comments regarding the desirability of establishing a Holiday Inn at the proposed location. (JX-1, para. 14). However, no franchisee is under any obligation to respond to the radius letters. (Tr. 118).
17. All responses to radius letters are reported to the Franchise Committee of HI by the Franchise Sales Department when an application for a new franchise is submitted to that committee. (Tr. 991).
18. The overriding importance HI attaches to objections by franchisees is apparent from HI's procedures when objections are received. When the Franchise Committee concludes that a franchise application should be granted but has received an objection to the application from an existing franchisee, the decision to grant the franchise application may be made only by the Executive Committee. The fact that an objected-to application is considered by the Executive Committee indicates that the Franchise Committee has recommended approval of the application. (Tr. 914, 1369).
19. In 1972, the Executive Committee considered objections to 75 applications for Holiday Inns franchises, which objections were received from owners of nearby Holiday Inns. Of these objected-to applications 43 (57 percent) were not granted. (DX-40). HI's franchising procedures indicate that these 43 applications would have been granted but for objections from existing franchisees.
20. AMI has written letters to HI objecting to franchise applications submitted by other companies. In at least two instances, Charlotte, North Carolina and Gastonia, North Carolina, the basis of the objections made by AMI was that a new inn might take business away from an existing AMI inn. (Dep. J. Krish, Tr. 55 (lines 2-25)).
(2) " Parent Company Towns "
21. Defendant, as of December 31, 1972, directly or through its subsidiaries, owned or operated 281 Holiday Inns in the United States in approximately 152 different cities or towns (JX-1, para. 9). In at least half of these areas defendant owns or operates the only Holiday Inn. (Tr. 825-26). These include such major cities as Austin, Texas (PX-88, Nos. 80-81; PX-87, p. 182), Tucson, Arizona (PX-88, Nos. 40-41; PX-87, p. 34); Amarillo, Texas (PX-88, Nos. 62-65; PX-87, p. 181); Albuquerque, New Mexico (PX-88, Nos. 60-61; PX-87, p. 128); Lexington, Kentucky (PX-88, Nos. 261-63; PX-87, p. 94); Corpus Christi, Texas (PX-88, Nos. 258-60); (PX-87, p. 183); Fort Worth, Texas (PX-88, Nos. 52-55; PX-87, p. 186); Charleston, South Carolina (PX-88, Nos. 88-91; PX-87, p. 169) Honolulu, Hawaii (PX-88, Nos. 14 & 18; PX-87, p. 73); Topeka, Kansas (PX-88, Nos. 245-47; PX-87, p. 91); and Salt Lake City, Utah (PX-88, Nos. 236-37; PX-87, p. 193).
22. I find, on the basis of deposition testimony by Kemmons Wilson, Chairman of the Board and founder of HI, introduced at trial, that there is a general practice of not granting franchises in a town having a company-owned inn:
"Q. Are you familiar with any policy whereby Holiday Inns will turn down applications because the company is operating its own Inn in those towns?