Franchising is a modern way of realizing entrepreneurial ideas. The franchise concept encourages low-risk investment for the franchisee with a relatively secure return on investment, while for the franchisor, the concept of franchising is a model that encourages easier ways of expanding the business, that should also positively increase profits. Over time, gradually more businesses saw the benefits of franchising, which promoted the development of franchising and encouraged entrepreneurs to start - up a significantly more numbers of new franchise models, and the very concept of franchising has become a consolidated entrepreneurial practice. The Master Thesis referred to the concept of franchising and its historical development, as well as the factors influencing the decisions to select and make a final investment in the franchise model. In addition, the thesis presents the implementation strategies of the franchises from the economic and legal points of view, as well as the elements and types of franchises. Furthermore, the Master Thesis studied in detail the concept of franchise with reference to the representation of franchise business in the Republic of Croatia. The main conclusion gathered in the thesis is the lower representation of franchises in the Croatian market compared to the rest of the world, although there is empirical evidence in favor of franchising over traditional entrepreneurship. Additionally, in Croatia, there is a problem with the lack of domestic franchises in comparison to the total number of active franchises on the market. Although there is an initiative aimed at encouraging entrepreneurship, and analogly franchise businesses, Croatia is still dominated by foreign companies with a high percentage of market share. In the thesis, successful Croatian franchise systems such as Surf’n’fries, Carwiz and the Museum of Illusions, which achieve exceptional business results, are analyzed in order to present examples from the business practice.