This thesis is designed as an assignment of the Foundation Work Incubator (SWI) for a client based in Estonia. The client contacted the Foundation with the question whether a risk assessment could be conducted in order to determine if establishing a retail franchise in cooperation with a Dutch franchisor would be possible and a beneficial move to undertake. The client is particularly interested in the fashion, toys and core food industry because these are the industries which are currently profitable in Estonia. This research has an emphasis on the potential risks the client might face and how these could be responded to in a beneficial manner. The purpose of this thesis is to provide the client with valuable information that can be used as basis when deciding whether to execute the plan to establish a franchise in Estonia or not. With the information presented in this thesis, it should become clear to the client how to respond to the risks identified whenever is decided to establish the retail franchise in the fashion, toys or core food industry. Furthermore, the recommendations provided in this thesis will inform the client which industry has the lowest net risk.