STATE REGULATION OF FRANCHISING IN THE EU MEMBER COUNTRIES

Abstract

In despite of extensive research of franchising in the scientific community, there are a lot of unresolved issues relating to franchising, in particular its regulation at the national level and at the level of the European Union that is why the purpose of the paper is to summarise and present the difference between state regulation of franchising in the EU member states and to research the basic principles of state regulation of franchising in the EU also to analyze legislation of the franchise relationship. Methodology. The survey is based on a comparison of data from all EU member countries and analisis of the legal framework of each country in particular and in general EU legislation. The article is devoted to a detailed analysis of main features of the franchise business in Europe. The mechanism of implementation of franchise relations between EU member states are studied. Government regulation of franchising in the EU member states are investigated. The rate of growth of franchising in Europe are analized. Results. By comparing different state laws and regulations of franchising we have identified the most effective and productive. We divided counties into two groups due to their regulation of franchising: countries which do not have a special government regulation of franchising; the countries which have state regulation of franchising; countries which have government regulation of franchising and it is governed by EU law, countries in which regulation is carried out in accordance with EU law. Thus, results of the survey showed that government regulation of franchising, as well as its regulation at the level of EU institutions have a positive impact on the development of franchising relationships. Practical implications of the results of the paper will help to develop well known network of franchise bussiness without legislative interference. Value/originality. It is first time we have grouped countries due to the main aspects of state regulation of franchising.