If you think about franchising then you probably imagine a business like a fast-food outlet that works by passing on experience and knowledge from one successful business to one that’s starting out.
Here’s how it normally works: the franchiser gives the new franchise owner the right and obligation to run a new business in line with the franchiser’s original concept. After paying a start-up fee the franchise owner can use the franchiser’s name and trademark, business model and method as well as some other things. The franchisee also gets ongoing training and support. Acquiring a franchise might cost more money initially but it often reduces the risks and uncertainties somebody might have about starting their own business.
What is Social Franchising?
Social franchising works in a similar way to traditional franchising but the main difference here is that a social franchise is usually set up to get people cooperating together and sharing ideas first and foremost, as opposed to traditional franchising that is set up with the primary goal of maximising profits.
The social franchise is driven by a social goal, which could be anything from tackling environmental issues to employing those with a substance misuse issue. While its primary goal is a social one, it is also a properly functioning business that is profitable.
Many social economies are rather small and so they only provide a small number of social benefits and jobs. These social economies can have a local impact but might not have a significant overall effect. This is where social franchising can step in and radically increase their impact.
Social franchisors can become big but still remain locally owned with social franchises who are members. So members cooperatively work together and become more effective and a better community.
Social Franchises – A Definition
Social Franchises
- Have a social goal but they are also a business that makes profits
- Need minimum one social franchise owner
- Have a common brand under which all social franchise owners operate
- Exchange knowledge between members
Social Franchises in the News
The world’s first social franchise accelerator was actually launched here in Cape Town. This new initiative seeks to replicate the success of South African organisations that are already making a positive social impact.
As well as offering one-to-one in-depth franchising support, the Social Franchising Accelerator offers one-to-many training, funding and mentoring to create a comprehensive package of support to enable impact enterprises to franchise and scale up their social impact sustainably.
A Social Franchising Success Story
Established back in 1997, Sport For All was South Africa’s very first social franchise. SFA uses the methods of commercial franchising to achieve social goals, specifically community economic development, youth employment and healthy lifestyles for children and their families.
Sport For All wasn’t always a for-profit business opportunity. It started off as a funded sports development project in disadvantaged communities and relied solely on traditional NGO funding. Then in 2004, Sport For All partnered with True North Holdings franchise company to create Development Franchising CC. Together they developed a self-sustaining business model and Sport For All Franchising (Pty) Ltd was established. The first SFA social franchise was opened in 2005 in Gauteng.
Since inception, 20 sites have been developed in seven Provinces enabling SFA to build strong brand recognition with municipalities, schools and corporate South Africa. Likewise, to attract highly-skilled, passionate franchisee prospects in all economic and geographical communities nationwide.
The Future
When it’s properly used, social franchising can really drive social change at a rate that simply wasn’t possible until now. It’s our responsibility to ensure that this continues to happen. There’s lots of excitement around social franchising and its bright future right now.