The middleware factory pattern in Express means writing a function that takes some settings and returns a middleware function. This returned middleware runs when Express handles a request. For example, a logger factory takes a level like 'INFO' and returns a middleware that logs each request with that level. When a request comes in, Express calls the middleware with request and response objects. The middleware logs the message and calls next() to let Express continue. This pattern helps customize middleware behavior easily. Key points: the factory returns a function, middleware runs later, and next() must be called to avoid stopping the request.