KEY FEATURES, MAIN FORMS, AND DEVELOPMENT TRENDS OF FRANCHISING NOWADAYS

Abstract

The article describes the essence and features of franchising as a form of business management. The relevance of the research is based on the popularity of this form of economic activity around the world, the simplicity of establishing organizational and legal relations, and a clear understanding of the economic results by using a ready-made business model. Franchising is seen as a useful tool for developing and scaling up business activities because it can be used both by large companies with a developed affiliate structure and various representative offices in many countries around the world, and by entrepreneurs for whom minimizing risks and maximizing profits by optimizing possible operating costs is important. The purpose of this article is to discover the essence of franchising relations as an effective form of business management and to describe the prospects for the development of franchising as a form of entrepreneurship in the conditions of the war and post-war period in Ukraine. To achieve this goal, the main objects and subjects of franchising, the principles that determine the basis of such organizational and legal relations, the functions of franchising, the main models used by enterprises to organize production, operational and financial activities were studied, and the contents of the franchise package were characterized. The theoretical aspect of franchising is combined with the empirical one, showing the main distribution of enterprises using this form of business by industry and territorial coverage, which confirms the integrity, reliability and systematic use of franchising to build a highly competitive and diversified enterprise with long-term competitive advantages. The key trends in the development of franchising, its influence on the global economy, areas of market concentration and monopolization, the use of information technologies to collect analytical data about the success of brand positioning are shown. The conclusions present ways to improve the franchising model of entrepreneurship and identify vulnerabilities in the legal framework of this sector of the economy.