Flashcards in Generating And Protecting Business Ideas Deck (7):
Sources of business ideas
-spotting trends and anticipating impacts on peoples lives.
-spotting a gap in the market.
-copying ideas from other countries.
When a business (franchisor) gives the right to supply it's product or service to another business (franchisee)
Benefits to franchisee
-attracts finance from banks
-franchisor provides training
-franchisor usually has monopoly in local area.
Disadvantages to franchisee
-high start-up costs, expensive fees to franchisor.
-franchisor fee lowers profit margins.
Benefits to franchisor
-franchisor can maintain a level of control
-expansion paid for by franchisees.
-risk is shared
Disadvantages to franchisor
-actions of franchisee affects rep of franchisor.
-profit shared with franchisees.