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

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

Document 134-2

Filed 02/14/2006

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EXHIBIT A

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Case 1:04-cv-01062-ZLW-BNB
FOR THE DISTRICT O COLORADO F

Document 134-2
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I N THE UNITED STATES DISTRICT COURT

EXAMINATION
M r . MacPhee M r . Silverman

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C i v 1 1 A c t ~ o nNo. 04-2-1062 (BNB)

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6 7 THE QUIZNO'S MASTER LLC and THE QUIZNO'S FRANCHISE COMPANY. LLC. Plaintiffs

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83 - l l t 116 - 124 124 - 125 MARKEC

M r . MacPhee

Mr. S i l v e r m a n
EXHIBITS P l a i n t i f f ' s 58

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VS. R&B MANAGEMENT GROUP, LLC, an Alabama l i m i t e d l i a b i l i t y company. ROYCE GWIN, an i n d i v i d u a l , and REBECCA GWIN, an i n d i v i d u a l . Defendants.

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Notice of Deposition

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16 The d e p o s i t i o n of RANDY TROTTER, t a k e n 17

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p u r s u a n t t o F e d e r a l Rules o f C i v i l Procedure b e f o r e 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 , a t t h e Law O f f i c e s o f J.E. Sawyer, 203 S . Edwards S t r e e t , E n t e r p r i s e .

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Alabama. on t h e 2 6 t h day o f May. 2005, a t a p p r o x i m a t e l y 3:00 p.m.. pursuant t o n o t i c e . 2

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APPEARANCES 2 FOR THE PLAINTIFFS: Honorable Leonard H . MacPhee, P e r k i n s C o i e , LLP. 1899 Wynkoop S t r e e t . S u i t e 700, Denver, C o l o r a d o 80202. 3 4

RANDY TROTTER h a v i n g been f i r s t d u l y sworn, was examined and t e s t i f i e d as f o l l o w s , t o - w i t :

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DIRECT EXAMINATION BY M R . MACPHEE:

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8 FOR THE DEFENDANTS: Honorable Eldon E. S i l v e r m a n , Preeo. S i l v e r m a n . Green and E n g l e . P.C.. 1401 1 7 t h

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~ o o d f t e r n o o n . Mr. T r o t t e r . a

~ y name i s

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Lynn MacPhee.

I ' m an a t t o r n e y w i t h t h e law firm
And t h e

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o f P e r k i n s Coie i n Denver, C o l o r a d o .

purpose o f t o d a y ' s d e p o s i t i o n h e r e i n E n t e r p r i s e .

1 1 S t r e e t . S u i t e 800. Denver, C o l o r a d o 80202.
12 13 14 15 16 17 18 Royce Gwin and Rebecca Gwin ALSO PRESENT: Honorable J.E. Sawyer. J r . . 203 South

1 Alabama i s f o r me t o ask you some q u e s t i o n s about1 1 12
13 knowledge you may have r e l a t i n g t o a case pending1 i n C o l o r a d o i n v o l v i n g Q u i z n o ' s e n t i t i e s and R&B Management. I n c . , Royce Gwin and Rebecca Gwin. A few ground r u l e s b e f o r e we s t a r t . F i r s t , we a r e h a v i n g o u r c o n v e r s a t i o n today t r a n s c r i b e d and t h e r e f o r e t h e r e w i l l be a t r a n s c r i p t p r e p a r e d as a r e s u l t o f t h i s deposition. T h e r e f o r e , we need t o use v e r b a l

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Edwards S t r e e t . E n t e r p r i s e . Alabama 36330.

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responses t o my q u e s t i o n s as opposed t o s h a k i n g your head, n o d d i n g y o u r s h o u l d e r s , s a y i n g uh-huh, huh-uh. o r t h i n g s o f t h a t n a t u r e . A. Okay. Okay?

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Case 1:04-cv-01062-ZLW-BNB
Q.
o v e r each o t h e r .

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Q.
speak? A. Correct.

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A l s o , i t ' s i m p o r t a n t t h a t we d o n ' t t a l k I n o t h e r words, l e t me f i n i s h

1 I n d u s t r i a l , which i s p a r t of A t l a n t a .
Was t h a t y o u r base o f o p e r a t i o n , so t o

.

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my q u e s t i o n b e f o r e you s t a r t t o answer, and I

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w i l l endeavor t o l e t you f i n i s h y o u r answer
before I s t a r t asking the next question. That

Q.
A. region.

D i d you have a r e g i o n t h a t you were

way t h e c o u r t r e p o r t e r can g e t down e v e r y t h i n g t h a t we s a y . A. Okay. Have you e v e r been deposed b e f o r e , s i r ? NO.

responsible f o r w i t h respect t o sales? P r e t t y much, yeah. The n o r t h G e o r g i a

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8 9 10

Q.
A.

Q.

How l o n g d i d you work a t Empire

Distributor? A. L e t ' s see. '87 roughly? Yes. And t h e n what d i d you do a f t e r t h a t ? For about f o u r y e a r s .

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Q.

I am g o i n g t o ask you a few q u e s t i o n s
Do you have a

a b o u t y o u r p e r s o n a l background. c o l l e g e degree? A. No.

Q.
A.

Q.
A.

Q.
A.

Where d i d you go t o h i g h s c h o o l ? Lakeside High School. Where i s t h a t ? I t ' s i n A t l a n t a . Georgia. And have you t a k e n any c o u r s e s a t a

I worked f o r a b r i e f t i m e a t a p l a c e

c a l l e d M e t r o Media, which was s e l l i n g p a g e r s .

Q.
A.

Q.
A. Q. A.

And were you i n s a l e s t h e r e , as w e l l ? Yes. And was t h a t a l s o i n A t l a n t a ? Correct. And t h a t was t h e r e g i o n you c o v e r e d Uh-huh.

Q.

c o l l e g e beyond h i g h s c h o o l ? A. Yes. And where d i d you t a k e c o u r s e s ? GeorgiaState University. 6

Q.
A. Q.

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Q.
A.

- - was G e o r g i a - 8

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Q.
A.

How many y e a r s ? Three y e a r s . And d i d you have a m a j o r d e c l a r e d ? NO. And what y e a r s were you a t G e o r g i a S t a t e

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A.

Correct.

Q.

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i n c l u d i n g Georgia?

How l o n g d i d you

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.

Q.
A.

work f o r M e t r o Media? A. About maybe e i g h t , n i n e months. Where d i d you go a f t e r t h a t ? A f t e r t h a t . I opened a r e t a i l s t o r e i n

Q.
A.

Q.
A.

University? '80 through '83. And were you a f u l l - t i m e s t u d e n t ? Yes. Roughly 15 c r e d i t h o u r s a semester,

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1988, November.

Q.
A.

Q.
A. Q. A.

What k i n d o f s t o r e ? A p e t supply s t o r e . And where was t h a t l o c a t e d ? A l p h a r e t t a . Georgia.

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Q.
A.

1 1 something l i k e t h a t ?
12 13 14 15 16 17 18 19 20 Approximately. And when you f i n i s h e d o r stopped t a k i n g

Q. And where i s A l p h a r e t t a , G e o r g i a ?
A. I t ' s n o r t h of A t l a n t a . How f a r n o r t h ? 25 m i l e s . And was t h a t a f r a n c h i s e ? No.
I t was - - i t was n o t p a r t o f a system?

Q.
A.

c l a s s e s i n ' 8 3 , what d i d you do a t t h a t p o i n t ?

Q.
A.

I got married.

Itook a job.

I was a

s a l e s guy f o r a wine d i s t r i b u t o r .

Q.
A.

Q.
A.

And what was t h e name o f t h a t company?
I t was c a l l e d Empire D i s t r i b u t o r .

Q.
A.

Q.

Where was Empire D i s t r i b u t o r

Mom and pop. And d i d you have b u s i n e s s p a r t n e r s ? Yes. And who were y o u r p a r t n e r s ? My w i f e . Kim.
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headquartered? A. Atlanta. And where d i d you work o u t o f ? The o f f i c e was o v e r on F u l t o n

Q.
A. Q. A.

Q.
23 A.

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Case 1:04-cv-01062-ZLW-BNB
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A. Any o t h e r s ? NO. Do you have c h i l d r e n ? Yes. L i t e r a l l y mom and pop t h e n ? Literally.

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A. Okay.

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What happened was when I had my

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f o u r t h s t o r e . I f r a n c h i s e d t h e c o n c e p t i n 1995. A f t e r t h a t . I s o l d two of my company-owned s t o r e s , s u b s e q u e n t l y opened t h r e e more s t o r e s u n t i l 2001. P e t s M a r t , PetCo. a l l o f t h e b i g guy

Q.
A. Q. A. now.
Q.

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A t t h a t t i m e , no, b u t I do

came t o town and made my b u s i n e s s n o t q u i t e as good. So i n 2001, e v e r y t h i n g went s o u t h .

How l o n g d i d you - - o r do you s t i l l own

A c t u a l l y , i t w a s n ' t - - i t was about 2000. Q. Did

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t h e pet supply store? A. NO. HOWl o n g d i d you o p e r a t e t h a t s t o r e ? That p a r t i c u l a r s t o r e was c l o s e d i n

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l e t me see if I u n d e r s t a n d .

At

one p o i n t , you had f o u r company-owned s t o r e s

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A. 13 14

a p p r o x i n l a t e l y 1994. Q. closed? A. Yes. Going f o r w a r d . between ' 8 8 and ' 9 4 , had And d i d you own i t a t t h e t i m e i t was

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A.

Right.

