came through Gwin? A. NO.
If Mr. Gwin were t o t e s t i f y t h a t some o f

territory.

Q.

Oh, I had t h e i m p r e s s i o n t h a t i t was

A t l a n t a and t h e Alabama Gwin t e r r i t o r y t h a t you were t o move from t h e p e c k i n g o r d e r t o the t a r g e t market area a l s o . A. The way i t happened i s t h a t t h e Q u i z n o ' s

Q

t h e l e a d s came from him i n d e p e n d e n t l y o f Q u i z n o ' s , would you have a n y t h i n g t o c o n t r a d i c t t h a t , some o f t h e l e a d s t h a t he gave you? A. On o c c a s i o n , I b e l i e v e he d i d g i v e m e

c o r p o r a t e came t o our market and s a i d i t was t i m e f o r us t o go t o t h e t a r g e t market. And I d o n ' t

names and phone numbers.

r e c a l l i f Alabama was asked t o do i t a t t h e same time.
I know I had c o n v e r s a t i o n s w i t h M r . Gwin

Q

And t h e n i n - - a g a i n . I ' m j u s t maybe

f i x a t e d on e - m a i l addresses, on the f r a n c h i s i n g p a r t of your b u s i n e s s . Do you use the 114

and he was f o r whatever would produce.

And so a t

t h e end of what we d i d , w had gone t o t h a t e 116

1 quiznos.com e - m a i l address f o r more than j u s t
2 3 4 g e t t i n g leads? Do you use i t as your r e g u l a r

1
2 3 4

t a r g e t market.

Q.

And were personnel a t Q u i z n o ' s aware

e - m a i l address f o r your f r a n c h i s i n g p a r t o f your business? A. NO. I t ' s s t r i c t l y Quizno's.

t h a t you had gone t o t h a t technique? A.

I d i d n ' t see a reason t o n o t i f y them.
Now, t h e r e was a f e l l o w who came i n t o And h i s name i s - -

5
6 7 8 9 10

5
6 7 8 9 10

Q.

Q.

So on t h a t s i d e , you have a m a i l b o x , so

t h i s market named Brown. A. Frank Brown.

t o speak, a t t h e Q u i z n o ' s s i t e ? A. W e l l , I do a l o t o f e - m a i l w i t h Q u i z n o ' s 50 i t g e t s - - i t ' s a v a l u a b l e t o o l . And so d u r i n g the t i m e

Q

- - Frank Brown.

When d i d you f i r s t g e t

corporate.

i n f o r m a t i o n t h a t he was now going t o be i n v o l v e d i n t h e Gwin market?
A.

Q.

I understand.

11 t h a t you were d e a l i n g w i t h these v a r i o u s people,
12 13 14 15 16 17 18 19 20 21 22 you s a i d two o r t h r e e times a week t h e people t h a t I i d e n t i f i e d , were you d e a l i n g w i t h them by e-mail also? A. Yes. And was t h e e - m a i l address t h a t you were

1 1
12 13 14 15 16 17 18 19 20

The o n l y way I g o t i t . I was a t a B M A

and I r a n i n and t a l k e d t o him.

Q.

I s t h i s b e f o r e o r a f t e r t h e Gwin

termination? A. After. I have no f u r t h e r q u e s t i o n s .

Q.

Q.

u s i n g a quiznos.com address? A. Yes. When you would meet w i t h p r o s p e c t s , how

REDIRECT EXAMINATION B MR. MACPHEE: Y

Q.

would you i d e n t i f y y o u r s e l f i n terms o f how you were a s s o c i a t e d w i t h t h e Q u i z n o ' s system? A.

Q.
Brown? A.

What d i d you t a l k t o him a b o u t . M r .

21 22

I would t e l l them t h a t I r e p r e s e n t an

I t a l k e d t o him about t h e market and I

23 area d e v e l o p e r , whether A t l a n t a o r Alabama. 23 asked him about some i n d i v i d u a l s t o see how they 29 of 32 sheets Page 113 to 116 of 126

Case 1:04-cv-01062-ZLW-BNB
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A. Yes.

Page 10 of 21

119

1 agreement, as you d e s c r i b e i t ?

2
3

Q. A. Q. A. stages.

I n d i v i d u a l s t h a t you had s o l d t o ? Correct. And how were t h e y d o i n g ? They were j u s t a t d i f f e r e n t d e v e l o p i n g

Q.

Who came i n t h e room and asked you and

4 5
6 7 8 9 10

o t h e r s t a f f members t o l e a v e ? A.
I t was n o t Steve S c h a e f f e r . I t was

5
6

someone who worked w i t h him. announced i t on a speaker. person. Q. A. What d i d they say?

And t h e y j u s t
I d o n ' t r e c a l l the

Q.

What d i d he say when you asked him about

7 8

t h e market? A.
I t hasn't really specific.

W just e

9

t a l k e d about t h e market. Good.

