Social Franchising at #IFA2018

Many IFA members have expressed interest in social franchising, the application of the franchise model towards humanitarian ends.  IFA's 2018 Convention offers a number of opportunities to learn about social franchising and begin to engage.

1. IFA Franchising in the Social Sector Task Force Meeting
10 am to Noon, Saturday, February 10th
 Phoenix Convention Center Room North 227-B-C

2. How Social Franchises Are Addressing Complex Problems in the Developing World
 8:30 to 10 am, Sunday, February 11th
Phoenix Convention Center Room North 123
This interactive panel and audience discussion will examine commercial franchise approaches to complex issues in     the developing world.  The issues faced by Ohio State University's Global Water Institute in reestablishing well water, local delivery and seasonality issues in Tanzania are unique and difficult.  Franchising instead of a classic NGO model was chosen because of the promise of consistent quality and sustainability.  The structure of the Global Water Institute (GWI) franchise offering and approach will be examined.  In this session, the audience, based on their experience in commercial franchising will be challenged to look at the issues GWI is facing and recommend changes to their adopted strategy.
Moderator: Michael Seid, CFE, Managing Partner, MSA Worldwide
Speaker: Marty Kress, Executive Director, Global Water Institute, The Ohio State University
Speaker: Mark Vanase, Director, Field Operations, ServiceMaster Restore

3. Business Solutions Roundtable- Social Franchising: Serving the Base of the Pyramid
8:00 to 9:45 am, Tuesday, February 13th
Phoenix Convention Center, Room West 301 B-D
Table 27
Facilitators: Michael Seid, CFE, CFW Shops & Ferenz Feher, Feher & Feher

Check out your personal agenda and register today at https://www.franchise.org/convention.

Visit the IFA Social Sector Task Force's site to learn more: http://www.socialsectorfranchising.org/about.html

What is social franchising?

Commercial franchising and social franchising are variations on the same basic strategy for expanding a business. They differ in just two ways:
» The type and purpose of the products and services offered by the business being franchised
» The profile of the target customer
Social franchised businesses, like those operated by traditional NGOs (nongovernmental organizations) are primarily developed to offer products and services that people need - not simply want - such as healthcare, safe drinking water, sanitation, clean energy, and education. These are social enterprises whose creation is targeted to achieve goals such as those set in the 2030 Sustainable Development Goals established by the United Nations (https://sustainabledevelopment.un.org/sdgs).

With the exception of the different profile of the targeted consumer, social sector franchises and commercial franchises are quite similar. In contrast to the customer who walks into a McDonald's or a Marriott, the consumer targeted by social franchise systems often can't afford to pay the entire cost of the goods and services they need. Because of that, social franchisors are usually unable to generate the royalty and other revenue and fees necessary to independently sustain the overall business.

Being independently sustainable is the hallmark of commercial franchising. That is the significant difference between social and commercial franchisors.
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