Q.
A. Q.

- - and i t was y o u r company - Uh-huh.

- - you and y o u r w i f e ' s company?

And you

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d e c i d e d t o f r a n c h i s e t h e concept - A. Q. A. Right.

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18 A. Q. 21 22 23 A. Q. A.

- - and s o l d how many f r a n c h i s e s ?
I s o l d two o f my company s t o r e s . And

you p i c k e d up o t h e r businesses o r o t h e r work? Yes. What was t h e n e x t t h i n g you d i d ? I opened f o u r p e t s t o r e s t o t a l . So became a c h a i n t o some e x t e n t ? Correct. 10
Q

then I s o l d s t o r e s i n Macon. Warner Robins. Peachtree C i t y . Woodstock. And t h a t was i t .

Q.
A. Q.

Those were f r a n c h i s e s ? Correct. And

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And t h e y were a l l The same name.

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A.

I had no ownership i n t h o s e s t o r e s . And you d i d - - t h e company - - you owned

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A. Q. A.

I ' m sorry.

Q.

What was t h e name o f i t ? Haynes P e t C e n t e r . H-a-y-n-e-s.

t h e company t h a t was t h e f r a n c h i s e r ?

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Q. three? A.

And what y e a r s d i d you open t h e o t h e r

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I owned t h e f r a n c h i s e company. The f r a n c h i s e r , as we say? Right. And t h e two s t o r e s t h a t you s o l d , d i d

Q.
A.

The f i r s t t h r e e y e a r s - - we opened one

Q.

you s e l l those as f r a n c h i s e s ? A. closed. The two s t o r e s t h a t I had l e f t , one W t a l k e d about t h a t one. e And t h e n t h e

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And l o o k i n g back. I b e l i e v e t h a t one c l o s e d i n about m i d n i n e t i e s . So ' 9 4

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i t m i g h t have been

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o t h e r one c l o s e d i n 2000. The f i r s t one? Correct. The o t h e r t h r e e , a r e t h e y s t i l l open? One i s . 00 you s t i l l own i t ? NO. D i d you s e l l y o u r i n t e r e s t i n one, two.

Q
A.

Q.

And 'the two s t o r e s you s o l d , d i d you

S e l l those as f r a n c h i s e s ? A. Q. A. Correct. And those would be

Q
A. Q. A. Q.

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,They g o t f r a n c h i s e r i g h t s and t h e y own

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the store.

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t h r e e o f t h o s e s t o r e s a t some p o i n t ? A.

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I s o l d some as company-owned s t o r e s ,

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Q.

And those would be s i x t o t a l f r a n c h i s e

stores? A.

I t was l i k e - - l e t ' s see.

A t the

.

Some as f r a n c h i s e s .

h e i g h t , I t h i n k i t was e i g h t . Q. A. Page 9 to 1 And were t h e y a l l i n t h e G e o r g i a r e g i o n ? Correct.

Q.

Okay.

E x p l a i n f o r me t h e n how t h a t

happened.

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Q.
Would t h a t be s a f e t o say? Uh-huh. 2 A.

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A. Absolutely.

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And d i d you have prepared, o r on your

Q.

D i d you wind up s e l l i n g t h e concept o r

b e h a l f prepared, an o f f e r i n g c i r c u l a r w i t h r e s p e c t t o t h e s a l e o f those f r a n c h i s e s ? A. Yes. And what year d i d you wind up c l o s i n g

,

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j u s t c l o s i n g t h e s t o r e s , o r how d i d i t wind up? A. What I d i d was a t t h e end when I c l o s e d

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my company-owned s t o r e . I l e t t h e f r a n c h i s e e s b ~ t h e i r way o u t o f t h e c o n t r a c t . ended. And t h a t ' s how i

Q.

your s t o r e s and a l l o w i n g the f r a n c h i s e e s t o buy out o f the contract? A. Q.
I t was i n 2000.

Q.
A.

And d i d they e l e c t t o do t h a t ? Some d i d . And some chose t o c l o s e the doors? Correct. What was t h e name o f the company t h a t

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And were you i n v o l v e d i n any o t h e r

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YOU

Q.
A.

1 1 businesses d u r i n g t h a t window o f t i m e t h a t you
12 13 14 were f r a n c h i s i n g the concept? A. J u s t t h e two. The one company t h a t

Q.

- - I assume you formed - A. There a r e two companies. HC P

formed t h e s t o r e s , t h e one company t h a t franchised. That's i t .

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F r a n c h i s i n g . which i s s t i l l g o i n g .

Q.

When you g o t o u t of t h e f r a n c h i s i n g

Q.

Was t h a t t h e conlpany t h a t owned the

business A.

-When you

concept o r the - A. Franchiser. That was - - t h e f r a n c h i s e r was H C P

Uh-huh. I s h o u l d n ' t say i t t h a t way.

Q.

Q.

ceased u s i n g HPC F r a n c h i s i n g t o f r a n c h i s e these pet stores - A. Right.

Franchising? A. Correct. And then d i d you a l s o form an e n t i t y t o

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Q.

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Q.

- - what d i d you do n e x t ?
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14 1 own t h e s t o r e s ?
2 3 4 5 6 7 8 9 10 A. Q. A. Yes. And what was t h a t e n t i t y ? HPC. I n c o r p o r a t e d . What does HPC s t a n d f o r ? Haynes Pet C e n t e r . And who were t h e owners o f HPC

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A.

There was a p e r i o d o f t i m e t h a t

f r a n c h i s i n g was s t i l l g o i n g a f t e r I c l o s e d m y store. And so d u r i n g t h a t p e r i o d o f t i m e - - I

worked f o r f r a n c h i s i n g u n t i l i t s end w i t h the f r a n c h i s e e s I s t i l l had. estate license. And I g o t m r e a l y

Q.
A.

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And when I decided t o j u s t t h r o r

Q.

i n the t o w e l on t h a t d e a l i s when I s t a r t e d working w i t h - - I took a j o b i n A t l a n t a . And m y

Franchising? A. myself. Q. A. And HPC. I n c . a l s o ? That was b o t h . How many employees d i d H C F r a n c h i s i n g P The same owners f o r b o t h , m w i f e and y

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f r a n c h i s e company i s s e l l i n g f r a n c h i s e s f o r t h e area developers i n t h e A t l a n t a area. And t h a t

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1 was i n August o f 2001. 1
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Q.

And when you say t h e area developers i n

Q

t h e A t l a n t a area, t h a t ' s the Q u i z n o ' s area developers you mean? A. Correct. Do you now, o r have you s i n c e 2000,

have a t t h e h e i g h t ? A. Q. A. J u s t myself and m w i f e . y Even though - T h a t ' s m m and pop. o Even when you were a c t i n g as f r a n c h i s e r ? Correct. D i d you become f a m i l i a r i n your r o l e as o r owning a company t h a t was a w i t h t h e f e d e r a l law r e g u l a t i n g

Q.

performed s e r v i c e s on b e h a l f o f any o t h e r system? I n o t h e r words, another f r a n c h i s e concept - A. No.

Q.
A. Q.

Q.

- - o r another r e s t a u r a n t concept?

Is

franchiser, franchiser,

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your r e l a t i o n s h i p w i t h the area d i r e c t o r s i n A t l a n t a t h r o u g h HPC F r a n c h i s i n g ?
A.

franchising?

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Yes.
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Case 1:04-cv-01062-ZLW-BNB
Q. I s t h a t e n t i t y an independent c o n t r a c t o r , so t o speak? A. They g e t a 1099, y e s . A1099 - J u s t l i k e what Royce had.

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Q
A. Q. Uh-huh.

- - t h a t you j u s t d e s c r i b e d ?

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Does HPC. I n c . do a n y t h i n g o t h e r than

Q
A. Q.

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t h e r e a l e s t a t e s e r v i c e s you j u s t d e s c r i b e d ? A. NO. And how many employees does HPC, I n c .

YOU a n t i c i p a t e d my n e x t q u e s t i o n .

Q.

o t h e r words, as t h e r e l a t i o n s h i p was between R&B ~ a n a g e n l e n t i n t h i s case, t h e same as t h e way you've got i t s t r u c t u r e d w i t h respect t o the are director i n Atlanta? A. Right. And who i s t h e a r e a d i r e c t o r ? What's

have o r c o n t r a c t o r s w o r k i n g - A. There a r e t h r e e c o n t r a c t o r s under my

license.

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Q.

And HPC F r a n c h i s i n g i s t h e e n t i t y t h a t

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has t h e c o n t r a c t w i t h Q u i z n o ' s area d i r e c t o r i n Atlanta? A. Correct. Does HPC F r a n c h i s i n g have any o t h e r

Q.

t h e name of t h e e n t i t y i n A t l a n t a ? A. Q. I t ' s c a l l e d LET. I n c o r p o r a t e d . And who a r e t h e p r i n c i p a l s o f LET,

Q.

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ongoing c o n t r a c t s ? A. NO. I ' m sorry. C o n t r a c t s o r employees,

Incorporated? A. Q. I t ' s Tom S t u r k y . Lynn Crooms. And do you c o n s i d e r t h a t t o be a

no, n o t a t t h i s t i m e .

Q.
A.

Does HPC F r a n c h i s i n g have any employees? No. Other t h a n y o u r s e l f ? Right. J u s t me.

f u l l - t i m e job today? A. I t ' s one o f my company's f u l l - t i m e j o b s .

Q.
A.

I mean, i t ' s n o t service.

