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Kaarod, Tareq; Kovačević, Maja; Ignjatijević, Svetlana; Marković, Svetlana; Mohamoud, Omer
Ekonomija. Teorija i praksa (Online), 2023, Volume: 26, Issue: 2Journal Article
The creation of franchise companies has a lasting and positive impact on the economies of the countries and local communities in which they operate. Countless jobs are created and supported by franchises, and those jobs help lower the unemployment rate. Franchises support the national GDP through billions of dollars in products and services, and job creation. The 2008-2010 recession, as well as the pandemic, had a negative impact on the US and global economy, although franchises fared better than most other retail chains and small businesses. The subject of research in the paper is the analysis of the basic characteristics and features of franchising, with the aim of drawing attention to the use of franchise in business on domestic and international markets, to point out the specifics of business and its ways of functioning, to point out the advantages, disadvantages, and wider significance of franchise business, on the existence of the attractiveness index of a country for franchise investments. Research results indicate that franchises are economically more stable, mainly due to their branding, consumer familiarity, and strong network base. It is estimated that franchises will operate better, more intensively and more diversely in the coming period.
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