EU Perspective of the Legal and Economic Aspects of Franchising

The concept of franchising, most often is defined as a method of marketing of goods and services. Certainly this kind of definition is insufficient. Franchising is more than a method of distribution, a specific way of financial depletion of the meaning without an investment of own capital from franchisee. Franchising system of business people give the required experience and access to methods and enable them to get profit from the reputation of the mark which defined reputation. This paper aims to introduce the legal and economic franchising structure with an overview of practice and functionality. It is stated that a regulatory framework comprising harmonized legal systems, is necessary to ensure that businesses can operate across borders efficiently. The EU legal module is main subject of analyzing that include characteristics, economic data, companies’ involvement, as well as the comparison of estimate statistics between the EU and USA franchising modules. Additionally, the paper is focusing to the Economic framework of franchising, with strict analysis that the franchising is not achieving its full potential in the EU.The legal consequence of the above mentioned is the risks of franchising as a whole. At latest stage it is given a real overview of the current observations, recommendations as well as further expectations related to the franchising as a modern form of business in the modern society and busy business environment. Key words: Franchising system; Economic framework of franchising; legal module