THE NATURE OF FORMATION OF A FRANCHISING FROM OF DOING BUSINESS

Abstract

In conditions of today's globalization, franchising is one of the most successful forms of doing business. Global companies carry out their activities in different countries around the world and have a significant impact on the formation of international economic relations. In many countries around the world, where franchising has already become widespread, it is seen as a new, progressive system of business establishment and business relations that meet the needs of today's market. 
 The article analyzes the nature of franchising, theoretical and practical aspects of franchising as an effective form of cooperation between a franchisor who owns a successful business and a franchisee who receives a permission to use the franchisor's business scheme for a fee, for a some period of time, it examines the history of emergence of such a phenomenon as franchising. Franchising should be seen as an economic relationship between independent businesses entities that involves the contractual delegation of intellectual property rights, the provision of intellectual business resources, and the constant specialization and cooperation of efforts of these entities aiming to ensure their market competitiveness and development.
 It is found out that the subjects of franchising relations expect for a kind of exchange: they agree on a certain restriction of their rights, the transfer of certain resources in exchange of additional opportunities in their competitiveness. It is proved that franchising promotes the trend of standardization, namely, spreads certain standards of doing business and production technologies, creates opportunities for receiving the economies of scale, forms and replicates certain standards of consumption and economic lifestyle.
 The main problems of development of this form of innovative business in Ukraine have been determined, as research has shown, as the system of obstacle factors, which are created by factors of institutional support, economic factors, socio-psychological factors, infrastructural factors. The essence of becoming a franchise form of business.