A franchise is simply a right or privilege granted to a person, or a corporation, to do something.  Originally, the Crown granted franchises to do things such as operate street markets or toll roads. You also hear a series of films being described as, say, the Star Wars franchise, which simply refers to various licensing arrangements to use the name.  ‘Business format franchising’ is an extension of the above, and is a far more detailed process. Certainly, it starts with somebody allowing someone else to sell things in a particular place and allowing them to use a particular name, but it is much more prescriptive as to how that selling should be done and how the product or service should be delivered, as the purpose is to build a network operating to equally high standards in order to build a brand.  The franchisor will be very involved in training the franchisee how to operate the business format and will have systems in place to continually monitor the operation to ensure compliance with the system for the benefit of all concerned.