On the British television show Dragons' Den, entrepreneurs usually offer equity in exchange for funding.
Equity means an ownership stake in the business. During a pitch, an entrepreneur normally states how much money is wanted and what percentage of the company is being offered. The Dragons then assess the valuation implied by that proposal, as well as the product, market, sales and growth potential.
A successful negotiation can change the percentage offered. A Dragon may also make a conditional offer, join another Dragon in a syndicate, or decline to invest. Not every on-screen agreement is completed after filming: the business may undergo further checks before contracts are signed.
The arrangement is different from a salary, which is payment for work, and from a patent, which is intellectual-property protection. A franchise is a separate commercial structure in which a business grants rights to operate using its brand and system.