Franchising is a business where the franchiser gives its trade name and a manner of business to a certain person, ie the franchisee, who agrees to operate in accordance with the terms of the franchise agreement. The franchiser provides support to the franchisee and therefore has control over the way the franchisee operates. In return, the franchisee pays the franchiser an initial fee (the so-called franchise fee) and a business fee, as well as the use of the trade name and method of business. Franchise business includes business in all branches from retail to various professional services. This graduate paper analyzes franchising as a model of entering a foreign market as one of the most popular ways of entering a foreign market. Also, the advantages and disadvantages of franchising, furthermore, what is it needed to own a business as a franchiser. Furthermore, what are the examples of franchises in Croatia and in the world? In the end, the paper contains the research of the most popular franchise; McDonald's. How this company had become a global leader in the (fast) food industry when it all started in a small restaurant in Saint Bernardino in the United States. It is all described in the research conducted during the preparation of this paper. The largest share of McDonald's business (80%) is represented by franchisees that are present today in more than a hundred countries around the world. McDonald's is using global expansion strategies that are sometimes adaptive and sometimes standardized to maintain its status as one of the world's most popular brands.