By definition, Social Franchising refers to implication of commercial franchising principles to promote social benefit instead of private profit. The heart and soul of social franchising is turning of a social change project into a franchise.
Social franchising model is applicable to both NGOs and social enterprises. In fact, these organizations enjoy a higher success and innovation becomes possible when a network is established under one, common brand. When semi-independent franchises work together, their capacity grows far greater than the sum of their individual capabilities.
How Social Franchises Work?
In many cases, social franchising is where an independent body – an NGO, governmental body or a private company – provides an independent operator with an opportunity to become a part of franchising network to provide specific services over a particular region according to the franchisor’s direction.
Other implication is to enable creation of more franchise opportunities for women employment via joint working and knowledge transfer. USAID provides the same opportunity for sectors to grow and offer benefit to society and people at disadvantage.
As soon as these operators become a part of this network, they are given professional training and the right to employ previous proven incentives including: use of brand ads, proprietary equipment, supplies, help & support and professional advice in addition to enhanced value and greater customer volume.
USAID is providing franchise opportunities for women of Sri Lanka women, which is part of same concept. However, franchisees must honor the requirements and must:
- · Provide socially beneficial services
- · Meet standards of quality and price
- · Undergo mandatory education
- · Subject the outlet to quality assurance
- · Report service
- · Report statistics
- · Pay agreed fee
What Primary Purpose do Social Franchises serve?
Social franchises understand how local ownership can positively affect dynamics of organization by economies of scale and responsiveness to local needs. Prime purpose of social franchises includes the following:
- · Base necessities
- · Health services
- · Pharmaceutical sales of important medicine
- · Testing and counseling of HIV
- · Reproductive health services
Difference between Traditional franchising and USAID Social Franchising
Social franchising worldwide differs from traditional franchising. Some key aspects where USAID and other social enterprises differ from traditional enterprises are given in following lines:
In commercial or traditional franchising, the franchisor confers rights and obligations on a party. The party obtaining rights is known as franchisee. The rights also give rise to duties, which include operation of business franchise according to the franchisor’s directives. The benefits reaped by franchisee in return for fee are great in numbers. The franchisee can enjoy franchisor’s name, its trademark, training from franchisor, and the right to use trade mark business methods and techniques along with others.
Though commercial franchising and social franchising have their similarities, there also share differences. The main difference is that social franchises like USAID are not to garner profits. They are operating to enable people to share ideas and work together. The driving characteristic is a social goal instead of profit. Nevertheless, profit is a crucial aspect of operations as it is instrumental in survival and meeting of objectives.
Social franchises also operate differently among themselves. While some operate with a clear and defined format, others might not.
Purpose of USAID Social Franchising
USAID social franchising program for women is determined to provide franchising opportunities for women in Sri Lanka – a clear and well-defined program to empower and help Sri lankan women entrepreneurs in small business ideas and opportunities.
What does the USAID Social Franchising serve?
USAID social franchising opportunities for women in general serves multiple purposes.
- Consult with women in social, public and private sectors
- Transfer knowledge, replicate.