Generating And Protecting Business Ideas Flashcards
What is franchising?
When the owner of a business allows a license to another person to use their business idea.
Sources of business ideas?
Spotting trends
Identifying a market niche
Copying ideas
Taking a scientific approach
What are the benefits of operating as a franchise?
Least amount of risk
Already have an established name
Exclusive rights in its area
Franchisor offers support and training
What are the costs of operating as a franchise?
Franchisor may not of researched the business carefully
Costs may be higher than predicted
Other franchisors may give the brand a bad name
The franchise agreement includes restrictions
How do you protect a business idea?
Copyright
Patent
Trademark
What is copyright?
Legal protection against copying for authors, composers and artists.
What is a patent?
An official document granting the holder the right to be the only user or producer of a newly invented product.
What is a trademark?
A sign/logo/symbol or words displayed on companies products or advertising, which distinguishes the brand from competitors.
