Final answer:
Franchising is characterized by expanding rapidly using the franchisee's funds to grow the brand while paying the franchisor fees for their proven business model and continued support.
Step-by-step explanation:
The key to franchising is rapid expansion using other people's money. When an individual purchases a franchise, they pay a franchise fee and ongoing royalties to the franchisor in exchange for the right to use the franchisor's business model, brand, and support services. This method allows for rapid expansion of the brand as new franchisees use their own capital, or funds borrowed from investors or lenders, to set up new outlets, thereby growing the business without the franchisor having to invest their own capital into every new location.