In the first sense, it refers to a contractual relationship wherein an independent coordinating organization (usually a non-governmental organization, but occasionally a governmental body or private company[2]) offers individual independent operators the ability to join into a franchise network for the provision of selected services over a specified area in accordance with an overall blueprint devised by the franchisor.
[4] Members also gain beneficial spin-off effects such as increased consumer volume and improved reputation due to brand affiliation.
Social franchising provides an opportunity to rapidly grow the sector to the benefit of disadvantaged people and society more generally.
The group recently carried out research into replicable health care models with significant social benefit[8] with GlaxoSmithKline the pharmaceutical company, published in May 2013.
[12][13] By organizing small independent providers into larger units, social franchises can yield returns to scale in investment in physical capital, supply chains, advertising, and worker training and supervision.
[1] Social franchising for health services runs the risk of overly procedural, “cookie cutter” medical provision, overtreatment of disease conditions, and the possibility of fraud if oversight is not present.
The Social Franchise enterprise creates self sustainable economic activity for the franchisees by using the franchise model to provide them with Capacity Building (know-how & training), Access to Market (bulk procurement of standard supplies, network clients, brand) and Access to Credit (benchmarking leading to Bankability).
Franchises have additionally expanded their services from mostly family planning to testing and treatment of malaria, tuberculosis, and HIV / AIDS.