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Re: Franchise as SE

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  • Aparna Katre
    I would like to echo Paulina s comments below as a franchisee working towards improving the quality and access to education for K-12 in the community and also
    Message 1 of 40 , Feb 23, 2011
      I would like to echo Paulina's comments below as a franchisee working
      towards improving the quality and access to education for K-12 in the
      community and also a doctoral student researching social enterprises.
      Franchise option is indeed lower risk working from a proven model and market
      demand. However, it does take 80 hours a week unpaid effort in the first few
      years to build the business just like any other small business.

      I have compared my own efforts in setting up the franchise operations with
      those of 30 other social entrepreneurial ventures started by individuals
      which are not franchise model based. The underlying phenomenon of strong
      motivation, belief, market orientation, tightly coupled business model and
      having your personal money and effort at stake are the same in both cases.

      Aparna Katre
      Doctor of Management - 2012
      Case Western Reserve University
      Cleveland, OH

      On Sun, Feb 20, 2011 at 6:58 PM, Paulina Migalska <pmigalska@...>wrote:

      >
      >
      > Having read all the comments on Social Enterprise Franchising, I was
      > curious
      > to seek a colleague's input. Dan Elitzer, who had done consulting in this
      > area while at Community Wealth Ventures (CWV), shares some interesting
      > points:
      >
      > "Social franchising is hard, but not more so than other types of social
      > enterprise. In fact, none of the comments below appear to be
      > franchise-specific. In a lot of ways, social franchising is lower risk than
      > other types of social enterprise, because you're working from a proven
      > business model.
      >
      > "On the other hand, with social franchises, you can't really
      > "dip your toes in the water" - you have to make a sizable up-front
      > investment. Franchises are also less flexible than stand-alone businesses
      > in terms of adopting a double bottom line approach because you are
      > contractually required to stick to their model. That said, many franchises
      > are designed to be able to use very low-skilled workers, and as such, can
      > provide solid opportunities for workforce development.
      >
      > "Bottom line: I don't think social franchising is going to revolutionize
      > social enterprise, but it's a powerful option for the right organizations.
      > Feel free to share my comments with the list and I'm happy to talk with
      > anyone who wants to dig in further."
      >
      > [Editor's note: This has been a great discussion about social franchising!
      > Thanks to everyone who participated. Incidentally, if you want to see a
      > compilation of this discussion, click on http://bit.ly/eZJau7 . By the
      > way, you can "follow" the npEnterprise Forum via my Twitter account at
      > http://bit.ly/g7l2Yr . As a companion to the listserv, these Twitter
      > listings are exclusively focused on social enterprise, and include
      > references to useful articles, blogs and reports in the field. Or, if you're
      > LinkedIn instead, you can get most of the same information at
      > http://linkd.in/dHJQKT ]
      >
      >
    • Ushnish Sengupta
      One example may be Centre for Social Innovation, with locations in Toronto and New York. You can look at their coworking space model for details
      Message 40 of 40 , May 23, 2015
        One example may be Centre for Social Innovation, with locations in Toronto and New York.
        You can look at their coworking space model for details http://socialinnovation.ca/
        The surplus revenues from rentals may go into subsidizing cost of space for tenants, services and programs that benefit members such as organized networking.

        The other type of organization that distributes surplus back to their members are Cooperatives.  There are thousands of housing cooperatives that distribute surplus rental revenue back to their members.  But the members are typically individuals, not nonprofits. I am working with a fledgling coop of social enterprises distributing surplus revenues back to its members (rental income is one component), but its starting up, so we have no data or insights to share yet.

        Also, I have come across a dozens of nonprofit organizations who rent their space on a temporary basis, i.e. for meetings or conferences, but the financial benefit accrues to the single nonprofit that owns the building, and its programs, and not other partner tenants.

        Ushnish


        On Sat, May 23, 2015 at 9:14 AM, Rolfe Larson Rolfe@... [npEnterprise] <npEnterprise@yahoogroups.com> wrote:
         

        Here are responses to following question from Glen Newby: 

        "My question is related to social purpose real estate (for example multi-tenant nonprofit facilities in the U.S. and Canada) that are operated by a nonprofit as a social enterprise. There are many facilities owned and operated by a nonprofit, but extremely few (at least that I know of) that do so for the sole purpose of generating a surplus to be granted back to partner tenants that are nonprofit,  in order to enhance their mission.  

        Would really like to connect with anyone with a similar SE project or activity.”

        (1) From Tina…

        Catholic Charities Fort Worth runs an apartment complex called Urban Manor. You might be interested in getting in touch with them.


        (2) From Paul Lamb

        It is not a social enterprise per se, but you might be interested in checking out My Broker Donates in California, which donates a commission from every real estate sale to charity.


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