Franchising in Croatia has become an increasingly important aspect of the nation's economic landscape, driven by both local and international brands. It has experienced notable growth in recent years, supported by an improving business environment and rising consumer demand. The sector contributes significantly to the Croatian economy by creating job opportunities, stimulating investment, and boosting tax revenue. International franchises, such as McDonald’s, Subway, and Starbucks, have established a strong presence in the market, enhancing consumer choice and fostering competition. The advantages of franchising in Croatia are substantial. Franchises contribute to economic growth through job creation, both directly within franchise outlets and indirectly through supply chains. They attract investment, supporting local businesses and infrastructure development. Franchises also generate significant tax revenue, which is crucial for public services and infrastructure projects. Additionally, the presence of well-known franchise brands improves consumer choice and market standards. Despite its benefits, franchising in Croatia faces several challenges. High initial investment costs and the complexity of navigating local regulations can be barriers for prospective franchisees. Market saturation, especially in popular sectors like fast food and retail, can impact profitability and operational efficiency. Cultural adaptation is another challenge, as franchises must tailor their offerings to local tastes and preferences. The future of franchising in Croatia appears promising. Continued economic growth, increasing consumer demand, and advancements in digital technology are expected to drive further expansion. The integration of Croatia into the European Union offers additional opportunities for cross-border investment and market access. Ongoing improvements in the legislative framework and supportive infrastructure will be essential for sustaining franchise growth and maximizing its potential.