guest lecture for students on the MA in Social Entrepreneurship programme at Goldsmiths University to introduce, and begin to explore, the growth strategy of social franchising
2. Coming up
• Franchising vs social franchising
• Models of social franchising
• Policy and market drivers
• What the research days…
• Personal reflections from having been involved in it for 20 years…
• But what do you think..?
3. But first – why me?
• Directly involved in social franchising since 1999 (individual
franchises, national programmes, research initiatives)
• Various paperweights and door stops in recognition of my activities in
the sector and doing enterprise support
• Develop and deliver social enterprise courses with universities
• Reputations (usually positive) with national sector bodies
7. Different models to do the same thing
Uncontrolled
diffusion
Promotion Licensing Federations Franchising Absorption/tak
e over
Organisational
growth
Control of
decision
making
None Low/med Med High High Low High
Control of
direction
None Low/med Med High High Low High
Standardisatio
n of content
Low Low/med Med High High Unknown High
Importance of
IP
Low Med High Med High Unknown High
Defined
financial
relationships
Low Low High Med High High High
Resources/capi
tal required
Low Low Low/med Med Med/high Med High
Degree of local
ownership
High High Med High Low Low Low
Crossing
national
boundaries
Feasible Feasible Easy Hard Hard Feasible Hard
8. Why the excitement?
• Increasingly explicit overarching policy narrative from state and sector since 2001 to generate and evidence
growth
• Sector-led programmes (a selection):
• CAN Beanstalk - 2005
• Social Firms UK - 2005
• Association of Charitable Foundations - 2006
• European Social Franchising Network (Inspire NE) - 2008
• Church Urban Fund - 2010
• Unltd - 2010
• Social Enterprise Coalition - 2011
• Shaftsbury Partnership – 2011
• Clore Social Leadership Foundation - 2012
• Unicorn Grocery – 2012
• International Centre for Social Franchising - 2013
• School for Social Entrepreneurs - 2018
9. The research says…
• It’s hard – you need a proven business model
• It’s hard – traditional franchising investment doesn’t work
• It’s hard – local circumstances have more implications than might be
expected
• It’s hard – reputation risk disproportionally increases
• It can open up new market opportunities
• It can amplify impact
• It reduces risk associated with developing new ideas
10. My thoughts on it all?
• Part of wider rediscover of historical models re-imagined for 21st
century
• crowdfunding = 19th century community shares
• Social franchising = open source model of co-ops from end of 18th century
• most social enterprises are location specific – franchises need to be
mass consumer market focussed
• Policy drive has meant social franchises being ‘mis-sold’ (just like CIC
form is…)
• It’s a valid option to consider, but like crowdfunding for charities, isn’t
appropriate for the majority of the sector
11. References and further reading…
• Grow a Grocery – a guide to starting and growing a wholefood co-operative; Unicorn Grocery; 2010
• Social Franchising: scaling up for success; The Shaftesbury Partnership; 2011
• Social Franchising – Innovation and the power of old ideas; Clore Social Leadership Programme; 2012
• Directory of ready-to-go Church community projects; Church Urban Fund; 2010
• Identifying replicable healthcare delivery models with significant social benefit; International Centre for Social Franchising; 2013
• Growing social enterprise: research into social replication; Social Enterprise Coalition; 2010
• Can franchising and replication growth the number of social firms? (conference presentation); Social Firms UK; 2005
• The Franchise Co-operative Handbook; the International Franchise Association; 2006
• Replication of a community sustainable enterprise hub by the creation of a social franchise model; Bricks and Bread; 2011
• Beanstalk project newsletters; Community Action Network; 2006
• Replicating Successful Voluntary Sector Projects; Association of Charitable Foundations; 2003
• Standardisation versus Adaptation: geographical pressures to deviate from Franchise Formats; Cox and Mason; Service Industries Journal vol27 no8 2007
• Going to Scale – the challenge of replicating social programmes; Stanford Social Innovation Review; Spring 2003
• An enterprising failure – why a promising social franchise collapsed; Standard Social Innovation Review; Spring 2006
• Presentations from 2011 European Social Franchising conference
• Knowledge is not enough: organisational attention and replication strategies; Brock and Yaniv, Service Industries Journal vol27 no7, 2007
• International Social Franchising – a new pathway to independence for INGOs; Community Wealth Ventures Inc; 2009
• Opposites Attract – how social franchising can speed up the growth of social enterprise; Inspire; 2008
• SIPS Conference Book – Transnational Partnership Sustainable Business Concepts for the Social Economy; SIPS; 2007
• Streams of Hope – Social franchising: a new path to wealth for nonprofits; Community Wealth Ventures Inc and Social Franchise Ventures Initiative; 2008