guest lecture for students on the MA in Social Entrepreneurship programme at Goldsmiths University to introduce, and begin to explore, the growth strategy of social franchising

1. Social Franchising
(the emperors new clothes?)
www.adrianashton.co.uk

2. Coming up
• Franchising vs social franchising
• Models of social franchising
• Policy and market drivers
• What the research days…
• Personal reflections from having been involved in it for 20 years…
• But what do you think..?

3. But first – why me?
• Directly involved in social franchising since 1999 (individual
franchises, national programmes, research initiatives)
• Various paperweights and door stops in recognition of my activities in
the sector and doing enterprise support
• Develop and deliver social enterprise courses with universities
• Reputations (usually positive) with national sector bodies

4. franchising

5. social franchising

6. Some unexpected twists…
“Wholefood Planet” (with Social Firms UK)

7. Different models to do the same thing
Uncontrolled
diffusion
Promotion Licensing Federations Franchising Absorption/tak
e over
Organisational
growth
Control of
decision
making
None Low/med Med High High Low High
Control of
direction
None Low/med Med High High Low High
Standardisatio
n of content
Low Low/med Med High High Unknown High
Importance of
IP
Low Med High Med High Unknown High
Defined
financial
relationships
Low Low High Med High High High
Resources/capi
tal required
Low Low Low/med Med Med/high Med High
Degree of local
ownership
High High Med High Low Low Low
Crossing
national
boundaries
Feasible Feasible Easy Hard Hard Feasible Hard

8. Why the excitement?
• Increasingly explicit overarching policy narrative from state and sector since 2001 to generate and evidence
growth
• Sector-led programmes (a selection):
• CAN Beanstalk - 2005
• Social Firms UK - 2005
• Association of Charitable Foundations - 2006
• European Social Franchising Network (Inspire NE) - 2008
• Church Urban Fund - 2010
• Unltd - 2010
• Social Enterprise Coalition - 2011
• Shaftsbury Partnership – 2011
• Clore Social Leadership Foundation - 2012
• Unicorn Grocery – 2012
• International Centre for Social Franchising - 2013
• School for Social Entrepreneurs - 2018

9. The research says…
• It’s hard – you need a proven business model
• It’s hard – traditional franchising investment doesn’t work
• It’s hard – local circumstances have more implications than might be
expected
• It’s hard – reputation risk disproportionally increases
• It can open up new market opportunities
• It can amplify impact
• It reduces risk associated with developing new ideas

10. My thoughts on it all?
• Part of wider rediscover of historical models re-imagined for 21st
century
• crowdfunding = 19th century community shares
• Social franchising = open source model of co-ops from end of 18th century
• most social enterprises are location specific – franchises need to be
mass consumer market focussed
• Policy drive has meant social franchises being ‘mis-sold’ (just like CIC
form is…)
• It’s a valid option to consider, but like crowdfunding for charities, isn’t
appropriate for the majority of the sector

11. References and further reading…
• Grow a Grocery – a guide to starting and growing a wholefood co-operative; Unicorn Grocery; 2010
• Social Franchising: scaling up for success; The Shaftesbury Partnership; 2011
• Social Franchising – Innovation and the power of old ideas; Clore Social Leadership Programme; 2012
• Directory of ready-to-go Church community projects; Church Urban Fund; 2010
• Identifying replicable healthcare delivery models with significant social benefit; International Centre for Social Franchising; 2013
• Growing social enterprise: research into social replication; Social Enterprise Coalition; 2010
• Can franchising and replication growth the number of social firms? (conference presentation); Social Firms UK; 2005
• The Franchise Co-operative Handbook; the International Franchise Association; 2006
• Replication of a community sustainable enterprise hub by the creation of a social franchise model; Bricks and Bread; 2011
• Beanstalk project newsletters; Community Action Network; 2006
• Replicating Successful Voluntary Sector Projects; Association of Charitable Foundations; 2003
• Standardisation versus Adaptation: geographical pressures to deviate from Franchise Formats; Cox and Mason; Service Industries Journal vol27 no8 2007
• Going to Scale – the challenge of replicating social programmes; Stanford Social Innovation Review; Spring 2003
• An enterprising failure – why a promising social franchise collapsed; Standard Social Innovation Review; Spring 2006
• Presentations from 2011 European Social Franchising conference
• Knowledge is not enough: organisational attention and replication strategies; Brock and Yaniv, Service Industries Journal vol27 no7, 2007
• International Social Franchising – a new pathway to independence for INGOs; Community Wealth Ventures Inc; 2009
• Opposites Attract – how social franchising can speed up the growth of social enterprise; Inspire; 2008
• SIPS Conference Book – Transnational Partnership Sustainable Business Concepts for the Social Economy; SIPS; 2007
• Streams of Hope – Social franchising: a new path to wealth for nonprofits; Community Wealth Ventures Inc and Social Franchise Ventures Initiative; 2008