TENDENCIES AND DIRECTIONS OF ACTIVITY OF INTERNATIONAL BUSINESS UNDER THE TERMS OF FRANCHISING

Purpose. The article is devoted to topical issues of franchising as a modern form of international business. Today, franchising is one of the most dynamically developing forms of business activity, which is characterized by high efficiency in both domestic and foreign markets. Along with the quantitative development of franchising relations, there are qualitative and organizational changes in this form of economic cooperation. The purpose of the study is to analyze the current problems of franchising, identify and evaluate current trends and tendencies in the development of franchising in the world taking into account the processes of globalization, economic and demographic changes.
Design/methodology/approach. Using the methods of theoretical and empirical research, systematic economic and statistical analysis, the author has identified the main trends, opportunities and prospects for the development of the franchise business.
Findings. Franchising is a popular form of international business activity that allows entrepreneurs to expand their businesses beyond national borders. The main trends and areas of activity of international business under the terms of franchising are considered. It is noted that in recent decades there has been an increase in globalization, which contributes to the development of international franchising. Many well-known brands are expanding their presence in markets around the world by concluding franchise agreements with local entrepreneurs. It was determined that an important element is adaptation to local markets. In particular, companies that use franchising usually adapt their products and services to local markets. This may include changes in menu, design and marketing strategy to match the cultural and taste preferences of local consumers. International franchising offers opportunities to expand business into new regions and countries. Companies can find new markets for their products and services and attract local entrepreneurs willing to use their brand and business model. It was analyzed that technological progress, in particular the Internet and mobile technologies, affects the development of international franchising. It allows for easier communication and exchange. Research has shown that large franchise companies have a significant impact on the economy and business environment. In particular, they have a significant impact on economic development. Large franchise companies create new jobs, contribute to an increase in turnover and profit. They can have a significant impact on the local economy, especially in small towns where they can be among the largest employers.Standardization of business processes is also important. Franchise companies establish standardized procedures and management systems that help ensure the quality of goods and services. This can improve customer relations, increase operational efficiency and help build brand trust. Franchise companies, especially those with a global reach, can have a strong brand name and high recognition among consumers. This can help attract more customers and drive sales for all franchise partners. Some large franchise companies invest significant resources in research and development of new products and technologies. This can promote innovation in the industry and facilitate the emergence of new market.
Practical implications. This article presents factors influencing the development of franchise relationships, such as technological, telecommunication, IT improvements and the increasing importance of the Internet. The business environment of franchise relationships is changing. Several factors that caused changes in the concept of franchising are described. These include: increased competition, modern technologies, the Internet, growing customer needs, new opportunities for the development of enterprises and franchise concepts, demographic conditions. Trends in the use of franchises in the developed countries of the world are analyzed. The largest franchise networks are indicated. The structure of franchising systems in the USA and the EU by sector was studied. Based on the analysis, it can be concluded that franchising occupies an important place in international trade, and in recent years the internationalization of this form of economic cooperation has been increasing.
Originality/value. The value of the study consists in the fact that the grouping of economic interests of subjects of small and large business, the merits of their partnership as a strategic resource, the systematization and analysis of the actual problems of franchising, which allowed to identify the potential of its development taking into account the general market trends.