ФРАНЧАЙЗИНГЪТ КАТО БИЗНЕС МОДЕЛ – ОПРЕДЕЛЕНИЕ И ПРЕДИМСТВА
FRANCHISING AS A BUSINESS MODEL – DEFINITION AND ADVANTAGES

Summary/Abstract: The report examines its concept the essence of franchising and its benefits. From an economic point of view, franchising is defined as a business agreement for cooperation between independent business partners, a type of distribution link, a marketing channel, a modern form of licensing, an effective strategy for the internationalization of business, a form of inter-company and marketing cooperation for the reproduction of a fulfilled business concept. Part of the definition highlights the legal aspects and defines franchising as a type of contract, an agreement that gives way to an industrial or intellectual property rights package. The heterogeneous nature of franchising is also recognized as a type of commercial relationship based on a contractual agreement. According to the author, in its modern form, franchising is an innovative form of doing business. Although it contains elements of well-known distribution and licensing practices, forms of sales representation, and others, from the beginning of which it begins to develop, franchising differs significantly from them in that it goes beyond the marketing mix and enters the field of entrepreneurship.

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