A pilot program in franchising refers to a test or trial run of a new franchise unit, product, service, or system before it is rolled out on a larger scale. Franchisors use pilot programs to assess the viability of new concepts, ensure that processes work as expected, and gather feedback from franchisees or customers. The pilot phase allows for adjustments and improvements based on real-world results, ensuring that when the program is expanded, it is more likely to succeed.