CH2- GENERATE&PROTECT BUS IDEAS Flashcards
BENEFITS OF OPERATING AS A FRANCHISE
Least risk - nearly 95% are successful
Easier to raise finance
Established name and products
Low ads and promotional costs
Franchisee has exclusive rights to area
Relationships with suppliers established
FRANCHISE
When an individual or business gives another individual the right to trade under its name for an upfront licence fee and annual royalty payment.
PITFALLS OF OPERATING AS A FRANCHISE
Costs may be higher than expected, franchisee must keep paying ongoing royalties.
Other franchisees may be giving the brand a bad rep.
Agreement usually includes restrictions- not able to make own decisions.
COPYRIGHT
Legal protection against copying for authors, composers and artists.
PATENT
An official document granting the owner the sole use of a newly invented product for a specified period.
TRADEMARK
Signs, logos, symbols or words displayed on a companies products or ads.
