Saint-Petersburg, St. Petersburg, Russian Federation
UDK 339.37 Розничная торговля. Мелкая торговля
GRNTI 71.31 Розничная торговля
The extant literature provides different approaches towards definition of reverse franchising. It blurs the understanding of the nature of this economic model and may hinder its implementation in business. The goal of the present research is to identify the nature of reverse franchising as a specific model of franchising. The paper provides a critical review of existing definitions of reverse franchising. It introduces a general concept of inverted franchising based on partial inversion of economic relations typical for traditional franchising. Reverse franchising can be described as a specific form of inverted franchising based on a different model of division of responsibilities between franchisors and franchisees. Various approaches towards reverse franchising present in the literature can also be included in the concept of inverted franchising as its variants. Distinctive features of other types of inverted franchising are described. The paper introduces a terminology for differentiation of various types of inverted franchising (reverse franchising, cooperative franchising, aggregated franchising). The paper establishes a link between different forms of inverted franchising and other economic models. It also demonstrates that reverse franchising in Russia is implemented not only by retail chains, but also by online retailers for setting up pick-up points. Use of reverse franchising will probably grow thanks to the expansion of online retail.
franchising, reverse franchising, retail chains, online retail
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