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Franchising Challenges

You need a partner who understands social franchising

Like setting up and growing any business implementing social franchising and managing a social franchise comes with its challenges. It is always advisable to seek support from a franchise consultant with experience in social franchising.

Feasibility and planning phase

Not every organisation is franchiseable. Exploring franchising demands some questions and assessing the organisation against suitability criteria. If franchising is a viable route, it takes management energy to develop the appropriate franchise strategy. Unlike private business owners, non-governmental organisations typically have more stakeholders. This means that achieving consensus on any franchise strategy may take time and a strong motivation.

Set-up the social franchise

The first or pilot social franchise can be challenging and time consuming as mistakes are made and the model is refined. The initial phase may also require the most financing and resources as systems to support a larger network are being built for the first time.

Recruiting the right franchisees

Finding a franchise partner that shares the franchisor’s values and goals can be challenging. The franchisee also needs to have strong organisational ability in order to run a successful business. Even with successful recruitment, franchisors need to provide ongoing support and motivation.

Thinking and operating like a franchise

Social franchising relies heavily on principles drawn from commercial franchising. This includes legal agreements, operating standards and procedures, financial and management controls and strong marketing efforts. This means that social sector organisations often have to adopt a new way of thinking and strengthen their business acumen.


Franchise Fundi offers a full range of consulting services to potential franchisors looking to implement a social franchising model.