PROBLEMS OF DEVELOPMENT OF FRANCHISING IN RUSSIA

The franchising hasn’t got enough development in Russia, while in western countries it is the most rapidly growing area of small business. Economic crisis also affected the development of franchise companies, especially in retail and services. This article gives the statistical information about franchising in Russia. It describes main problems, which small business faces while working with the franchise including legal problems, intellectual property and financial issues. The general conclusions about the current situation in Russian franchising are made; the assessment of law is given and the possible ways of protection of brand reputation and providing franchisee safety against possible problems are proposed.

small business, franchisee, franchising, franchisor, franchise, services, legislation, enactment, franchise agreement, commercial concession