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I l o o k a t i t as I p e r f o r m a

And I ' m independent so I d o n ' t r e a l l y

Q

HOWmany h o u r s a week do you spend

have a f u l l - t i m e j o b , because I do d i f f e r e n t 18

w o r k i n g on HPC F r a n c h i s i n g endeavors t o d a y ? 20

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2 3 4 5 Q. A. What e l s e do you do t o d a y ? I ' m a r e a l e s t a t e b r o k e r now. And I

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A.

To break i t up, I would say - - do you

want me t o do i t p e r c e n t a g e s o r h o u r s ?

Q.
A.

Both. Okay. I ' d say we work 40 h o u r s a week. I ' d say i t ' s p r o b a b l y 30/10, 30

have r e a l e s t a t e p e o p l e under me and we do tenan r e p , we do l a n d l o r d r e p and we s e l l p r o p e r t y . Q. A. Q. A l l i n the A t l a n t a area? T h a t ' s where HPC, I n c o r p o r a t e d i s . Besides t h e r e a l e s t a t e work t h a t you

That's popular.

6
7 8 9

6
7 8 9

f r a n c h i s i n g , 10 r e a l e s t a t e .

Q.
A.

T h a t ' s hours? Or maybe 30115. Yes, i f we used t h e

j u s t d e s c r i b e d as a b r o k e r - A. Uh-huh.

40-hour work week. Q. I s i t f a i r t o use a 40-hour work week?

10
1 1 12
13 14

10

Q.

- - and s u p e r v i s i n g o t h e r s w i t h r e s p e c t
landlord representatiol

1 1 I mean, i n o t h e r words - 12
13 14 15 16 17 A. I t ' s p r o b a b l y l i k e 30120 i s t h e way i t My w i f e has more o f a There a r e

t o tenant representation,

and s e l l i n g p r o p e r t y , and t h e work HPC does f o r the area d i r e c t o r i n A t l a n t a ?
A.

i s , t h e way i t b r e a k s up.

r o l e i n t h e HPC r e a l e s t a t e company. j u s t c e r t a i n t h i n g s t h a t I do. Q.

15
16 17

I t ' s different.

HPC, I n c o r p o r a t e d i s

the r e a l estate.

HPC F r a n c h i s i n g i s t h e one t h a l

And would t h e average o f 30 h o u r s a week

has t h e agreement w i t h t h e a r e a d e v e l o p e r s . Q. A. Q. you. L e t me - Okay. L e t me c o r r e c t my q u e s t i o n t h e n . Thank

w i t h r e s p e c t t o HPC F r a n c h i s i n g and t h e c o n t r a c t w i t h t h e area d i r e c t o r s i n A t l a n t a , would t h a t be an a c c u r a t e number f o r 2003. 20021 A. Q. A. Yeah. Well - I mean - -

18
19 20 21 22

18
19 20 21 22 23 Page 17 to 20 of 126

HPC. I n c . i s t h e e n t i t y t h r o u g h which you

- - has t h a t i n c r e a s e d o r decreased? -- actually i t ' s

do t h e r e a l e s t a t e s e r v i c e s - A. Right.

--

i t m i g h t have been a

23 5 of 32 sheets

l i t t l e h i g h e r i n t h o s e areas because t h e r e a l

1 e s t a t e company w a s n ' t as s t r o n g .
2 have been a l i t t l e b i t more.

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

Document 134-2

So i t c o u l d

2004, i t was a l l -

I

1 basically.
Q.

Filed 02/14/2006

Page 7 of 21

2

00 you have any r e s p o n s i b i l i t i e s from

3
4 5 6 7 8 9 10

I was n o t d o i n g any c o n t r a c t i n g w i t h M r . Gwin.

3
4

a f t e r t h e y ' v e s i g n t h e f r a n c h i s e agreement forward?
A.

So i n 2003, I s p e n t , you know, some t i m e i n Atabama. as w e l l . Q. F a i r enough. Other than your So i t c o u l d have been d i f f e r e n t then.

5
6 7 8 9 10

Only i f I choose t o . Are you compensated based on number o f

Q.

s a l e s t h a t you c l o s e ? A. Q. Compensated p e r d e a l . And t h e r e f o r e , e x t r a work you would do

experiences w i t h M r . Gwin's e n t i t y and w i t h t h e area d i r e c t o r i n A t l a n t a , do you have any o t h e r experience w i t h Quizno's? A. Q. No. T e l l m o r d e s c r i b e f o r m what c o n t a c t e e

a f t e r the f r a n c h i s e e has signed up would n o t

1 1

1 n e c e s s a r i l y - - you w o u l d n ' t be compensated f o r 1
12 13 14 15 16 17 18 19 20 21 22 that? A. I s t h a t accurate? The way I do i t i n A t l a n t a i s I have a I get

12
13 14

y o u ' v e had w i t h Q u i z n o ' s w i t h r e s p e c t t o e i t h e r t r a i n i n g o r o b t a i n i n g m a t e r i a l s o r g o i n g t o what t h e y c a l l BAM's. Have you done any o f those

d i f f e r e n t d e a l than I had w i t h Mr. Gwin.

15
16 17 18 19 20 21 22 23
i

compensation when t h e y s e l l and compensation whe they open. But most o f t h e opening i s done

sorts o f things with Quizno's? A. Yes. I ' v e been d o i n g t h a t s i n c e 2001.

through o p e r a t i o n a l support teams.

I ' v e a l s o a t t e n d e d t h e area d i r e c t o r s c h o o l . which they had i n 2002. J u s t ongoing t r a i n i n g

Q.

A l l o t h e r employees o f t h e area

directorship -A. Q. Right.

through BAM's, and b a s i c a l l y i f you want t o g e t your money, you need t o push s t u f f through the system. Q. So you went t o area d i r e c t o r t r a i n i n g i n 22

- - o r c o n t r a c t o r s o f t h e area

directorship? A. Right. Enlployees. 24

23

1 2002?
2 3 4 A. Q. A. Q. weeks? A. Correct. That was i n Denver? Right. And how l o n g

1

Q.

What, then. i f you can d e s c r i b e ,

2
3

g e n e r a l l y a r e your j o b d u t i e s w i t h r e s p e c t t o t h , s e l l i n g and, I t h i n k you s a i d g e t t i n g them approved, meaning t h e f r a n c h i s e e ? A. Yeah. M major y

4

5
6 7 8 9 10

--

was t h a t one week o r two

5 6 7 8 9 10

--

what I do i s what W do seminars e

00 you remember?

Quizno's has t a u g h t us t o do.

I t was, l i k e , a f o u r - d a y c l a s s .
And do you r e c a l l s i g n i n g a

monthly and then we have f o l l o w - u p appointments a f t e r the seminars. qualified. W t r y t o g e t people e

Q

c o n f i d e n t i a l i t y agreement o r something a l o n g those l i n e s b e f o r e you A. yes. Q. And t h a t was m n e x t q u e s t i o n . y How

Once we g e t them q u a l i f i e d . we g e t And t h e n we work on t h e r e a l

--

them signed up.

1 1
12 13 14

I b e l i e v e we s i g n them a t every BAM,

1 1 estate.
12 13 14

Q.
A. Q.

Meaning s i t e s e l e c t i o n ? Correct. B u i l d - o u t , lease n e g o t i a t i o n , t h a t s o r t

o f t e n do you go t o BAM? A. Q. A. A t l e a s t f o u r times a y e a r . Almost a l l o f t h e BAM's? Yes, u n l e s s they have an o p e r a t i o n a l

15
16 17 18 19 20 21 22 23

15
16 17 18 19 20 21
Iq u a l i f y

of thing? A. Uh-huh. Right.

Q.

And i f I understood your t e s t i m o n y , i f

BAM. which does n o t market what I do. Q. Right. What i s your - - o r H C P

you choose t o , you can be i n v o l v e d i n some o f those aspects o f - A. Ihelp out. And when I say I choose t o

F r a n c h i s i n g . what j o b do you p e r f o r m w i t h r e s p e c t t o t h e area d i r e c t o r s h i p i n A t l a n t a ? A. people. I s e l l Quizno's franchises.

d o e s n ' t mean - - I choose t o when I can h e l p and when something i s n o t b e i n g done, I suppose. But

22

I - - you know. I g e t them signed up.

23 Page 21 to 24 of 126

i t ' s n o t - - I mean, f o r t h e people t h a t I work 6 of 32 sheel

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

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

Document 134-2
And

25

1 f r a n c h i s e o f f e r i n g c i r c u l a r t o the p r o s p e c t i v e 2
franchisees? A. Q. 8y l a w , t e n days b e f o r e . And you have them s i g n a r e c e i p t t o show

Filed 02/14/2006

Page 8 of 21

27

once you g e t them i n . I have o t h e r people t a k e them o v e r .

3 4 5 6

Q.

Again, those o t h e r employees of t h e area

evidence o f t h e d i s c l o s u r e ? A. Q. T h a t ' s one t h i n g u n d e r w r i t i n g l o o k s a t . To make s u r e the signed r e c e i p t i s i n

directorship? A. Q. Right. What i s e n t a i l e d i n g e t t i n g them

7
8
9 10

the f i l e ? A.
Q.

q u a l i f i e d , t o use your word? A. W e l l , you have t o have them f i l l o u t an

Correct. When do you have p r o s p e c t i v e f r a n c h i s e e s

11 a p p l i c a t i o n , and they have t o meet our c r e d i t
12 13 14 r e q u i r e m e n t s , because we have t o make sure they can o b t a i n f i n a n c i n g so t o n o t t r y t o waste people's time or m time. y I t r y t o have them

1 s i g n a r e c e i p t f o r an o f f e r i n g c i r c u l a r ? 1
12 13 14 A. F i r s t meeting. A t t h e seminar? I f t h a t ' s when the f i r s t meeting i s . Whenever t h e f i r s t meeting i s ? Correct. And then t h e f o l l o w - u p meeting you w i l l

Q
A.

