Abstract

The article reveals the essence of franchising, examines its current state in Ukraine and in the world. Franchising is one of the tools for business development, which has long and effectively «works» in developed economies. The article presents the results of a study aimed at reviewing the level of business based on franchising agreements and on various aspects of conducting such commercial activities. Franchising is considered as a kind of entrepreneurial activity, which has a number of advantages over other types of business. It is these advantages that should interest entrepreneurs to engage in business based on the purchase of a franchise. In developed economies, franchising is one of the most popular and reliable ways of doing business, but in Ukraine it has not yet received proper development, as evidenced by the study, on the basis of which it can be noted that a significant part of entrepreneurs are not sufficiently informed about this form of business. In the conditions of an acute shortage of financing, both the main and the working capital of enterprises in Ukraine, it is franchising that allows you to create a fairly fast-growing business on fairly favourable terms both for the franchise company and for franchise purchasers.

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