Fiore has gone through drastic changes over the past few decades; many of the people alive today barely remember the kingdom that was, and those that do are the former nobility that cling to outdated titles and the wealth left over from generations of service to a position no longer needed in the small country's new democracy.
Today, Fiore is an emerging modern fantasy - the cities and towns are modern, filled with every convenience from running water to electricity and even cell phones (they aren't especially commonplace yet). All of this is made possible with creative use of lacrima. Yet at the same time the areas around the cities are lush forests and open fields, hilly passes and even mountainous regions. These areas are clustered with wildlife, monsters, and a growing bandit problem (of the magical and mundane nature). It's a country ripe for exploration and filled with possibilities, even if many are too busy to take advantage of it.
The Citizens Fiorians have a strong independent streak and are known to be hard working and opinionated. For years the Monarchy and the Magic Council ruled Fiore, and the mundane citizens felt they had very little say. This has changed recently, with the switch in governmental styles, but for many, wizards are seen as people who automatically think themselves better than the average citizen.
The Templars The Templars are like a phoenix, rising from the ashes of the former Magic Council. The Magic Council itself was deemed to have too much of its own power, especially for a group concerned only with the wizards in Fiore. While the Templars are limited in power, they're also far more trusted by the citizens than the Magic Council was near the end - both because they're more conscientious of the people, and because they have proven themselves as protectors and mediators instead of enforcers. A good number of Templars are wizards, but anyone can be one if they're willing to put up with the training.
The Council of Fiore The council is made up of representatives from both the Wizards' Guilds and the regular people, with each group having a say. In theory, it allows everyone to voice opinions and make fair decisions. In practice, it often ends up being a lot of paranoid people who don't want to be seen as too aggressive or too unfair with the new Democracy in place. They rely on their Templars to keep the peace, as well as various free agents from the guilds or other walks of life to take care of the more practical matters.
Guild Mages The guilds, Otherwise known as the Official Guilds are those guilds that have been recognized by the Council of Fiore as official places of learning and community for the wizards of Fiore. While it isn't required that a wizard join them, there are seldom better places to learn and grow as a person with magical abilities in the world today. Fiore's guilds aren't the only guilds, but they're thought of as some of the most knowledgeable and influential in modern history. The citizens enjoy their assistance with problems in the community, often trusting them more than the wandering 'guildless' wizards, but there are still those that are jealous of the power and influence of the guilds.
The Dark Guilds (And other criminal elements) The Dark Guilds of Fiore have been around for hundreds of years, with every attempt to destroy or otherwise disband them resulting in new ones springing in to take their place. A few years ago, a powerful Dark Guild took control of Fiore for a short time, and as a result the people fear them more than ever, but they also guard against them more than ever. Dark Guilds are groups of people, often wizards, who band together to achieve their own goals without official recognition. They aren't always bad, but the most prominent ones are often formed for nefarious purposes. The current dark guilds are some of the smartest criminals Fiore has seen, keeping out of the spotlight while sticking their fingers wherever they can in order to build their own underground connections.
The Guildless Anyone who isn't part of the above factions are considered guildless. They're independent agents, either from guilds unrecognized by the world at large, or self-trained and taught, or anything in-between. The only thing they truly have in common is that they're often wizards, and even those that aren't aren't considered an average citizen for one reason or another. Those without their own magic often carry lacrima useful to adventuring or traveling.