Final answer:
Franchising involves selling the right to use a business's system and brand, where the franchisee pays a franchise fee and royalty fees while receiving support from the franchisor.
Step-by-step explanation:
The process being described in the question is franchising. It involves selling the right to use a company's business model and brand for a prescribed period. A franchise is a business approach where the franchisee purchases the rights to begin a business under the franchisor's brand and system. The franchisor typically provides the franchisee with support such as training, a supply chain, and help with setting up operations. In return, the franchisee is required to pay an initial franchise fee and ongoing royalty fees. This business relationship is underpinned by intellectual property law, which includes patents, trademarks, copyrights, and trade secrets, ensuring the franchisor's brand and proprietary knowledge are legally protected.