Two parties enter into a franchise agreement; the franchisor and the franchisee. Essentially, the franchisor owns the business. A franchisor sells its brand rights to franchisees, including products, services, and intellectual property. Franchisees open other branches under the brand's name. In essence, this is a replica of the original company or brand.

Licensing Vs Franchising: https://vakilsearch.com/blog/franchising-and-licensing-difference/