Development of franchising in Russia and problems of its application in tourism

Russia has been under unprecedented economic sanctions imposed by unfriendly countries for the second year. And although the effect expected from the sanctions was not as disastrous as the leadership of Western countries and the United States expected, many representatives of Russian business still had to rebuild economic ties. This was caused by the refusal of many foreign partners to conduct their activities in Russia. In particular, many business networks that cooperated with Russian business have left the country.As a result, part of the Russian business was cut off from the usual supply chains for goods and services and forced to reorient its operations.Companies providing services in recreation and tourism also faced certain problems.For example, the management of InterContinental Hotels Group and Hyatt Hotels have suspended their investments in Russia and are not opening new hotels in Russia.Nevertheless, the authors of this article believe that the current situation only opens up new opportunities for domestic business by using franchising, which is not the most popular in Russia, but it is a rather effective tool.The authors analyzed the peculiarities of franchising development in Russia and made proposals on the application of franchising schemes exclusively in the domestic tourism industry.The article will be of interest to researchers studying the impact of sanctions on the Russian economy, as well as representatives of small and medium-sized businesses operating in tourism.

franchising, small and medium-sized businesses, economic sanctions, tourism