Entry into an entrepreneurial venture can be through a start-up, purchase of a company (acquisition), inheritance of a family business or through the purchase of a franchise. Franchising has its beginnings since ancient times, and today it is one of the most famous ways to enter an entrepreneurial venture. A franchise represents a business model through which an entrepreneur shares his way of working with a person who wants to become a franchisee. For a franchise to be successful, it is important that there is cohesion between the franchisee and the franchisor Some of the advantages of franchising as a business model are that it represents a lower business and financial risk and enables faster and safer growth. The franchise belongs to the company's external growth strategies and has proven to be very successful. Which is confirmed by the fact that there is almost no industrial sector in which it has not been successfully applied as a method of company growth. When an entrepreneur decides to grow his business through a franchise, he must go through several steps to establish the franchise itself and see if his company can be franchised at all, that is, if it has the key qualities needed to develop a franchise business model. The aim of this paper is to present the theoretical principles of franchise business as well as the process of starting a franchise. And in the empirical part, using the example of the selected franchise, to show how the franchise system works and through SWOT analysis to determine whether the selected franchise has the potential for success on the Croatian market or not.