PROBLEMS AND PROSPECTS OF FRANCHISE DEVELOPMENT IN WAR CONDITIONS

The paper analyzes the theoretical foundations of franchising and considers its role in the modern economy. The main challenges caused by the war are investigated, such as the destruction of infrastructure, disruption of logistics chains, migration of the population and personnel, reduction in purchasing power, security risks, legal uncertainty, and problems of interaction between franchisors and franchisees in crisis conditions. It was found that among the main problems faced by the franchise business during war are the same as for other types of business activities, namely: disruption of logistics chains and supply of resources; reduction in the purchasing power of the population; loss of assets in combat zones; migration of labor resources; uncertainty of the legal field and restrictions in the banking sector. Based on the analysis, specific problems for franchise networks (risk management, adaptation of business models, financial stability, communication in the network) were identified and potential growth points and prospects were identified. Among them are the adaptation of formats to new realities, business relocation, strengthening internal cooperation in networks, digitalization of processes, search for new markets, and opportunities for the development of socially oriented franchising. The most popular directions of franchising development in Ukraine and their features are analyzed. It has been determined that franchising in Ukraine has been developing most dynamically in recent years in such sectors of economic activity as services, retail, and catering. It was found that despite the war, the number of franchisors in Ukraine has increased by 15% over the past 5 years. This indicates the dynamic development of this type of entrepreneurship. The main challenges faced by franchisors and franchisees are identified, and the prospects for the development of this type of entrepreneurship in the postwar period are outlined. The key endogenous and exogenous factors that positively influence the development of franchising in Ukraine during the war are investigated. Proposals are substantiated to increase the efficiency of franchising models in crisis conditions, provide state support and self-regulation of the franchise market in conditions of war and post-war recovery.