He d i d n ' t - - I s a i d hol

10

B a s i c a l l y s a i d t h i s i s f o r area

1 1 i s i t going?
12
13 14

1 1 d i r e c t o r s , and i f you do n o t have your name on a
12 13 14 15 16 17 18 agreement, you need t o l e a v e t h e room.

Q.
A. Q.

And t h a t was about i t ? Yes. The B M meeting t h a t you d e s c r i b e d you A

Q.
A.

And so you l e f t ? Yes. D i d you t a l k t o anyone a f t e r about what

15
16 17

were asked t o l e a v e t h e room A. Uh-huh. Yes.

--

Q.

had t r a n s p i r e d i n t h e room? A. Yes. Who?
I t a l k e d t o the gentleman I work f o r o u t

Q

- - d i d you t e s t i f y when you thought t h a t

18
19

was o r i f you were a b l e t o b a l l p a r k t h e t i m e ? A. I b e l i e v e t h a t i t was the December o f

Q.
A.

19
20 21 22

20
21 22 23

' 0 3 , b u t I c a n ' t say f o r s u r e .

of Atlanta. Q. A. Q. E i t h e r D r . Sturky S t u r k y , yes.

Q.
A.

What makes you say December o f ' 0 3 1 Because t h a t ' s k i n d o f when e v e r y t h i n g

--

was g o i n g on. 118

23

- - o r D r . Crooms?
120

1
2 3

Q.

And who was i n t h e room i n i t i a l l y and

1

A. Q.

Sturky. And what d i d D r . S t u r k y t e l l you about

who was asked t o l e a v e t h e room i s what I ' m getting at? A. I n i t i a l l y , t h e r e were c o r p o r a t e s t a f f . And so

2
3

t h e meeting? A. He s a i d t h a t Q u i z n o ' s was w a n t i n g t h e

4 5
6 7 8 9 10

4

area d i r e c t o r and area d i r e c t o r s t a f f .

5
6 7 8 9

area d i r e c t o r developers t o have a p l a n and t o h i r e employees as they grow t h e i r b u s i n e s s .

t h e c o r p o r a t e s t a f f had a l r e a d y been l e t go and then t h e y s a i d people w i t h o u t t h e i r nalnes on are; d i r e c t o r agreements need t o l e a v e as w e l l .

Q
A. stores.

Anything else? J u s t t h a t i t was based on number o f

Q.

I thought Mr. Silverman had asked you i f

t h e r e was a meeting o f j u s t area d i r e c t o r s who

10

Q.

And do you remember what t h e numbers

1 were 1
12 13

--

I t h i n k t h e words he used was "on the I s t h i s a d i f f e r e n t meeting o r i s i t

11 were?
12 13 14 15 16 17 18 19 A. NO. And when you say based on number o f

bubble."

t h e same m e e t i n g , o r do you know? A. M r e c o l l e c t i o n was i t was every area y

Q.

14

s t o r e s , do I understand you mean a t some p o i n t you have enough s t o r e s i n your t e r r i t o r y t h a t yo1 need t o h i r e employees t o h e l p ? A. Yes. But YOU d o n ' t remember the number? No. A n y t h i n g e l s e t h a t D r . S t u r k y t o l d you

15
16

director.

Q

And how many area d i r e c t o r s were t h e r e

17
18

a t the t i m e a t t h e meeting? A. I would have t o s p e c u l a t e - - w e l , l , I

Q.
A.

19
20

d o n ' t want t o use t h a t word.

Q.
park. A.

L e t m suggest you use t h e word b a l l e

1

20
21

Q.

21

about t h a t meeting, t h e meeting a f t e r you l e f t ? A. No. That was i t .

22
23

I would b a l l p a r k 2 5 .

22 23 Page 117 to 120 of 126

Q.

And t h a t ' s people whose names a r e on an

Q.

Do you remember any c o n v e r s a t i o n s o r any 30 of 32 sheel

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121

Filed 02/14/2006
1 percent.
Q.

Page 11 of 21

123

s t a t e m e n t s made by Q u i z n o ' s e x e c u t i v e s when you were p r e s e n t r e g a r d i n g a r e a d i r e c t o r s who were b e h i n d i n t h e i r development schedules? A. Q. NO. Do you remember t h e g r a p e v i n e o r rumor i f you w i l l , o f a r e a d i r e c t o r s d i s c u s s i n g

2
3 4

W o u l d n ' t i t be t r u e t h a t he a l s o , u n t i l

he had some s t o r e s opened, would have o n l y had one t a s k and t h a t was s e l l i n g ? A. Yes. I s Birmingham, would you c o n s i d e r t h a t

5
6 7 8 9 10

5
6
7 8 9 10

mill,

Q.

r e p r e s e n t a t i o n s made by Q u i z n o ' s r e p r e s e n t a t i v e s w i t h r e s p e c t t o i f t h e y were b e h i n d on t h e i r development g o a l s ? A. Q. No. YOU t o l d Mr. S i l v e r m a n t h a t t h e e s t i m a t e

t o be a c i t y ? A. Yes. And would you c o n s i d e r t h a t t o have a

Q

l o t of possible places t o put a Quizno's? A. Q. Yes. And s t i l l p r e t t y f e r t i l e ground, would

11
12 13 14 15 16 17 18 19 20 21 22 23

11
12 13

of 11 s t o r e s you c o u l d have s o l d i n Alabama i n 2004 was c o n s e r v a t i v e ? A. Yes. And I t h i n k you used t h e term

you s a y , o r a t l e a s t when you were w o r k i n g A. Yes.

