A franchise arises when the franchisor licenses its brand and way of doing business to the franchisee, and the franchisee commits to operating following the concluded franchise agreement. The franchise business has evolved through history, and even today, there are famous world franchises. The franchise business has numerous advantages and disadvantages for both the franchisor and the franchisee, and it is essential to pay attention to them before entering the franchising world. However, regardless of the disadvantages, a franchise can be an excellent choice when opening a business venture, as there is less risk and an existing brand on the market. Currently, around 45,000 franchise systems operate in one or more countries worldwide. After the USA, the most significant number of franchise systems is in Asia and Europe. The franchise business model in Croatia has existed for approximately 50 years, but although the franchise business is still in the development phase, in the last few years, knowledge and awareness of the franchise business, as well as the number of franchises, have increased considerably. Furthermore, franchising in Turkey is more developed than in Croatia, but there are equal challenges in both countries with the absence of a clear legislative framework. This paper explains the franchise's history, types, origin, and participants. The state of franchising business in Croatia and Turkey was compared to see the differences and similarities of franchising in these two countries and the economic situation.