A franchisor is a company or individual that grants the rights to use its brand, products, and business model to another party, known as the franchisee. This arrangement allows the franchisee to operate a business under the established name and guidelines of the franchisor, benefiting from its reputation and support. Franchisors typically provide training, marketing assistance, and ongoing support to franchisees. In return, franchisees pay fees or royalties to the franchisor. This relationship helps expand the franchisor's brand presence while allowing franchisees to start a business with a proven system, often seen in industries like fast food and retail, such as McDonald's or Subway.