A public offering in franchising occurs when a franchisor decides to raise capital by selling shares of their company to the public through a stock market listing, often via an Initial Public Offering (IPO). This process allows the franchisor to access significant funding, which can be used for expansion, marketing, or new product development. However, it also subjects the franchisor to public scrutiny, regulatory requirements, and pressure to meet shareholder expectations. While public offerings are more common with large franchises, they provide an alternative to traditional private funding sources.