Welcome to English as a Second Language podcast number 356, Starting a Franchise Business.
This is English as a Second Language podcast episode 356.
I'm your host, Dr Jeff McQuillan, coming to you from the Center for Educational Development, in Transcription by CastingWords cultural notes, comprehension questions and a complete transcript of everything we say.
If you're interested in improving your English as fast as possible, then the learning guide is for you.
On this episode, we are going to talk about starting a franchise business.
This is a business that pays a larger company and for the right, for the permission to use their goods, their services.
For example, McDonald's is a large... restaurant company, you can buy a franchise.
You can open your own McDonald's and use their material, their food, by paying money to the larger McDonald's company.
We're going to hear a dialogue between Magdalena and Phil about opening a franchise.
It includes lots of other general business vocabulary as well.
Let's get started.
Thanks for meeting with me today.
I've read through the materials your company sent me, but I still have some questions about opening a franchise.
Well, I'm familiar with the franchise fee, but are there recurring fees not listed in these materials?
That's a good question.
In addition to the annual franchise fee and the monthly royalties, We also charge a training fee and an advertising fee.
Here's a list of these and other fees.
Oh, that's very useful.
Thanks.
I was also wondering what kinds of quality controls the franchises are subject to.
As you know, when you start a franchise, you are buying into a proven formula for success.
We offer a turnkey operation and you will be trained on how to run your business down to the smallest details.
To maintain these standards, we conduct spot checks regularly.
And we audit the books of each franchise once a year to make sure that our standards are being met.
Only in very rare occasions do franchises lose their franchise rights because they've failed to meet our standards.
We give our franchises as much support as possible.
After all, it's in our own best interest that you succeed.
We provide troubleshooting and training for your management and employees.
I think those are all of the questions I have right now.
I really appreciate your time.
If I have other questions in the future, can I contact you?
Certainly.
Here's my card.
I'd be happy to answer any questions you may have.
Just give me a ring.
Thanks.
I'll do that.
Our dialogue begins with Magdalena saying to Phil, Thanks for meeting with me today.
I read through, I looked at closely the materials your company sent me, but I still have some questions about opening a franchise.
Phil responds, That's what I'm here for.
That's why I am here.
What questions can I answer for you?
Magdalena says, A fee is an amount of money.
In this case, it's the amount of money that you would pay the larger company for the right to open a franchise business in their name.
That's the franchise fee.
Magdalena is asking if there are recurring fees.
To recur means to repeat, to happen many times, usually on a regular schedule.
Phil says that's a good question.
In addition to the annual franchise fee and the monthly royalties, we also charge a training fee and an advertising fee.
Phil is saying that Magdalena would have to pay every year a certain amount of money, as well as monthly royalties.
A royalty in this case means the amount of money that you pay a company or a person for being able to use something that they have produced.
Usually, for example, if you write a book, the publishing company will pay you every year royalties.
They'll give you 10%, maybe 15% of the price of the book back to you because you wrote it.
Royalties are usually not as large as many people think.
When you write a book, for example, the royalties are not that high.
Magdalena has to pay royalties every month based on how much she sells.
Royalty has a couple of different meanings.
Take a look at the learning guide for some additional explanations.
Phil says that the company also charges a training fee and an advertising fee.
He gives Magdalena a list of these fees.
She says, oh that's very useful, thanks.
I was also wondering what kinds of quality controls the franchises are subject to.
Quality control is something that a company does to make sure that everything that is produced is a very good or excellent quality.
It tries to prevent bad products or services from being sold.
So if you were making cars, your quality control team would look at and make sure that they were built correctly.
That is part of quality control.
Magdalena is asking what kinds of quality control the franchises are subject to.
To be subject to something means to have something apply to you, to be forced to do something.
You are subject to the law of the United States when you are here in this country.
To be subject to means you have to obey.
You have to do whatever you are told.
The franchise is subject to certain kinds of quality control.
They have to do these kinds of quality control.
Phil says as you know, when you start a franchise, you are buying into, you are becoming part of.
You are paying for a proven formula for success.
A proven formula is a system that has shown to be successful, to work very well.
Proven means you've already demonstrated it.
Here, formula is like a set of steps or processes.
Phil says we offer a turnkey operation.
Turnkey T-U-R-N-K-E-Y.
