THE FRANCHISE AS AN EFFECTIVE TOOL IN MANAGING HOTEL AND RESTAURANT BUSINESS

Abstract

The article explores the global trends in the development of tourism and hotel and restaurant business, provides insights to the basic franchising concept and offers a definition of the term franchising in the hotel and restaurant business. A statistical analysis of profitability indicators of the global tourism market has been performed. The results of the world and domestic hotel and restaurant industry survey have validated positive prospects for the implementation of franchising in the hotel and restaurant business in Ukraine. The research findings demonstrate qualitative and quantitative profitability indicators for the franchising companies operating in the global developed markets, in particular, the franchising networks performances in the hotel and restaurant sectors in Europe and the US have been investigated. The world top franchise business leaders have been identified. The study results have verified a strong correlation between high profitability in the hotel and restaurant industry and the number of franchisors engaged in this sector. An overview of the specifics of franchising relations legal regulation across countries is provided along with revealing the major challenges in the national legislation domain as to the basic terminology of legal regulation of franchising as a whole. A special emphasis is placed on mutual benefits the franchise system provides for a franchisor and a franchisee. The reasons behind the slowing down of the franchising process implementation practices in the domestic hotel and restaurant business settings are revealed.