--

14

Q.

--

he

15 16 17 18 19 20

Q
A. Q. finish. A.

--

i n 2003 - -

asked you i f you had n o t been t h e guy d o i n g t h e s a l e s i n 2004, b u t r a t h e r Mr. Gwin had p i c k e d up t h a t f u n c t i o n , because you p a r t e d company on amicable terms. A. Q. Yes. And I t h i n k your answer was 00 you relnember t h a t q u e s t i o n ?

Yes.

- - i t was f e r t i l e ground

--

l e t me

I ' m sorry. Y o u ' d say i t was s t i l l f e r t i l e ground i n

Q.

--

he s a i d ,

21 22 23

2003 when you were w o r k i n g t h e r e ? A. Yes. NO f u r t h e r q u e s t i o n s . 124

you know, what do you t h i n k would happen and your answer was. I t h i n k t h e nlarket was primed f o r 122

Q.

1 f u r t h e r development.
2 A. Correct. I s i t y o u r t e s t i m o n y , s i r , t h a t you

1
2 3 MR. SILVERMAN: on one t h i n g . J u s t one f o l l o w - u p

3
4

Q.

b e l i e v e t h a t Mr. Gwin would have made t h e same number o f s a l e s t h a t you would have made i f he had been d o i n g t h e s e l l i n g i n s t e a d o f you i n 20041 A.

4 5
6
7 RECROSS EXAMINATION B MR. SILVERMAN: Y Q. How was your w o r k i n g r e l a t i o n s h i p w i t h

5
6

7
8 9 10

I t h i n k t h a t h e ' s found t h a t he needed

8 9 10

Mr. Gwin i n t h a t 7 112 months?
A.
I t was v e r y good.
I mean, I ' m - - i t ' s

solneone t o h e l p him t o do t h e s a l e s p o r t i o n o f
it.

And t h a t i s e x a c t l y what Q u i z n o ' s t a l k e d

v my w o r k i n g r e l a t i o n s h i p , ~ ' me r y i n d e p e n d e n t .

1 1 a b o u t , h i r i n g somebody t o h e l p you d e v e l o p t h e
12 13 14 15 16 17 18 19 20 21 22 market.

11 So b a s i c a l l y I b r i n g d e a l s i n and h e ' d send me 12
checks. Q. A. And w e ' d see each o t h e r a t open houses. T h i s was good f o r b o t h o f you? Yes. D i d you have any e x p e c t a t i o n t h a t b u t

Q.
A.

50 t h e answer i s no? I t h i n k he c o u l d have done w e l l . I c a n ' t say.
I

13 14 15 16 17 18 19 20

d o n ' t know.

Q.

Q.

Why do you t h i n k you were a b l e t o s e l l

f o r h i s t e r m i n a t i o n you and he would have stoppel doing business? A. Q. A. You mean a f t e r '047 Yes.
I t was - - I was n o t s u r e i f I was g o i n g

1 s t o r e s i n 7 112 nlonths as compared t o t h e 1 number he had s o l d ? And I know you d o n ' t know

e x a c t l y what i t i s , b u t you have a b a l l p a r k o f what i t i s i n f o u r p l u s y e a r s t h a t he was w o r k i n g a t the area d i r e c t o r s h i p ? A.

21
22

t o c o n t i n u e because I had o t h e r r e a l e s t a t e interest. And so I w a s n ' t a hundred p e r c e n t t h a t

I t was my o n l y t a s k t o s e l l and so I

23 guess I c o u l d c o n c e n t r a t e on i t a hundred 23 I was coming back i n ' 0 4 , b u t I would have 31 of 32 sheets Page 121 to 124 of 126

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t o h e l p him g e t s t a r t e d .

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Page 12 of 21

p r o b a b l y worked o u t a t l e a s t h a l f o f a y e a r j u s t

Q.
A. Q. A.

Had y o u r e v e a l e d t h a t t o him NO.

-

I

5
7

-No.

what you were t h i n k i n g ?

Q.

S O o t h e r t h a n t h a t you had heard t h r o u g h

8

t h e rumor m i l l t h a t some p e o p l e were on t h e b u b b l e , d i d y o u have any i n d i c a t i o n f r o m any o f y o u r d e a l i n g s w i t h Q u i z n o ' s f o l k s t h a t t h e Gwins were c l o s e t o b e i n g t e r m i n a t e d d u r i n g t h e t i m e y o u were t h e r e ? A. Q. No.

