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ДОДАТОК А

ANNOTATION

Анотація курсової роботи англійською мовою

The main feature of franchising in the international business is that it is one of the mechanisms which helps to improve business. It makes possible to combine the advantages of small and large businesses. Small businesses, receiving advanced technology and support through franchising, become more competitive.

In the process of evolution, modern franchising has passed through two main stages: the traditional franchising and franchise business stage format.

Franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: 1) the franchisor, who lends his trademark or trade name and a business system; and 2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

Nowadays there are several types of franchises. The most common classification is: 1) in accordance with the product, which is implemented through franchise system (activity); 2) according to the know-how; 3) in accordance with how the system is organized.

Franchising is a network of interdependent business relationships that allows a number of people to share:

· a brand identification;

· a successful method of doing business;

· a proven marketing and distribution system.

In most countries franchising has become the most common in such activities as retail and service industry. This is because investments in these areas are small and the organization of business from the very beginning requires less time. As for manufacturing enterprises there is another situation that led to the transfer not whole business, but certain industries, technologies, patents, etc. Accordingly, more common in this sphere have become simplified forms of franchising: licensed production, international industrial cooperation and the production of raw materials.

Today there are 18,500 franchisees and more than 2 million franchisee in the world. Currently, the franchising is used in almost all areas of business.

According to the «RANDATA Corporation» data, the spheres of economy, in which franchising is most common nowadays are: fast-food establishments - about 20% of the global number of franchisees, retail trade (including foodstuffs) - 15%, services (including sports and leisure) - about 12%, road transportation and service - 8%, construction - 7%. Thus about 50% of all franchise chains in the world work in the field of trade, where the key role belongs to the fast-food establishments, restaurants, shops of food and manufactured goods.

Leaders of franchising and exporters of franchise business around the world are the USA, Canada, Korea, Japan, Australia, in Europe - Germany, France and Great Britain.

USA - is the birthplace of franchising ("McDonald", "Burger King", "Baskin Robbins 31", "Western Union", "Pizza Hut", etc.), that is why in this country, franchising is considered to be the dominant form of business. The leading position has the service sector and public catering.

It should be noted that franchising became very popular system of business in Europe, which currently operates more than 4.500 of franchise systems and about 180.000 franchisees who achieve total sales of more than 150 billion.

As for Ukraine, in this country franchising is developing slowly, as the existing legal framework does not regulate franchise relations. Businesses and consumers are not accustomed to pay for such intangible values ??as trademarks or sharing experiences. Nowadays, Ukraine has represented all types of franchising. Key positions in the development of franchise systems take companies that have Master Franchisee and which control 30% of cash flow in Ukraine.

Market of franchising in Ukraine is represented by domestic and foreign brands, and 50% of them - Russian brands. Every day franchises at the Ukrainian market become more various because new industries and technologies appear. A price range also enlarges: franchisee can choose from cheap franchises of domestic services or rental and expensive franchises of fashionable restaurants and production.

So, nowadays franchise business is a very actual issue. As an advantageous form of business, it is used in all developed economies. It is a quick way of learning practical business standards that are required to have a profitable business. Its choice depends: on the type of economic activity, the stability of the franchisor and its place in the market of goods and services.

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