1. What were the main reasons for the company’s success?

2. Who financed the first store?

3. Whose idea was it to franchise?

4. What were the main reasons for decision to franchise?

Summarize the interview.

Exercise 4. Find the corresponding English sentences to the following Russian ones.

1. Приятно, когда тебя ценят.

2. Мне хотелось бы признать вклад всех других людей, вовлечённых в наш бизнес.

3. Я не перестаю говорить всем, что я не делала это самостоятельно.

4. С самого начала одной из самых больших опасностей для нас было то, что идею могут перехватить.

5. Вы сами выступили против инвестирования новых филиалов.

6. У нас не было ни капитала, ни управленческой структуры, чтобы справиться с большим числом магазинов.

7. Он сразу же понял опасность.

8. Нас бы вытеснили компании, за которыми стоят большие деньги..

Θ Outside the US, the Body Care company policy is to appoint a head franchisee for an individual country or group of countries. The head franchisee then develops the market by sub-franchising. Care is taken to find head franchisees of the highest calibre. In Scandinavia the position remains unfilled, and growth in that market has been correspondingly slow. In November, the company receives a letter from Isabella Hallberg of Stockholm, enquiring about franchise possibilities. She is sent the standard information pack, which includes the following fact sheet on costs.

Answer the questions:

1. What is the company’s policy outside the USA?

2. Who applied for a position of a head franchisee in Scandinavia?

3. What information was she given?

Read the fact sheet.

FRANCHISE INFORMATION

The following figures are obviously approximate and will vary from location to location, but they form a useful guide in estimating the initial outlay involved in setting up a Wendy Rae Body Care Center: $ 1) Franchise Premium 7000 2) Annual Franchise Operating Fee 1000 3) Design Fee 3000 4) Shopfitting 100000 5) Opening Stock 60000 6) A quarter’s rent and property taxes 20000 7) Others (Fees etc) 15000 TOTAL $ 206000 Notes. The rent of $70000 is an estimate of what is the current market rent for premises that fulfil our requirements, and occupy a prime location. Size – 700/1000 square foot retail area 400 square foot storage and office space, washrooms bottling and gift-pack making facilities The above figure does not include any premium that might be payable to obtain an existing lease. The target gross profit on sales should be 40%. The Wendy Rae Body Care Centers have arranged for the State Bank of California to provide up to 45% of the total set-up costs subject to the normal credit status check.

Θ Now listen to recorded extracts from the fact sheet.

Θ The fact sheet on costs is out of date. Listen to the recording and update the figures.

Exercise 5. Consult the dictionary and find corresponding Russian equivalents to the following English ones in the text. Explain in English the same Russian equivalents using either definitions or synonyms.

Initial outlay; operating fee; shopfitting; opening stock; property taxes; to fulfill requirements; retail area; office space; washroom; lease, target gross profit; to arrange for the State Bank; to provide; set-up costs; the normal credit status check.

Exercise 6.

Notice: Franchiser – The person who gives a franchise.

Franchisee – The person who receives it.

employer – employee payer – payee

lessor – lessee guarantor – guarantee

licensor – licensee

NB. A guarantee is not the person guaranteed, but the legal document.

Now fill the blanks in these sentences.

e.g. My employer has given me a pay rise.

1. The warehouse in Strand Road will be available soon. The ................ is moving.

2. The cheque has not been acknowledged. Maybe the ............... has not received it.

3. The bank will put up the financing provided I can find someone to act as ............. .

4. I have 150 ............... on the payroll.

5. I’d like to rent those offices. I wonder who the .............. is.

6. It is difficult to get money out of ABC Ltd. They are slow .............. .

7. As the ............., I have to pay annual franchise operating fee.

Θ After reading the information pack, Isabella Hallberg calls Body Care’s head office in Santa Monica and speaks to the Franchise Manager. Listen to the phone call. Say what facts are correct.

1. The information kit contains all the details Isabella Hallberg needs.

2. Overseas franchisees do not have to stock a full range of Body Care products.

3. Export liquid products are bottled and labeled in the US.

4. Overseas franchisees are not charged the annual franchise operating fee.

5. With new overseas franchisees, Body care is more concerned with establishing a market rather than making profits.

Note:

information kit = information pack

oversight = unintended failure to notice or do something

relevant = connected with the subject

volume container = large container

Θ Listen to telephone conversation again and call three differences in the terms and conditions mentioned by Franchise Manager.