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Take a look at some of the existing Social Franchises and what they do.


Social franchisising - financing its growth

Social franchising has proven it can speed up the growth of the social economy. But it is a new technique and little is known about the barriers to its development, growth and financing

We have just released our second research paper setting out our findings from exploratory research with social franchisors and finance agencies. We found that social franchises have three stages of development. Stage One Pilot – the setting up of the founding social enterprise. Stage 2 Development – the setting up of the social franchise, development of the social franchising mechanisms, like the social franchise agreement, and the setting up of the first independent social franchise. Stage Three Expansion – all the franchise systems have been set up and proven resulting in the rapid growth of the social franchise.

Our research found that Stage Two is the key bottleneck for the establishment of a social franchise. Here it is difficult to obtain grants, as in Stage One but the social franchise is still not easy to fund through loan or equity finance as it will be when it achieves Stage Three. The paper sets out finance strategies used by social franchises and proposals to overcome the Stage Two bottleneck. To find out more, click here to read the full research paper.