FACTORS AFFECTING FRANCHISING DEVELOPMENT IN THE ECONOMY OF THE EUROPEAN COUNTRIES

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Published: Dec 26, 2019

  Iryna Prykhodko

  Solomiya Ohinok

Abstract

The purpose of the study is to distinguish and analyze the factors that influence the development of franchising in the globalized system of world economic relations. The usage of franchising as a mechanism to activate the innovative activity in Ukraine will increase the effectiveness of innovation introduction in the economy. Methodology. The research is based on the scientific works and researches of domestic and foreign scientific. The methodological grounds for the study are general scientific and special-scientific methods, knowledge. The comparative method was used to compare the growth rate of franchising in different countries. The statistical method was used to establish data that shows franchising development in different economies. The interpretation was used to explain the results of the empirical study. The method of grouping and classifying was used to characterize the ratio of the leading industries in using franchising and types of franchises. Abstract-logical and graphic interpretation was used in the study of peculiarities of franchising development strategies. Method of analysis and synthesis helped to formulate conclusions. Results. A franchise form of business activity organization will enhance the efficiency of the Ukrainian economy and increase the competitiveness of national products in the European market, therefore the franchising strategies of European companies’ entry on the Ukrainian market were analyzed. In the context of integration, the efficacy of the franchise tool for business in Ukraine was proven. Practical implications. The study is devoted to a detailed analysis of how the network age affects the franchisor’s network size, and it is proven that the older the franchisor is, the more franchise points it has. It is analyzed that with the increase of all these indicators, the network size grows, and the percentage of own points has a little effect; a franchise fee also increases according to the franchise network size; the amount of royalty depends on the investment level and the franchise network size. Value/originality is the theoretical and empirical study of factors influencing the development of franchising. The highlighted positions can be used for further study of franchise development.

How to Cite

Prykhodko, I., & Ohinok, S. (2019). FACTORS AFFECTING FRANCHISING DEVELOPMENT IN THE ECONOMY OF THE EUROPEAN COUNTRIES. Baltic Journal of Economic Studies, 5(5), 145-150. https://doi.org/10.30525/2256-0742/2019-5-5-145-150
Article views: 527 | PDF Downloads: 440

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Keywords

franchising, franchisor, franchisee, franchise fee, royalty, franchise outlets

References

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