The development of the franchising industry ad investments in the form of business format franchising in the country is significantly connected with the healthy commercial environment. The franchising agreements are very complex legal instruments, originated in the common law legal systems. Those contracts are the subjects to the considerable number of laws and regulation such as business and company law, law on torts and obligations, contract law, distributorship law, fiscal law, labor law, foreign investment law, competition law, intellectual and industrial property law, real estate and leasing law, law on finance and audit. Together with import of foreign franchise systems during the last years, Serbian economy has witnessed the number of domestic franchised concepts which have been emerged in the last period. The main legal context on doing franchising business in Serbia is offered in the paper. Assuming the commercial law and intellectual property rights as the crucial legal incentives for the investment in the form of franchising the author examines two separate categories of law and regulation relevant for franchising. The law and regulations which are applicable to the notion of the contract as the general institute of the obligation law are the first category of law examined in the article. Other is the regulation relevant for the franchising as the sui generis contract such as disclosure law, as the form of franchise specific regulation. Beside the review of the harmonized legislation on franchise law in international level as well as different national regulation relevant to franchising the author examine the main fields of Serbian law and regulations relevant for franchising agreement and its influence for further franchising growth in Serbian economy.