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 pay fees to use the brand and benefit from the established business model. In this arrangement, franchisees operate their businesses independently but must adhere to the franchisor's guidelines. Examples of business format franchises include popular brands like McDonald's and Subway, which offer a recognizable brand and support to help franchisees succeed in their ventures.