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Benefits of Social Franchising

A strong framework for organisations with social goals

Commercial franchising is a tried-and-tested way to replicate a successful system and brand. Economies of scale, standardisation, skills transfer and the opportunity to create a supportive network all make franchising an attractive business model for organisations with social goals.

If properly implemented and managed, social franchising offers important benefits to the franchisor, franchisee, the donor and society.

For the franchisor

  • Expand more rapidly
  • Become financially sustainable through earning franchise fees
  • Make better financial and impact decisions from more data
  • Have more impact in meeting social objectives
  • Able to offer more accountability and measurement to potential donors

For the franchisee

  • Receive training and ongoing support from an experienced and trusted organisation
  • Rely on centralised marketing and systems
  • Have less financial risk compared to starting a new organisation
  • Achieve and maintain a greater social impact more quickly
  • Share ideas and resolve problems with like-minded individuals at the franchisor and in the network

For donors

  • Obtain a better return on investment
  • Create a larger and more measurable impact
  • Enjoy greater reassurance that systems are monitored by the franchisor
  • Potential to fund organisations which may ultimately be self-sustaining
  • Be associated with a strong and successful social organisation

ADVANTAGES / CHALLENGES

While social franchising offers distinct advantages it does have its challenges and is not suited to every organisation.

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