mechanisms (operational inspection) with trial production, provided for by the project,
and the establishment of equipment [16].
Once the franchisee has all the necessary resources to start a business and meets
the requirements of the franchisor, the franchisee can start a business. During the term
of the contract, the franchisor can also provide a variety of services: personnel training
services, consulting services, marketing systems, services for the organization of
production and services quality management, personnel, Finance and others.
Systematic payment of royalties is reflected in the accounts in the same way as
the payment of royalties with taking into account information about the value of the
franchise.
CONCLUSION
Thus, according to the results of the study of the economic essence of franchising
and accounting features of franchising operations, it can be concluded that the
ambiguous interpretation of the concept of "franchising" in the literature causes an
incomplete and erroneous understanding of this economic category. Different
approaches to the classification of franchising significantly complicate the selection
and implementation of appropriate forms of franchising system of activity and
development of the enterprise. Only the correct classification will give future
franchising participants a full image about the specifics and mechanisms of franchising
cooperation between enterprises.
Lack of awareness of entrepreneurs with the main aspects of doing business on
the terms of franchising hinders the development of this form of business. In order to
identify opportunities and threats for future franchisees and franchisors, business
entities need to identify advantages and disadvantages for participants of franchising
relations, that allows full assessment of the effectiveness of this form of business
organization.
Insufficient normative regulation of the operations under the franchise
agreement, in particular, the absence of the concept of franchising in the regulatory
documents, the absence of methodological support of accounting operations under the
franchise agreement, the absence of a definition of pre-contractual issues, plagiarizing
regulation of franchising relations, procedure of conclusion of the contract of
commercial concession and responsibility in case of unilateral early termination of the
contract entail the growth of the risks of such activity. In this connection, it is necessary
to finalize and adopt the law of Ukraine "On franchising" and develop guidelines for
accounting for transactions under the franchise agreement, which will avoid negative
consequences.
There is no methodological support for accounting operations under the franchise
agreement leads to an incorrect reflection of such operations. Only the formed method
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