FRANCHISING AS A MODEL OF INTERNATIONAL BUSINESS MANAGEMENT IN DEVELOPED COUNTRIES OF THE WORLD ECONOMY

Abstract

The article examines franchising as a business model that is a common method for expanding entrepreneurial activities within the national economy and into the markets of developed countries worldwide. In a context where domestic entrepreneurs need new solutions for effective business management, the experience of such a management tool becomes relevant. Research of the mechanisms, advantages, potential risks, and experience of international companies enables a deeper understanding of the prospects for applying and developing franchising activity for Ukrainian entrepreneurs. The study aims to analyze and assess the functioning and development of franchising as an effective management model for international business in the economically advanced regions of the global economy, as well as to enhance approaches to addressing its challenges and exploring prospects for the development of this business model in Ukraine. Based on available data, it has been established that the franchising model remains an attractive option for entrepreneurs in the USA and the EU who strive to achieve business success through collaboration with established brands and leveraging their expertise and support. The adaptability of franchising to global changes, such as economic crises, pandemics, or armed conflicts, has been demonstrated. Starting from 2021, the growth of the number of companies operating as franchises, the number of officially employed individuals, and production volumes evidence this. A detailed analysis of the scale of franchising enterprises in the USA and the EU is presented. The top companies in regions with the most advanced franchising development worldwide –namely the United States and the European Union – have been analyzed. Rankings of the world's best franchising enterprises are used for the analyses. Progressive industries targeted by franchisors and franchisees worldwide for international market expansion are highlighted, primarily including retail, fast food, household services, technical maintenance, employment and recruitment, and real estate agencies. Thus, the resilience and growth of the franchising model amidst global changes, driven by the synergy of the advantages of small and large businesses, continue to yield positive outcomes in the form of increased production and sales, the development of new divisions, and the creation of jobs. Based on the above, it can be concluded that the issue of franchising as a form of business activity is a pressing topic today, which this study aims to address.