Franchising as a form of entrepreneurial activity in Ukraine: realities and prospects

Abstract

The article is devoted to the study and analysis of franchising as an effective tool for entrepreneurial activity. The state and prospects for the development of the franchising business model in the Ukrainian economy have been studied. Before the full-scale invasion of russia into the territory of Ukraine, the franchising market was developing dynamically in almost all sectors of the economy, despite the coronavirus crisis. In recent years, franchising has become the most popular in Ukraine in the field of consumer services, public catering and retail trade. The franchising market provides a great advantage for the development of the national economy. The current state of franchising in Ukraine, its positive aspects and opportunities for future growth are revealed. It can be the beginning of the development of small and joint ventures that will focus on innovation. Like any form of cooperation, franchising has its advantages and disadvantages that need to be taken into account. Now the development of the Ukrainian economy is a sensitive issue due to the war started by russia. Without activity in the economic sphere, the full functioning of the state is impossible. As a result of the military conflict, Ukrainian enterprises began to expand in Europe, which created the basis for the formation of a market for Ukrainian franchises. In safer regions of Ukraine, relocated businesses received a significant increase in income. With the stabilization of the situation in the country, entrepreneurs will have the opportunity to open their own businesses. In general, the Ukrainian franchising business offers ample opportunities for further growth and development. Entrepreneurs who understand the benefits of franchising and know how to effectively use its potential can achieve success in both domestic and international markets. However, it is important to carefully select franchisees, conduct a detailed analysis of the terms of the deal before launching the business. Despite the existing difficulties in implementing a franchising project, the number of “quality” franchises and conscientious franchisors in Ukraine is increasing every year. New initiatives are emerging that are successfully developing not only in Ukraine, but also abroad. This indicates that in the near future, the franchising market in our country will move to a new stage of development.