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Franchising plays a critical role in international economic and business spheres by offering multiple advantages. It allows businesses to enter new markets efficiently by using local franchisees' knowledge and networks; supports the exchange of products, services, and commercial practices across borders; fosters global connections and innovation; contributes to job creation, infrastructure development, and economic activity in host countries; supports local suppliers and various industries; helps brands achieve global recognition and a consistent presence which enhances consumer trust and loyalty on various markets. Franchising enables entities to spread risks on various territories and reduce dependence on a single market; it also promotes the transfer of management practices and customer service standards which improves business landscapes in developing regions. Franchising is one of the powerful instruments for international trade and investment. Considering the increasing impact of franchising, the present paper aims to overview its crucial aspects from various contexts briefly. The research will examine whether franchising offers a flexible model for successful business partnerships, assess some key findings from national and ECJ’s case law, identify challenges that confront to flourishment of franchising in Georgia, and propose certain measures to withstand this problem. Given issues will be covered through applying analytical, comparative, and statistical methods of research. The introductory, first chapter overviews the advantages of franchising, and certain historical developments of the said business model in different states; the second chapter covers the concept and legal definition of franchising, its characteristics, basic types and phases; the third chapter briefly refers to franchise-related national laws and regulations; fourth chapter concentrates on case-law (national and ECJ rulings); fifth, concluding chapter summarizes main findings of the research, assesses environment of franchising in Georgia, and proposes authors recommendations for further development of franchising system in the country.