15
16 17 18 19 20 21 22 23
I

q u a l i f i e d b e f o r e I meet w i t h them. Q. A. Q. Anything else? (Shakes head.) Who makes t h e d e c i s i o n as t o whether an

15
16 17 18 19 20 21 22 23

Q.
A. Q.

w a i t t h a t ten-day p e r i o d ? A. Q. Yes. How have you found

applicant i s q u a l i f i e d ? A. Q. Quizno's. Now, do you work w i t h f o l k s i n Q u i z n o ' s

- - and t h i s i s g o i n g
How

t o be a broad t i m e frame, i n t e n t i o n a l l y so. have you found Q u i z n o ' s i n terms o f

corporate o f f i c e i n connection w i t h g e t t i n g f r a n c h i s e e s approved?

responsiveness i n a p p r o v i n g a p p l i c a n t s and t h e 28

26

1
2 3 4 5 6 7

A. Q. A.

Yes. Who do you work w i t h ? For t r a n s f e r s . I worked w i t h M e l i s s a
I

1 process o f g e t t i n g from an a p p l i c a t i o n t o a
2 3 signed contract? A. O v e r a l l good. There have been hiccups

Madison who i s n o t w i t h t h e company any more. have a new person i n t h a t .

4

i n t h e system. seamless.

The a p p l i c a t i o n process i s p r e t t y When we have a l o t of

And i n the s a l e s . I

5
6

I t ' s very f a s t .

work w i t h a gentleman named E r i c h i s l a s t name. And t h e y a bit.

--

I d o n ' t know

s a l e s Comes i n , sometimes t h i n g s g e t backed up, b u t they address those m a t t e r s . Q. A. Q. A. When Q u i z n o ' s addressed t h e backups? Correct. Do you remember when t h a t was? That was about

Oh, no, E r i c Trump ( p h o n e t i c ) .

7
8 9
10

8
9 10

--

I have u n d e r w r i t e r s come and go q u i t e

So t h a t ' s who I have r i g h t now. Underwriter i s the job - U n d e r w r i t e r s l o o k s a t my c o n t r a c t s and

Q.
A.

1 1
12 13 14

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

- - i t was ' 0 3 , because I
I d o n ' t know

t e l l s m i f I have e v e r y t h i n g complete and i f e t h e y can send those t o l e g a l t o g e t executed. Q. So t h a t ' s n o t n e c e s s a r i l y p a r t o f t h e

remember I was w o r k i n g i n Alabama. the time period. Q. A. Meaning - -

Probably t h i r d q u a r t e r .

15
16 17 18 19 20

a p p r o v a l o f t h e f r a n c h i s e e process, t h a t ' s a c t u a l l y approval o f the contract? A. Right.
I d o n ' t - - t h e i r a p p r o v a l comes I can see i f somebody i s approved by

J u s t t o have u n d e r w r i t e r s l o o k a t t h e

agreement t o t e l l me. you know, a l l about, what do you want, what do I need, what do I need t o g e t i t through. And they d i d address i t . I

v i a e-mail.

l o o k i n g a t a c r e d i t app.

But once t h e system

d o n ' t f e e l l i k e i t h e l d m back. e Q. Would t h a t be t r u e i n Alabama, as w e l l

g e t s g o i n g i s when I d e a l w i t h t h e i n t e r n a l workings o f Q u i z n o ' s .

21
22 23

as i n A t l a n t a ? A. Q. I t ' s t h e same p e o p l e . So y o u ' r e s a y i n g i t d i d n ' t h o l d you

Q

And do you d i s c l o s e - - do you know what

I mean by t h e word d i s c l o s e ?

7 of 32 sheets

Do you p r o v i d e a 23 Page 25 to 28 of 126

1 back, t h e h i c c u p , as you d e s c r i b e d i t ?

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

Document 134-2
1
2 3

Filed 02/14/2006
A. about i t b e f o r e .

That was when - - I t h i n k we had t a l k e d I t ' s l i k e we t a l k e d about i t -

Page 9 of 21

2
3

NO, because they d i d address i t . They d i d address i t . Okay. And when

Q.

w go up t o Denver f o u r times a y e a r f o r t h e e BAM's. I n ' 0 3 , I t h i n k we s a i d , okay, l e t ' s t r y

4 5
6 7 8 9 10

d i d t h e y address i t ? A.

4
5 6 7

I ' m t a l k i n g about maybe a two o r
So i t w a s n ' t something t h a t

it.

W p r o b a b l y t a l k e d maybe, you know, a e

three-month p e r i o d . was ongoing.

quarter p r i o r .

Q.
o f '03? A. Q. A.

Last quarter o f '02 or the f i r s t quarter

Q.

Very good.

L e t m ask you t o - - I a e m

8
9 10

g o i n g t o s h i f t focus now and ask you q u e s t i o n s more p e r t a i n i n g t o your work i n Alabama w i t h M r .

Correct. One o f those two q u a r t e r s ? Yes.
I t p r o b a b l y was t h e January ' 0 3 .

1 Gwin o r w i t h R&B Management. 1
12 13 14 15 16 17 18 19 20 21 22 23 A. Q. Okay. Do you r e c a l l how you f i r s t came i n

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

Q.

D i d Mr. Gwin t e l l you why he was

i n t e r e s t e d i n h i r i n g you? A. sales. Q. And I guess r a t h e r than h a v i n g your What was
I j u s t assumed he wanted t o i n c r e a s e h i s

c o n t a c t w i t h M r . Gwin? A. Yeah. W had known Royce because he was e

f r i e n d s w i t h t h e employees o f t h e area developer i n Atlanta. A c t u a l l y from C a r t e r s v i l l e . And so

assumption - - o r l e t m ask you t h i s . e your assumption based upon? A. Q.

I had known Royce g o i n g t o t h e d i f f e r e n t BAM's. And a t one p o i n t . I was t a l k i n g w i t h d i f f e r e n t area d i r e c t o r s , i n c l u d i n g t h e one down i n n o r t h F l o r i d a , and t h e y were a s k i n g m i f I ' d l i k e t o e S e l l f o r them. go t h a t f a r , e And i t was i m p o s s i b l e f o r m t o

That he wanted m t o work f o r him? e The reason he wanted you t o work f o r him

was t o i n c r e a s e h i s s a l e s . A. That was m assumption. y And why d i d you assume t h a t ? 32

b u t , you know, I - - and Royce asked 30

23

Q.

1 m and I s a i d yeah. e
2 3 4 5 6 7 8 9 10

You know, i f we c o u l d s t r i k c

1
2
3

A. sales.

Because everybody wants t o have more

up t h e r i g h t d e a l , I ' d be i n t e r e s t e d i n d o i n g i t . And t h a t was i n March o f '03 a t a f r a n c h i s e g a t h e r i n g i n Las Vegas.

Q

T h a t ' s what I thought y o u ' d say.

So I

4
5 6 7 8 9 10

guess what I ' m t r y i n g t o f i n d o u t i s i f you r e c a l l t h e c o n v e r s a t i o n t h a t you had w i t h M r . Gwin - A. W e l l , okay. Yeah. I can t h i n k o f i t .

Q

When you s a i d i t was - - I t h i n k you s a i d

i t was t o o f a r o r something - -

A.

Yeah.

I d i d n ' t want t o h u r t m A t l a n t a y

because t h a t ' s t h e one I had t o t a k e c a r e o f . because t h a t ' s where I l i v e and t h a t ' s where I wanted t o devote t h e t i m e t o g e t t h e number o f And

because, you know, we t a l k e d about how we had ou A t l a n t a o f f i c e and we have employees t h a t do certain things. And Royce was n o t a t t h a t stage

1 d e a l s t h a t k e p t my company employed t h e r e . 1
12 13 14

11 y e t .
12 13 14 15 16 17 18 19 20

And so i f he wanted t o c o n c e n t r a t e on

s o , you know, w i t h him knowing t h a t , we d i d i t . Q. A. W i t h M r . Gwin knowing t h a t ? Right. The i s s u e w i t h F l o r i d a ' s geographic

designing construction, lease negotiations. support and o p e r a t i o n , then I c o u l d j u s t c o n c e n t r a t e on one p a r t o f i t . Q. D i d he express t o you concern over t h e

15
16 17 18 19 20 21 22 23

Q

distance? A. Correct. Not Something e l s e ? Right. So t h e c o n v e r s a t i o n w i t h Mr. Gwin - - t h e

number o f s a l e s o r t h e l a c k o f t h e number o f s a l e s t h a t he had experienced t h u s f a r ? A. more.
Q

Q.
A.

Not r e a l l y t h a t .

He j u s t wanted t o have

Q.

D i d he express concern over t h e

f i r s t c o n v e r s a t i o n w i t h M r . Gwin about e n t e r i n g i n t o a d e a l w i t h him was March o f ' 0 3 a t a f r a n c h i s e g a t h e r i n g i n Las Vegas?

21
22

development quota i n h i s Area D i r e c t o r M a r k e t i n g Agreement? A. That was n o t p a r t o f i t . That was n o t
8 of 32 shee

23 Page 29 to 32 of 126

1 my b u s i n e s s .
2 3 4 5 6 7 8 9 10 Q.

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

33 Document 134-2

Filed 02/14/2006

Page 10 of 21

35
And Eldon.

on a m o n t h l y o r e v e r y o t h e r month b a s i s . t h a t i s something I ' l l have t o d i g up.

