A franchising is a method of marketing products or services in which a franchisor develops the designer’s trade name and fundamental business structure and a franchisee pays a royalty and generally an extra fee to be granted the right to capitalize on the franchisor’s name and operating system. Although the deal between the parties is officially referred to as a “franchise,” the term is most typically used to refer to the company that the owner owns and operates. Franchising is the process of creating and expanding a branded and franchising system.