Franchising in Transport Law – Bike Sharing as Business Model of Urban Transport Development

Reducing pollution and congestion, increasing the modal share of public transport, solving urban transport problems and integration of transport are some of the European transport policy goals. In its 2017 Transport Development Strategy of the Republic of Croatia 2017 - 2030, the Republic of Croatia also emphasizes the need to solve these problems. Using bicycles as a mode of transport has multiple advantages but is insufficiently legally regulated. In the Republic of Croatia, it is necessary to encourage the more significant use of bicycles. Authors find bike sharing as one of the solutions for the integration of cycling in traffic as it has been developed in some EU countries as a significant mode of public transport. The Republic of Croatia has a potential for implementation and development of bike sharing based on franchising business model. Franchising is used as a way of starting a new venture and as a growth strategy and can be a possible solution for the spread of bike sharing both in EU and in the Republic of Croatia. The paper presents provisions of the applicable legislation relevant to the topic of this paper, noting that there are no appropriate bicycle regulations. Since the franchise business model is not regulated by a separate law, it is necessary to consider creation of an adequate business model that will contribute to the development of public transport and traffic rights in general. The paper presents an example of creation and implementation of bike sharing franchise for public transport system development