Graduate student Olha FEDOROVA (fola3172@gmail.com)
Zhytomyr Polytechnic State University
Coordinator: Ph.D., Associate professor Dmytro ZAKHAROV (dima.zakharov8@gmail.com)
Department of Management and Accounting Information System, Zhytomyr Polytechnic State University
Abstract
Trends in the world economy are actively developing in the field of franchise relations. The franchising business model helps companies quickly establish themselves on the market, their rapid development, advancement into the production sphere, and the sphere of providing services of the latest technologies. Currently, franchising is used in most developed countries of the world. Franchising for the economy opens opportunities to expand jobs, and increase GDP, tax revenues, and international cooperation. The rapid development of franchising is restrained by certain factors, such as the imperfection of the legislative framework, the lack of experience of working in the framework of franchising among domestic entrepreneurs, dishonest attitude to the fulfillment of contractual obligations and other people’s intellectual property, the low level of development of bank lending, etc. Today, the franchise market is very saturated, so potential franchisees should pay attention to their preferences, economic potential, and the possibility of a quick return on capital investments. For this purpose, we propose to analyze the internal and external factors of choosing a franchise. As external factors considered: market trends and conditions, trust, brand impersonality, knowledge transfer mobility, distinctiveness, adaptability, and knowledge documentation. As internal factors considered: the capabilities of the chosen enterprise, the possibility of quick recovery of capital investments, the number of initial contributions, the efficiency of the management service, and the responsibility of the enterprise.
Keywords: franchising, franchisee, franchise market, entrepreneurship, market trends.
JEL Classification: M410, M420, O12.
