Transformation of business partnerships in modern conditions based on franchising tools

Economic Annals-ХХI: Volume 186, Issue 11-12, Pages: 86-93

Citation information:
Androsova, I., & Sogacheva, O. (2020). Transformation of business partnerships in modern conditions based on franchising tools. Economic Annals-XXI, 186(11-12), 86-93. doi:

Irina Androsova
PhD (Economics), Associate Professor,
Department of Regional Economics and Management,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russian Federation

Olga Sogacheva
PhD (Economics), Associate Professor,
Department of Regional Economics and Management,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russian Federation

Transformation of business partnerships in modern conditions based on franchising tools

Abstract. Currently, there is a trend in the world community to form partnerships focused on cooperation between various business structures which are aimed at achieving a synergistic effect in the fulfillment of common economic interests. Modern business partnerships can be implemented in a variety of forms by using specific methods and approaches. At the same time, it has been noted that business partnerships are subject to transformation under the influence of the emergence of new technologies, methods and tools, one of which is the franchising system of relations. Taking into account the existing international experience of using franchising as an effective tool for building partnerships, further research is needed to more accurately define, systematize and quantify the strategic advantages that participants receive when forming business partnerships in modern conditions.

The purpose of the paper is to identify and summarize the strategic advantages received by participants in the formation of business partnerships based on the franchising system of relations.

Historical and bibliographic methods have been used to substantiate the theoretical provisions of the article. The applied part of the article is implemented with the use of modern electronic services that allow assessing the effectiveness of using the franchise system.

This article examines possible forms of business partnerships, indicating specific examples of companies from Russian and foreign practice (IKEA, Tesla Motors, ACI Plastics, Sibur, Arya Home, METRO and others); a comparative analysis of the application of franchising in Russia and a number of leading foreign countries (the USA, the UK, France, Germany, Japan, etc.) has been carried out. The article presents the calculated characteristics of the project efficiency of a business partnership on the example of the Russian franchise «PIONER AUTO». The results presented in the paper show that the purchase of the abovementioned franchise will pay off in 1.5 years with further profit. The authors highlight the current trends in the development of global franchising in the context of the coronavirus pandemic in 2020 and highlight the main trends in 2021.

According to the conducted research, the authors propose a model of franchising business partnership, systematize possible benefits of participants in a franchise business partnership on the basis of an earlier assessment of the possible effect.

Keywords: Business Partnership; Franchising; Partner Franchise; Strategic Advantages; Synergistic Effect; Transformation

JEL Сlassіfіcatіon: F15; F23; F62

Acknowledgements and Funding: The study was supported by the grant of the President of the Russian Federation for state support of the leading scientific schools of the Russian Federation NSh-2702.2020.6 «Conceptual foundations of a new paradigm of economic development in the era of technological and social transformation».

Contribution: The authors contributed equally to this work.



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