International Experience in the Development of Franchising and Its Application in Ukraine

Abstract

Purpose. The purpose of the study is to analyze the global development of franchising services and assess their implementation in Ukraine, particularly in the context of post-war economic recovery. Design / Method / Approach. The article employs analytical methods, including progression from abstract to concrete, combination of analysis and synthesis, a systemic-structural approach, and the method of cause-and-effect relationships, allowing comprehensive examination of international franchising markets and their adaptation to the Ukrainian business environment. Findings. The study demonstrates that franchising significantly contributes to economic growth through rapid business scaling, risk reduction, and knowledge transfer. Comparative analysis shows that franchise systems are most advanced in the United States, while EU countries also show considerable growth. The Ukrainian franchising market remains at an initial stage, constrained by regulatory and infrastructural factors, but shows steady development, particularly in retail, food services, and personal services. The study also highlights the role of franchising in creating employment and fostering investment activity during crises. Theoretical Implications. The article examines the essence, types, and theoretical foundations of franchising, including capital involvement and agency theory, demonstrating applicability for structuring franchise relations in Ukraine. Practical Implications. The findings support companies in developing effective franchise strategies, identifying promising markets, adapting business models to local cultural and economic conditions, and implementing innovative technologies. Originality / Value. The scientific novelty lies in providing evidence-based recommendations for advancing international franchising activities generally, and strengthening the Ukrainian market in particular, including post-conflict recovery. Research Limitations / Future Research. Limitations concern implementing global franchising practices in specific sectors of the Ukrainian economy, considering national regulatory frameworks and socio-economic characteristics. Article Type. Analytical.