10. Microfranchising
- The systematization and
replication of
microenterprises
- A business model that gives
individuals the tools they
need to run successful
businesses
- Systematized business
- Training
- Access to products
- Strong branding
11. How it works
Microfranchise system
Microfranchisor
- The microfranchisor provides a
“turn-key” business for a Provide know-how
microfranchisee to operate
Conduct advertising
- The microfranchises is a set of
systems and best practices, that Design a respected brand
if followed, will help the
microfranchisee to be successful Negotiate contracts with suppliers
- This is key to the business being Protect licensed franchise territory
easy enough for non-
entrepreneurial individuals to be Establish effective operational manual
successful
Microfranchisee
12. Benefits: Training
Jason@Fairbourneconsulting.com
14. Franchising
Manufacturing Computer / Internet
Advertising Retail
Automotive
“In the United States alone, franchising accounts
Not just:
for more than $1 trillion in sales annually and
employs more than 8 million people, or 1 in
Financial Services Fast food
every 7 adults.”
Service
Fitness Lodging
Real Estate
Construction
Maintenance
Business Services Restaurants
15. Microfranchise Example
- Leading manufacturer of Ice Cream,
Yogurt and Juice, founded in 1962 in
Ghana, later expanded into Togo, Benin,
Liberia, Mali, Burkina Faso and Nigeria
- 10,000 young men operating
microfranchise
- $72 Million Revenue 2009
- $20 Million Profit 2009
- 95% retention of microfranchisees
- Microfranchisees earning double their
counterparts
16. Microfranchise Innovation Sandbox
Consignment
Microfranchise Direct Selling
Model Microfranchise
Model
Traditional Distribution
Franchising Microfranchise
Model
Conversion
Franchising Multilevel
Microfranchise Microfranchise
Model Model
17. Three year longitudinal study
• Risk was
reduced for the
microfranchisee
• Microfranchisees
earned more
money
• Retention rates
were higher
18. Microfranchising and Microcredit
Microcredit Microfranchising
• Provide access to capital for • Provide turn-key business
microfranchisee opportunity
• Provide access to communities • Provide proven business model
– Trust • Provide links to formal markets
– Research
Results
1. Mitigated loan risk for MFI 4. Microfranchisor has access to capital
needed to scale
2. Opportunity for MFI to move up-market
with mitigated risk 5. Microfranchisor has access to potential
recruits
3. Mitigated start-up risk for
microfranchisee 6. Microfranchisor has access to trust built
by MFIs in challenging markets
19. Meet Fati John
When we met her, she:
• Earned $2/day
• Was illiterate
• Had 4 children unable to go to school
• Worked 16 hour days
Becoming a microfranchisee changed
her life.
• Today she: Earns $20+/day selling
variety of products in rural villages
• Is paying to learn English
• Can afford to send her children to
school
• Works 12 hour days
• Is self-confident and self-reliant