One word means ready to be used immediately, without making any changes.
This is a term we often talk about in business When you have a system or a set of procedures you can use right away.
You don't have to think of them yourselves.
That's a turnkey business.
You can start it, and it starts working correctly right away, because someone has already figured out the proper steps, the things that you need to do.
Most franchise businesses are turnkey businesses.
The company already has a set of procedures for you to follow.
Phil says that you will be trained on how to run your business down to the smallest details meaning, including the smallest details.
To maintain these standards, we conduct spot checks regularly of all of our franchises.
From time to time,
A spot check is a random, unannounced visit to make sure that the quality of something is high or that something is being done.
So if the decides to visit you one tuesday afternoon, it won't tell you.
It will just come to your business and make sure you're doing things the way you are supposed to be doing them.
That's a spot check.
They do spot checks from time to time, meaning every once in a while.
Sometimes Phil says that the company also audits the books of each franchise.
The books here refer to the accounting records, a list of how much you spent and how much income you made, how much money you received.
To audit something means to look at it very carefully, to check it, to make sure it is correct.
So auditing the books means looking at your company's accounting and financial records to make sure everything is correct.
Phil says they do this to make sure that their standards are being met.
A standard is the quality level that something should be done.
It's the minimum speed or quality of something.
In many schools they have standards for the students.
Things that every student is expected to know at a certain level.
Phil continues by saying that The term franchise rights refers to the permission that the larger company gives to the individual franchise to use its name and its products.
Phil is saying that it is quite unusual for a franchise to lose its rights.
Magdalena says, What kind of support does the corporate office provide?
The corporate office here would be the headquarters of the larger company.
Phil says, After all, he says, it's in our own best interest that you succeed.
The expression to be in one's own best interest means it is to your advantage.
It is advantageous for someone.
It benefits someone.
If your wife says to you it's in your own best interest dear to wash the dishes, because if you don't, I'm not going to cook any food tonight.
It's in your own best interest.
It will be beneficial to you.
Phil says, Troubleshooting means assisting someone with specific problems.
Advice on specific problems.
If you have problems with your computer and everyone has problems with their computer you are going to have to do some troubleshooting.
You are going to try to figure out what the problem is and try to fix it.
And when that doesn't work, then you turn your computer on and off and everything seems to be better.
Why is that, anyway?
Magdalena then thanks.
Phil asks if she can contact him in the future, if she can call him if she has more questions.
Phil says, certainly, meaning yes.
Here's my card.
Here is my business card with my contact information on it.
I'd be happy to answer any questions you may have.
Just give me a ring.
To give someone a ring is an informal way of saying, call them on the telephone.
Just give me a ring.
Just call me on the telephone.
Magdalena says, thanks, I'll do that.
Now let's listen to the dialogue again, this time at a normal speed.
That's a good question.
In addition to the annual franchise fee and the monthly royalties, we also charge a training fee and an advertising fee.
Here's a list of these and other fees.
Oh, that's very useful.
Thanks.
I was also wondering what kinds of quality controls the franchises are subject to.
As you know, when you start a franchise, you're buying into a proven formula for success.
We offer a turnkey operation and you will be trained in how to run your business down to the smallest details.
To maintain these standards.
We conduct spot checks of all of our franchises from time to time and we audit the books of each franchise once a year to make sure that our standards are being met.
Only in very rare occasions do franchises lose their franchise rights because they failed to meet our standards.
What if I have a problem along the way?
What kind of support does the corporate office provide?
We give our franchises as much support as possible.
After all, it's in our own best interest that you succeed.
We provide troubleshooting and training for your management and employees.
I think those are all of the questions I have right now.
I really appreciate your time.
If I have other questions in the future, can I contact you?
Certainly.
Here's my card.
I'd be happy to answer any questions you may have.
Just give me a ring.
Thanks.
I'll do that.
Our proven formula for getting good scripts on this podcast is to give them to Dr Lucy Say, who wrote the script for today's episode.
Thank you, Lucy.
From Los Angeles, California, I'm Jeff McQuillan.
Thanks for listening.
We'll see you next time on ESL Podcast.
English as a Second Language Podcast is written and produced by Dr Lucy Say, hosted by Dr Jeff McQuillan.
This podcast is copyright 2008.
