This chapter discusses franchising. It defines franchising as a business arrangement where a franchisor licenses its trademark and business methods to franchisees in exchange for fees and royalties. There are two main types of franchises: product/trademark franchises and business format franchises. The chapter outlines the key considerations and steps for both franchisors looking to franchise their business and prospective franchisees. It also discusses the costs, advantages, and disadvantages of franchising from both perspectives.