Franchising is a system of business relations between the franchisor and the franchisee. Owning a franchise gives you a right to operate under the name of a famous brand and use its technology and merchandise. It means that an existing company, a franchisor, takes under the wing entrepreneurs and provides necessary tools to help them navigate the business aspects of a business. These tools include passing on experience, production technologies, marketing strategies, patent rights and inventions. In exchange, a franchisee has to pay a franchise fee, monthly royalties, marketing fee, etc. Each franchisor requires a different set of financial contributions.