At the beginning of the 21st century, franchising is one of the fastest growing business models in the world, with a significant impact on the world economy. This is mainly due to the advantages franchising has to offer when compared to other business models, and among these advantages low risk is one of the biggest ones. Entrepreneurs often opt for the franchising model when they lack confidence in starting their own business and have doubts about its potential success. It is also a good choice for those entrepreneurs wanting to expand their business while having a degree of certainty about achieving business success. This is especially important in times of crisis. The objectives of this research were to analyze, present and compare theoretical knowledge about franchising as a business model and the use of franchising systems in the Republic of Croatia, with special review of the franchising model of the Surf 'n' Fries company, a business model tailored to the needs of unique manufacturing, packaging and serving of potato fries. The purpose of the research was to systematically and scientifically elaborate the fundamental features of franchising business, its application in the Republic of Croatia and to examine the potential of franchising business model as a driving force for stronger entrepreneurial development in the Republic of Croatia.