THE ROLE AND DEVELOPMENT OF FRANCHISING IN EUROPE
Abstract
The article analyzes the historical development of franchising in Europe. Key stages in the establishment of franchising are considered, including its adaptation to the local conditions and cultural specifics of European Union countries. Particular attention is given to the spread of franchising across various economic sectors: food service, retail, services, and education. The article outlines the main stages of franchising development: the early period (1950–1970s), during which European countries adapted American franchising models; the active expansion period (1970–1990s), characterized by the growth of franchising in retail and services; and the modern stage (from the 2010s), when franchising became widely applied in technology sectors, healthcare, and education. The specifics of franchising market development are studied across countries with advanced economies (France, Germany, the United Kingdom), Central and Eastern Europe (Poland, Czech Republic, Hungary), as well as Northern and Southern Europe. Key trends are highlighted, such as the internationalization of franchising networks, increased use of innovative technologies, and the establishment of national franchising associations. The authors emphasize the significance of franchising as an effective business model for regional economic development, job creation, and the promotion of local brands on the international stage. The analysis also covers examples of successful franchises that demonstrate the effectiveness of this model for business scaling. Prospects for franchising development in the context of globalization and European economic integration are noted, as well as its potential in transition economies such as Poland and Ukraine. The article provides a systematic analysis of the historical, economic, and legal aspects of franchising development, enabling an evaluation of its role in ensuring the competitiveness of European businesses. Thus, franchising in Europe is a crucial mechanism for business development, ensuring competitiveness, scalability, and adaptation to global challenges.
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