A franchise is a form of entrepreneurship in which the recipient and the franchisor sign a franchise agreement that publicly defines the obligations and rights of each of them and commits them to joint cooperation for a certain period of time. The subject of the thesis is the challenges of franchise business, and the goal of the thesis is to explain the concept of franchise, highlight the advantages and disadvantages of this form of entrepreneurship, and show the challenges faced by participants in franchise business through a practical example. In the theoretical part of the work, in addition to defining entrepreneurship and franchising, some of the challenges that have been observed in franchise business over the years are listed. These are: building a stable infrastructure, financing the franchise, maintaining brand stability, communication between the franchisor and the franchisee, employee turnover, the lengthy process of obtaining business approval, the franchisee's sense of lack of autonomy, and the complexity of the exit strategy. In the practical part of the work, after an interview with Tomislav Jurković, the owner of the franchise center Tinker Labs Belišće - Valpovo, the challenges that arise in the franchise business of Tinker Labs are listed. Based on the research carried out in the paper, it is concluded that challenges are an indispensable part of the business of every franchise, but that how much and whether the challenges will have a positive or negative effect on the business of the franchise largely depends on the attitude of the franchisee as well as on the relationship between the franchisee and the franchisor.