Replication and franchising
One way of growing a project or organisation is to replicate it
or create franchises. The majority of hard work and investment in
setting up a project takes place at the beginning. That is when
organisational resources (both time and money) are devoted to
making a project succeed. Once a project is working well and is
achieving outcomes on a sustainable basis it can be useful to think
about replicating the model e.g. repeating the project elsewhere
for example by opening a second service in a neighbouring borough
or by franchising the model - allowing another organisation to run
a similar service elsewhere. The advantages of replication and
franchising are great both in terms of creating income for the
organisation and in maximising outcomes for children and young
people.
Franchise models have been very successful commercially and
there is a great deal of scope for voluntary sector organisations
to explore franchise. This can either be by franchising an existing
model e.g. the Fifteen social enterprise or perhaps even by taking
on a commercial franchise.
As more charities consider running their own businesses in order
to establish quality job-training opportunities for their clients,
encourage community development, and generate revenue to support
their other programs, an increasing number are attracted to
franchises. Such businesses provide name recognition, established
operating procedures, and built-in support and training. At the
same time, franchise companies - which long have preferred to award
franchises to individual entrepreneurs - are slowly starting to see
non-profit organisations as a new pool of potential franchise
operators that can help them reach urban markets and new
customers.
Useful links
SocialFirms UK – examples
of replications currently available
CREATE - Franchise suitability matrix
CREATE has developed
tools that enable businesses, individuals and social enterprises or
firms to assess the pros and cons of using franchising, licensing
or other similar structured business formats.
CREATE – other information on
franchising
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