9 10 11 12 13 14 15 16 17 18 19 20
21

I d o n ' t have any o t h e r q u e s t i o n s .

MR. MACPHEE:

N e i t h e r do I.Thank

you a g a i n f o r y o u r t i m e .

(END O DEPOSITION) F

22

1 2
3 4

STATE OF ALABAMA. GENEVA COUNTY.
I,L i s a

M . B r y a n , C o u r t R e p o r t e r and

N o t a r y P u b l i c , S t a t e a t L a r g e , do h e r e b y c e r t i f y t h a t t h e f o r e g o i n g t r a n s c r i p t , pages 1 t h r o u g h 1 2 5 i s a t r u e and c o r r e c t t r a n s c r i p t o f t h e t e s t i m o n y , t o t h e b e s t o f my a b i l i t y and u n d e r s t a n d i n g : and t h a t t h e same was t a k e n down b y me i n s t e n o g r a p h i c s h o r t h a n d , r e c o r d e d e l e c t r o n i c a l l y , and t r a n s c r i b e d b y me p e r s o n a l l y o r under my d i r e c t s u p e r v i s i o n .

I

5 6 7 8 9 10 11 13 14 15

I f u r t h e r c e r t i f y t h a t I have no
i n t e r e s t i n t h i s s a t t e r , f i n a n c i a l or otherwise, o r how i t may d e v e l o p o r what i t s outcome may be.
I f u r t h e r c e r t i f y t h a t I am n o t o f c o u n s e l f o r

1 1 1

16 17 18 l9 20 21

any o f t h e p a r t i e s , n o r a I r e l a t e d t o c o u n s e l m o r l i t i g a n t s o r a s s o c i a t e d w i t h anyone connected w i t h t h i s cause t o my knowledge WITNESS my hand t h i s t h e 1 6 t h day o f June, 2005.

I

I

1

22 23

L i s a M . Bryan My Commission E x p i r e s 12/10/05
Page 125 t

Case 1:04-cv-01062-ZLW-BNB

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Page 13 of 21

$
$150.000.00 106:12, 109:l $1500.00 62:20 5220,000.00 - 106:14 $25,000.00 37:6 52500.00 - 37:12 53125.00 - 37:lO 535,000.00 - 6 3 : l l $6250.001$3125.00 37%

-

-

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-

'02 31:7. 70:3. 70:4 '03 - 28:11, 30:3, 30:22, 31:4. 31:8. 3 1 : l l . 47:3, 51:2, 55:16, 66:14, 66:17, 67:8, 67:12, 69:15, 70%. 70:7. 74:12, 71323, 77:ll. 99:5, 99:6, 99:10, 100:16, 113:5, 113:11, 117:20, 117:21 '04 63:16, 65:20. 65:23. 66:3. 75:6. 75:9. 75:23, 99:4, 124:18. 124:23 '05 52:22, 75:14, 75:15, 75:22 '80 - 6:7 '83 6:7, 6:14 '87 - 7:12 '88 - 9:17. 10:8 '89 10:8 '90 - 10:s '92 10:8 '94 9:17, 1O:lO '96- 1O:ll '99-76:21. 77:lO

-

78:15. 86:17. 95:lO 2002 20:19, 21:19. 22:l. 77:20, 78:12, 78:15, 83:17, 86:9, 95:12, 95:16, 96:20 2003 - 20:19, 21:4, 34:17, 36:9, 37:5, 39:17, 41:21, 50:16. 53:17, 55:lO. 77:21, 91:4. 92:7. 96:20. 123:15. 123:21 2004 21:2. 39:21. 41:21, 91:18, 100:5, 121:13, 121:17, 122:7 2005 1:22, 100:5, 126:20 203 - 1:21, 2:14 20k - 37:13. 5139, 58:3 25 815. 44:19. 56:7, 99:7, 118:22 25k - 56:9 26th 1:22 280- 93:17

