Similar statements were made by Mr. Shiror, who operated the branch in Sderot. He also noted the importance of the long-term expectation of the franchise, and the fact that the franchisees were given the right of way to operate additional branches of the chain that would open in the city.
He testified that he owned an independent air conditioning business for twenty years, and that he closed it in order to establish the branch there. "It should be noted that this was a fundamental decision in my life to change my career of twenty years, which also required me to invest considerable sums in connection with the franchise agreement and the establishment of the store. This is a store that was 'established from scratch', with all that this entails, during a difficult period (in the shadow of the security tension at the time, close to Operation Protective Edge), while Mr. Shimshon and I, through A.S. and Hodaya (respectively), bear the risks involved in establishing the store and invest millions of shekels both for the franchise [...] and for the considerable costs of establishing the store 'from scratch'. I made the store in Sderot the center of my life, against the background of the understandings and agreements between the parties, that the parties to the franchise agreements are bound by a relationship designed to establish a stable and lucrative business, a business from which I can retire and bequeath it to my children" (paragraphs 11-13 of his affidavit).
- A long-term relationship is also reflected in the Ashdod Agreement. Here, as you may recall, the format of the operation was different. A group of investors invested in the establishment of the Max-Ashdod company, which is the one that manages the branch there. The management of the place was entrusted to Max Stock, which holds the management shares (see above in paragraph 5).
Against this background, it was agreed that "Mr. Uri Max [...] and/or anyone on his behalf will professionally supervise the operation of the store, act to the best of his talent and energy to promote the store's business, and will also instruct the store manager in everything related to the suppliers - all in accordance with the requirements and according to the needs of the business in the store" (clause 7(d) of the agreement). As for the shareholders of Max-Ashdod, they promised to provide the required financing (ibid., clause 8(a)).