Invisible Restriction: Franchising Development in Kazakhstan

2016

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DOI 10.13189/aeb.2016.040402
Data confidence 70 medium
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Abstract

The purpose of the article is to identify the so-called "invisible factors" hindering the development of franchising in Kazakhstan.The author's studies since the early 2000s, business training, seminars, consulting services for existing and potential entrepreneurs indicate that neither the laws nor the special government programs to support small and medium-sized businesses in the country, have become the decisive force so far, which would give the necessary dynamics to the process.The main attention is paid to the identification of differences between the expectations of both Kazakh franchisees and franchisors, as well as how differently both sides are currently viewing accountability to each other, what they are willing to offer each other, how they see their rights and obligations.Current legislation of the Republic of Kazakhstan in the field of franchising, unfortunately, does not eliminate the discrepancies in views and visions of the parties in franchise relationship.This article attempts to give practical implications for franchising development in Kazakhstan that will raise the effectiveness and enhance the credibility of franchising business through preliminary screening of subjective assumptions regarding franchising advantages and benefits, using a cross-comparative analysis, as well as provide recommendation to add addenda and clarifications to the agreement as necessary.