The Franchise Company have been operating since 1991 and have worked on a wide range of business models, including social franchises. The Franchise Company’s consultants also have extensive commercial experience at all business levels. Social franchising is the use of a commercial franchising approach to replicate and share proven organisational models for greater social impact, and it’s becoming a popular way for non-profit organisations to grow their business models. It’s all about creating a business which enables other people to deliver the service under your control.
The franchisor company normally provides the business format and offers it to franchisees who are able to invest in and run the operation on a local basis. The franchisor then takes a royalty or ongoing payment in return for services provided. There are many social franchises in the UK and beyond, and it’s a methodology that continues to work well. There are several reasons why franchising can be particularly suited to social enterprises and charities. This includes:
• Growth in social impact in line with organisations mission • Reduces hierarchy within larger organisations • Shares best practice • Allows for local ownership, flexibility and tailoring to local circumstances • Achieves benefits of national organisation (joint purchasing, bidding, policy, communications, etc) but within a local setting • Shares successful models • Works through genuine partnerships and mutual benefit, under a common identity • Devolves power and encourages entrepreneurship • Encourages innovation • Encourages a wider range of individuals to become stakeholders
For many organisations, becoming a social franchisor requires a change in role from just being a deliverer of services into an organisation that provides training and ongoing support to its franchisees. However, with these changes come enormous benefits, to both the organisation and their end users. We offer a wide range of consultancy services to organisations which are considering expansion through a franchise model. This includes a full range of franchise consultancy, that is specific to the not for profit sector.