In a fran­chis­ing rela­tion­ship, one busi­ness (the fran­chisor) allows anoth­er busi­ness (the fran­chisee) to use its busi­ness mod­el, brand­ing, and intel­lec­tu­al prop­er­ty in exchange for a fran­chise fee and ongo­ing roy­al­ties. Fran­chis­ing rela­tion­ships are typ­i­cal­ly struc­tured in a very spe­cif­ic way, and fran­chisees are typ­i­cal­ly required to adhere to cer­tain stan­dards and guide­lines set by the franchisor.