Franchising is entrepreneurship in proven businesses with significantly lowered risk of failure. It's a business model in which a company sells a right to use their brand and a way of doing business to the other company, which in return pays franchise fee and royalty, which means percentage of the monthly sales of products and services. Croatia has around 170 franchise systems operating at about 950 franchise locations with about 16 500 employees. Of the total number of franchises in the Croatian market, only about 35 franchise systems have Croatian origin. Franchise Subway, Costa Coffe, Chill Frozen Yogurt and Ketchup are some of the franchises that experienced failure in the area of Split. On the other hand, there are franchises that are successfully operating in that town for years, such as McDonald's, Signarama, Surf'n'fries, Bio&bio and Snack-Pek franchise. Although initially franchises are more expensive option than starting up a business independently, on long term they increase chances of business success. The business risk is lower because the entrepreneur does not make all those beginner mistakes that he would have committed if there hadn't been a recipe for a successful business by the franchisor. Franchises usually cover a territory, but its territory and populationlimit the number of franchise that might exist in Croatia and in Split. Anti entrepreneurial climate, lack of financial resources and citizens who are not properly informed about the adventages of franchise, represent a restriction of development of franchise business. Nevertheless, there is still place for development of franchises in Split since the market is not saturated. There are various possibilities and perspectives, they just need to be explored.