April 21, 1997 10:10 am

Franchise Rule Hotline Number

My name is Daryl Donafin. My address is 100 East High street in Jefferson City, Missouri 65101.

In particular, the issues that I'd wish to speak about would be franchisors' interference with franchisees' rights to organization and form associations, particularly trade associations, and directly this has affected me. I'm a Taco Bell franchisee, and we formed an association at Taco Bell and Taco Bell retaliated against it and took action against the leaders. I currently have a federal lawsuit pending alleging these actions. It has yet to be heard in Court. But I was denied growth and referred to as a distant franchisee and a person who you wouldn't want to be in business with.

Another issue I would like to address would be the devaluation of the assets through encroachment. It's been very common at the Taco Bell system for the company to come in either with company restaurants or granting franchise rights to other franchisees in close proximity to existing restaurants, therefor reducing the sales, number one, and of course in direct effect on profit. And, secondly, is on the top line and the asset loses its value in the resale market.

Thank you for this time.