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WHAT IS FRANCHISING FOR ECONOMIC AND SOCIAL DEVELOPMENT?To many, the word franchising evokes images of fast-food franchises or American sports teams. In fact, franchising is a contractual relationship between an individual with a proven good or service and a successful business model, known as the franchisor, and an entrepreneur who replicates the franchisor's business model, the franchisee. In an international development context, franchising represents a leap forward in market-efficient replication and sustainability for a wide range of product and service delivery. Franchising specialists at Sibley International have successfully applied franchising solutions to a wide array of services. Franchising solutions have been designed for small-town water distribution in Africa, rural telecommunications services, and indigenous SME development in industries ranging from freight forwarding to pharmacies. Several key development goals naturally result from franchising. The relationship between franchisor and the entrepreneur institutionalizes upward and downward technology transfer. Additionally, since franchising uses a market-based approach to distribution, services are provided more efficiently than other distribution models, allowing for a more competitive cost. It also serves to create a larger class of entrepreneurs, since franchisees by definition are business owners with invested capital, but who enjoy far higher rates of success thanks to the training and marketing built into a franchise network. Contact a franchising specialist at Sibley International today to see how franchising can improve your program. |
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