Day 043 - 01 Nov 94 - Page 14
1
2 Q. Although, curiously enough, as far as I can tell, the
3 document we have actually got here -- tell us what this
4 document is. It is headed "1991 Annual Report".
5 A. This is an annual report that is sent out after each
6 year to all the members of OPNAD, or the national
7 co-operative, and it details the activities for the
8 previous year.
9
10 Q. Does OPNAD have a board of directors or trustees, or
11 something?
12 A. Yes. A member from each one of the regions, an
13 owner/operator which is a licensee, from each one of the
14 regions in the United States is elected to a position on
15 OPNAD, as well as the marketing manager, who is an employee
16 of the company who is also a member of the OPNAD committee;
17 and the votes are split two thirds of the votes for the
18 owner/operator and one third of the votes for the marketing
19 manager.
20
21 Q. For the Corporation, itself?
22 A. That is correct. Even though they vote independent,
23 they do not vote as a block; they vote what they think is
24 best for their individual area.
25
26 Q. Does the Corporation, itself, exercise any kind of
27 supervisory function in relation to OPNAD?
28 A. There is an administrative committee that is over those
29 40 in which the members of the Corporation participate. It
30 is a sort of minority part of that committee. I believe
31 that there are seven licensees and four company people.
32
33 Q. Do you ever find that there is a substantial or significant
34 number of restaurants in the country at large that will not
35 participate in OPNAD?
36 A. No. The vast majority -- in fact, almost all
37 restaurants participate in the national co-op.
38
39 Q. If you turn to the third page of this document, at the
40 bottom of that page, there is a main heading "Financial
41 Review" and then there is a table headed: "OPNAD
42 participation at the end of each of the past five years is
43 summarised below." Looking at the percentages, at that
44 date, there were only -- I say "only", because now there
45 are more -- 8,769 restaurants throughout the United
46 States. But one sees that the percentage participating in
47 one year was 99.8, but in all the other years 99.9 per
48 cent. Is there a reason why the participation is almost
49 100 per cent?
50 A. I think there are a few reasons. One is that they feel
51 the advertising is important, therefore, they participate
52 in it; and it is a sort of system where people support each
53 other and they feel that it is important to do so, so they
54 join the co-op.
55
56 Q. If we turn over the page to 417, it is a continuation of
57 the Financial Review. There is a subheading "National
58 Advertising". We see in the first table that there is a
59 split between adult advertising and children's
60 advertising. Children's advertising in this table comes
