FRANCHISING AS AN INSTITUTIONAL MODEL OF ENTREPRENEURSHIP ORGANIZATION IN THE CONTEXT OF DIGITAL ECONOMIC TRANSFORMATION

Abstract

The article presents an in-depth and comprehensive analysis of franchising as an institutional model for organizing entrepreneurial activity in the context of digital economic transformation in Ukraine. Franchising is considered as a complex contractual and organizational mechanism that combines centralized strategic management with decentralized entrepreneurial initiative, creating conditions for the effective dissemination of business models, managerial knowledge and technological standards. The theoretical foundations of franchising are examined, its role within the system of entrepreneurial forms is defined, and the specific features of legal regulation in Ukraine through the commercial concession agreement are substantiated. Particular attention is paid to the institutional environment that shapes the development of franchising relations and determines their efficiency and sustainability. The article summarizes scientific approaches to understanding franchising as a mechanism of transferring managerial, technological and informational resources within network-based business structures. Special emphasis is placed on the impact of information and communication technologies on the functioning of franchising networks. The use of CRM and ERP systems, digital management platforms, cloud solutions and data analytics tools is analyzed as a factor that enhances coordination between franchisors and franchisees, standardizes business processes and improves managerial decision-making. It is proved that digitalization contributes to reducing transaction costs, mitigating information asymmetry between network participants, increasing transparency of business operations and strengthening the competitiveness of franchising enterprises. The study identifies the main obstacles to the development of franchising in Ukraine, including imperfections of the regulatory framework, insufficient institutional support, uneven levels of digital maturity among market participants and growing cybersecurity risks. Based on the results of the research, proposals are formulated to improve the institutional environment, enhance digital competences of entrepreneurs and managers, and strengthen state support for franchising initiatives as an important driver of sustainable economic development.