-

A
ability- 72:21, 80:6, 81:3, 81:9, 82:3, 97:17, 108:18, 126:7 able 79:9. 80:12, 88:13. 9917. 117:18, 122:16 Abraham- 70:ll Absolutely- 15:l. 41:12. 71:16, 75:IO. 86:15. 108:7 accountant 62:19 accurate 20:19, 23:12, 62:5 accurately 90:16 acting - 14:18 Action- 1:4 action - 80:19 activity 100:21 actual 65:7. 65:s. 84:23, 90:22 ad 77:22. 78:lO add - 91:s added - 75:5 addition -41:15. 62:12 address 28:7. 28:18. 29:2. 29:3, 29:4. 111:22, 114:1, 114:3. 114:16, 114:17 addressed - 28:8, 82:7. 95:17, 95:23 addresses 113:22 advertise - 40:9 advertised 40:12 advertisement - 40:18 advertising -40:11, 41:15, 44:5 advised - 49:14. 50:18 advocacy 44:4 afternoon - 4:7 agents 94:14 aggressive - 68:20 ago- 107:13 agree - 43:21, 74:19. 106:18 agreement - 18:17, 22:9, 23:3, 28:16, 35:19, 53:9, 54:20. 55:4. 55:s. 57:14, 5922, 69:6, 70:22. 74:12, 75:2. 106:22. 119:1, 119:12 Agreement- 32:22 agreements 48:3, 55:20, 118:8 ahead -59:17, 83:ll. 98:9. 99:2 Al- 55:17, 57:8, 59:13, 59:19, 59:20 Alabama- l:lO, 1:22. 2:15. 4:11, 21:5. 28:12, 28:20. 29:10, 37:18, 38:1, 387, 38:ll. 45:13, 45:18. 46:9, 46:21, 49:6, 493, 49:9. 49:22, 50:20, 51:15, 51:20, 52:4, 53:19. 63:15, 69:23. 70:lO. 70:15. 71:9. 72:4. 76:5, 81:4, 81:9, 88:3, 89:7. 101:8, 102:18, 102:23, 103:4, 104:lO. 104:23, 114:23. 115:14, 115:20, 121:12. 126:l Allison- 59:4 allow - 76:7 allowed 68:9. 87:8 allowing - 15:7 Almost- 22:16 Alpharetta- 8:11, 8:12 alter 36:lO amended 54:l amicable- 121:19 amount 37:9,43:3. 56:lO. 64:7

-

-

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-

-

3
3 60:12 30 - 20:5. 20:16, 98:13, 98:14 30110 20:5 30115 20:s 30120 - 20:12 31 - 55:9 33 3:9 36330 - 2:15 3:OO 1:23

-

-

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4
4 - 3:4, 60:12 40 20:4. 46:20 40-hour - 20:9, 20:10 43 54:lO 46 - 534, 53:5. 62:2

0
04-z-1062 1:4

-

-

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1
1 -60:12, 102:11, 126:5 112 - 99:ll. 122:17, 1242 10 20:6, 56:5, 60:12, 74:14, 74:15, 74:16, 74:21, 76:22. 77:10, 79:2. 86:17, 86:19, 89:6, 99:11, 103:s 1099- 17:3, 17:4. 34:16, 62:3, 62:7 11 -60:13, 6014, 75:5. 75:9. 75:22, 99:22. 103:8. 108:19. 121:12, 122:17 116 3:5, 3:6 12 55:23, 60:14. 99:23, 108:19 I2110105 - 126:23 124 - 3:6. 3:7 125 3:7, 126:6 1401 - 2:lO 15-6:lO. 78:18 16th - 126:19 17th 2:10, 53:16, 99:10, 99:15 1899 2:5 1988 - 8:7 1994- 9:13 1995- 11:2

5
5 - 60:12 50 - 37:2, 40:5 50-hour - 98:14 50150 99:4 5104 - 55:lO 5298 56:18 58 3:9, 33:9. 33:15 5837 - 57:14

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6
6-60:12 6169-58:12 6218 - 59:2 6367 59:4 6946 - 59:s

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7
7 52:13, 53:22. 54:2. 60:12. 99:Il. 122:17, 124:s 700 2:5 73 - 44:17 75 88:22. 99x3

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8
8 60:12 800 - 211 80202 2:6. 2:11 83 - 3:4, 3:5 8th 52:22

2
2 60:12, 84:6. 102:lO 20 58:4, 78:18, 98:17 2000- 11:8, 12:ll. 15:9. 16:16 2001 - 11:5. 11:7, 16:Il. 21:17. 77:20, 77:21, 78:lO.

