THE DEVELOPMENT OF FRANCHISE IN POLAND IN THE CONTEXT OF THE ECONOMIC DEVELOPMENT OF THE COUNTRY AND THE MODEL OF OBLIGATIONS OF THE FRANCHISOR AND FRANCHISEE BASED ON HONESTY

Artur Bartoszewicz and Katarzyna Obłąkowska

Economy & Business Journal, 2022, vol. 16, issue 1, 506-518

Abstract: The period from the 1990s to 2020 in the Republic of Poland is characterized as one of exceptionally dynamic development of franchise as a business model. In the article, the authors identified and presented the following stages of franchise development in Poland: 1) Wild early spring (the 1990s); 2) Market maturation and Polonization (2000-2007), 3) Towards a safe haven and expansion (2007- 2013); 4) Stable development in domestic brands and market saturation (2013-2020). The franchise model in Poland has also evolved in terms of business ethics. Initially, there was a lack of knowledge, education, information, and industry organization regarding this model, and the word "franchising" was sometimes used as a camouflage to hide sales’ pyramids. Today, many franchise networks in Poland are a professional, safe haven that unites and supports franchisees on their way to business success. The authors described a model of franchisor and franchisee obligations based on fairness. On the Polish market, franchising may turn out to be a support in changing the trajectory of socio-economic development, i.e., for Poland's exit from the middle-income trap and for changing the path of development from molecular to community, characteristic of highly developed countries. Franchising allows individualistically-oriented entities with low social trust to cooperate and generate added value in excess of the sum of individual benefits. It allows entrepreneurs to join forces and take advantage of the economies of scale and benefits of active operation within a corporation, while simultaneously leaving entrepreneurial individuals a sense of agency.

Keywords: franchise; entrepreneurship; economic development; social capital; food market (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:isp:journl:v:16:y:2022:i:1:p:506-518

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