Write the questions, then start the recording and put the questions to Wendy Rae.
Rae We decided to open a store. You…..Whose idea was it to open a store?
a) Rae We opened in San Francisco. You………………………………………..
b) RaeWe called the store, the Wendy Rae Body Care Center. You ……………………
c) RaeWe sub-contracted the manufacturing. You……………………………………..
d) Rae Then we decided to use natural ingredients. You…….…………………………….
e) Rae And we kept packaging simple. You ………………………………………….
f) RaeAnd all our products are made available in four sizes. You ……………………
g) Rae Then we decided to provide testers. You ………………………………………
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 caliber. In Scandinavia the position remains unfilled, and growth in that market has been correspondingly low. In November, the company receives a letter from an Isabella Hallberg of Stockholm, enquiring about franchise possibilities. She is sent the standard information pack, which includes the following fact sheet on costs. Read the fact sheet.
FRANCHISE INFORMATION
1. 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:
$
2. 1) Franchise Premium 7 000
2) Annual Franchise Operating Fee 1 000
3) Design Fee 3 000
4) Shopfitting l00 000
5) Opening Stock 60 000
6) A quarter's rent and property taxes 20 000
7) Others (Fees etc.) 15 000
Total $206 000
3. Notes.
a) The rent of $70 000 is an estimate of what is the current market rent for premises that fulfill our requirements, and occupy a prime location
Size — 700/1 000 square foot retail area; 400 square foot storage and office space, washrooms, bottling and gift-pack making facilities
b) The above figure does not include any premium that might be payable to obtain an existing lease.
c) The target gross profit on sales should be 40%.
d) 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.
1. The fact sheet on costs is out of date. Listen to the recording and update the figures.
Notice:Ways of referring to parts of a document precisely: Section 1, sub-section 3. Section 3, part B. Paragraph 4, line 8.
2. Notice:Franchiser: The person who gives a franchise. Franchisee: The person who receives it.