Background: Franchising is one of the most known and used business models for growing a company. It has been proven over the years and has many advantages and disadvantages. For a company to do it successfully and prove to be a profitable decision, it should be analyzed carefully from different perspectives.

Purpose: This paper aims to provide a model and structure of how certain managerial factors affect the decision about a franchise store in the retail industry and its impacts on success. Ideas, concepts, theories, and information from previous research will be applied to a private company to analyze this model. The Research Question is: “To what extent do managerial factors concerning franchising a retail company affect its success?”

Method: The effect of these managerial factors on the decision-making of franchisors was investigated through the use of real-life data from a private company. Several interviews with the owners of the company and a survey with current customers of the store were conducted to give insights and needed information for the analysis.

Conclusion: This paper provides a model which can be used by a company that wants to franchise. Considering the different factors and following the steps, one can successfully decide if franchising is the right growing strategy for the company.