Social Franchising

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Information about Social Franchising

Published on February 2, 2009

Author: Schokocookie

Source: slideshare.net

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Presentation on Social Franchising
How to, examples, advantages/disadvantages

Social Franchising – Scaling social impact AfrikaCamp, 31.1.2009 Valerie Hackl

„McDonaldisation“ of social sector – Can this work? 2 090131-AfrikaCamp-Social Franchising-Final

An example: CFWshops, www.cfwshops.org Improve access to essential drugs, basic healthcare and prevention services for marginalized children and their families in the developing world • Lack of access to essential drugs and basic Situation healthcare: ~30.000 children dying each day in the developing world • ~70% of childhood illness and death: short list of preventable and treatable diseases • Launched in 2000 by The HealthStore Foundation in CFWshops Kenya, expansion to Rwanda since 2008 • Branded franchise network of health outlets • ~70 clinics and drug shops owned and operated by Kenyan nurses and health workers in rural areas 090131-AfrikaCamp-Social Franchising-Final Source: www.cfwshops.org

An actual CFWshop 090131-AfrikaCamp-Social Franchising-Final

Why replicate? • Because the wheel doesn’t need to be reinvented over and over again • Because more people in need should be granted access to social products and services • Because scale economies must be exploited to make existing programs more efficient Point of departure: Proven, scalable social program 090131-AfrikaCamp-Social Franchising-Final

Various concepts for replication Subsidiary/ Cooperation Dissemination branches (E.g. Social Franchising) Resource requirement Speed of growth Control Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202. 090131-AfrikaCamp-Social Franchising-Final

Various concepts for replication Subsidiary/ Cooperation Dissemination branches (E.g. Social Franchising) Resource requirement Speed of growth Control Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202. 090131-AfrikaCamp-Social Franchising-Final

Social Franchising Advantages Disadvantages • Fewer resources required • Danger of „mission drift“ compared to branches • Risk of opportunistic • Quick expansion possible behavior • High degree of control • Difficult selection of franchisees • Self-learning system • Local embeddedness leading to access to local resources 090131-AfrikaCamp-Social Franchising-Final

Traditional franchising as starting point… Marketing & Image Business concept Brand Product Control mechanisms Franchisee Service Franchisor Customer Concept development Price Franchise fee Information 9 090131-AfrikaCamp-Social Franchising-Final

… for Social Franchising Social sector Marketing & Image Social concept Brand Product Franchisor Control mechanisms Customer (e.g. social Franchisee Service and/or entrepre- (e.g. NPO) Concept development beneficiary neur) Price Franchise fee Information 10 090131-AfrikaCamp-Social Franchising-Final

How the CFWshop franchise is set up Health sector Marketing & Image CFWshops Diagnosis CFWshops brand Treatment Health- Control mechanisms Nurses, Store Families in Prevention health Founda- rural areas Concept development workers tion Price Franchise fee Information 11 090131-AfrikaCamp-Social Franchising-Final

The CFWshop system in a bit more detail • Design & equipment of CFWshops are very basic and standardized • Central sourcing of quality drugs • Three-week training program into the CFWshops franchise system for all future franchisees, ongoing training lateron • Investment per franchise outlet: - ~USD 1.200 (USD 600 for inventory, USD 600 for development costs and initial training) - Franchisee carries cost for his/her shop: USD 200 upfront, the rest can be financed by loan 090131-AfrikaCamp-Social Franchising-Final

Important principles Three principles inherent to …and other social franchises CFWshops… • Scalability: Application of one • VisionSpring: Distribution of social concept to many locations reading glasses for developing countries • Standardization: Internal principles and guidelines to ensure • Dialogue in the Dark: Exhibition proper diagnoses and treatments to discover the world of the blind • Economies of scale: Increasing • Science-Lab: Science courses for cost efficiency as network grows (in children areas such as advertising, distribution, information systems, • Grameen Village Phones risk management, training, and supplies) •… 090131-AfrikaCamp-Social Franchising-Final

“Nearly every problem has been solved by someone, somewhere. […] The challenge of the 21st century is to find out what works and scale it up.” Bill Clinton 090131-AfrikaCamp-Social Franchising-Final

Thank you for your attention. Contact: vhackl@gmail.com 090131-AfrikaCamp-Social Franchising-Final

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