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Sitecore supports multitenancy, which means you can have multiple sites running on a single Sitecore instance.
Tenant folder is just a container to hold multiple tenants you may have as a part of site structure. Inherited from _Base Tenant Folder. You may create a tenant folder to hold the multiple tenants of a Company.
A folder with provide tenant folder name is create here – /sitecore/templates/Project/<Tenant Folder Name>