And n o t p a r t o f t h e d i s c u s s i o n s t h a t you

had w i t h him? A. NO.

t a l k e d t o him - - I ' v e j u s t came f r o m Las Vegas y e s t e r d a y so I ' m s t i l l t r y i n g t o g e t a l l o f tho: together.

MR. MACPHEE: the next e x h i b i t .

I ' m g o i n g t o mark t h i s
MR. SILVERMAN: those? D i d you produce

(Whereupon. P l a i n t i f f ' s E x h i b i t 58 was marked f o r i d e n t i f i c a t i o n and i s a t t a c h e d h e r e t o . )

MR. GWIN:

I d o n ' t know i f t h e y were

w i t h the tax returns o r not.
MR.

11
12 13 14

SILVERMAN:

A l l right.

Q.

S i r . I ' m g o i n g t o hand t o you, o r have

Q.

D i d you have any e - m a i l correspondence

t h e c o u r t r e p o r t e r hand t o you what we marked as E x h i b i t 58. Have you seen a N o t i c e o f D e p o s i t i o n

w i t h Mr. Gwin? A. Limited. Perhaps a l i t t l e ? Yes. And as f a r as t h e s p e c i f i c s a l e s t h a t

15
16 17 18 19 20

f o r today's deposition previously? A. Q. A.
I saw i t t o d a y .

Q.
A.

B e f o r e today had you seen i t ? No.
Sir,

Q.

you c l o s e d p u r s u a n t t o t h a t agreement - i n t h i s n o i i c e we had asked f o r you And o f f t h e
A.

Q.

Uh-huh.

21
22 23

t o b r i n g c e r t a i n documents w i t h you.

Q.

- - those documents would - - d i d you

r e c o r d b e f o r e we s t a r t e d t h e d e p o s i t i o n , you i n d i c a t e d t h a t you h a d n ' t b r o u g h t documents w i t h

m a i n t a i n c o p i e s o f any o f t h e documents A. NO.

-36

34

1 you t o d a y ?
2 3 4 A. W e l l . I j u s t spoke w i t h Eldon and he

Q.
A.

--

a s s o c i a t e d w i t h any o f t h o s e s a l e s ?

No. I d i d n ' t . D i d you have n e g o t i a t i o n s w i t h Mr. Gwin

t o l d me what y ' a l l had and t h a t ' s b a s i c a l l y what
I have.

Q.

o v e r t h e language used i n t h e c o n t r a c t such t h a t And t h a t ' s e x a c t l y what my n e x t B u t , f i r s t , you d i d n ' t b r i n g any t h e r e were d i f f e r e n t d r a f t s o f t h a t c o n t r a c t you m i g h t have i n y o u r f i l e ? A. For which c o n t r a c t ? The HPC F r a n c h i s i n g and R&B Management

5

Q

6

q u e s t i o n s were.

7
8 9 10

documents w i t h you t o d a y ? A. That's correct. The documents t h a t you do have r e l a t i n g

Q.

Q.

C o n t r a c t i n March o f 2003. A.
it.

t o t h e work t h a t you performed f o r R&B Management

There was one d r a f t .

W didn't alter e

11 would i n c l u d e t h e c o n t r a c t i t s e l f , which I ' l l
12 13 show you i n a m i n u t e . A. Q. A. Okay. I s that correct? Yes. W have t h a t . e

Q
A.

The one s i g n e d ? Correct. Who d r a f t e d i t ?

14
15 16

Q.
A.

Mr. Gwin.
And p r i o r t o h i s d r a f t i n g i t , had you

Q.

I t w i l l i n c l u d e you r e c e i v e d a 1099 f o r

Q.

17
18

2003 from R&B Management?
A. Q. Correct. And d i d you have any w r i t t e n

a l r e a d y t a l k e d about t h e terms? A. Yes. And d i d you n e g o t i a t e t h e terms

19

Q.

20
21 22

correspondence between Mr. Gwin and y o u r s e l f o t h e r t h a n t h o s e documents? A. The o n l y o t h e r w r i t t e n t h i n g would be

p a r t i c u l a r l y as i t would r e l a t e t o how you would be compensated? A. The way I r e c o l l e c t , he t o o k what I

23 t h e expense r e p o r t s t h a t I s u b m i t t e d , you know. 23 9 of 32 sheets Page 33 t 36 of 126 o

offered.

~

~~p

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Q.

And what d i d you o f f e r ?

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Filed 02/14/2006
.
A.
Q.

D i d you save any o f those? NO.

Page 11 of 21

39

A.

50 p e r c e n t o f t h e s a l e s commission p l u s

l i m i t e d expenses. Q. And do you r e c a l l what the s a l e s

What would you do when you r e c e i v e d a

f a x from Mr. Gwin t h a t p r o v i d e d t h e names o f people t h a t had i n q u i r e d a t Q u i z n o ' s c o r p o r a t e ? A.
I would c a l l them t o f i n d o u t i f t h e y ' d

commission was i n 2003? A.
I t was $25.000.00.

f o r which area And s

6 7 8 9 10

developer g e t s o n e - q u a r t e r when executed. $6250.00/$3125.00. Q.

l i k e t o see i f they q u a l i f y , which means S u b m i t t i n g some form of a p p l i c a t i o n .

The amount g o i n g t o H C F i n a n c i n g would P

Q

TO your knowledge, d i d Mr. Gwin a l s o

be $3125.00 p e r s a l e ? A. Per s a l e , u n l e s s i t ' s a second d e a l .

c o n t a c t f o l k s on t h a t l i s t ? A. I w o ~ l dt h i n k t h a t he d i d n o t because he So I d o n ' t t h i n k he

1 1
12 13 14 15

1 1
12 13

And t h a t i s $2500.00. because t h e second f r a n c h i s e i s ZOK.
Q.

had h i r e d m t o do t h a t . e did.
Q.

Understood.

So i n o t h e r words, i t was

14 15 16

Do you r e c a l l i n t h e

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l e t me p u t some IfI remember

- - you had o n e - h a l f o f o n e - q u a r t e r ?
A.

parameters on t h e t i m e frame.

16
17 18 19 20 21 22 23
I

Exactly. A l l right. With respect t o the services

r i g h t , t h e - - and w e ' l l l o o k a t i t i n a second

--

Q.

17 18 19 20 21 22 23

c o n t r a c t w i t h R & 8 , mid March 2003 i s r o u g h l y wher you s i g n e d i t ? A. Q. Correct. And d i d you work t h r o u g h t h e b e g i n n i n g

t h a t you performed here i n Alabama on b e h a l f o f
R&B,

t h e s a l e s s e r v i c e s were t h e y s i m i l a r t o

those s a l e s s e r v i c e s t h a t HPC F r a n c h i s i n g p r o v i d e d on b e h a l f o f t h e area d i r e c t o r s i n Atlanta? A. They were i d e n t i c a l except f o r the f a c t 38

o f January of 2004? A. Q. Yes. And t h a t ' s when you stopped? 40

1 t h a t t h e r e was l e s s l e a d g e n e r a t i o n i n Alabama.
2 3 4 Q. A. What do you mean by t h a t ? I had l e s s people t o work w i t h because

1
2 3 4

A. Q.

Yes. D u r i n g t h a t window o f t i m e . how many

l e a d s do you r e c a l l you r e c e i v e d from M r . Gwin t h a t he had r e c e i v e d from Q u i z n o ' s c o r p o r a t e ? A. Q. I would say a p p r o x i m a t e l y 50 o r so. D i d you do a n y t h i n g i n d e p e n d e n t l y t o

t h e y had l e s s opened s t o r e s , which p e r t a i n s t o how many l e a d s you g e t . Q. Maybe I misunderstood you. There were

5
6 7 8 9 10

5
6 7 8

l e s s l e a d g e n e r a t i o n i n Alabama? A. Q. J u s t because o f l a c k o f s t o r e s .

generate l e a d s on your own? A. Q. A. Q. A. No. D i d you a d v e r t i s e ? NO. DO you know i f Mr. Gwin was a d v e r t i s i n g ? He a d v e r t i s e d f o r open houses. And d e s c r i b e what you mean b y open

I thought you had s a i d t h e r e was l e s s

9
10

lead generation i n Atlanta. A. NO.

1 1
12 13 14

I ' m sorry.

Alabama.

T h a t ' s why I

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

f i g u r e d I c o u l d t a k e i t on as a p a r t - t i m e b a s i s . Q. Just
SO

w e ' r e a l l c l e a r on t h e

Q.
houses. A.

t e r m i n o l o g y , what do you mean by l e a d g e n e r a t i o n ? A. The number o f l e a d s I would g e t from

15
16 17 18 19 20 21 22 23

Open house, we would have on a monthly

Q u i z n o ' s c o r p o r a t e on a d a i l y o r weekly b a s i s .

b a s i s where we would r e n t o u t a b a l l r o o m a t the M a r r i o t t and we would have open houses. He would

Q.

When you s t a r t e d w o r k i n g under t h a t

c o n t r a c t w i t h R&B, d i d you then d i r e c t l y r e c e i v e from Q u i z n o ' s t h e l e a d s generated from t h i s area? A. Q. No.
I r e c e i v e d those from Mr. Gwin.

t y p i c a l l y do, I guess, a newspaper a d v e r t i s e m e n t . Q. And when you say a b a l l r o o m a t t h e

M a r r i o t t , what c i t y was t h a t ? A. I s i t Homewood?

And t h a t would have been i n w r i t t e n form

from him? A. Faxes t y p i c a l l y .

