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Economic Indicators of Business and Living Standard of Population, as Potential Factors, for Franchise Operations in the Services and Trade Sector

Anar Hasanov, PhD [1]
Paper Received: 25.07.2019.
Paper Accepted: 20.10.2019.
DOI: 10.5937/Oditor1903006H

Original scientific paper

UDC:
330.552:338.46
330.552:339.1
339.187.44
EAT: M21

Summary:

The paper analyzes the basic elemental economic efficiencies of franchises in the field of trade and services in Serbia. Basic economic performance indicators are analyzed, which reduce the payback period, the accounting rate of return, the net present value, the level of profitability and the analysis of equity. External factors that used the overall business, especially the location, were analyzed through the impact on the living standards of the population. The calculation and analysis were made based on balanced data of individual franchises and statistics of trends in living standards for individual cities and regions in the Republic of Serbia.
Population and standard of living have proven to be an important factor in business decision making. Business premises can justifiably open spaces with an average population of about 3.33% of the total population. In regions and cities with a smaller percentage of settlements, opening a franchise is justified and is located in a high-frequency location such as highways and, or tourist destinations.
It is important to note that for management, in addition to all the indicators analyzed, it is very important to maintain a standard that contains a recognizable appearance, a standard quality offer, well-trained staff and everything else that the brand carries with it.
Keywords: franchise, basic elements of franchise agreements, economic indicators of business, the living standard of the population, recourse analysis.

[1] Anar Hasanov, PhD, Member of the Representative of the Balkan Branch of IFSPD from Azerbaijan, Phone: +38162648888, e-mail: sandrabogunovic94@gmail.com