This master's thesis explores the concept of franchise business with a special emphasis on the example of the "Basic Gym One" franchise. The purpose of the thesis is to provide a deeper insight into various aspects of the franchise model by analyzing the advantages and disadvantages for both parties - the franchisee and the franchisor. The thesis will also explore the entry of the franchise into the market of the Republic of Croatia, the characteristics of the franchise agreement, and the legal framework of franchise business in Croatia. Through a detailed presentation of the "Basic Gym One" franchise's operations, the development of the business model, the structure of the franchise system, training, and support for franchise partners, as well as the financial aspects of the franchise, will be investigated. The thesis will conclude with an analysis of the advantages, challenges, and risks of operating the "Basic Gym One" franchise, along with examples of successful franchise locations. Overall, this thesis aims to illuminate key aspects of franchise business and provide a deep understanding of this business model through a concrete example.