illustrates this form of business expansion?

Under a franchising agreement, the franchisor provides a license to the franchisee to use its trademarks, logos, and other intellectual property, as well as its operating systems and procedures, in exchange for a fee. The franchisee then establishes and operates its own business using the franchisor's system, but is also bound by the terms of the franchise agreement. This gives the franchisor considerable control over the franchisee's business, including its products, services, and prices.

A typical franchising arrangement includes the following components:

• The franchisor has developed a successful business model and established a strong brand identity.

• The franchisor grants a franchisee the right to use its brand name, trademarks, and other intellectual property to operate a business under the franchisor's system.

• The franchisor provides the franchisee with initial training and ongoing support in areas such as marketing, operations, and management.

• The franchisee pays the franchisor an initial franchise fee and ongoing royalties based on a percentage of sales.

• Both franchisor and franchisee will work to ensure customers get a satisfying customer experience in order to build brand reputation.

Some examples of franchise agreements: McDonald's Corporation, Walmart, Pizza Hut