It is general perception that the entrepreneur with his business starts from scratch and develops it from the ground up, which also brings together the problems, obstacles and high costs that are needed for the entrepreneur to justify his investments and to tries to build company that will have successful business and compete in the market. This way of starting a business is widely represented in the Republic of Croatia and is precisely because many do not consider other options. Potential other option, franchising, is the topic of this thesis. In the world more prevalent, the franchise has justified its business model as secure and successful with respect to a standalone entrepreneurial venture because it offers significant advantages over other business models, such as reducing risk through the know-how and the patents of a provider, streamlining business costs which are key to quality business and survival in today's market. That is why franchise business is becoming more and more popular today, and there are more and more franchises and franchisors that have created new forms and types of franchises which are covered in the thesis. Franchisors have perfected their business, simplifying it to the franchisee, but also minimized the risk failure of their own business. Although franchising has existed in Croatia for many years, it is not sufficiently represented due to the lack of desire for this type of investment and because of outdated and insufficiently defined legislation that has insufficient information witch together with insufficiently informed entrepreneurs has resulted in fewer franchises compared to more developed countries. This was also confirmed by the survey, which was covered in the research section of the thesis.