MICROECONOMIC ORGANIZATIONAL AND ECONOMIC ASPECTS OF MANAGEMENT OF SERVICE ENTERPRISES IN THE CONTEXT OF INTERNATIONAL FRANCHISING

Abstract

At the micro level, franchising is a contractual system of distribution of rights and obligations between the franchisor and the franchisee, aimed at maximizing the profit of an individual enterprise while maintaining brand and standards. The key microeconomic problems are pricing, the behavior of the firm in the presence of royalties and down payments, optimization of the costs of production of services, as well as response to local demand and elasticity. The goal is to analyze what microeconomic mechanisms within franchise enterprises increase their competitiveness and profitability in local markets.