Page 37 t o ,10 of 126

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THE WITNESS:

What was t h a t 10 of 32 sheet

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A. Q. A. Q. Yes.

Page 12 of 21

2 A.
Q.

HOWo f t e n do you h o l d them i n A t l a n t a ? A p p r o x i m a t e l y t h e same amount. And do f o l k s from Q u i z n o ' s c o r p o r a t e

I t was Birmingham.
Birmingham area Correct.

3

4 5
6 7 8 9 10

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4
5 6 7

A.
Q.

come t o t h e open houses you h o l d i n A t l a n t a ? A. They have i n t h e p a s t , y e s . HOWf r e q u e n t l y ? I f I base i t on t h e y e a r l y , I would say

--

i s i t s a f e t o say?

Q.
A.

M R S . GWIN:

A c t u a l l y Hoover.

8 9

maybe once a y e a r . Q. And d i d you ask t o have anyone from

Q.

Would you i n v i t e f o l k s from t h e l e a d

10

1 1 list?
12 13 14 15 16 17 18 19 20 21 22 23 I A. Q. A. Q. Absolutely. And d i d you do t h a t p e r s o n a l l y ? Yes. I n a d d i t i o n t o a d v e r t i s i n g t h a t M r . Gwin

1 Q u i z n o ' s c o r p o r a t e a t t e n d any o f t h e open houses 1
12 13 14 15 16 17 18 19 20 21 22 23 t h a t you h e l d i n t h e Birmingham a r e a ? A. No. Why n o t ? I d i d n ' t ask them t o come t o A t l a n t a . DO you f i n d i t h e l p f u l o r h a r m f u l o r - NO. T h e y ' r e good a t i t . T h e y ' r e good

Q.
A. Q. A.

d i d i n t h e newspaper and i n v i t i n g p e o p l e f r o m the l e a d l i s t , d i d you have any o t h e r way t o draw p e o p l e i n t o y o u r m o n t h l y m a r k e t i n g meetings? A. Q No. How many market meetings d i d you h o l d

a t i t and t h e y ' r e welcome any t i m e , b u t I f e e l l i k e I c o u l d do as w e l l a j o b . Q . YOU had i n d i c a t e d e a r l i e r t h a t t h e r e ' s a

f r o m March 2003 t h r o u g h January 2004? A. Q. I would say s i x . So a l i t t l e more t h a n one a month? 42

- - l e t me see i f you agree w i t h me

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there i s a

d i r e c t r e l a t i o n s h i p between t h e number o f s t o r e s opened i n t h e a r e a and t h e number o f l e a d s 44

1
2 3

A. Q.

Right.
I mean a l i t t l e more t h a n one e v e r y two

1 generated through Quizno's corporate.
2 3 Yes. fair? A.

I s that

months, r i g h t ? A. Q. R i g h t , because we had e i g h t .

The reason t h a t i s , i s because t h e more

4
5 6 7 8 9 10

4
5 6 7 8 9 10

S t o r e s y o u , h a v e and t h e advocacy t o say you want t o buy a f r a n c h i s e . h e r e ' s t h e a d v e r t i s i n g . y e s , as t h e number o f s t o r e s grow, y o u r l e a d s grow, y o u r open houses grow. Q. A. And presumably - Sales grow. So.

How many f o l k s a t t e n d e d those on

average? A. On a v e r a g e , I would say about - - on

average, nlaybe e i g h t p e o p l e . Q. D i d you o r HPC F i n a n c i n g bear any c o s t

a s s o c i a t e d w i t h t h e open houses? A. Q. A. Q. A. Q. A. Q. NO. D i d you speak a t t h e open houses? Yes. D i d M r . Gwin speak a t t h e open houses? Yes. Anyone e l s e ? NO. D i d anyone f r o m Q u i z n o ' s c o r p o r a t e come

Q.
A.

- - s a l e s grow?
The A t l a n t a open house w i l l have a

1 1
12 13 14 15 16 17 18 19

1 1
12 13 14

hundred p e o p l e . Q. A. Q. market? A. Q. A. 73. How many do you have i n t h e p i p e l i n e ?
25.

Today? Correct. How many s t o r e s a r e open i n t h e A t l a n t a

15
16 17 18 19 20 First 21 22

t o any o f t h e s e open houses? A. Q. NO. I s t h a t t r u e i n A t l a n t a as w e l l ?

I

20

Q.

And t h a t would be

- - j u s t so we a l l know

m what I a t a l k i n g about when I say t h e p i p e l i n e , t h e y ' r e s o l d b u t n o t opened? A. Right.

22

o f a l l , l e t me t a k e a s t e p back.

I n A t l a n t a , do

23 y ' a l l s t i l l have open houses? 1 of 32 sheets 1

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Q.
A.
Q.

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47

And so t h e r e would be a t some v a r i o u s

1 t h e concept.
When d i d you do t h a t ? Late '03. I ' d say f o u r t h q u a r t e r .

stage o f development i n f i n d i n g a s i t e o r b u i l d i n g a t a s i t e o r what n o t ? A.
Q

Uh-huh. T h a t ' s a yes? Yes. Other than open houses, d i d you do

And l e t ' s g e t c l e a r f o r t h e r e c o r d what S i t e motivated sale

5 6 7 8 9 10

5 6 7 8 9 10

we a r e t a l k i n g about h e r e . means what? A.

A.
Q.

I t ' s b a s i c a l l y i f you go i n t o a market

a n y t h i n g e l s e t o develop s a l e s o r make s a l e s i n

and you c h e r r y p i c k prime l o c a t i o n s t h a t a r e p r e t t y simple t o s a l e , i t g e t s a l i t t l e tougher once you g e t p a s t t h a t c h e r r y p i c k i n g s t a g e . A m

- - and we've a l r e a d y t a l k e d about you g o t a l i s t
o f l e a d s and you would c o n t a c t those f o l k s and Anything else

11 then you would have open houses.
12 13 14 15 16 17 18 19 20 21 22 23
i

1 1 I going t o have t o d e f i n e t h a t , t o o ?

t h a t you d i d t o develop s a l e s o r make s a l e s i n t h e Alabama market? A.
Q.

12 13 14 15 16 17 18 19 20

Q.

NO. I d o n ' t t h i n k so.

But l e t me

restate i t .

I n o t h e r words, you as a person t h a

No. How soon d i d you s t a r t w o r k i n g a f t e r you

i s d o i n g the s e l l i n g can f i n d a v e r y good l o c a t i o n , what would appear t o be a v e r y good l o c a t i o n , and a c t u a l l y s e l l the f r a n c h i s e t o someone t o go i n t o t h a t l o c a t i o n ? A. Correct. People l o v e t o know where

signed the c o n t r a c t ? A. Q. Immediately. W i t h r e s p e c t t o the Alabama market, d i d

you have any r o l e o r r e s p o n s i b i l i t y from the p o i n t o f s i g n i n g the f r a n c h i s e e forward? o t h e r words, s i t e s e l e c t i o n , r e a l e s t a t e , c o n s t r u c t i o n b u i l d - o u t , opening s u p p o r t . operational support? In

t h e y ' r e going.

Q

The second phase t h a t you d e s c r i b e d i s a

21 p e c k i n g o r d e r ? 22 23
A. Where people would be on a l i s t , t h e

f i r s t person on t h e l i s t g e t s f i r s t r i g h t s over

46
1
A. Id i d get i n v o l v e d i n a l i t t l e b i t o f When you s e l l f r a n c h i s e s , you

48

1 whatever i s found w i t h i n t h e t e r r i t o r y .

2 3 4 5 6 7 8 9 10
1 1

s i t e selection.

2 3
4 5

Q.

I n o t h e r words, y o u ' r e s e l l i n g f r a n c h i s e

can do i t through t a r g e t markets o r you can do i t t h r o u g h a s i t e m o t i v a t e d s a l e o r you can do i t t h r o u g h a p e c k i n g o r d e r o f when people s i g n up.
SO i t d i d n ' t r e a l l y m a t t e r t o m which one t h a t e

agreements t o f o l k s who d o n ' t have a s p e c i f i c s i t e y e t where t h e y ' r e g o i n g t o go i n ? A.
Q.

Y o u ' r e s e l l i n g p o s i t i o n i n g on t h e l i s t . And then when y o u ' r e n e x t on t h e l i s t ,

6 7 8 9 10

person was i n t e r e s t e d i n , because we c o u l d do any o f the three. Q. A. Q. A. I n Alabama? Anywhere. What i s t h e method you used i n A t l a n t a ? When you s t a r t o u t , you need s i t e When you g e t p a s t t h a t , you can When you g e t t h a t b i g , you

you g e t t o go and f i n d an a v a i l a b l e s i t e w i t h i n that territory? A.
Q.

YOU g e t f i r s t r i g h t s on what i s found. And i n A t l a n t a , d u r i n g t h a t window o f

1 t i m e , were you a l s o i n v o l v e d i n f i n d i n g s i t e s f o l 1
12 13 14 15 16 17 18 19
people on t h a t p e c k i n g o r d e r ? A. Yes. And i f I understood your t e s t i m o n y , you

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

motivated sales.

do a p e c k i n g o r d e r . need t a r g e t markets. Q. A. Q.

Q

had switched - - o r t h e Gwins had s w i t c h e d i n t h e i r market t o a p e c k i n g o r d e r ? A. W had s w i t c h e d t o a t a r g e t market, and e

Where i s A t l a n t a ? Target m a r k e t s . When d i d i t s w i t c h from p e c k i n g o r d e r t o

t h a t was p e r Q u i z n o ' s .
Q.

t a r g e t markets? A. Probably around 40 s t o r e s . And we'd

Okay.

