Franchising: a tool for rapid growth and its risks for franchisors and franchisees

Abstract

Franchising is one of the most effective business models for rapid company expansion with minimal personal investments, enabling the transfer of brand usage rights to independent entrepreneurs. This article explores the key aspects of franchising as a business model, particularly within the Ukrainian context, analyzing its types, legal framework, advantages, and risks for both franchisors and franchisees. The focus is on how franchising facilitates rapid growth while minimizing financial risks, as well as the challenges faced by both parties in franchising relationships. Due to the legal requirements in Ukraine, franchising relationships become transparent and reliable, ensuring the success of this model in the local environment.