Franchising and its place in today‘s business world

Abstract

In the past 50 years franchising has come to be predominant in world's economy and it covers a wide range of business categories. Although there are many examples of successful franchise, buying a franchise, however, does not guarantee a success, thus it is important to study advantages and disadvantages both from a franchisors and a franchisee's point of view. This study seeks to provide an outlook of franchising in a business world. It also analyses situation in Lithuania and factors that cause franchise business lagging behind. Franchising has become popular in the world of a variety of business as distribution method. It is predicted that slower population growth, population shifts to new metropolitan areas, and the introduction of new technology will create new opportunities for franchises and make franchise business still far from reaching the stopping point.