Franchising is a business model in which a franchisor grants the rights to use its established brand name, business model, and systems to a franchisee in exchange for a fee or royalty. There are several different types of franchising, including:

1. Product Distribution Franchising: In this franchise, the franchisor provides the product while the franchisee is given the right to sell that product. This is different from most franchise models because the franchisor simply provides the product but does not offer or require the franchisee to use a particular business operating system.
2. Business Format Franchising: This is the most common type of franchising, where the franchisee is granted the right to use the franchisor's brand name, business model, and systems to operate a business. The franchisor typically provides support in areas such as training, marketing, and ongoing operational assistance.
3. Manufacturing Franchising: In this type of franchising, the franchisee is granted the right to manufacture and sell the franchisor's products using their own facilities and equipment. The franchisor may provide training, support, and access to proprietary manufacturing processes.
4. Conversion Franchise: In this type of franchise the franchisee joins their independent business with a franchisor in the same industry. This produces a win-win partnership as the franchisor expands its network while the franchisee reaps the benefits of adopting a well-known brand with its trademarks, marketing programs, training opportunities, critical client service standards, and successful operating procedures
5. Investment franchise: This type of franchise needs a significant amount of financial investment and the franchisee will not normally expect to be working in the business on a day-to-day basis. The goals are to obtain a return on investment and potentially a capital gain on exit.