Final answer:
A franchise is a licensing arrangement where one party allows another to use its intellectual property in exchange for payment and other considerations.
Step-by-step explanation:
A franchise is a licensing arrangement under which one party allows another party to use its name, trademark, patents, copyrights, business methods, and other property in exchange for monetary payments and other considerations. Essentially, it is a way for one company to expand its business by allowing others to operate under its established brand and business model.