Generating And Protecting Business Ideas

Question 0

Franchise

Answer 0

When a business (franchisor) gives the right to supply it’s product or service to another business (franchisee)

Question 1

Sources of business ideas

Answer 1

• spotting trends and anticipating impacts on peoples lives.
• spotting a gap in the market.
• copying ideas from other countries.

Question 2

Benefits to franchisee

Answer 2

• lower risk
• attracts finance from banks
• franchisor provides training
• franchisor usually has monopoly in local area.

Question 3

Disadvantages to franchisee

Answer 3

• high start-up costs, expensive fees to franchisor.
• less independence.
• franchisor fee lowers profit margins.

Question 4

Benefits to franchisor

Answer 4

• franchisor can maintain a level of control
• expansion paid for by franchisees.
• risk is shared

Question 5

Disadvantages to franchisor

Answer 5

• actions of franchisee affects rep of franchisor.
• expensive
• profit shared with franchisees.

Question 6

Methods of protecting business ideas

Answer 6

• copyright
• patents
• trade mark.