Introduction relevance of the research topic



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Introduction



INTRODUCTION 
Relevance of the research topic. 
Today it is no longer surprising anyone with 
the goods and services designated by the well-known trademarks of such companies 
as Coca-Cola, Adidas, McDonald's and many others. These trademarks are 
unambiguously associated with a particular manufacturer with a high reputation, and 
indirectly indicate the high quality of goods and services.
 
One of the effective distribution channels through which these products are 
distributed within countries and around the world is franchising. What is 
franchising? Those who are familiar with this phenomenon will undoubtedly be 
surprised to learn that in the United States every second small business at the 
beginning of the next century will work under a franchise agreement. 
Despite the fact that for many entrepreneurs the concept of “franchising” is 
still unfamiliar, today we observe the almost universal use of its elements in various 
fields of activity. As already noted, first of all, this is manifested in the active 
distribution of well-known brands. However, a lot of names are used to denote 
cooperation of this type in business practice: a regional center, a dealer organization, 
a regional representative office, etc. This diversity suggests that even in the field of 
entrepreneurs there is no clear understanding of the specifics of the new management 
mechanism. 
It can be argued that franchising is currently one of the most effective tools to 
improve the efficiency of small businesses. It provides an opportunity to combine 
the advantages of small and large business. Enterprises, receiving advanced 
technologies and support through franchising, are becoming more competitive. 
Currently, in the American market, franchising covers more than 50 industries 
- from the Internet to banking, which in each case is a way of distributing goods or 
services by which an individual (franchisee or agent) receives the right from another 
individual (franchisor or principal) use of the trademark and operating system in 
exchange for the right of control by the franchisor and certain payments (royalties). 


As foreign and domestic practice shows, the main advantage of franchising is 
the reduction in the number of risks, therefore in industrialized countries franchise 
types of businesses are mainly engaged in by individuals and small enterprises that 
are economically active and themselves directly participate in managing their points 
(even if there are several). 

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