So they d i d n ' t do a p e c k i n g

20 21 22

o r d e r , they went r i g h t - A.

s w i t c h e d i n Alabama, as w e l l ? Q.
A.

W e l l , we d i d t h e p e c k i n g o r d e r b e f o r e we

Who had?

g o t t o t h e t a r g e t s , because I f e l t more comfortable w i t h t h a t s i z e of the t e r r i t o r y a t
12 of 32 shee

23 W had switched t o the t a r g e t market on e Page 45 to 48 of 126

1 t h a t t i m e t o do i t t h a t way.
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Case 1:04-cv-01062-ZLW-BNB

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Q. l a t e '03 t h e n ? A. Well

50 t h a t would have s t a r t e d e a r l i e r than

Page 14 of 21

51

W as i n - - I guess I d i d , because I e

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because towards t h e end i t was a So we had meetings u p u n t i l

have t o l o o k a t i t and d e c i d e how i t ' s g o i n g t o s e l l the f a s t e s t . Q. A. Q A. I n Alabama

monthly deal. December. Q.

5
6 7 8 9 10

50 i t was p r e t t y l a t e .

--

6 7 8 9 Pecking 10

September, O c t o b e r , November, somewhere

And G e o r g i a , y e s .
I want t o f o c u s on Alabama.

i n t h a t t i m e frame i s when you s t a r t e d ? A. Q. Yes. Other t h a n - - w e l l , l e t m - - way back e

Okay.

Alabama.

So we came i n t h e

system, s i t e m o t i v a t e d s a l e s were f i r s t .

a t the beginning o f t h i s l i n e o f questions I ' d

1 1 o r d e r second.
12 13 14

And t h e n a t t h a t t i m e . Q u i z n o ' s

11 asked i f you had done t h i n g s o t h e r t h a n j u s t t h e
12 13 14 15 16 17 18 19 20 21 22 23 s i g n i n g up f r a n c h i s e e s , and you s a i d you had som involvement i n s i t e s e l e c t i o n . by t h a t ? A. I n t h e Alabama t e r r i t o r y , I became H i s name i s Meads S i l s b What d i d you mea

d e c i d e d t h a t we would do s e v e r a l t h i n g s t o area d e v e l o p e r s , w h i c h i s have m o n t h l y open houses. And a l s o t h e y s t r o n g l y , s t r o n g l y a d v i s e d t o use t a r g e t markets. I n f a c t , a t BAM's and

15
16 17 18 19 20 21 22 23
i

e d u c a t i o n a l m e e t i n g s , we l e a r n e d how t o do t h e t a r g e t m a r k e t s w i t h o u r maps. Q A. And d e s c r i b e what you mean by - T a r g e t m a r k e t would be a s m a l l

familiar with a broker. (phonetic).

And he h e l p e d me on some d e a l s .

Because he would - - you have g o t t o be hand i n hand w i t h a r e a l e s t a t e b r o k e r . And I d i d n o t

g e o g r a p h i c s p o t where someone would have f i r s t r i g h t s i n t h a t spot. Q. And i n Alabama d i d you o r M r . Gwin g e t a

know Alabama a t a l l , so he h e l p e d me on some sales. Q. And t h a t would have been more o f t h e

d e v e l o p i n g map? 50

s i t e specifics?

52
1
2 3 4 A. L i k e I say, whatever works. Ia not m

1
2 3 4 5 6 7 8 9 10 it?

A. Q. A. Q.

Yes. And who d i d t h a t ? M r . Gwin. And d i d t h a t map have c o l o r e d d o t s on

specific. Q. Okay. D i d you g e t i n v o l v e d w i t h any

c o n s t r u c t i o n b u i l d - o u t i n Alabama? A. NO. Any l e a s e n e g o t i a t i o n s ? NO. Any o p e n i n g s u p p o r t ? No. Operational support? NO. A l l right. I a g o i n g t o show you m

5
A. Q. Yes. And what d i d those d o t s 6

Q.
A. Q. A.

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what were t h e

7 8

c o l o r s and what d i d t h e y r e p r e s e n t ? A. I c a n ' t r e c a l l the c o l o r s , b u t there are You have g o t open s t o r e s , y o u ' v e

9
10

always t h r e e .

Q.
A.

1 1 g o t s o l d and unopened t e r r i t o r i e s you c a n ' t
12 13 14 15 16 17 18 19 20 21 22 23 t o u c h , and y o u ' v e g o t a v a i l a b l e t e r r i t o r i e s . Q. And would you b r i n g t h i s map t o t h e

1 1
12 13 14 15

Q.

E x h i b i t 7.

marketing meeting? A. Yes. And when

MR. MACPHEE: there. Eldon?

DO you have t h a t

Q.
when - A.

--

a g a i n , you say l a t e 2003 i s

16 17

MR. SILVERMAN:

Actually.

I have one

T h a t ' s when i t was a d v i s e d by Q u i z n o ' s

18 19 20 21

t h a t i s a l i t t l e e a s i e r t o read. MR. MACPHEE: MR. SILVERMAN: Which i s f i n e . What I ' m , h a n d i n g him

t h a t we s e l l on t h a t manner.

Q.

How many m a r k e t i n g m e e t i n g s i n Alabama

where t h e map was p r e s e n t e d ? A. three.
I would say h a l f o f them.

i s t h e updated market

--

what's i t called '05.

L e t ' s say

22
23

- - Market S t a t u s as o f May S t h ,

13 of 32 sheets

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

Q.

And what I a g o i n g t o ask you s i r , i f I m

Document 134-2

53

t o you. I b e l i e v e , means d a t e t h a t i t comes i n t o t h e company. A. Okay. And t h e agreement e f f e c t i v e d a t e 1s t h e

Filed 02/14/2006

Page 15 of 21

55

2 3

u n d e r s t a n d c o r r e c t l y - - and a c t u a l l y i t s h o u l d b i n a n o t h e r book. L e t ' s look a t the contract.

4 5
6
7

which I t h i n k i s E x h i b i t 4 6 . r e c o g n i z e E x h i b i t 46? A. Yes. What i s i t ?

S i r . do you

Q

I

date they countersigned. A. They e x e c u t e , y e s . Based on t h e d a t e s , i t appears t o me

Q.
A.

Q.

I1 1

I t ' s t h e independent c o n t r a c t o r

t h a t t h e f i r s t f r a n c h i s e agreement r e c e i p t d a t e t h a t o c c u r r e d a f t e r you s i g n e d up was March 31. 2003, and i t r e l a t e s t o s t o r e Number 5104, Hodges E n t e r p r i s e . LLC?

9

agreement And i s t h a t y o u r s i g n a t u r e on t h e second

Q lo 11 page?
12 13 14 A.
Q.

Yes. S i g n i n g on b e h a l f o f HPC F r a n c h i s i n g ,

A.

That d o e s n ' t seem l i k e i t was t h e f i r s t Yes.

one, b u t i t ' s p o s s i b l e . Q.

Inc.? A. Q. 2003. Correct. And t h e d a t e on t h i s i s March 1 7 t h . Does t h a t p u r p o r t w i t h y o u r memory as t o

W e l l , l e t me ask you, was t h e r e one you t h i n k , o r was t h a t - I mean. i t was ' 0 3 .
I remember A1 Hodges

15

before t h a t , A.

16
17 18 19

I c a n ' t remember. I a old. m

I c a n ' t see.

about t h e t i m e t h a t you s i g n e d up t o h e l p i n Alabama? A.
Q

because he bought two, b u t I d o n ' t remember i f he was t h e f i r s t one o r n o t . I t ' s possible.

I

20

Yes.

W e ' r e r i g h t on.

Q.
sold? A.

DO you know how many agreements you

I
II

I 1
22
1,

50 u s i n g t h a t d a t e as a s t a r t i n g p o i n t ,

g o i n g back t o E x h i b i t 7

-54

I b e l i e v e i t was a dozen.

23
56

1 2
3 4 Q.

MR. SILVERMAN: updated 7 .

The amended o r t h e

1
2 3

A. Q.

I think.
And how many o f t h o s e were t h e second as

opposed t o t h e f i r s t ? A. Q. TWO. So a t l e a s t r o u g h l y i t would be 10 a t

TO h e l p y o u r eyes, you can use t h e one

4

5
6 7 A. Yes. I d i d n ' t b r i n g r e a d i n g g l a s s e s so

6
7 8 9

t h e h i g h e r number which
A.

--

you w i l l have t o h e l p me o u t .

25. I'm sorry? 25K and two a t 2OK. Right. T h a t ' s t h e t o t a l amount of

Q.

Are you o l d enough t o need r e a d i n g

Q. A.

II

9

glasses? 43. Yes.

lo A. l 1
12 13 14 15 16 Q.

I ' m g e t t i n g there
T h a t ' s e x a c t l y what t i m e p e r i o d i n

10

Q.

1 1 f r a n c h i s e f e e p a i d by t h e f r a n c h i s e e ?
12 13 A. Q. Right. Of which you g o t o n e - h a l f o f one

I 1 I 1
1

l i f e I t h i n k t h e y say you - - I a t o l d - - you m s t a r t needing reading glasses. By my

c a l c u l a t i o n , i f you l o o k , t h e r e a r e headings across the top o f t h i s c h a r t . A. Right. And so i f you l o o k a t t h e

14

quarter? A. Correct.
DO you remember

15
16

Q

- - l e t me j u s t go down

l7
18 19 20 21

Q.

--

there are

17

the l i s t .

