Social Sector Franchising

WHAT IS SOCIAL SECTOR FRANCHISING?

By Jill Abrahamsen

It takes a village to help a village. At least that’s the thinking behind the Social Sector Franchising Initiative, a collaboration between the University of New Hampshire’s (UNH) Center for Social Innovation & Enterprise and the International Franchise Association’s Social Sector Task Force. Here, a group of social entrepreneurs, educators, students, and seasoned franchise professionals join forces for a greater good. In a nutshell, commercial franchise professionals are contributing their experience, resources, and time to help communities in need. Take the Jibu franchise ( www.jibuco.com ), for example. Founded by Galen and Randy Welch in 2012, Jibu uses a franchise model to bring safe drinking water to millions of families in Africa. The company found a way to purify, bottle, and sell water at a price that is affordable for the urban poor—significantly less than bottled water—yet still profitable for franchisees.

Jibu franchisees make money aiding communities and generating hundreds of new jobs. In 2016, the company was accepted into UNH’s Social Sector Franchising Accelerator program, which helps companies refine their systems with help on franchisee selection, motivation and engagement, as well as teaching the skills needed to build a strong sales culture in a developing country. It also exposes university students to the world of franchising through participation as student researchers and assistants.

Working in conjunction with the International Franchise Association (IFA), UNH paired Jibu with Peter Holt, CEO of Joint Chiropractic, a member of the IFA’s

Social Sector Task Force. Drawing on a wealth of franchising experience, Holt was able to advise the company on issues he had worked through before. “Jibu faced many of the same problems that most commercial franchises do. There was a direct application from the industry in resolving Jibu’s issues,” he says.

Ilona Drew, the UNH student assigned to Jibu, worked directly with Holt and kept a monthly log on Jibu’s progress. She also did ground work in Rwanda. “It was a completely different world and such an amazing experience,” she says.

Mercado Fresco is another social sector franchise ( www.supplyhope.org ) in UNH’s Accelerator program. Making quality, affordable food accessible to low-income communities in Nicaragua, Mercado Fresco sells fresh dairy, vegetables, bread, rice, beans, and traditional steamed corncakes known as nacatamales.

Mercado Fresco stores are located in the homes of franchise operators. So franchisees are taught everything from proper food handling, customer service, and money management. Franchisees are given equipment, including food baskets, signs,

and calculators. Though it costs $1,000 to open one store, within eight months, the average franchisee’s monthly earnings exceed that one-time investment. Mercado Fresco founder Beth Meadows wants to use her 25 years in franchising to help others. “I believe in giving opportunity, not charity. I want to give hard-working, humble, resourceful people a path out of poverty,” she says.

Executive Director of UNH’s Center for Social Innovation & Enterprise, Fiona Wilson, also sees franchising as a model to deliver life-changing products and services, as well as a pathway to small business ownership for low-income people. Every year, UNH holds a “Social Sector Roundtable,” which draws a diverse group of franchise entrepreneurs, commercial franchise experts, impact investors and donors, thought leaders, and scholars. The event helps identify barriers to growth and defines actions that can build the social sector franchising ecosystem across diverse contexts. “Social Sector Franchising is a ‘hand up’ rather than a ‘handout,’ and therefore a sustainable solution to poverty,” Wilson says.

For more information on the Social Sector Franchising Initiative, visit www.unh.edu/social-innovation/ssfi

Mercado Fresco makes quality food accessible to low-income communities in Nicaragua.

Beth Meadows, founder of Mercado Fresco with local children in Nicaragua.

Jibu brings safe drinking water to millions of families in Africa .

University of New Hampshire student Ilona Drew conducting field work in Rwanda.