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 it's 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. Our proposed paper will investigate one company evaluating franchising for expansion and discuss the dilemmas it will face. Our contribution will be in assessment of franchising model embeddedness with regard to macroeconomic conditions in Croatia