Preliminary communication
THE ROLE OF FRANCHISE ASSOCIATIONS IN THE DEVELOPMENT OF THE FRANCHISE SECTOR – COMPARISON OF EUROPEAN EXPERIENCES
Ljiljana Kukec
; ICES Doctoral Study, Faculty of Economics, Osijek, Croatia
Kristijan Kukić
; University of Applied Sciences VERN', Zagreb, Croatia
Gordana Ćorić
; University of Applied Sciences VERN', Zagreb, Croatia
Abstract
Franchising is a relationship based on the transfer of specific knowledge, know-how and confidential information, transmitted by franchisor through training provided to franchisees in order to facilitate achievement of joint business success. Entrepreneurs, who opt for the franchise business model, thus achieve fast geographical expansion and the creation of networks, which provide faster market positioning and higher competitiveness. The transfer of this knowledge to entrepreneurs is made easier through support of educational institutions. Since franchising represents a very specific way of entrepreneurship, some specialized organizations that bring together franchising stakeholders are born. National franchise associations promote and encourage the development of the franchise sector through their regular activities, while educational institutions create professionals with specific skills just for this business sector. Now, when the national economies are globally intertwined, the franchise sector is one of the main actors in the business internationalization. Therefore, transnational franchise organizations were established, in order to bring together national representatives, provide stimulating regulatory climate and common space for the development of this sector of business. Research conducted in this study will clarify the role of these organizations for the promotion of the franchise sector, examples of best practices in promoting franchising, as well as the attitudes of students towards this way of doing business. Research methods include surveys, literature and Internet sources review, conduction of interviews, and information obtained at the meetings of the European Franchise Federation and the World Franchise Council. Research has shown that exchange of experiences among members of franchise networks and umbrella organizations can strengthen their operations and impact. The research results are summarized in the form of recommendations for strengthening the influence and the role of the Croatian Association for franchising in spreading the knowledge and education. The ultimate goal – taking the full advantage of franchising business model - contributes to the development of sustainable businesses and employment.
Keywords
franchise; franchising; franchise associations; The European Franchise Federation; support to the franchise sector
Hrčak ID:
183437
URI
Publication date:
26.6.2017.
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