Business format franchising is a method of expanding a business by allowing individuals or companies (franchisees) to operate under the brand and system of an established company (franchisor). This arrangement typically includes the use of trademarks, business models, and ongoing support from the franchisor, ensuring consistency across all locations. Franchisees pay an initial fee and ongoing royalties to the franchisor in exchange for the right to use the brand and its operational systems. This model is common in various industries, including fast food, retail, and hospitality, enabling rapid growth while minimizing the financial risk for the franchisor.