Social franchising applies the model of commercial franchising to scale social impact programs. It allows proven social programs to be replicated across many locations in a standardized way to increase access. An example is CFWshops, a network of over 70 clinics and drug shops in Kenya and Rwanda run by local health workers. CFWshops provides access to essential drugs and basic healthcare for marginalized communities using a standardized model with central sourcing of supplies and training of franchisees. Social franchising offers advantages like lower costs and faster expansion compared to other models, while maintaining control and local embeddedness.

1. Social Franchising – Scaling social impact
AfrikaCamp, 31.1.2009
Valerie Hackl

2. „McDonaldisation“ of social sector –
Can this work?
2
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3. An example: CFWshops, www.cfwshops.org
Improve access to essential drugs, basic healthcare and prevention
services for marginalized children and their families in the
developing world
• Lack of access to essential drugs and basic
Situation
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
CFWshops
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
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Source: www.cfwshops.org

4. An actual CFWshop
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5. Why replicate?
• Because the wheel doesn’t need to be reinvented
over and over again
• Because more people in need should be granted
access to social products and services
• Because scale economies must be exploited to make
existing programs more efficient
Point of departure: Proven, scalable social program
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6. Various concepts for replication
Subsidiary/
Cooperation
Dissemination
branches
(E.g. Social
Franchising)
Resource requirement
Speed of growth
Control
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

7. Various concepts for replication
Subsidiary/
Cooperation
Dissemination
branches
(E.g. Social
Franchising)
Resource requirement
Speed of growth
Control
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

8. Social Franchising
Advantages Disadvantages
• Fewer resources required • Danger of „mission drift“
compared to branches
• Risk of opportunistic
• Quick expansion possible behavior
• High degree of control • Difficult selection of
franchisees
• Self-learning system
• Local embeddedness
leading to access to local
resources
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9. Traditional franchising as starting point…
Marketing & Image
Business concept
Brand
Product
Control mechanisms
Franchisee Service
Franchisor Customer
Concept development
Price
Franchise fee
Information
9
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10. … for Social Franchising
Social sector
Marketing & Image
Social concept
Brand
Product
Franchisor Control mechanisms Customer
(e.g. social Franchisee Service
and/or
entrepre- (e.g. NPO)
Concept development
beneficiary
neur)
Price
Franchise fee
Information
10
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11. How the CFWshop franchise is set up
Health sector
Marketing & Image
CFWshops
Diagnosis
CFWshops brand
Treatment
Health- Control mechanisms Nurses,
Store Families in
Prevention
health
Founda- rural areas
Concept development
workers
tion
Price
Franchise fee
Information
11
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12. 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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13. Important principles
Three principles inherent to
…and other social franchises
CFWshops…
• Scalability: Application of one • VisionSpring: Distribution of
social concept to many locations reading glasses for developing
countries
• Standardization: Internal
principles and guidelines to ensure • Dialogue in the Dark: Exhibition
proper diagnoses and treatments to discover the world of the blind
• Economies of scale: Increasing • Science-Lab: Science courses for
cost efficiency as network grows (in children
areas such as advertising,
distribution, information systems, • Grameen Village Phones
risk management, training, and
supplies) •…
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14. “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
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15. Thank you for your attention.
Contact: vhackl@gmail.com
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