Franchise is based on the marketing concept that company can accept as a strategy for business expansion. When implemented, the franchisor issues licenses for their knowledge, procedures, intellectual property, use of their business model, trademarks and rights to sell their products and services. Franchise business has a major impact on the economy in Croatia and in the world. Franchise business is a young transition sector in Croatia that is underdeveloped with several active companies, lack of support from institutions, uninteresting banks and with little experience in the market. Franchising is especially used by entrepreneurs who are not confident in the success of their own business. It is a good way of doing business for franchise owners who want to expand their business, especially in other countries. One of the key advantages is a lower level of business risk as it takes on the existing successful business plan. Other advantages of this business model lie in rapid growth and the possibility of sudden expansion, risk reduction and lower investment. The franchise relationship is based on the transfer of specific know-how, know-how and business secrets that the franchisor handles training to the franchisees, thus providing an easier way to a common business success. Entrepreneurs who opt for a franchise business model are rapidly expanding geographically and creating a network that offers faster positioning and better competitiveness with their strength. The aim of this paper is to show the features and features of franchise business. The paper deals with the very concept of franchising, the types of franchises are listed, and the advantages and disadvantages of the franchise. Examples of franchisees are presented in Croatia and worldwide.