According to Acumen Fund, microfranchising is "a development tool that leverages the basic concepts of traditional franchising, but it is especially focused on creating opportunities for the world’s poorest people to own and manage their own businesses.
In developing countries, microfranchising attempts to solve the dilemma of the "necessity entrepreneur" by providing job opportunities to those who lack fundamental entrepreneurial skills.
"[4] Advocates of microfranchising include Jason Fairbourne, Stephen W. Gibson, W. Gibb Dyer and other faculty and students at the Brigham Young University's Marriott School of Management, who have also been involved in microcredit, microfinance, and other microenterprise development activities.
Such companies have chosen to train franchisees in areas of business including leadership, entrepreneurship, marketing, sales, customer service, and finance.
Examples of microfranchises include BRAC's community promoters (in health, agriculture, legal services and other areas), Nuru Energy Entrepreneurs (East Africa and India), Village Phone Program by Grameenphone, Living Goods (Uganda), and Fan Milk Limited (Ghana).