Importance Forming the franchise network, partners merge their assets for joint operations. Tangible and intangible assets acquire new qualities. The substance of the assets transforms. Therefore, it becomes reasonable to identify the nature of franchise assets, examine their composition and analyze the specifics of their construction and operations. Objectives The research reveals the economic nature of franchise assets, identifies their composition and qualities. Methods The article provides the rationale for identifying the nature of franchise assets, examining their composition and analyzing the specifics of their construction and operations. I specified the notion of assets the franchisee and franchisor provide to develop the network. I also examined what made up the intellectual capital stakeholders invested to form and develop the network. I introduced the concept of the franchise network’s assets and described their formation mechanism and the effect on business value of the partners. The article illustrates that the franchisee’s assets, if operated out of the network, have different value in comparison with their involvement in the network. Results The franchise network was found to have specific types of assets, which are different from those circulating in conventional hierarchical firms. The article highlights the difference of franchise assets from the nature of assets circulating in the conventional hierarchical firm. The research identifies the composition, structure and qualities of franchise assets. Conclusions and Relevance Franchise assets are reasonable to qualify as a separate type that influences business value of partners.
Keywords: franchise, network, franchise assets, intellectual capital, business cost
References:
Pekhtin A.V. [Principles for creating franchise networks]. Izvestiya Sankt-Peterburgskogo gosudarstvennogo ekonomicheskogo universiteta = Bulletin of Saint-Petersburg State University of Economics, 2012, no. 4, pp. 107–109. (In Russ.)
Ménard C. The Economics of Hybrid Organizations. Journal of Institutional and Theoretical Economics, 2004, vol. 160, iss. 3, pp. 345–376.
Kotlyarov I.D. [Hierarchy, market, hybrid: attempting to differentiate]. Upravlenie ekonomikoi: metody, modeli, tekhnologii. Tom 1: materialy nauchnoi konferentsii [Proc. Sci. Conf. Management of Economy: Methods, Models, Technologies. Volume 1]. Ufa, USATU Publ., 2014, pp. 166–167.
Kotlyarov I.D. [Modern forms to outsource brand and distribution management]. Prakticheskii marketing = Practical Marketing, 2010, no. 8, pp. 12–16. (In Russ.)
Narkevich E.G. [Franchising as a cooperation form: an attempt to analyze]. Sovremennaya nauka: aktual'nye problemy teorii i praktiki. Seriya: Ekonomika i pravo = Modern Science: Actual Problems of Theory and Practice. Series: Economics and Law, 2012, no. 4, pp. 22–25. (In Russ.)
Kotlyarov I.D. [The metafirm as a form to organize business activities]. Upravlenie ekonomikoi: metody, modeli, tekhnologii. Tom 1: materialy nauchnoi konfetentsii [Proc. Sci. Conf. Management of Economy: Methods, Models, Technologies. Volume 1]. Ufa, USATU Publ., 2014,pp. 88–91.
Pakhomov V.I., Plotnikov V.A., Usov D.Yu. Upravlenie setevymi predpriyatiyami: na primere franchaizingovykh setei [Management of network enterprises: evidence from franchise networks]. St. Petersburg, R-Kopi Publ., 2014, 176 p.
Silishchev V.V. Franchaizingovye seti i ikh spetsifika. V kn.:Sbornik nauchnykh statei fakul'teta ekonomiki, upravleniya i biznesa [Franchise networks and their specifics. In: Collection of scholarly articles of the Department for Economics, Management and Business]. Krasnodar, Izdatel'skii dom – Yug Publ., 2015, pp. 125–126.
Timofeeva E.G., Lipatnikov V.S. [Informal component of internal institutional environment of the franchise network]. Nauchnyi zhurnal NIU ITMO. Seriya: Ekonomika i ekologicheskii menedzhment, 2014, no. 3, pp. 543–548. (In Russ.) Available at: Link read_economics/10565/10565.pdf.
Ustyuzhanin A.A. [Franchising in Russia]. Vestnik Moskovskogo universiteta. Seriya 6: Ekonomika = Moscow University Economics Bulletin, 2009, no. 4, pp. 14–20. (In Russ.)
Blair R.D., Lafontaine F. The Economics of Franchising. Cambridge University Press, 2005, 338 p.
Narkevich E.G. [Franchisee selection criteria]. V mire nauchnykh otkrytii = In the World of Scientific Discoveries,2013, no. 4, pp. 48–65. (In Russ.)
Kotlyarov I.D. [Internal and external environment of the entity: clarification of concepts]. Izvestiya vysshikh uchebnykh zavedenii. Seriya: Ekonomika, finansy i upravlenie proizvodstvom = News of Higher Educational Institutions. Series Economy, Finance and Production Management, 2012, no. 1, pp. 56–61. (In Russ.)
Smirnov A.B. [Investing the capital in business processes of the retail firm]. Sovremennayanauka: aktual'nyeproblemyteoriiipraktiki. Seriya: Ekonomika i pravo= Modern Science: Actual Problems of Theory and Practice. Series: EconomicsandLaw,2013, no. 12, pp. 42–44. (In Russ.)
Chulkov D.N. [Types of model business processes: specified classification and practical recommendations]. Ekonomika i menedzhment sistem upravleniya = Economy and Management of Control Systems,2015, no. 3.2, pp. 283–291. (In Russ.)
Kir'yanov I.V. [Measurement of the entity’s transaction costs. General methodological approach]. Vestnik NGUEU = Vestnik NSUEM, 2015, no. 1, pp. 78–101. (In Russ.)
Edvinsson L. Corporate Longitude: Navigating the Knowledge Economy. Financial Times Prentice Hall, 2002.
Vasilenko I.V., Kopylov S.I., Kustova N.A. [The role of intangible assets in corporate governance of the trade enterprise: market and network considerations]. Biznes. Obrazovanie. Pravo. VestnikVolgogradskogoinstitutabiznesa= Business. Education. Law. Bulletin of the Volgograd Business Institute, 2013, no. 4, pp. 263–266. (In Russ.)
Kaplan R., Norton D. Strategicheskie karty. Transformatsiya nematerial'nykh aktivov v real'nye rezul'taty [Strategy Maps: Converting Intangible Assets into Tangible Outcomes]. Moscow, Olimp-Biznes Publ., 2005, 493 p.
Kotlyarov I.D. [The mathematical model for making franchise acquisition decisions]. Problemy upravleniya = Control Sciences, 2007, no. 5, pp. 84–87. (In Russ.)
Kotlyarov I.D. [Making decisions on the franchise acquisition: the probabilistic approach]. Trudy Instituta sistemnogo analiza Rossiiskoi akademii nauk = Proceedings of the Institute for Systems Analysis of the Russian Academy of Sciences, 2011, vol. 61, no. 3, pp. 84–91. (In Russ.)
Abramov E.G. [How excellent our union is, how rare… Economic analysis of distinctive features of tangible and intangible assets]. Kreativnaya ekonomika = Creative Economy,2007, no. 8, pp. 88–96. (In Russ.)