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Social Franchising

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Extending Microfinance: Social Franchising Valerie Hackl, June 20, 2009
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
Microfinance and Social Franchising: Similar but different concepts Bank Beneficiary Microfinance: Social Franchising: Access to capital Bank Beneficiary/ Franchisee Access to capital Social Enterprise/ Franchisor Access to business concept/ know-how
What is Social Franchising? ,[object Object],[object Object],[object Object]
Example: CFWshops, www.cfwshops.org* ,[object Object],[object Object],[object Object],[object Object],[object Object],Situation CFWshops Improve access to essential drugs, basic healthcare and prevention services for marginalized children and their families in the developing world * CFW stands for „Child and Family Wellness“
An actual CFWshop
How the CFWshop franchise is set up CFWshops HealthStore Foundation (Franchisor) Nurses, health workers (Franchisee) Families in rural areas CFWshops brand Control mechanisms Concept development Franchise fee (fixed/month) Information Diagnosis Prevention Price Marketing & Image Health sector Treatment
The CFWshop system in more detail ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advantages of Social Franchising ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Advantages for Social Entrepreneur / Franchisor Advantages for Franchisees
Important principles of Social Franchising ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Three principles inherent to Social Franchising … and other social franchises
Thank you for your attention. Contact: vhackl@gmail.com
Backup
Example: VisionSpring, www.visionspring.org ,[object Object],[object Object],[object Object],[object Object],[object Object],Situation VisionSpring Reduce poverty and generate opportunity in the developing world through the sale of affordable eyeglasses
VisionSpring at work
Structure of VisionSpring Franchisor (VisionSpring headquarters in NYC) … Partner organisation Partner organisation Master-franchisees Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur Franchisees Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur
How the VisionSpring franchise is set up VisionSpring (Franchisor) Partner or-ganisations, individuals (Franchisee) People with poor eyesight VisionSpring brand Control mechanisms Concept development Franchise fee (per glasses sold) Information Diagnosis Affordable price Health sector Eye-glasses Concept/know-how
VisionSpring in more detail ,[object Object],[object Object],[object Object],[object Object],[object Object]
Various concepts for replication Dissemination Cooperation (E.g. Social Franchising) Subsidiary/ branches Resource requirement Control Speed of growth Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202.
Traditional franchising as starting point… Business concept Franchisor Franchisee Customer Brand Control mechanisms Concept development Franchise fee Information Product Service Price Marketing & Image
… for Social Franchising Social concept Franchisor (e.g. social entrepre-neur) Franchisee (e.g. NPO, individual) Customer and/or beneficiary Brand Control mechanisms Concept development Franchise fee Information Product Service Price Marketing & Image Social sector

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Social Franchising

  • 1. Extending Microfinance: Social Franchising Valerie Hackl, June 20, 2009
  • 2.
  • 3. Microfinance and Social Franchising: Similar but different concepts Bank Beneficiary Microfinance: Social Franchising: Access to capital Bank Beneficiary/ Franchisee Access to capital Social Enterprise/ Franchisor Access to business concept/ know-how
  • 4.
  • 5.
  • 7. How the CFWshop franchise is set up CFWshops HealthStore Foundation (Franchisor) Nurses, health workers (Franchisee) Families in rural areas CFWshops brand Control mechanisms Concept development Franchise fee (fixed/month) Information Diagnosis Prevention Price Marketing & Image Health sector Treatment
  • 8.
  • 9.
  • 10.
  • 11. Thank you for your attention. Contact: vhackl@gmail.com
  • 13.
  • 15. Structure of VisionSpring Franchisor (VisionSpring headquarters in NYC) … Partner organisation Partner organisation Master-franchisees Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur Franchisees Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur Einzelperson Einzelperson Einzelperson Einzelperson Vision Entrepreneur
  • 16. How the VisionSpring franchise is set up VisionSpring (Franchisor) Partner or-ganisations, individuals (Franchisee) People with poor eyesight VisionSpring brand Control mechanisms Concept development Franchise fee (per glasses sold) Information Diagnosis Affordable price Health sector Eye-glasses Concept/know-how
  • 17.
  • 18. Various concepts for replication Dissemination Cooperation (E.g. Social Franchising) Subsidiary/ branches Resource requirement Control Speed of growth Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202.
  • 19. Traditional franchising as starting point… Business concept Franchisor Franchisee Customer Brand Control mechanisms Concept development Franchise fee Information Product Service Price Marketing & Image
  • 20. … for Social Franchising Social concept Franchisor (e.g. social entrepre-neur) Franchisee (e.g. NPO, individual) Customer and/or beneficiary Brand Control mechanisms Concept development Franchise fee Information Product Service Price Marketing & Image Social sector