Inshakova E.I., Kudryashova I.V., Polyakova Y.V. FOREIGN FRANCHASING CHAINS IN RUSSIA: FUNCTIONING SCOPE AND ROLE IN THE ECONOMY

Inshakova Elena Ivanovna
Doctor of Economic Sciences, Professor, Head of the Department of International and Regional Economy, Volgograd State University
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Prosp. Universitetsky, 100, 400062 Volgograd, Russian Federation
Kudryashova Inna Vladimirovna
Candidate of Economic Sciences, Associate Professor, Department of International and Regional Economy, Volgograd State University
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Prosp. Universitetsky, 100, 400062 Volgograd, Russian Federation
Polyakova Yuliya Vladimirovna
Master Student, Volgograd State University
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Prosp. Universitetsky, 100, 400062 Volgograd, Russian Federation


Abstract. In conditions of socio-economic transformations in Russia the business organization forms, including franchising, that have been using successfully in many foreign countries for a long time are using them now more and more actively.
According to the world practice during the first years of franchising relations launching in a country the most part of franchises have foreign origin. Hence, franchising relations system provides the transfer of production and sales managerial technologies accumulated by foreign companies to the receiving country. However, the franchising market development process promotes gradually the domestic franchising chains expansion that results in the increase of national franchisers share on such a market in the country.
The franchise market in Russia has already been developing more than 20 years and demonstrates the high growth rate. Nevertheless, as it is shown in the article, the quantitative indicators of its operations are significantly concedes to countries where such a business organization form has been using for a long time.

The most part of Russian market franchise currently belongs to national companies. The results of the analysis carried out in article testify that sectoral diversification of franchising market is considerably narrow and tradable franchises are mainly presented in retail trade, public catering or fast food and personal services spheres. Moreover, the most part of them are concentrated in the first two sectors and such situation contradicts the existing Russian economic development priorities and doesn’t provide the supply of innovative foreign technologies into the production process and business-services rendering in Russia. 
It is proved in the article that franchising relations legal base improvements, intellectual property protection level increase and franchising credit programs expansion will contribute to the foreign franchise role increase in the real sector growth providing in Russian economy.
Key words: franchising, franchising chain, franchise market, import franchise, foreign franchiser, domestic franchisee.

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FOREIGN FRANCHASING CHAINS IN RUSSIA: FUNCTIONING SCOPE AND ROLE IN THE ECONOMY by Inshakova E.I., Kudryashova I.V., Polyakova Y.V. is licensed under a Creative Commons Attribution 4.0 International License.
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