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9
9-60:12

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announced - 119:7 announcement - 71:1 answer - 5:3, 5:4, 77:5, 77:16, 97:11, 106:20, 121:21, 121:23, 122:13 anticipated - 1 7 5 anticipating - 63:5 apologize - 63:4 app -26:19 appear - 47:15, 62:5 Appearances- 2:1 applicant - 25:19 applicants - 27:23 application - 25:Il. 28:1, 28:4. 39:s appointments - 24:7, 72:13 approval - 26:15. 26:16, 26:17 approvals - 105:12 approved - 24:4. 25:23, 26:18. 76:7 approving - 27:23 area - 16:lO. 16:12. 16:13. 16:21, 17:9, 17:12, 18:6, 18:14, 18:17, 19:11, 20:18, 21:9. 21:18. 21:23, 22:21, 23:18. 23:21. 25:5, 29:16, 29:20. 37:6. 37:21. 3819, 41:4. 43:12. 43:23, 49:12. 64:17, 64:22. 69:IO. 69:15, 70:9, 75:l. 76:21, 82:12. 83:15, 84:22, 84:23, 93:4, 93:23, 94:3, 95:18, 96:1, 96:23, 982, 101:7, 101:8, 101:13, 101:23, 102:6, 103:2. 103:14, 104:12, 112:3, 112:7, 112:18, 114:23. 115:16, 118:5, 118:7. 118:lO. 118:14, 118:16, 119:lO. 120:5. 121:2, 121:6, 122:21 Area- 32:21 areas - 20~23. 61:8. 92:12. 102:21. 102:22 arrangements - 89:10 aspect - 80:14 aspects - 24:19. 82:2 assess - 80:6 assessment - 65:15 associated - 36:1, 42:10, 96:17. 114:21. 126:17 assume- 13:14, 31:23, 57:15. 60:4. 66:21, 67:4, 67:9, 67:18, 70:8. 72:12, 104:s Assume- 76:20 assumed - 31:14, 67:ll. 69:5 assumption - 31:17. 31:18. 31:22, 76:9 Atlanta- 5:18, 6:21, 7:1, 7:19, 8:13, 1 6 3 16:10, 16:13, 16:22, 17:lO. 17:13, 18:6, 18:14, 19:12, 20:18. 21:9. 22:21, 23:13. 28:21, 29:17. 30:7. 32:9, 37:22, 38:lO. 42:21, 42:22, 43:2, 43:5, 43:15, 44:11, 44:15, 46:11, 46:16. 48:lO. 73:l. 73:13. 74:4. 74:lO. 78:14. 81:9, 83:21, 88~3. 95:3. 97:16, 100:12, 102:18, 103:5. 112:13, 114:23. 115:ll. 115:14. 119:20 attached - 33:ll attempting - 107:17 attend -43:11, 61:2, 6 1 3 95:9, 102:9 attendance - 101:lO

Case 1:04-cv-01062-ZLW-BNB

Document 134-3

Filed 02/14/2006

Page 14 of 21

Case 1:04-cv-01062-ZLW-BNB

Document 134-3

Filed 02/14/2006

Page 15 of 21

Credit- 76:ll credit -6:10, 25:ll. 26:19, 76:lO. 105:12, 108:2. 108:5 criteria - 109:15 critical - 90:13. 91% 91:19. 92:s. 97:18. 115:2. 115:4 criticisms - 81:23 Crooms- 17:17. 119:23 Cross- 83:13 cure - 922

D
daily -38:16. 102:14 date - 53:16. 5321, 54:20, 5421, 5423, 55:l. 534, 555. 55:s dates - 55:7 days - 27:3. 727. 89:6 daytime - 102:14. 102:21, 102:22 deal - 16:7. 2323. 23:14, 26:20. 30:2, 30:22. 37:11, 51:4. 58:2. 61:lO. 67:3, 80:12, 80:15. 94:22. 95:6, 105:1, 105:3. 105:7, 110:12 dealing - 96:23. 106:1, 114:11, 114:13 dealings - 125:lO deals - 30:11, 51:17, 66:10, 94:18. 124:ll dealt - 57:16 December- 51:5. 66:9, 67:11, 70:7, 91:4, 91:18, 927, 95:16, 100:l. 100:16, 105:14. 117:19. 117:21 decide - 49:4 decided - 11:15, 16:6, 49:12 decision - 2518 declared - 6:3 decreased - 20:21 deemed - 106:20 Defendants- 1:14, 2:s define - 4 7 : l l definitely - 109:6 definitive - 6720 degree - 5:13 delve - 69:4 Dennis- 59:4 density- 102:15, 102:16, 104:9. 104:14 Denver- 2 6 , 2 : l l . 4:9. 223. 31:3 deposed - 5:9 deposition - 1:17, 4:IO. 4:19. 33:16. 3322 Deposition- 3:9. 33:15, 125:19 describe -21:12, 24:1, 40:13, 49:18, 7220, 110:12. 119:l Describe- 63:13, 69:19 described - 18:9. 19:l. 19:4. 29:l. 47:20. 59:13, 82:13. 117:14 designation - 113:12 designing - 3212 desirable - 102:13 detail - 93:1, 97:ll details - 107:9 develop - 45:8, 45:12, 823. 90:23. 122:Il. 126:14 developed - 97:20 developer - 29:16, 37:7, 103:3, 112:7. 114:23 developers - 16:10, 16:12, 16:14, 18:17, 49:13. 112:18, 120:5

