Naslov
Complex nature of franchising and new challenges for development

Autori
Kukec, Ljiljana

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
FRANCHISING IN EASTERN EUROPE, yesterday, today, tomorrow

Urednik/ci
Erceg, Aleksandar ;

Izdavač
Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku

Grad
Osijek

Godina
2018

Raspon stranica
21-32

ISBN
978-953-253-149-7

Ključne riječi
Franchising ; challenges for development ; self regulation ;

Sažetak
Franchising in economic sense, is method of marketing expansion used on behalf of successful companies to expand their product or services through a network of retail units owned by independent entrepreneurs, sharing with them a brand, know-how and marketing techniques in exchange for entrance fee and royalties by each of the retail units (Matthews and Dr 2006) . Whether franchising is defined through its legal form, economic or some other what characterized it is the entrepreneurial alliance of two independent entrepreneurs whose aim is exploitation of recognized opportunity for creating growth through entrepreneurial alliance, in order to increase the chances of success. (Timmons2003) . Because franchising is considered to be a replication of success, it is in the center of many researches and some of them show that, regardless of economic interests or the legal form of franchising, what actually has the highest share in success is the relationship between two main parties, and this relationship is much more than legal or economic / business relationship. National franchise associations like Croatian one has permanent problem of attracting members and consequently has less influence on national franchise sector. Croatian franchise association is founded in 2002 and from 2006 is member of European franchise federation and World franchise council. Despite being well internationally networked and in 16 years of its existence influenced on promotion and popularization of franchising in its economy, it still struggle constantly with attracting the new members. Croatian franchise association is organizer or partner in all important franchise events in the country and initiator of the foundation of the Franchise center in national Chamber of economy. Thanks to its activities and networking Croatia is the only country in Europe that in 2012 had national grant scheme for establishing franchise business, held by Ministry of economy and entrepreneurship and now the only country in Europe with franchising introduced in grant scheme of self-employment held by National unemployment agency. Association is partner with Croatian chamber of economy, county Rijeka in organization of yearly international franchise expo. It has certification scheme for national franchisors and is also very rare European country where franchising is introduced in high education in order to create new generations of entrepreneurs with knowledge of franchise business model and its benefit for the economy. But still Croatia is on the last place in the world among members of World franchise council with share of national franchise brands of only 12%. In this moment Slovenia, Serbia and Croatia are only ex Yugoslavia republics that have franchise associations/centers which systematically act on the development of franchise sector in the country but given the speed of global economic changes without stronger support of the finance sector and government institutions it is not possible to expect greater development of franchising in that countries despite the fact that franchising is driving force of globalization and great contributor of employment and dissemination of new enterprises what has great contribution on economic development, what more developed European countries already took advantage of.

Izvorni jezik
Engleski

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