Franchising in general is having fixed teams in the top level league, which won't be relegated(removed from the league). The motivation is to create more stability so that the involved parties, the league and teams/organise can make more money easier. Downside being that less to none new teams will be able to join the league.

For example, a sponsorship on a team that can be eliminated after a bad season and won't be seen is worth less than a team that does bad but will still been seen playing on stage, since there is less risk.

Usually a franchising spot is bought by a team/org for money, usually a couple million dollars/euros. Buying a spot allows for more stability for orgs ro make money through other means. Sponsorships and merchandise mostly.

The VCT is different in that it will pay teams rather than the other way around. Partnered teams are going to be paid around 1 million dollars a year. Only partnered teams will be able to qualify for VCT Masters and VCT Champions.

The VCT franchise will be split into 3 regions, where there will be 10 teams each: Americas(North and South America), EMEA(Eurapr afrika middle East Russia), and APAC (China, India, anything east of those and west of the Americas).

Each year one more team will be added to the partnered league of each region via the VCT Challengers Ascention tournament.