developing - 4923, 77:7. 1175 development - 32:21, 452, 65:4. 68:2. 68:23, 70:22. 71:6. 72:21. 97:l. 101:3. 101:14. 101:23, 103:9, 104:7, 121:3. 121:9, 122:l devote - 30:lO different - 17:23. 18:15, 21:5, 23:14, 29:18, 29:19, 365, 68:17, 117:5, 118:12 difficult - 56:17, 98:lO difficulties - 105:23 dig - 35:2 Dlnesh- 58:20 diploma - 84:4 Direct- 4:5 direct - 4322, 89:20, 101:14, 101:23. 113:4. 126:ll directed - 115:6, 115:lO directly -38:18. 113:2 director- 17:10, 17:12, 18:14. 19:ll. 21:9. 21:18, 21:23, 75:1, 83:15. 8422, 93:23, 94:3, 98:2, 102:1, 112:3. 118:5. 118:8. 118:15, 120:5 Director- 32:21 directors - 16:21. 20:18, 29:20. 37:21. 70:9. 71:2, 71:3, 8423, 95:19, 96:l. 101:7, 101:13. 1026, 118:10, 118:16, 119:11, 121:2, 121:6 directorship - 22:21. 23:19. 23:22, 25:6. 64:17, 64:22, 69:10, 76:21, 8213, 122:21 directorships - 69:16 disclose - 2622. 26:23. 87:22, 87:23 disclosure - 275 discussing - 121:6 discussion - 95:15, 101:11 discussions - 332 distance - 30:16 Distribbitor- 6:18. 6:19, 7:lO distributor - 6:16 District- 1:1, 1:2 districts - 102:16 documents - 33:21. 3323, 34:7, 34:9. 34:21. 3521, 3522 donate - 100:9 done - 21:15, 23:16, 24:22, 51:ll. 75:6, 81:7, 85:22, 100:5. 122:14 doors - 1 3 : l l dots - 50:4, 50:7 down - 5:6. 29:20, 56:16, 115:6, 126:s downs - 97:21 downtown - 104:12 dozen - 5522 Dr- 119:21. 119:23, 120:2. 120:20 draft- 36:lO drafted - 36:14 drafting - 36:16 drafts -36:5 draw - 41:17 duly - 4:2 during - 15:ll. 16:3, 48:10, 64:12, 654, 66:7, 725, 7213. 78:14, 81:16, 84:17. 84:20. 865. 86:9.

86:12. 89:10, 113:8, 114:10, 125:ll During-40:2, 81:l. 105:18 duties - 242

E
e-mail - 26:18. 3513, 111:22, 113:22, 114:1, 114:3, 114:s. 114:14, 114:16 earnings - 87:2. 87:7, 87:12, 87:18 easier- 52:18. 90:14. 91:7 east - 78% economics - 76:9 education - 85:l educational - 49:16 Edwards- l:21, 2.15 effective - 5421, 55:4 efforts - 68:20 eight - 8:4, 12:21. 42:4. 423 either - 21:13, 54:18. 68:15 Either- 119:21 Eldon- 2:9. 3 4 2 352. 52:16 elect - 13:9 electronically - 126:lO eliminated - 70:21 732 73:16. 7 ~ ' 3 % ' i 91:i emphasis- 101:13 Empire- 6:18, 6:19, 7:s employed - 30:ll Employees- 2323 employees- 14:13. 19:6. 19:16, 19:18, 23:18. 25:5. 29:16, 329, 71:3. 120:6, 120:16 employment - 102:15 End- 125:19 end - 135, 16:4, 51:3, 66:11, 66:14, 66:17. 67:s. 69:15, 73:ll. 93:6, 100:15. 115:23 endeavor - 5:4 endeavors - 19:23 ended - 13:8 Engle- 2:10 entailed - 2 5 8 entering - 30:21 Enterprise- l:21, 2:15, 4:10, 55:ll Enterprises- 57:9 entities -4:13. 8 5 : l l entity- 13:23, 14:3, 17:l. 17:13. 18:21. 19:IO. 21:s. 99:9 Eric- 26:6, 26:7 estate - 16:6. 18:3. 18:4, 18:s. 18:16. 18:22. 19:4. 20:6, 20:14. 21:1, 24:Il. 4521, 51:19. 85:3. 94:6, 94:14, 94:19. 94:21, 9423. 95:4. 97:14. 98:17, 98:22, 99:7, 1OO:ll. 124:21 estimate - 121:ll estimation- 100:7 evidence - 27:5 exact - 6 1 2 exactly - 34:5. 54:11, 122:10, 122:19 Exactly - 37:16 Examination- 3:3. 45, 83:13, 116:18, 124:5 examined - 4:2 example - 72:l except - 3723 execute - 55:6

executed - 26:13, 37:7 executive - 96:22 executives - 101:21. 121:l exhibit - 33:7 Exhibit- 33:9, 33:15. 5213, 53:4, 535, 5322, 62:2. 84:6, 102:lO Exhibits- 3:s existing - 88:4. 93:7 expectation - 124:15 expense - 3423, 62:8, 6 2 : l l . 6214, 63:s expenses - 37:3 expensive - l l 0 : 1 5 experience - 21:lO. 97:13. 100:4 experienced - 3217 experiences - 21:s Expires- 126:23 Explain - 10:22 explain - 103:18 express - 3215, 32:20, 71:5. 81:15. 8123 expressed - 66% extension - 66:2 extent - 9:22 extra - 23:9. 67:lO eyes - 54:4

