CONTROL OF FRANCHISING IN THE TOURISM BUSINESS
Abstract
The turbulence of economic relations and instability of socio-economic development of national economies determine the search for optimal forms of small business development. One of the simplest and most profitable forms of such development is franchising. Franchising has become very common in the field of services, in particular, in the tourism business. At the same time, the principles and content of the application of the franchise business model in Ukraine differ from the global ones and do not contribute to the assessment of the effectiveness of its application. The objectives of the study are to determine the features of franchising and prove the need to establish a system of intra-network control of the franchisee. The methodological basis of the study consists of a dialectical method of knowing the essence of franchising, a comparative analysis of its advantages and disadvantages, an abstract logical method is used to justify the mandatory attributes of franchising, methods of synthesis and generalization is used to formulate research findings. The article identifies the features of franchising, as well as the advantages and disadvantages of using a franchise model of doing business in Ukraine. It is established that one of the reasons for the slowdown in the development of franchising in Ukraine is the imperfection of its regulatory framework, the application of which distorts the conceptual vision of the content and form of cooperation between the franchisor and the franchisee. It is determined that full and effective implementation of franchising is possible only on the basis of a fixed-term franchise agreement, permanent cooperation of franchisees throughout the term of the franchise agreement, compliance with settlement discipline; constant support of the franchisee by the franchisor in order to comply with established standards of activity, as well as the lack of competition between the subjects of franchising. It is also established that the minimization of transaction costs should be considered as one of the economic advantages of the tourism business under the franchise model. The identification of the attributes of franchising as a form of business partnership helped to determine the need to organize and monitor the quality of the franchisor's business operation, which is the subject of the franchise.
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