Share

Sector should learn from McDonald's, says report

Sector should learn from McDonald's, says report
News

Sector should learn from McDonald's, says report

Finance | Kirsty Weakley | 7 Nov 2012

To avoid “continual reinvention of the wheel” charities looking to solve a particular problem should consider looking at what has already been done, and consider a franchise to scale up an existing project – argues Dan Berelowitz.

Berelowitz today published the report Social Franchising – innovation and the power of old ideas. The research was conducted as part of his Clore Social Fellowship and part way through he co-founded a new organisation – the International Centre for Social Franchising.

In the report he explains: “So often time and money is poured into developing new programmes to meet social need, when so often this work has already been done and could simply be copied or adapted.”

He concludes that: “The strength of the franchising model for the social sector lies chiefly in the fact that it is a good way of growing a socially and/or environmentally beneficial idea in a context where resources are scarce.”

The research is focused on a comparison of two success stories - commercial franchise McDonald’s and social franchise the Trussell Trust Foodbank – to see what lessons could be learned for the wider social sector.

These lessons were:

  • Design for scale – make sure it easy for others to replicate the processes and systems 
  • Choose franchisees carefully
  • Develop you people
  • Test the business model to make sure it is replicable
  • Continue to learn and improve the offer to franchisees
  • Be three steps ahead of the franchisee
  • Use networks to maintain quality and foster innovation
  • Create freedom in the framework so that the business model can be adapted to the local situation
  • Plan for sustainability – the financial model needs to generate enough for the central organisation to provide support to franchisees.
  • Understand and adapt to markets
  • Build the brand

Berelowitz also identified 11 key replicable elements to consider when developing a franchise model:

  1. Vision
  2. Idea
  3. Knowledge
  4. Process
  5. Brand
  6. Networks
  7. Training
  8. Health and safety
  9. Business plans
  10. Monitoring and evaluation systems
  11. IT systems and website

Challenges

Berelowitz also identified key challenges to social franchising including: “The fact that funders like funding new ideas which means that social organisations are obliged to innovate even when there are proven methods that work.”

Also included in challenges is difficulty finding finance to start the franchise and managing tensions between the central organisation and franchisees.

The full report can be viewed here.

 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Age UK spends £1.8m in latest round of redundancies

21 Oct 2014

Age UK spent £1.81m on 120 redundancies in 2014, on top of £1.17m last year, as part of a review of...

Stand Up To Cancer raises over £14.5m

21 Oct 2014

This weekend's Stand Up To Cancer event has raised over £14.5m so far, and that figure is continuing...

Charities 'must continue to fight for the right to influence policy'

20 Oct 2014

Civil society organisations must not give up the fight to influence policy and governments, the international...

Demonstrate effectiveness or risk losing public trust, charities told

24 Oct 2014

Charities must demonstrate their effectiveness better to the public or face losing trust, David McCullough,...

Volunteers no longer happy to 'do what they are told', says report

24 Oct 2014

Volunteers now expect more from their experience and charities must do more to recruit and retain them,...

Relationship between government and charity 'has lost its way', says Nandy

23 Oct 2014

There needs to be a rebalancing of the relationship between the voluntary sector and government, shadow...

BeatBullying's technology CIC has not filed accounts with Companies House

22 Oct 2014

A software community interest company set up by the BeatBullying Group in 2012 is almost a year late filing...

Blackbaud launches online giving platform for individual fundraisers

17 Oct 2014

Blackbaud has launched its online giving platform, everydayhero, for fundraisers in the UK in a bid to...

Don't dismiss social media 'slacktivists', fundraisers told at IFC

16 Oct 2014

Charities should embrace and love charity ‘slacktivists’ because social is a great ramp for new donors,...

Join the discussion

 Twitter button

@CSFinance