STATE AND PROSPECTS OF THE FRANCHISING SERVICES MARKET DEVELOPMENT IN UKRAINE
Abstract
The article is dedicated to the current issue of franchising development, as franchising is becoming increasingly popular and dominant form of entrepreneurship worldwide. The article outlines the role of franchising in the Ukrainian business environment. The significant growth of the franchising market in Ukraine demonstrates the effectiveness of franchising as a business expansion tool, even in times of economic crisis. It is noted that franchising allows companies to enter an established business, gain additional experience, and attract new customers with lower risks and efforts. The article also points out the disadvantages of franchising that should be considered. These include limitations on decision-making freedom, potential conflicts of interest between franchisors and franchisees, as well as dependence on the franchisor's success. Despite these drawbacks, the franchising market in Ukraine shows potential for further development. Ukrainian companies choose franchising as a strategy to expand their business, enabling them to become internationally recognized. The trust in Ukrainian franchisors and the popularity of franchising among entrepreneurs indicate its success. The article also highlights that franchising is a convenient and effective model for the development of small and medium-sized businesses. Entrepreneurs can utilize established brands with minimal costs and risks. Even during the COVID-19 crisis, the franchising market has not experienced decline and continues to grow steadily, adapting to changes in consumer behavior and the development of the modern world. Overall, the article confirms the positive dynamics of franchising development in Ukraine and its effectiveness as a business expansion tool. The increasing number of franchisors and franchising units indicates a stable interest in this business model by companies. Particular attention will be given to analyzing the factors influencing the development of franchising in Ukraine. Based on the conducted analysis, prospects for the development of the franchising market in Ukraine will be formulated. Potential growth directions, sectors for expanding franchising businesses, and recommendations for improving conditions for franchising activities will be identified. The article provides an in-depth understanding of the current state and prospects of franchising development in Ukraine, serving as a basis for further research and the development of strategies for entrepreneurs planning to engage in franchising business.
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