Development of the franchising market in Russian Federation under the transition to a digital economy

Franchising plays an important role in the development of entrepreneurship, as it allows potential entrepreneurs to use a proven business model and enables large companies to attract external financial and intellectual capital to develop their network. Currently, the global franchising market is undergoing a dramatic transformation due to the active use of digital technologies, which has led to the emergence of digital franchising. For this reason, it is important to assess the impact of ongoing technological changes on the functioning of the Russian franchising market. In this paper, we will analyze the current situation on the franchise market of Russian Federation, taking into account the transition to a digital economy and the current geopolitical situation. Our study is based on data presented in open sources of information. We showed how sanctions restrictions and the introduction of digital technologies affected the Russian franchising market (including emergence of new niches and expansion of novel franchising models, first of all, reverse franchising). Franchising relations are undergoing digital transformation (including digitalization of franchise contracts) thanks to blockchain technology which simplifies the interactions between franchisers and franchisees. Promising areas for further use of digital tools to improve the efficiency of managing relations between franchisors and franchisees are proposed. The work identified the sectors of the economy for which franchising is of the greatest importance. The article provides a description of main players in the Russian franchising market. It also shows the problems that hinder the sustainable development of the franchising market in Russian Federation.