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In this video tutorial, the focus is on the individual franchise agreement, which is described as the simplest form of franchise arrangement. The presenter outlines that a franchisor, such as a recognizable brand like McDonald's, enters into an agreement with a single franchisee. This agreement allows the franchisee to operate one specific location using the franchisor's trademark and products. An example is provided through a student who operates an Italian ice franchise, highlighting that the franchisor grants the right to run just one location. The video emphasizes that the franchisor can establish additional individual franchise agreements with other franchisees.