Most businessesman are starting their own market brake product from scratch. They develope business gradually but also often face a lot of problems, high costs of starting the company and risking the failure at the beginning of business or at least uncertainty in the outbrake to the market that can lead to the closure of newly open business. This method is difficult because it requires significant financial resource investment for marketing, advertising or demonstration of the new market brake product or service. On the other hand entrepreneurs can decide to start a pre-existing business, such as franchise, which in many cases causes different reactions and opinions. Although it has been many years since the opening of the first franchise business premises in Croatia, franchising has yet to become widely known and developed concept of operations in this region. Most of Croatian entrepreneurs are not aware of the corporate franchise concept and therefore they usually start their business ideas from scratch. They even do not recognize the value of the franchise business model that franchisor sell in the form of a franchise and usually are not able to meet the high financial criterias set by this type of a business model. Franchisees often face different obstacles in setting the legislative framework for this kind of business and that makes it the greatest problem of starting the franchise in Croatia.