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What are the emerging trends and best practices in social franchising?

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Social franchising is a way of scaling up social enterprises that have a proven impact and a sustainable business model. It involves replicating and adapting a successful social enterprise in different locations, using a network of independent franchisees who share the same vision and values. But what are the emerging trends and best practices in social franchising, and how can social franchisors and franchisees work together to achieve their social goals? In this article, we will explore some of the key aspects of social franchising, such as:

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1 Choosing the right model

There are different types of social franchising models, depending on the level of control, support, and standardization that the franchisor and franchisee want. For example, some models are more prescriptive and require the franchisee to follow a strict set of rules and procedures, while others are more flexible and allow the franchisee to customize the service or product to the local context. Some models also involve more collaboration and co-creation between the franchisor and franchisee, while others are more hierarchical and transactional. Choosing the right model depends on factors such as the nature of the social problem, the complexity of the solution, the availability of resources, and the degree of trust and alignment between the parties.

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Chris Horne

I help leaders realise business goals & ambitions, to create sustainable success for all involved
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In my experience, some people over-complicate things by saying this is a unique kind of franchising and therefore we cannot look at more profit orientated models of franchising. However, fundamentally, if the business model is right for delivering the solution then much of the challenges come down to relationships and can people work with the stakeholders on the other side of the franchise relationship. We know people join businesses and leave managers. Similar happens in franchising, but there is usually more invested. The other issue I have encountered is the franchisor pack, and how good the processes, detail and problem solving options are. Make sure the details are worked out, whatever the model, to give best chance of success.

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2 Building a strong brand

One of the benefits of social franchising is that it can leverage the reputation and recognition of an established brand, which can help attract customers, partners, funders, and talent. However, building a strong brand also requires a consistent and coherent communication strategy, as well as a clear value proposition and impact story. The franchisor and franchisee need to agree on the core elements of the brand identity, such as the vision, mission, values, logo, slogan, and tone of voice, and ensure that they are communicated effectively and consistently across all channels and touchpoints. They also need to monitor and evaluate the brand performance and perception, and address any gaps or issues that may arise.

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3 Managing the relationship

Another key aspect of social franchising is the relationship between the franchisor and franchisee, which can be challenging and complex. The franchisor and franchisee need to balance their autonomy and interdependence, as well as their social and commercial interests. They need to establish clear roles and responsibilities, as well as mutual expectations and obligations. They also need to communicate regularly and transparently, and provide feedback and support to each other. Moreover, they need to foster a culture of trust, respect, and learning, and resolve any conflicts or disputes constructively.

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Ian McLintock

Charity Excellence founder, opens mouth to change feet, builds things
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With any type of agreement, I’ve found the vast majority of issues arise from lack of understanding, so (for me) real clarity around aims and responsibilities is essential. A franchise is intended to protect something, either your brand - or the outputs. With Charity Excellence the output will be a single UK charity data network, so we have to be tight on how data is collected and used, in order to protect everyone using it. I think the aim should be the minimum of restrictions required, but these are deliverables, not aspirations.

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4 Measuring the impact

One of the main motivations for social franchising is to increase the social impact of a proven solution, by reaching more people and places with quality and efficiency. However, measuring the impact of social franchising can be challenging, as it involves collecting and analyzing data from multiple sources and levels, and attributing the outcomes and changes to the franchising intervention. The franchisor and franchisee need to agree on the impact goals and indicators, as well as the methods and tools for data collection and reporting. They also need to ensure that the data is reliable, relevant, and timely, and that it is used for learning and improvement, as well as for accountability and communication.

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5 Adapting to the context

One of the challenges of social franchising is that it involves replicating and adapting a solution that was developed in a specific context, to different contexts that may have different needs, preferences, opportunities, and constraints. The franchisor and franchisee need to conduct a thorough market analysis and stakeholder engagement, to understand the local context and tailor the solution accordingly. They also need to be flexible and responsive to the changing environment, and incorporate feedback and innovations from the franchisees and other sources. Additionally, they need to comply with the legal and regulatory requirements of the different locations, and manage the risks and uncertainties that may arise.

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What are the emerging trends and best practices in social franchising?

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1 Choosing the right model

2 Building a strong brand

3 Managing the relationship

4 Measuring the impact

5 Adapting to the context

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