Implementation of franchising as a business model in Croatian business context

Franchising is a young sector in transition in Croatia. Consisting of retailing, distribution, and wholesaling operations, companies in Croatia are now becoming aware of the benefits and costs of franchising as an organizational method and are considering its adaptation to the Croatian context. Still, franchising is underdeveloped with only a handful of active firms, lack of regulatory structure, lack of support from institutions, disinterested banks and little experience in the marketplace. This paper investigates one company evaluating franchisng for expansion and discuss the dilemmas it will face. The contribution of this paper is in assessment of franchising model embeddedness with regard to macroeconomic conditions in Croatia.