The brand’s collaboration with Spadea Lignana has been pivotal in overcoming the legal and operational challenges of franchising, especially as the brand expands into the U.S.
“The story started back in Croatia by two entrepreneurs who were looking at ways to expand their business because they had experienced huge success,” said Luka Novak, Chief Development Officer at Museum of Illusions. “They knew franchising would be the preferred route, allowing us to expand, but they didn’t anticipate the rapid growth that followed.”
The first location, which opened in 2015 in Croatia’s capital city of Zagreb, was an immediate success. “It was very popular,” said Domagoj Duvnjak, business development manager. “Some of our first visitors started asking us about opportunities to franchise with the business. Those early inquiries came from what would become our first franchisees.”
Museum of Illusions provides a unique experience, offering to its visitors both entertainment and an educational journey, pioneering the concept of edutainment, where fascinating exhibits play tricks on the minds and show them the exciting science behind illusions.
With a business model centered around the simple yet profound concept of optical illusions, the Museum of Illusions quickly distinguished itself in the entertainment industry. “We display exhibits based on optical illusions,” Novak said. “It can be as simple as a picture on the wall or a fully dedicated room. Our customers are regular visitors, and the simplicity of our business model — no stock inventory, minimal space requirements — makes it a great fit for small to medium-sized investors.”
However, the path to international success was not without its challenges. “We are not a typical international franchise brand,” Duvnjak explained. “We’re building only one location per city, which means we have to be very selective about where we go and who we partner with. Each location is a unique opportunity, and coming to different countries involves navigating various regulations, legal aspects and franchise agreements, which is very time-consuming.”
One of the brand’s most significant milestones came between 2018 and 2021, when it expanded to 30 units globally, including a strategic entry into the U.S. market. “We entered the states in 2018 with locations in New York and Kansas City,” Novak said. “It took a bit longer, but a lot of our growth actually happened during COVID. We now have more than 20 units in the U.S., with several more on the horizon.”
Navigating the complexities of franchising, especially in a market as regulated as the United States, required expert legal guidance. That is where the Spadea Lignana team came in.
“When we started our U.S. development, we had to adapt our rather simple European franchise agreement to the more complex legal landscape of the U.S.,” Novak said. “We’ve been working with Spadea Lignana to sign new franchises and navigate the recurring changes to the FDD each year. They provide us with the legal and compliance advice we need to structure our growth effectively.”
For aspiring entrepreneurs looking to franchise, Duvnjak offers this advice: “The U.S. market is very regulated, which is both a challenge and a strength. You need a scalable business, protected intellectual property, a great manual and, most importantly, specialized attorneys who can help build a strong franchise. The franchise agreement is crucial, second only to the concept itself.”
As Museum of Illusions continues to grow, the brand remains committed to its vision while adapting to the evolving landscape of international franchising. With the support of Spadea Lignana, they have successfully navigated the complexities of the U.S. market, allowing them to focus on what they do best: creating immersive and memorable experiences for their visitors.
