Social Franchising – Scaling social impact
AfrikaCamp, 31.1.2009
Valerie Hackl

„McDonaldisation“ of social sector –
Can this work?
2
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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

An actual CFWshop
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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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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

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

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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Traditional franchising as starting point…
Marketing & Image
Business concept
Brand
Product
Control mechanisms
Franchisee Service
Franchisor Customer
Concept development
Price
Franchise fee
Information
9
090131-AfrikaCamp-Social Franchising-Final

… 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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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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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
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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“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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Thank you for your attention.
Contact: vhackl@gmail.com
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