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Most authors, depending on the purpose of their research, focuse on one aspect of the franchising and offer a definition that is based solely on this aspect (the comparative analysis of these definitions is presented in Table 1.

Table 1. The comparative analysis of approaches to the definition of franchising

Definition

Explanation

«Franchising — is market-oriented method of the selling business services, often — for independent investors who have the required capital, but don’t have or have only a small experience in the business»

Advantages: there is evidence that the franchisor is the business provider of services for the franchisee

Disadvantages: the excessive vagueness

« The franchise agreement is an agreement between two legally independent companies where one company (franchisee) pays another company (the franchisor) for the right to sell the product of the franchisor and / or the right to use its brand and business format in a certain area within a specified time»

Advantages: the description of restrictions on franchisees

Disadvantages: the  excessive vagueness, which does not allow to distinguish differences between franchising and authorized dealers

«Franchising is a special form of organization, which allows the company-leader to support and make it’s the dominant position on the market of goods and services»

Advantages: there is understanding that one of the important characteristics of franchising  is the organization of business in the interests of the franchisor

Disadvantages: there is not the franchising differences from other forms of interaction among the independent companies

«Franchising (franchise — privilege) — 1) transfer of the right (for a certain period and under certain conditions) to use the trademark, brand name and technologies and know-how. 2) Making of a chain of representative offices of the head company and technology through the transfer to independent companies the right to use the trademark, brand name and technologies and know-how».

Advantages: there is  an attempt to point out that franchising is not only a transfer of intellectual property, but also a method of making  a marketing chain under the brand name of the franchisor

Disadvantages: in fact, we are talking about two separate definitions for two different components of franchising

«Franchising  is a form of business organization in  which one of the entrepreneurs (the franchisor) makes  a business model and gives the right to do business to another entrepreneur (franchisee) in accordance with this model»

Advantages: There is an indication that the franchisor gives the franchisee the  business model for doing business

Disadvantages: there is  no mention about the right to use this scheme of this model

«Franchising is a form of  business organization, in which one side (the holder) must provide to the other party ( the user )for the payment from the user  to use the exclusive rights of the holder such as the right to use  the trademark, the servicing mark and other rights under the contract objects of exclusive rights, in particular to a commercial designation, the secret of production (know -how)»

Advantages: there are different kinds of the rights that can be used by franchisee

Disadvantages: there is  no mention about the obligations between the franchisee and the franchisor

«Franchising is a form of cooperation between companies in which the owner of the intellectual property (trademark and industrial and commercial technologies, this complex is called the franchise), its owner gives the right to use it to another entrepreneur (the franchisee), who must do business exclusively on the basis of this franchise. Nevertheless, during this period of time the franchisor must give the consulting services to the franchisee

Advantages: there is specified obligation for franchisee about doing his business exclusively under the brand of franchisor. According to experts, it is considered to be an important feature of franchising.

Disadvantages: there are no indications about payment from the franchisee to the franchisor

After analyzing this table it can be concluded that there are many definitions of franchising.