FRANCHISING AS AN EFFECTIVE TOOL FOR HOTEL, RESTAURANT AND TOURISM BUSINESS MANAGEMENT

Abstract

The article examines the features of using franchising in modern business management in the tourism industry and in the hotel and restaurant sector. Franchising is one of the most effective tools for expanding and developing businesses in these industries. For the hotel and restaurant business, as part of the tourism business, it is important to always expand, increase profits by increasing the number of guests, which can be achieved, including by introducing investments and investments in the business, but these are expensive processes. Young companies can obtain the right to use a brand that is already popular and open their locations under an already well-known brand, paying it royalties for this use. A company that provides its brand for use receives a very rapid expansion of its brand, the company can move into the international sphere and become a major brand in a short period of time. It is also important to note that the franchisor is a company that has extensive experience in business and very often such companies also provide comprehensive support in training personnel, selecting a location, marketing strategies, provides access to the company's software, helps in selecting suppliers or provides its own suppliers, which creates favorable conditions for a new business project. Ukrainian business began to implement this tool in 1993, but the moment of full-fledged launch of this business model in Ukraine can be considered 1997, and today there are approximately 800 franchise companies and about 31,500 franchise locations. Here we can indicate for comparison that in the United States of America there are approximately 851 thousand franchise locationsю. Franchising is very actively used around the world, especially in the hotel and restaurant business and tourism industry. For example, we can cite such companies as Travel Leaders, Cruise planners and global brands of travel agencies that have international franchises. In Ukraine, there are such companies as Coral travel, Tez Tour, and others. Such well-known hotel brands as Marriot international, Hilton Hotels and Resorts, Radisson Hotel Group, as well as McDonald’s, KFC, Domino’s Pizza restaurants and a very large number of other brands.