Investment dimension of franchising

Abstract

Introduction. The franchise business model is developing in the conditions of insufficient financial support, ambiguity of the legal frame­work and insurance. Problem. This requires improvement of the investment model, based on the proven advan­tages of such a business format, taking into account the peculiarities of the external environ­ment of Ukraine under the pressure of the factors of the COVID-19 pandemic and the introduction of martial law, substantiation of modern tools for assessing the effectiveness of investments in such business objects. The aim of the article is to substantiate the modern model of evaluating the effectiveness of investments in franchise projects in Ukraine, ta­king into account the factors of force majeure and the main trends of its development, corre­lation of the features of the parameters of the formation of investment capital and the assess­ment of its value. Methods. General scientific methods such as formalization, historical, abstraction, generally logical (analysis, synthesis, induction, deduction), generalization and convergence, introduction from the abstract to the concrete; specific socio-economic methods based on a dialectical app­roach to knowledge of the essence and develop­ment of the corresponding object and subject were applied in the paper. Results. Franchising has had a positive effect on the relative stability of the business landscape during the period of martial law. It has caused the expansion of the boundaries of the entre­preneurial activity of national business entities, with their inclusion in a ready-made business with a formed client base and the potential for profit with lower risks. In the business environ­ment, a systematic approach to the formation of new formats is acquired, where franchising is considered as a strategic decision. Conclusions. The current state of franchi­sing development is aimed at creating a compe­titive business environment. Trends in the fran­chising market during the period of martial law are a target tool for achieving the necessary level of economic and national security as a whole. In the system of anti-crisis measures, franchising is one of the most investment-attractive tools.