Bondar, I.

Karban, V.

Mel’nikova, I.

Yelizarov, I.

English

eLibrary National Mining University

17commitment individual entrepreneur; on the other hand the resources, commercialpower and vast experience of large companies. By combining all this factors, we getthe power, responsibility, strength, resources and expertise.Bondar I., Yelizarov I., Karban V.Mel’nikova I., research supervisorKryvyi Rih National UniversitySUCCESS FACTORS OF FRANCHISING COMPANIESKey words: franchising, business, franchising companiesOne of the most successful tools in business today is franchising. Its applicationincludes assignment of rights to use a trademark to a standalone company or to salebranded products to other companies.The transmission of the right to use a well-known brand name is a source ofconsiderable income. Franchising also helps promote the brand in undevelopedmarkets.Acts on behalf of a well-known company enables franchisees to avoid extraexpenses on advertising and providing information about their products, as theproducts they sell are widely known. Practice shows that small and mediumbusinesses that develop through franchising, is consistently profitable and they arecompetitive for a longer time and retain their positions better than newly set-ups.The largest franchise companies of 2016 were McDonald's, SUBWAY®, KFC,Burger King, Pizza Hut. Franchise companies were assessed on the basis of thefollowing indicators: the number of granted franchises, franchise revenue,sustainability and growth, the length of activities and market expansion period.Due to their successful marketing policy, companies engaged in franchising, areconstantly expanding their activities and receiving significant revenue. This isachieved through several franchising benefits including increase of the number oftrade missions, reduction of their maintaining costs, the company’s popularitygrowth. Franchising activities provide opportunities to get round antitrust laws indifferent countries, as some powerful companies can take a significant market share.Creation of franchise companies on new territories reduce business risks for thefranchisor associated with a new market, as the business owner is a different person,better adapted to these conditions.Thus, it can be concluded, that franchising is the best choice for a newentrepreneur to succeed in their business. And for big companies franchising is one ofthe best methods to refresh and expand economic activity.

SUCCESS FACTORS OF FRANCHISING COMPANIES

http://ir.nmu.org.ua//bitstream/123456789/149286/1/BondarIYelizarovIKarbanV.pdf

SUCCESS FACTORS OF FRANCHISING COMPANIES

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