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What does the franchise industry mean to you?
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 franchisor gives the new franchise owner the right and obligation to run a new business in line with the franchisor ’s original concept. After paying a start-up fee, the franchise owner can use the franchisor’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.
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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 a profit.
- Need minimum of one social franchise owner.
- Have a common brand under which all social franchise owners operate.
- Exchange knowledge between members.
Social franchising sits between a loosely controlled business model and a more restrictive or tightly-controlled business model.
Benefits of social franchising
- It allows the social impact of a community to flourish and achieve their goals without creating a hierarchical business.
- It enables local ownership of a business rather than an outside owner who may be unfamiliar with the territory.
- Successful business models are shared in a way that combine both social and financial goals such as social impact and financial sustainability.
- Genuine partnerships are created that are mutually beneficial for all parties.
- Power is devolved while entrepreneurial qualities are encouraged.
- Reinvention of the wheel is avoided, making it easier and quicker to start up.
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 in the years to come. There’s lots of excitement around social franchising and its bright future in the UK.
Learn more about our great franchise opportunities by clicking here!