The n e x t one, w h i c h i s v e r y d i f f i c u l t

two h e a d i n g s .

And I t h i n k e i t h e r one w i l l work you have t h e f r a n c h i s e

18
19 20 21 22 23

t o r e a d , t h e l a s t name i s P a t e l , 5298? A. T h a t ' s one o f mine. DO YOU remember t h a t one? Not v i v i d l y . But do you r e c a l l t h a t t h a t i s one of 14 of 32 sheets

f o r o u r purposes.

I1

agreement r e c e i p t d a t e and a f r a n c h i s e agreement e f f e c t i v e date. A. Okay. And t h e r e c e i p t d a t e . I w i l l r e p r e s e n t

Q.
A. Q.

22
23

Q.

t h e ones t h a t you s o l d ?

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I1 I1
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3

A.
Q.

Sure. The n e x t one i s l i s t e d as t h e Turner Do you r e c a l l Kevin Turner o r the

1

Filed 02/14/2006
A. Uh-huh. Yes.
Q.

Page 16 of 21

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2
3

6218, Hoyt Hardwick? Yes. 6367, Dennis A l l i s o n ? Yes. Do you r e c a l l t h a t ? Yes. 6946, Jasmeet Hundal - NO.

Group, LLC.

A.
Q.

4 5 6 7 8 9 lo

Turner Group? A. Yes. I s t h a t one t h a t you s o l d ? Yes. And t h e n e x t one i s A1 G . Hodges, again

4
5

A.
Q.

Q.
A.

6 7 8 9

A.
Q.

Q.

Hodges E n t e r p r i s e s ? A. Q. A. Q. Yeah. Number two

A.
Q.

10
11
12 13

--

does t h a t r i n g a b e l l ?

Okay.

And

Were you i n v o l v e d i n b o t h s a l e s ? Yes. The n e x t one i s LK & Sons, I n c . .

t h a t - - i f you c o u l d read t h i s , t h a t would show t h a t i t ' s o u t s i d e o f t h e t i m e p e r i o d s t h a t we have d e s c r i b e d . 50 i f we a r e c o r r e c t t h a t A l G .

14 16 17 l8

f r a n c h i s e agreement A.

5837. I s t h a t one o f yours?

14
15

Hodge4 was your f i r s t s a l e
A.
Q.

--

I assume i t ' s mine because of t h e t i m e

I guess he was.

I guess he was.

period, but I a c t u a l l y d e a l t w i t h the individuals. Q. A. Q. The,name on here i s Samer? Samir. Samir? Yes

16 17
18
19

Do you remember how you came about - He - - I ' m s o r r y . Let m f i n i s h e Go ahead. g e t t i n g i n contact w i t h

A.
Q.

--

A l G. Hodges?
A.
Q.

20 21
Jariwala.

Yes.

A1 a t t e n d e d a f r a n c h i s e seminar.

1
I

21 22
23

A.

Was i t the f i r s t seminar you performed

Q.
A.

I'm s o r r y .

22
23

a f t e r s i g n i n g t h e agreement?
A.

T h a t ' s one o f mine.

I t must have been.
60

58

I
3

Q.
A.

The n e x t one i s Hemant. 8 - h - a - g - a - t . Yeah. I b e l i e v e t h a t was a second d e a l . So I had t h r e e

1
2

Q.
A.
Q. A.

Y o u ' r e n o t a hundred p e r c e n t s u r e b u t NO.

--

I
I
1
1

as w e l l . a t 20. Q. A.

I t h i n k t h a t was a 2OK.

3

- - i t m u s t h a v e been g i v e n t h e - I would assume.

4
5

4
I s t h a t yours? Yes. Carey M o r r i s ? Yes And i t l o o k s l i k e w have got two o f e

5

Q

- - t i m e frame?
The t i m e frame. I ' m sorry. That was m m i s t a k e . y
I

6 7 8
9

A.
Q.

4.
A.

spoke over you.

Ift h a t ' s t r u e , and you can

9

4.
those? A. Q.

count w i t h m i f you would l i k e , b u t e g o i n g t o count A. Q. counted Okay.

I

a just m

10 11 12

10
Correct. And I d o n ' t know i f you can read 6169?

-I

1 1 12

- - 1. 2 . 3. 4, 5 , 6, 7 . 8 . 9, 10.

I I
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I

13

Do you see t h a t ? A. I c a n ' t see i t

13 14 15 16 17 18 19 20
21 Do you r e c a l l , i s t h a t one Page 57 t 22 23 50 of 126

11. Does t h a t sound - I t ' s possible.

I mean, you s a i d

12 earlier. A.
Q.

I s i t p o s s i b l e i t was 11?

16 l7 19 20
A. out

MR. SILVERMAN:

Why d o n ' t you p u l l

And w i t h r e s p e c t t o each one o f those

--

i n d i v i d u a l s t h a t I l i s t e d , were a l l o f them i n d i v i d u a l s who came t o a seminar o r m a r k e t i n g meeting? A. NO. Which o f those f o l k s d i d you s e l l t o

Yeah, you t o o k t h e good one. Dinesh P u r o h i t ? Yes. P-u-r- - -

Q.
A.
Q.

9.
the

-- o-h-i-t.

w i t h o u t g o i n g t h r o u g h t h e process f o r m a r k e t i n g

23

o f yours?

--

15 of 32 sheets

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

I would - - I d o n ' t know o f f h a n d t h e

Document 134-2

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Q.

Page 17 of 21

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exact i n d i v i d u a l s t h a t d i d not attend the I would say t h a t

I was g o i n g t o ask

-I apologize.

seventy-five percent d i d . Q. And t h e o t h e r t w e n t y - f i v e p e r c e n t , how

MR. SILVERMAN:
MR.

5
6 7 8 9

5
6

MACPHEE:

You a r e a n t i c i p a t i n g

d i d t h a t sale occur? A. Those o c c u r r e d because p e o p l e l i v e i n

my q u e s t i o n s h e r e .

7
8 9 Q. The t o t a l compensation and expense

o u t o f town areas t h a t cannot a t t e n d a market meeting. deal. And so i t ' s j u s t a one-on-one t y p e

reimbursement t o you f o r t h e work you p e r f o r m e d under t h e c o n t r a c t would be a l i t t l e l e s s than I s that f a i r ?

10

10
They d o n ' t l i v e near Birmingham? Correct. And how d i d you g e t t h e i r names - - t h e 12 13 14
'

1 1
12 13 14 15 16 17 18

Q.
A.

1 1 $35.000.00?
A. Yes.

Q.

Q.

D e s c r i b e what - - when d i d you s t o p

o t h e r t w e n t y - f i v e p e r c e n t , were a l l o f t h e i r names l e a d s g e n e r a t e d t h r o u g h i n f o r m a t i o n M r . Gwin gave you o r were any o f them generated a n o t h e r way? A. Through Q u i z n o ' s and M r . G w i n ' s

w o r k i n g under t h e - - you, meaning HPC F r a n c h i s i

15 16 17 18 19

- - s t o p w o r k i n g w i t h M r . Gwin i n Alabama?
A. Q. A. January ' 0 4 . Why? Because I had had heard t h a t he no

19
20

information.

l o n g e r possessed t h e t e r r i t o r y .

Q.
A. Q. wav?

Mr. G w i n ' s i n f o r m a t i o n f r o m Q u i z n o ' s ?
Correct. None o f them were g e n e r a t e d i n any o t h e r

20
21
22

Q.
A. Q. A.

How d i d you hear t h a t ? From him. What d i d he t e l l you? He t o l d nle t h a t he no l o n g e r had t h e

21
22 23
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23
62

64

1 2
3

A.

Not t o my knowledge. And i f we l o o k a t t h e E x h i b i t 46. t h e

1 territory.
2
3

Q.

Q.
A.

Was t h a t a t e l e p h o n e c a l l o r i n person? Phone c a l l . And what e l s e d i d he say i n t h a t

l a s t page, i t has a 10991 A. Yes. Does i t appear a c c u r a t e t o you, s i r ? Yes. And does t h e 1099 i n c l u d e b o t h t h e

4
5

4
5 6 7

Q.

Q.
A.

telephone conversation? A. I guess t h e c o n v e r s a t i o n went t h a t he

6

7
8

Q.

had n o t opened o r s o l d t h e r i g h t amount o f s t o r e t o continue i n h i s contract.

commission and t h e expense reimbursement, o r o n l ) t h e commission? A. Commission. So expense reimbursement would be i n

8
9 10

9
10

Q.
A.

T h a t ' s what he t o l d you? Yes. Do you remember a n y t h i n g e l s e t h a t he

11
12 13 14 15 16 17 18

Q.

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

Q.

addition t o this? A. Q. Correct. DO you remember how much expense

said during t h a t conversation? A. No. What was y o u r response? My response was I f e l t bad f o r him. Was t h a t a s u r p r i s e t o you t h e

Q.
A.

reimbursement you r e c e i v e d ? A. Q. A. No.
Id i d n ' t r e c e i v e t h a t f i g u r e .

Q.

Can you b a l l p a r k i t f o r me? I o n l y know what I handed i n t o my So I would t h i n k t h a t i t would be

t e r m i n a t i o n o f the area d i r e c t o r s h i p ? A. U n f o r t u n a t e l y , t h a t i n t h e g r a p e v i n e of

19
I

accountant.

Q u i z n o ' s . I guess word was o u t t h a t i f p e o p l e were n o t up on t h e i r performance t h a t i t ' s a P o s s i b i l i t y t h a t they could l o s e t h e i r f r a n c h i s e o r t h e i r master