Social Franchising – Scaling social impact
AfrikaCamp, 31.1.2009
Valerie Hackl
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„McDonaldisation“ of social sector –Can this work?
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An example: CFWshops, www.cfwshops.org
• Lack of access to essential drugs and basic healthcare: ~30.000 children dying each day in the developing world
• ~70% of childhood illness and death: short list of preventable and treatable diseases
• Launched in 2000 by The HealthStore Foundation in Kenya, expansion to Rwanda since 2008
• Branded franchise network of health outlets
• ~70 clinics and drug shops owned and operated by Kenyan nurses and health workers in rural areas
Situation
CFWshops
Improve access to essential drugs, basic healthcare and prevention services for marginalized children and their families in the
developing world
Source: www.cfwshops.org
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An actual CFWshop
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Why replicate?
Point of departure: Proven, scalable social program
• Because the wheel doesn’t need to be reinvented over and over again
• Because more people in need should be grantedaccess to social products and services
• Because scale economies must be exploited to makeexisting programs more efficient
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Various concepts for replication
Dissemination Cooperation(E.g. Social Franchising)
Subsidiary/ branches
Resource requirement
Control
Speed of growth
Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202.
090131-AfrikaCamp-Social Franchising-Final
Various concepts for replication
Dissemination Cooperation(E.g. Social
Franchising)
Subsidiary/ branches
Resource requirement
Control
Speed of growth
Source: Schöning, M. (2007), Multiplikation durch Franchising. In: Achleitner, A.-K. et al. (Hg.), Finanzierung von Sozialunternehmern, Stuttgart: Schäffer-Poeschel Verlag, 192-202.
090131-AfrikaCamp-Social Franchising-Final
Social Franchising
• Fewer resources required compared to branches
• Quick expansion possible
• High degree of control
• Self-learning system
• Local embeddedness leading to access to localresources
• Danger of „mission drift“
• Risk of opportunisticbehavior
• Difficult selection of franchisees
Advantages Disadvantages
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Traditional franchising as starting point…
Business concept
Franchisor Franchisee Customer
Brand
Control mechanisms
Concept development
Franchise fee
Information
Product
Service
Price
Marketing & Image
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Social concept
… for Social Franchising
Franchisor(e.g. socialentrepre-
neur)
Franchisee(e.g. NPO)
Customerand/or
beneficiary
Brand
Control mechanisms
Concept development
Franchise fee
Information
Product
Service
Price
Marketing & Image
Social sector
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CFWshops
How the CFWshop franchise is set up
Health-Store
Founda-tion
Nurses, health
workers
Families in rural areas
CFWshops brand
Control mechanisms
Concept development
Franchise fee
Information
Diagnosis
Prevention
Price
Marketing & Image
Health sector
Treatment
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The CFWshop system in a bit more detail
• Design & equipment of CFWshops are very basic and standardized
• Central sourcing of quality drugs
• Three-week training program into the CFWshops franchise system for all future franchisees, ongoing training lateron
• Investment per franchise outlet:
-~USD 1.200 (USD 600 for inventory, USD 600 for development costs and initial training)
-Franchisee carries cost for his/her shop: USD 200 upfront, the rest can be financed by loan
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Important principles
• Scalability: Application of one social concept to many locations
• Standardization: Internal principles and guidelines to ensure proper diagnoses and treatments
• Economies of scale: Increasing cost efficiency as network grows (in areas such as advertising, distribution, information systems, risk management, training, and supplies)
• VisionSpring: Distribution of reading glasses for developingcountries
• Dialogue in the Dark: Exhibitionto discover the world of the blind
• Science-Lab: Science courses for children
• Grameen Village Phones
• …
Three principles inherent to CFWshops… …and other social franchises
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“Nearly every problem has been solved by someone, somewhere. […] The challenge of the 21st century is to find out what works and scale it up.”
Bill Clinton