PECULIARITIES OF FRANCHISING DEVELOPMENT IN A PANDEMIC CONDITION

Abstract

The article considers the essence of franchising relations due to which small businesses become more competitive and large - strengthen their market position and expand markets for their products. The advantages of franchising are described, the main of which is the possibility of developing your own business with minimal risks during the crisis. Problematic aspects of this form of cooperation for the franchisor and the franchisee are considered, which could be minimized at the stage of signing an agreement. The most popular and developed franchise systems that successfully operate in crisis times are product distribution franchising and business format franchising. Product distribution franchising means the right to sell the company's product range or provide services under the appropriate brand. As for the franchise of the business format, in this case, the franchisee has not only the right to sell goods or services but the very concept of doing business, i.e., the franchisor transfers all his know-how: from uniforms to training and retraining. The main directions of franchising, which began to develop due to the use of information technologies, are considered. Peculiarities of functioning of the domestic and international market of franchising in the conditions of a pandemic among which it is possible to allocate change of organizational and economical format of functioning of the enterprises and growth of popularity of franchises in the field of trade in goods and services. It is proposed to use a franchise of anti-crisis format - a franchise that provides some relaxation on the franchisor part concerning the franchisee in terms of the contract in case of force majeure. Anti-crisis easing and the cases in which they take effect must be stipulated in the contract when concluding it - proposed as practical tools for mobilization and use of resources by the franchisor and the franchisee to form a joint anti-crisis program and the active implementation of digitalization processes. It is necessary to legislate franchising relations at the state level to approve the mechanism of their insurance and financing.