Meeting Minutes of February 11, 2000

 

Present were: ZY, HB, VS, and AM

The meeting was held at the restaurant of HB and VS from 8:00PM to 11:30PM.

Although more than two hours were spent attempting to install "money-generating net-based downloads" into VSí new high performance computer, for purposes of offsetting miscellaneous expenses, at least one hour was spent discussing the state of Transnationalís various initiatives.

Old Business:

Brief review of previously attempted business transactions resulted in all present noting that no progress had been forthcoming since January 24th on these matters. For purposes of the record, the following status-reports were offered by AM and VS:

1. Casa Mexicana Tile Import-Export Initiative: MP of Casa Mexicana has not, to date, responded to Transnational correspondence, either formally or informally. Limited interest in the imported Chinese tile concept has been verbally expressed by Casa Mexicana employee SP, but absolutely no tangible indication of purchase intention has been forthcoming. Contact with Casa Mexicana personnel has not materialized, in spite of attempts in recent days.

2. Due to illness in VSí family in Guatemala City, no information regarding the purchase of computers by his cousin is currently available. The volcanic eruption has also complicated matters logistically.

3. Similarly, no information from Guatemala is available concerning the chicken breeding panels for AVICOLA which were to have been imported from Mainland China. E-mail messages concern only matters of family health at this time.

4. KM has not provided information to date concerning his contacts in Japan.

5. No information from KUWAIT on the purchase of tiles or other merchandise has been forthcoming from HA.

6. Perfume trading was ruled out by VSí relatives in El Paso, due to pre-established purchase patterns.

7. All other previously discussed business was tabled, due to lack of input or required data at this time.

New Business was subsequently discussed:

The major topic of discussion this evening concerned VSí auntís offer of capital for investment in a small business enterprise, probably to be located in New Mexico. VS explained that a choice had to be made between (1) a small store specializing in imported merchandise from China or (2) an established food franchise operation.

VS explained that several advantages were inherent in both options.

A. After lengthy discussion, a consensus was reached provisionally ruling out the Chinese import-export outlet option, particularly due to the limited population base in the Las Cruces area, and a reluctance to break into existing major urban markets in cities like El Paso or Albuquerque.

Other objections were raised in passing by AM and ZY:

B. Attention subsequently turned to food franchises. VS enthusiastically presented his case for a SUBWAY SANDWICH outlet, stating that, of all franchises explored, this was the most likely to succeed and the most investor-friendly model.

Speaking of Subway, VS noted in rapid succession:

Discussion of these points ensued. Mention was made by AM of the percentage of the net profits that would flow to VSí aunt, and the percentage that would be available to the four-member Management Team.

It was thought that VSí aunt would accept 78% of net profits, leaving 22% for the 4-management members. Quick calculation of figures, based on the lucrative Las Cruces revenue pattern, indicated that, assuming net profit of 5% of gross (i.e. $3000), each team member would receive only $165 per monthÖpossibly as much as $200 per month. This did not seem worthwhile in the eyes of AM or ZY.

Salary for time worked at the outlet would be available, of course, but each Team Member had agreed to work only 1.5 months, thus constituting SUBWAY CORPORATIONís requirement of a 6-month physical presence.

VS mentioned that ultimately multiple outlets could be opened with reinvested capital and that each Team Memberís share would gradually increase.

Attention turned to where the outlet could be reasonably located.

 

VS asked that a SCHEDULE of tasks to be undertaken be prepared. Several steps have already been achieved and others should be accomplished in the near future, he pointed out.

Among schedule items mentioned as being critical were:

  1. Web Site Research with 800 Number (already obtained)
  2. Field Research in Anthony, NM
  3. Complete Subway Application
  4. Visit with VSí aunt to discuss disbursement and profit-sharing
  5. Meeting with local Subway owner
  6. Arrange tentative appointment with the Memphis Headquarters

These, and all other required project steps, could be completed by April 30th 2000, it was estimated by VS and ZY.

It was thought necessary to appoint a Manager of this particular project within Transnational. After discussion, HB was selected as the manager-coordinator for purposes of delegating tasks associated with start-up of the SUBWAY OUTLET venture in Anthony.

The meeting adjourned at approximately 11:30PM.

All Transnational members will receive either hard-copies or URLs for these February 11th minutes, and prior meeting minutes.