FRANCHISING AND LOGISTICS: WAY TO GROW OR NOT

Abstract

Logistics as an important part of the company’s operations were going through different phases of development in order to fulfill the demands of the companies. Logistic operators needed to develop and to grow with their business and to expand internationally. When companies reached that phase, they needed to decide how to expand nationally or internationally.

Franchising is one of the most popular business models for the expansion and growth of businesses. As a business model franchising is present in almost every industrial sector worldwide.

The main aim of the paper is to examine if the franchising business model is an appropriate way for logistics companies to grow and to give a review of current franchise networks in the logistics sector. In the first part of the paper, we will present what franchising is and its influence on the world economy. In the second part of the paper, we will present a literature review about franchising potentials in logistics. In the third part of the paper several logistics companies will be analyzed and their attitude toward franchising as a growth business model. Finally, in the last part, conclusions and the proposals for further research will be presented.