Franchising—Paradigm of the Enterprise in the 21st Century

Abstract

Franchising as a specific form of business is one of most interesting and perspective forms of doing business in the 21st century. The present circumstances on the market touched by the crisis require (expected in 2021) the permanent looking for the certainty for the enterprises. One of it is franchising. It concerned the classical closed vertical distribution system, which is managed on contractual basis and one of the system members, named franchisor, connects some levels in the production-distribution chain. His partner is a franchisee. Both partners are searching for the optimal level of correlative relationship. It is a dynamic commercial system, which represents a modern form of cooperation between the enterprises. Franchising is regarded as a progressive marketing strategy. It is one of few forms of entrepreneurship without stagnation in the crisis period, as well.

Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability

“…Such area plays an important role in the conditions of a tough competitive environment, as its constant monitoring ultimately helps in the managing and increasing the performance of the enterprise [10][11][12]. Current enterprises need to respond to the ever-changing market situation, adapt to new changes, and improve business activities, essential for the sustainability of their future growth [13][14][15][16][17].…”

Microeconomic Aspects of Franchising

“…There are number of companies and entrepreneurs are not able to be competitive and are looking for the space where to live out or secure the growth. The response may be franchising (Orgonáš -Rehák, 2020). Franchising is a modern form of entrepreneurship going in last year through the renaissance.…”

“…The real yield test and the measure of economic effectivity of the know-how in the pilot shop, serves for calculation of moderate franchising and licence fees. The fair regulate of them sets up the precondition for long-term and stabile commerce relationship between the provider -franchisor and the user franchisee (Orgonáš et al, 2020).…”

Accounting of Franchising Activities of Tourist Enterprises of Ukraine

“…Understanding the concept of "franchising" as an economic category has a direct impact on the methodology of accounting for related transactions. In many scientific studies, franchising is seen as a strategy to ensure the company's competitive advantage in the market through business cooperation (Alon, 2004;Altinay et al, 2013;Ribeiro and Akehurst, 2014;Dube et al, 2020;Orgonáš and Rehák, 2020;Sun and Lee, 2021) or a means of increasing the economic value of the firm through conducting special business activities (Aliou che and Schlentrich, 2009; Koh et al, 2009;Moon and Sharma, 2014;Choi et al, 2018;Kim and Lee, 2020). Economic thought has developed dozens of definitions of this term, which characterize it from different points of view (Figure 5).…”