Franchising is a business model where a franchisor allows a franchisee to run a business using their brand.There are three types of franchise business models: COFO, FOCO, and FOFO.COFO (Company Owned Franchise Operated) model involves the company investing in the business while the franchisee operates it.FOCO (Franchise Owned Company Operated) model is where the franchisee owns the property, and the franchising company manages the operation.