Disadvantages Of Franchising

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Now franchising study is one of the top issues of the Kazakhstan economy.
The word "franchising" comes from the old French term defining the right for freedom of conducting any activity, for example, carrying out fairs, the organization of markets, operation of ferries and crossings, the right for hunting, a construction of roads or production of ale. In the Middle Ages kings had such privileges providing franchises on commercial activity of any type possessed.
From other sources it is known that the Pope for ensuring the best taxation granted the right to collect payments to certain persons in different geographical zones. These "collectors" were allowed to keep themselves essential part of collecting.
At a turn of the nineteenth and twentieth century's the oil processing and automobile companies began to grant the rights for sale of their production. At this
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By the analyzed information provided by the Civil Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan of 24.06.2002 N 330-2 "About the complex enterprise license (franchising)", professional literature, various financial magazines, newspapers and other means of mass media I will try to open concept of franchising, to reveal advantages and shortcomings of these contractual relations, to define a place and a role of franchising in our market, to draw the corresponding conclusions.
Franchising in Kazakhstan is a quite new business. Even though monitoring isn't conducted, and there is exact data on quantity and the general commodity turnover of the franchisee and the sub franchisee, it is possible to speak about the growth of businessmen's interest in this method of the business organization in Kazakhstan. The proof of it is increasing number of the enterprises working according to the foreign franchise, including Russian
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