| Children’s supplementary education: Transforming the franchise business model |
|
Аuthors: Margarita S. Shakhova, Cand. Sc. (Econ.), Associate Professor of Innovation Economics Dept. Lomonosov Moscow State University, Economic Faculty Abstract: Franchises of all industries of the Russian franchise market have been affected by the COVID-19 pandemic, but they suffered from the crisis in different ways depending on the type of activity. In the last few years, children’s supplementary education has been one of the fastest-growing and promising spheres in the Russian franchise market. The author addresses the problems of transformation of the children’s education franchise model caused by the coronavirus pandemic and the subsequent economic crisis. The methodological framework embraces the concepts of business model and commercial concession (franchising). The research methods used in the study are generalization, analysis and synthesis. Based on the Business Model Canvas by Osterwalder and Pigneur, we develop own template for the franchise business model. We conducted a survey and in-depth interviews with franchisors of children’s supplementary education asking the questions covering all the structural blocks of the business model. As shown in the paper, the new economic reality resulted in significant changes in the key elements of the model. The author proposes a visualization scheme of franchise relationships within the business model template. The results are of interest to franchising researchers, as well as market players when formulating a franchise strategy and making decisions to invest in a franchise. Keywords: business model; franchise; franchising market; pandemic; crisis; children’s supplementary education. |
