INTERNATIONAL FRANCHISING AS A METHOD OF IMPLEMENTATION AND MARKET POSITIONING OF EXISTING FRANCHISING FORMS

Abstract

The need for capital for further fertilization, i.e. conquering new markets through minimal investments, can be realized through franchising as a specific investment method of contractual business. The use of a successful business method, reduced investment risks and independence in business are the determining reasons for joining the franchising network by a potential franchisee. Franchising provides the franchisor with the opportunity to expand its business to the target market with minimal investments and minimal investment risks, until the franchisee, by joining the franchising network, uses all the benefits and advantages in practice of a successfully developed business system that is recognized by potential consumers as business that is characterized by a built image and brand. One of the methods that the franchisor uses to conquer a new market with minimal investments and minimal investment risks, and with the expected profit, is international franchising. International franchising is a distribution technique that contractually integrates a distribution system instead of a chain of ownership managed from a single center. International franchising does not represent a special form of franchising business, but rather a method through which the franchisor realizes the expansion of franchising business on the international market. Regardless of the form in which franchising appears (goods, services, production, etc.) on the international market, it can be realized through various methods that enable and provide international franchising, all in accordance with the needs, specifics and requirements of the target market. Modalities of realization of international franchising are achieved through: 1) master franchising; 2) direct franchising; 3) area development agreements and 4) joint venture.