GLOBAL AND REGIONAL DEVELOPMENT TRENDS OF FRANCHISE NETWORKS

Abstract

Franchising has emerged over recent decades as one of the most effective and rapidly expanding forms of entrepreneurial organization in the global economy. This article examines the historical evolution and current regional dynamics of franchise network development, applying a decade-based cyclical analysis to trace the sector's transformation from its initial U.S.-centered export phase in the 1970s-1980s through post-socialist market entry in the 1990s, Asian market liberalization in the early 2000s, digital-platform integration from the 2010s, and the post-pandemic shift toward contactless and hybrid business models. Comparative analysis of leading franchise markets (the United States, China, Japan, Germany, and South Korea) is presented alongside an examination of investment-size market segmentation, the global distribution of master-franchise versus single-unit contractual structures, and the distinct developmental trajectories observed in the Middle East and North Africa (MENA), Latin America, and Africa. Particular attention is given to the emerging franchise market of Uzbekistan, where low- and medium-investment segments currently predominate and where international brands operate predominantly through master-franchise or area-development agreements consistent with broader regional patterns observed across Central Asia. The findings indicate that a favorable regulatory environment, characterized by simplified registration procedures and tax incentives for foreign investment, constitutes a decisive factor in accelerating franchise market development, a conclusion of direct practical relevance for franchise policy in Uzbekistan.