Description of Challenge
There have been numerous attempts to create models for social franchises, but many
have led to few replications. The big hurdle is the second phase, the development of
the model, as this is where finance is most difficult to raise.
Some of the most successful social franchises are in business areas where the main
clients are public authorities, as these provide a predictable income stream.
“In our view, successful reform is not an event. It is a sustainable process that will build
on its own successes a virtuous cycle of change.” Abdallah II of Jordan
Solution
The European Social Franchising Network (ESFN) has found some 65 social
franchises in Europe. The largest of these, the Kringwinkel secondhand shops in
Flanders, employs nearly 5,000 people, of whom 80% are disabled.
Social franchising comprises three phases:
1. Pilot: identification of a business model which works well in at least one instance,
and is transferable to other contexts
2. Development: codification of business processes to create tools such as a
franchise agreement, quality standards, manual and training programme
3. Expansion: opening new businesses based on the model, which share the
common brand but are independently owned and operated
References
ESFN – European Social Franchising Network: http://www.socialfranchising.coop/
The Social Franchising Manual, Social Enterprise UK, 2011:
http://www.socialenterprise.org.uk/uploads/files/2011/11/social_franchising_manual.pdf
Opposites attract: how social franchising can speed up the growth of social enterprise,
ESFN:
http://www.socialfranchising.coop/uploaded/UKFSN%20socialfranchisingguide.pdf
Submitted by AEIDL
Developed in collaboration with
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