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Social franchising

Social franchising helps a social enterprise grow. It lets others copy its model in new places. It is similar to commercial franchising, where a proven business model (like a café or retail store) is licensed to others. In social franchising, the focus is not just on financial success, but on achieving social or environmental impact at scale.

In a social franchise model, the franchisor provides a proven model, brand, training, systems, and ongoing support. The local partner, or franchisee, runs their own business using this model. They also commit to shared values, quality standards, and impact goals.

In Australia’s social enterprise sector, social franchising helps successful ideas expand faster and more reliably. This includes reaching rural and regional communities. It allows impact to expand without relying only on centralised control or large amounts of capital. For social enterprises in employment, education, health, or community services, social franchising can improve quality. It keeps the model safe and helps it stay sustainable, while also focusing on its purpose.

Two circular portraits on a light grey background with abstract curved shapes and teal arrows. Christina Chun, Chief Product Officer, is pictured smiling at the top left against a coral background. Kate Kutty, Engagement Lead, is pictured at the bottom right against a cream background with an orange circular border.

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Social franchising | Understorey