Social franchising – a method to achieve social goals
These companies apply democracy in such a way that the potential of all employees is developed. Social franchising also builds a community by stimulating contacts among employees in different companies and efforts toward common goals.
Social franchising as a concept has been developed separately in a number of European countries. Examples include the Le Mat hotel chain originating in Italy, Villa Vägen ut! halfway houses for ex-offenders in Sweden, Care and Share Associates/CASA domiciliary care businesses in the UK and the CAP Märkte supermarket chain in Germany. Some of these businesses are quite large: there are more than 50 CAP Market stores and others, such as Le Mat, are operating in more than one European country.
In social franchising, there is a founder, just like in any franchise. The starting point for the franchisor is to spread its ideas, share its experiences, and build a community. The social goals are fundamental, and often include contributing new jobs. Exchange and learning through contacts with those who started earlier are important for the entrepreneurs.
The form varies
The founder builds up a franchise and becomes a franchisor and the form varies. Some are co-operatives but the franchisor always enters into an agreement with the franchisee that regulates rights and obligations. Through involvement, knowledge, and fees, the franchisee contributes to the development of the business concept.
By defining the keys to success and documenting them in manuals, a group of entrepreneurs can gain access to knowledge and experience. Training is a source of support for entrepreneurs. And are designed so they empower the employees. Everyone is involved in the design of the organization.
More social enterprises can be started
Starting a social enterprise is usually difficult. The entrepreneurs have often been without a foothold in the labour market. Knowledge and networks for operating a company may not be the best in all cases. Through social franchising, to put it simply, more social enterprises will be able to start. It provides a support structure for social enterprises.
Handles the competition better
By co-operating in a franchise organization, competitiveness is improved. Joint development and quality efforts offer better prospects.
The members of the ESFN network are social franchising chains, social enterprises that want to start social franchising chains and support organisations:
or send a mail to:
Pernilla Svebo Lindgren
Konsortiet Vägen ut! kooperativen