Mr.Thomas(T),the marketing manager from Starbucks Coffee Company,is negotiating with Mr.Wu(W),a Chinese who has applied to run a franchise outlet in Jiaozuo of Henan province.

W:Thank you for the detailed documents and I am glad to have the chance to finally meet you in person.

T:The pleasure is all mine.I am really impressed by your application file.

W:I filed the application after long-time investigation and deliberation.I believe we can now meet your franchise requirements.

T:We have gone through your application and would like to take this opportunity to confirm further details.First of all,the franchise requirements stated in the document is as such:a total investment of 2 million RMB yuan,coffee outlet space 350-550 square meters,initial franchising fee 400,000 RMB yuan on a five-year basis and 800,000 RMB yuan on an eight-year term,and cash guarantee is 100,000 RMB yuan and 150,000 RMB yuan respectively.Can you meet all those financial requirements?

W:Yes,we can.Here is a bank guarantee to illustrate our financial situation.Besides,we have set our eyes on a perfect storefront.If you can grant the franchise,we will rent that place as soon as possible.

T:We will certainly help you select and evaluate the location later.If you don’t mind,I want to inquire about the composition of your start-up capital.That is of great importance for us to select a franchisee.

W:Sure.Of the 2 million start-up capital,1,000,000 belongs to myself,500,000 is borrowed from friends and acquaintances,and the rest 500,000 is bank loans.

T:I see.But according to our investigation of your city,it has only a population of 3 million people.Can consumer traffic flow meet the expected level? You may lose money if you cannot achieve the expected sales volume.The franchise fee,cash guarantee and other investment is not a small sum of money.

W:I am fully aware of this risk.I have been investigating the purchasing power of the people in Jiaozuo long enough to know that the franchise will work out.With a moderate population,the overall price level and purchasing power is anything but moderate.In addition,the consumers in Jiaozuo have a strong tendency to increase their consumption of western restaurants and cafes.Based on my observation,most luxury stores,department stores,especially western restaurants and cafes are surprisingly popular.Here is a comparable income statement of UBC Cafe in Jiaozuo.And we have also obtained some economic statistics from our city authority.

T:This is really impressive.It seems that your city does have great potential.Please allow us some time to do our own research.