Proprietary technology refers to software, systems, or tools that a franchisor has developed and owns, and that franchisees must use to operate their business. This can include point-of-sale systems, customer relationship management (CRM) software, inventory management tools, and proprietary apps. Franchisors often charge fees for these technologies or include them as part of the ongoing royalty payments. Proprietary technology helps standardize operations, improve efficiency, and maintain control over business processes across the franchise network.