A Business Format Franchise is a type of franchise where the franchisor provides a complete system for running the business. This includes not only the brand name but also operational procedures, marketing strategies, and training programs. Franchisees benefit from a proven business model, which can reduce the risks associated with starting a new business. In this arrangement, franchisees pay an initial fee and ongoing royalties to the franchisor in exchange for the right to use the brand and its systems. Popular examples of business format franchises include McDonald's and Subway, which offer standardized products and services across their locations.