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In this video, the focus is on the individual franchise agreement, which is simple and straightforward. The franchisor, such as a brand like McDonald's or Wendy's, enters a single agreement with one franchisee. This agreement allows the franchisee to operate one specific location using the franchisor's trademark and products. For instance, a student with an Italian ice franchise illustrates this concept, as the franchisor permits him to run just one location to sell the products. The franchisor retains the option to create more individual franchise agreements with other franchisees for additional locations.