Bìznes Inform (Sep 2019)
Franchising as a Form of Doing Business in Ukraine
Abstract
The article is aimed at researching the features of franchising as a form of doing business in Ukraine. The approaches of the scientific community, franchising associations in different countries and the legislation of Ukraine to the definition of franchising are provided. Based on the analysis of different approaches, the main categories of definitions are formed. The ambiguity of the ratio of definitions of «franchising» and «commercial concession» provided by Ukrainian law is examined. Based on the analysis of definitions, the problem of terminological confusion is allocated, resulting from the lack of relevant industry regulations that would provide terms, which leads to insecurity of franchise participants on the part of Ukrainian law. The positive and negative aspects of the franchise model of business conduct are defined for both the franchisor and the franchisees. Analyzing the historical stages of franchising development in Ukraine, the authors consider the peculiarities of appearance of the first franchising points in the country and the associated current tendencies in franchising development. Based on the carried out analysis, conclusions have been drawn about the peculiarities of franchising development in Ukraine, the key points of the development of the associated market are allocated: decline in the number of franchising points as a result of the crises in 2008 and 2014; qualitative changes in the market during 2016-2017. The problems holding back the development of the franchising form of doing business in Ukraine are allocated, and possible ways to solve them are proposed. The emphasis is placed on the following needs: development of the appropriate infrastructure for information support for franchising development; development of the State programs to support for small business development under the franchising scheme; simplification of obtaining credit means for small businesses.
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