T:We are satisfied with your financial situation and business analysis.We have but one question to ask before considering a formal five-year contract.Do you and your team possess the experience of operating an enterprise?

W:Yes.I had the experience of operating a successful sole proprietorship three years ago.But for personal reasons I later sold it out.

T:An experienced franchisee has obvious advantages in establishing business and communicating with the franchisor.

W:Absolutely true.Now I have a couple of inquiries to make.As a franchisor what can you,the Starbucks Coffee,offer us?

T:We will assist you in location selection and evaluation.We will provide you with standard professional design,equipment purchase and raw material distribution.We try to make sure that all our outlets have the same appearance and offer the same high quality coffee service.

W:Talking about service my past experience tells me that consistency and sincerity are the most important and difficult too.How can you guarantee that?

T:That’s a very good question.We hold strongly that we are not just selling a cup of coffee but a total lifestyle,a coffee culture.Therefore,we attach importance to human resource management and franchise staff training.

W:Then,how long is the training process? Can the proficiency of our workers achieve the same level as those in Beijing and Shanghai?

T:Absolutely.The training usually lasts 30 to 45 days.Workers from different franchisee places in China are trained by the same group of trainers and at the same training center.

W:Jiaozuo is not the provincial capital of Henan province.In this case,how can you guarantee that the raw materials can be distributed timely when we are able to secure an ample source of consumers?

T:We have our logistics center.Since Jiaozuo is not far away from Zhengzhou,we can guarantee the distribution of raw materials if nothing unexpected happens.

W:That is great.The last but not least question,how do you charge royalty fee?

T:Most franchisors require franchisees to pay an ongoing royalty,usually 4%-8% of total sales,typically on a monthly basis.We follow this practice.

W:One more thing in my mind is who is responsible for advertising and promotion?

T:We do.We may charge part of the cost for advertising though.So far for us the principle concern lies in the purchasing power of the people in Jiaozuo.We hope that you can bring more information to justify the customer base or market size before we finalize our franchise agreement.