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Social franchising Its impact and ESFN

Keith Richardson

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Social Franchising defined

• The social franchisor• A social franchisee• A common brand• Interchange of knowledge

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Social Franchising is also

• A federation• A market orientated growth

mechanism • An form of self organisation

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Our inspiration

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Activities

• A directory of social franchises• Assessing impact • Development of website• Workshops with social franchises

UK - 36National Community Wood Recycling MyBnk Bikeworks Riverford OrganicsEx-cell solutionsEthical PropertyPrincess Royal Trust for Carers ParticipleBig IssueFoster Care CooperativeMy Time CICBio Regional The Big Lemon Household Energy Services School for Social EntreprenuersBrighter FuturesGreen WorksFruit to SuitHealth ExchangeFuture CleanFriends of Farmers MarketsCare and Share AssociatesGreen GymLaw for AllPack-It

Big Green ValleyAquamacsH2oPESit N B Fit CICLand SocietyEntrepreneursity LimitedSocial Enterprise Mark CompanyZero Waste in a BoxEco KidsSocial Support Projects Italy - 5Consorzio Pan Atlantide Comunita SolidaliLe MatWelfare Italia Sweden - 3Friskis & SvettisVilla Vagen UtLe Mat Germany - 5

Dialogue in the DarkBalu und duNotinselMiniphaenomentaLifeguide

Denmark -1Specialisterne France - 3AETES EnvironnmentEnergies Alternatives Optimom Belgium -5De KringwinkelEnergy SaversGroep INTRO FietsenwerkAge d’Or Services Lithuania -1Reda Sutkuviene 

Netherlands-1Fietspunt Greece -1Peiran Poland -1Barka

Portugal -1Empowerment Gateway

Eire -1Fledglings Early Years Education & Care

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The Research• 19 social franchises• 4 aspiring social franchises• UK 15, Belgium 3 , Sweden2 , Italy 1,

Lithuania 1, Germany 1, France 1

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What do they do?Activities of social franchises

Health & Social care, 5

Reuse/Recyling, 4

Education, 3Leisure & Tourism, 2

Energy, 3

Food , 2

Transport, 2

Offender Management, 2

Cleaning, 1

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The scale of social franchises

• 6,766 employees• 65% employees are disadvantaged • Turnover of €200 million.• 324 social franchisees

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Developing a social franchise

• 40% social franchisors established since 2006

• 60% developed social franchise without external advice/support

• 76% received external funding• 57% development funded by ESF

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Cap Markt growth

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Growth in practice

“It has taken us 10 years to set up a community based professional mental health service that is able to win contracts from public sector commissioners and meet professional standards. This has been replicated in a format that with training can enable qualified franchisees 12 months to get fully operational and set up.”

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MotivationReasons for setting up a social franchise

Empowerment, 6

Employment for disadvantaged people, 9

To grow enterproise, 9

Development of business, 4

Social purpose, 5

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Motivation“To create the maximum number of paid jobs for people with disabilities possible.”

“To be able to negotiate as an equal partner with the government/railway company - gathering and sharing know-how between the different companies - shared product-development.”

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Support neededSupport needed

Business Planning Advice, 7

Legal Advice, 4

Access to finance, 12

Marketing & Promotion, 11

Operational advice, 8

Networking and peer support,

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Genoa Expert seminar• 15 participants• 12 social franchises

Key success factors• Proven & replicable business

model• Sustainability• Rooted • Adequately Resourced • Clear mission • Mutuality

Future needs• Need to work together• Promote proven success models• Share best practice• Benchmark• Facilitate rapid growth and

employment of disadvantaged people

Next steps• Conference• Finance seminar• Final report