This thesis discusses and analyzes international franchising and its introduction and development in the emerging democracies in Eastern Europe. After a general presentation of the franchise marketing method, the advantages and disadvantages to both parties of the franchise relationship are discussed. Attention is given to the alternatives available to foreign franchisors contemplating international franchising in the Eastern European region. The thesis further reviews the newly enacted foreign investment laws in six Eastern European countries - Hungary, Czech Republic, Poland, Bulgaria, Romania, and Russia - as they relate to the joint venture operations in the region and the attending legal issues. Review of the U.S. franchise laws is presented and their applicability to international franchise sales is discussed and analyzed.