TRENDS AND PROBLEMS OF FRANCHISING DEVELOPMENT IN RUSSIA

Abstract

.The improvement of the economic system in the current market conditions implies the development of large enterprises and the formation of a powerful segment of small business, which is the key to the stability and well-being of regions and the entire state. Franchising is one of the most successful ways of developing large and small business entities, as well as their effective cooperation. Franchising is a form of business cooperation consisting in the provision on a contractual basis of a large franchise company to an entrepreneur to manufacture products or services under its own brand. The urgency of the implementation of investment projects franchise due to the high share of insolvencies for the first time opened the company and the need for a harmonious development of the small and large businesses that can strengthen the economic situation in the country. On the pace of development of franchising, Russia is among the world leaders. Such factors as the improvement of the legal aspects of the franchiser and franchisee's interaction, the development of financial instruments for the implementation of franchise projects, the expansion of retail space, the development of franchising in the regions, the active use of conversion franchising and other factors contribute to the active development of the franchising model of business organization. However, in Russia the potential for organizing franchising networks is significantly underestimated. The current situation in the market of franchising is exacerbated by the slowdown in the growth rates of the market, connected with the fall in the activity of foreign franchisors in Russia. The paper studied the Russian market franchise according to secondary information, identify key market trends in the short term and presents an analysis of the problems hindering the potential of the business organization for the franchising system in Russia.