This graduate thesis examines the franchise business model, analyzing its structure, advantages, challenges, and growth opportunities, with a special focus on its application in the Republic of Croatia. The paper provides a detailed explanation of the fundamental components of the franchise relationship, along with the financial aspects associated with this business model, as well as the legal regulations and obligations of both franchisors and franchisees. Furthermore, the study explores the global context of franchising, analyzing international trends and the impact of globalization, which present both opportunities and specific challenges for the franchise sector. The paper also examines local conditions and the particularities of franchise business in Croatia, considering the existing legal framework and the characteristics of the domestic market. The empirical analysis includes the perspectives of Croatian stakeholders on franchising, along with their perception of the benefits and risks associated with this business model. Based on the analysis and the findings of a case study on franchises in the Croatian market, the paper draws conclusions regarding the success and effectiveness of the franchise model in Croatia.