The franchise tag was introduced into the league in 1993. Each team gets one tag and can apply it to any player set to become an unrestricted free agent. The franchise tag is a one year contract for no less than the average of the top five salaries at the player’s position or 120 percent of their previous year’s salary, whichever is greater. A team is not required to use a tag if they don’t choose to.
There are three types of tags a team can use; exclusive tag, non-exclusive tag or transition tag. With all the tags the salary is the same and length of the deal are the same.