Franchising involves a franchisor transferring their business expertise and experience to a franchisee in exchange for an initial fee and ongoing royalties. The franchisor provides their trademark, know-how, and ongoing support while the franchisee pays royalties based on sales and uses the franchisor's system and brand name. This allows the franchisor to expand their business with less capital while strengthening their brand presence, while the franchisee gains access to an established brand and business model. However, franchisees trade some independence for integration into a larger network and guaranteed brand recognition.