Prednosti i nedostaci za ugovorne strane kod ugovora o franšizingu

Franchise business arrangement includes franchisee’s right to use franchisor’s business identity: the name, trademark, symbol, products, or services. This way, the franchisor and the franchisee gain certain benefits. This paper discusses the economic aspect of a franchise agreement, positive and negative sides, i.e. advantages and disadvantages for contracting parties. In addition to direct benefits for contracting parties, this paper emphasizes other benefits of this form of business cooperation which are transferred to the general plan. On that basis, our aim is to contribute to more in-depth discussion to this mater, trying to find out the key factors that lead to the success of franchise enterprises, meanwhile summarising the main limitations and potential weaknesses in the model. The advantages of this form of business in comparison to the opening of an independent business unit were analysed separately which, at last, provided the conclusion for choosing the franchising model when starting a small business.