F
fact - 3723. 49:15 factors - 1085 fair- 20:lo. 442, 6 3 : I l . 6621 Fair- 21:7 fairly - 113:9 falling - 7021 familiar - 14:20. 51:16, 74:14 far - 8:14. 29:23. 30:6. 32:17, 35:18, 6133, 72:20 fast - 28:5, 74:3. 79:s faster- 7516. 75:22. 91:l fastest - 49:s fax - 39:4 Faxes- 38:23 Federal- 1:18, 87:15 federal - 14:22 fee - 56:11 fellow - 116:5 felt - 48:22, 64:15, 73:1, 81:20, 8 2 6 fertile - 722, 123:12, 123:17. 123:20 few-4:15, 5:11, 682, 98:20. 105:2 figure - 6216 figured - 38:12 file - 27:8, 36% fill - 25:lO financial - 108:l. 126:13 Financing- 37:9, 429 financing - 2513 fine - 52:19. 88:10, 111:9 finish - 5:2. 5:4. 59:18. 111:12. 123:18 finished -6:13 firm - 4:8 first - 4:2. 10:7. 10:12, 27:14. 27:15. 29:13. 30:21. 31:7. 34:6. 4723, 48:9, 49:10, 4920, 55:8, 55:12, 55:19. 56:3, 59:14, 59:21. 77:22, 84:13, 86:7. 86:12, 95:9, 99:14. 101:17. 107:12. 109:9. 109:17, 116:s First-4:16. 27:12. 42:21. 102:17 fits - 102:ll

Case 1:04-cv-01062-ZLW-BNB

Document 134-3

Filed 02/14/2006

Page 16 of 21

five - 61:4, 61:5, 61:14, 73:5, l l l : l l five-minute - 111:ll fixated - 113:22 Florida- 29:21 Florida's- 30:15 flow - 91:7 focus - 29:9, 49:8, 71:9, 71:10, 71:12 folks - 25:21, 39:10, 41:10, 425, 43:4. 45:lO. 48:3. 60:21, 81:13, 97:15, 105:2, 105:15. 125:lO follow - 24:7. 27:17, 106:l. 111:7, 124:2 follow-up - 24:7. 27:17. 111:7. 124:2 follows - 4:3 foray - 99:14 foregoing - 126:5 forgotten - 66:5 form - 1323, 38:21, 39%. 91:23, 110:6 formed - 13:14. 1514 forward - 9:17, 23:4, 4520 foundation - 77:3, 77:14 four-7:11, 9:21, 11:lO. 227. 22:15. 31:3, 65:l. 69:14. 84:19. 95:7, 122:20 four-day - 22:7 fourth - ll:2, 47:3 frame - 27:21, 39:15, 51:7. 605. 60:6. 68:6 Franchise- 1:7 franchise - 8:16, 11:15. 124, 1216, 12:18, 15:20, 16:9, 16:18, 23:3, 27:1,30:3, 3023, 37:13, 4 4 5 47:16, 48:2, 54:19, 5420, 5 5 3 56:ll. 57:14. 59:20. 64:21. 64:22. 7320. 73:23. 76:8, 83:l. 87:1, 87:9. 97:20, 97:21. 98:1, 98:15 franchised - 11:2, 1515 franchisee - 23:lO. 24:4, 26:15. 45:20. 56:11, 71:12. 74:1, 79:19, 884, 88:9, 88:13, 90:14, 93:18, 103:22 franchisees - 13s. 157, 16:5,25:2. 25:23, 27:2, 27:10, 51:12, 78:2, 80:16, 87:4. 93:7, 108:23 Franchiser- 13:19 franchiser- 123, 125, 1320, 14:18. 1421, 14:22. 88:7, 97:13 franchiser's - 87:9 franchises - l0:21, 11:17, 11:21, 12:8. 1213, 15:4, 16:9, 22:22. 46:2, 72:2. 81:12 Franchising- 13:16, 13:21. 14% 14:13, 15:ZO. 16:22, 18:16,19:10, 19:14, 19:18. 19:23.20:17, 22:20, 36:8. 37:20, 53:13. 63:14 franchising - 1423, 15:12, 15:16, 16:2, 16:4, 20:6, 98:21, 9 9 5 11322, 114:3 Frank- 116:7, 116:8 freedom - 85:22 frequently - 43:7, 105:13 fresh - 86:2 friendly - 100:17 friends - 29:16. 82:22, 83:2 full -6:8. 17:19. 17:20. 1723, 25:2 full-time - 6:8. 17:19, 17:20, 17:23

Fulton- 623 function - 94:20. 96:17, 96:21. 1 0 5 5 112:20. 121:18

G
gap - 97% gathering - 30:4. 3023 gears - 6 9 3 general -81:6, 86:1, 88:21, 89:13 generally - 24:2. 85:17, 89:3 generate - 40:7 generated - 38:19, 44:l. 61:15. 61:16. 61:22 generation - 38:1, 38:7, 38:IO. 38:14 Geneva- 1262 gentleman - 26:6, 83:20, 105:ll. 119:19 geographic - 30:15, 4920, 71:18 geographically - 71:lO Georgia- 5:18, 5:23, 6:5, 7:7, 7:23, 8:2. 8:11, 8:12. 12:22,49:7, 765 given - 60:3 glasses - 54:6. 5