Chapter 5: Becoming the Owner of a Small Business (CBF a SB) Flashcards
Niche Marketing
Process of Finding a Small -but profitable- demand for something & Producing a custom made product for that market
SCORE (Service Corps of Retired Executives)
Group of Retired - but active - managers from all walks of life who help people develop their business ideas
Market Research
the Systematic Gathering, Recording, and Analyzing of data related to the marketing of Goods & Services
Uniform Franchising Circular (UFOC)
A document that contains info franchisers must provide, by law
Franchising
a Marketing System whereby an individual owner conducts business according to the terms & conditions set by the franchiser
Franchise
An agreement whereby an independent businessperson is given exclusive rights to sell a specified good or service
Franchiser
Owns the franchise’s name and distinctive elements & licenses others to sell its products
Franchisee
An independent businessperson who agrees to sell the product according to the franchiser’s requirements
Product and Trademark Franchising
grants the franchisee the right to sell a widely recognized product or brand
Business Format Franchising
grants a franchisee the right to market the product & trademark and to use to a complete operating system
Due Diligence
the Research & Analysis of the company that is done before a business transaction
Franchise Fee
1-time fee paid by the franchisee to the franchiser for the business concept, right to use of trademarks, management assistance, and other related services from the franchiser
Royalty Fee
a Continuous Fee paid by the franchisee to the franchiser usually based on percentage of the franchisee’s gross revenue
Prospectus a.k.a. Disclosure Agreement
a.k.a. Offering Circular; a Document that provides information on 20 items required by the Federal Trade Commission
Synergy
concept that 2+ people working together in a coordinated way can accomplish more than the sum of their independent efforts
