What is the purpose of a "franchise tag" in the NFL?

The purpose of a "franchise tag" in the NFL is to provide teams with a mechanism to retain a player for an additional year under a predetermined salary, which is typically based on the average of the top salaries at the player's position or a specified percentage increase over the previous year's salary, whichever is greater. This allows teams to keep key players who might otherwise become unrestricted free agents, ensuring the continuity of their roster while also adhering to league rules regarding contract terms and salary cap management.

By applying the franchise tag, teams can negotiate with the player for a long-term contract while still securing their services for another season. This is particularly essential for teams who want to maintain their competitiveness without losing critical talent to free agency.