FEATURES OF BUSINESS ACTIVITY BASED ON THE USE OF FRANCHISING
DOI:
https://doi.org/10.31891/mdes/2024-11-32Keywords:
franchising, entrepreneurial activity, business, economy, franchise, franchisor, franchiseeAbstract
The article examines the peculiarities of entrepreneurial activity based on the use of franchising. It has been established that, on the one hand, franchising opens wide opportunities for the development of entrepreneurial activities not only of the small and middle class, but also for the country's economy in general. It is necessary to pay considerable attention to the development of ways, methods and tools for the involvement of technologies in the innovative component, especially those that contribute to the solution, including environmental problems. On the other hand, franchising is a tool for attracting the latest technologies and innovations and a very convenient way to enter the international market, during which the company becomes an element of a large corporation with a well-known trademark, logo, recognized level of management, exclusive technology and equipment, quality products and a high level of service. For a country on the territory of which entrepreneurial activity is carried out on the basis of franchising, it means the attraction of direct foreign investments, which satisfy the need for limited resources and make it possible to improve the quality characteristics of its products with the help of attracting advanced technologies, which will make it possible to increase the competitiveness of the country in general. Entering the international market, franchising carries not only its brand or business strategy, but also new technologies and higher standards of production and life.
The essence of franchising is revealed, its use in business activity is investigated, the positive and negative sides, risks of franchising activity are described. The advantages of franchising include access to recognized brands, proven business systems, training and support from the franchisor, and a higher chance of success compared to starting a business from scratch. However, the development of franchising in Ukraine also faced challenges such as the lack of a regulatory framework, high initial costs, and cultural differences between foreign franchisors and local franchisees. To further promote the development of franchising in Ukraine, clearer rules are needed to protect the interests of both parties, increased access to financing for franchisees, and more educational and training programs to raise awareness of the benefits and risks of franchising.
The main problems of spreading the use of franchising in the Ukrainian economy are formulated and measures to eliminate them are proposed. The franchise business model has a stable presence on the Ukrainian market, as it provides an opportunity to use successful experience and an already recognized brand to expand one's own business. Also, this strategy is important for our country in the sphere of the spread of scientific and technical exchange both at the level of the country and at the level of companies.
Prospects for the further development of franchising in Ukraine based on world experience are outlined. In general, the future of franchising in Ukraine looks promising, as more and more local and international brands enter the market, and entrepreneurs recognize the potential of franchising as a successful business model. Given the country's unstable economic situation, franchising is a chance for Ukrainian business to reach a new level, but for this it is necessary to improve the legal framework and support from the state.
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