Franchising and other forms of non-proprietary business such as cartel, license, joint venture, consortium and others, are especially interesting ways to create something bigger and something new. These management models of organizations have helped considerably to make some opportunities safer and better when two companies cooperate for creating some new technologies and products, and to achieve greater competitive advantage in a global market competition. Also in this work I’ll go through the assertions that it’s one way how to market a product and service through a tried and tested business formula, licensed and ready for transfer to other parties they want to copy, with financial compensation. Croatia developed this system at the end of the last century and was the strongest in franchise business with fashion brand for clothing, which then expanded into the hospitality sector and today has more than 160 franchises. In this work I’ll analyze franchising and other ways of nonproprietary business expansion, conceived in seven thematic chapters which include: inter alia, the terms, motives, advantages and disadvantages of nonproprietary business expansion, the example of McDonald’s franchise, and the situation in Croatia regarding franchising.