Wednesday, January 29, 2014

First Social Franchising Accelerator



First Social Franchising Accelerator
Sam Wakoba | Monday, January 27th, 2014 
The world’s first social franchising accelerator is set to be launched in South Africa this January, to accelerate innovation for social ventures to help meet the needs of  the poor and vulnerable.
The accelerator is funded by the Rockefeller Foundation, the UCT Graduate School of Business Bertha Centre for Social Innovation and Entrepreneurship, the International Centre for Social Franchising (ICSF), and Franchising Plus.
The hub will help replicate solutions from one region to another and embraces former President Bill Clinton’s words that “Nearly every problem has been solved by someone, somewhere. The frustration is that we can’t seem to replicate (those solutions) anywhere else”.
Te Social Franchising Accelerator will initially incubate three South African social impact organisations under its wing and it has already called for its first round of nominations.
According to Dan Berelowitz, CEO of the International Centre for Social Franchising, the Accelerator has the potential to lead the way globally in terms of developing hands on expertise related to social franchising, and learning whether such support can help to scale social innovations dramatically.
“By combining the best of the private sector and social sector practice on two continents, we are well-placed to ensure that positive social impacts can be multiplied so that greater numbers of people benefit from models that already working well,” said Anita du Toit, Franchise Consultant and Partner at Franchising Plus.
Social franchising scales up projects that are helping to solve social and environmental problems and uses tools of commercial franchising, which have proven to be highly effective in growing businesses, creating local ownership and economic wealth, the idea behind the Accelerator is to take successful social impact organisations, whether they be NGOs or social enterprises and create the systems and support necessary to replicate these effectively.
Dr François Bonnici, Director of the Bertha Centre at UCT says  that instead of reinventing the wheel and wasting scarce resources, social franchising enables successful social impact organisations to reach greater numbers of beneficiaries far more quickly than would be possible if they were to expand on a wholly owned or branched basis as it makes use of social franchisees’ resources and local knowledge.
In its first year, the Accelerator will work with the three pilot organisations, create sustainable social franchise systems and then launch pilot franchisees in three new geographical locations for each, enabling them to collectively reach at least 500 new beneficiaries within this time.
“These numbers are based on realistic projections grounded in the experience of ICSF, but we also know that the impact of social franchising can be exponential over time,” said Dr Bonnici.
Mumbai’s Child Line India which was founded 14 years ago, has been replicated 415 times and now has operations in 172 cities across India and has received over 21 million calls from vulnerable children.
In addition to offering one-to-one in-depth franchising support, the Accelerator will also offer one-to-many training, funding and mentoring to create a comprehensive package of support to enable impact enterprises to franchise and scale up their social impact sustainably.
Learning from this programme will be captured and replicated in a practical way in other contexts and countries around the world by the ICSF.
“We know that there are already a great number of social impact organisations in South Africa making a tremendous contribution and many of them are ripe for expansion, but the lack of expertise and support meant that there was nowhere to signpost them too,” said Bonnici. “We hope that the Accelerator can start to change this. Working smarter we hope to find ways to accelerate the impact of those whose work really counts and benefit ever greater numbers of people in need.”
To nominate a social impact organisation that is primed to scale up through franchising, please contact: berthacentre@gsb.uct.ac.za by 15 February 2014.
- See more at: http://techmoran.com/south-africa-launches-worlds-first-social-franchising-accelerator/#sthash.tJK3dIuv.dpuf

I hate my job! How quickly can I buy a franchise?

So you hate your job and you need a way out. It's time to be your own boss and let your entrepreneurial spirit run free! 
When the going gets tough at work, buying a franchise may seem like the ideal way out. But like every major decision, its worth taking a deep breath and asking a few questions. Here are a few things you should consider before you dive into your new business venture:
Are you really ready to leave behind the benefits of being an employee?
Before you get swept up in the excitement of buying your own franchise business, you need to get real. Whilst full-time employment has its drawbacks, it also has many benefits - especially if you are not a risk taker. Leaving your job means you will no longer have the certainty of a regular paycheck and your set routine. It may be months before the business begins to make a profit. Can you survive that period?
You may be putting in extra hours and working weekends whilst the business ramps up – and possibly well beyond that. There will be no one to tell you what to do. You will have to be focused and motivated and productive day after day.
If you are prepared to leave your safety blanket behind, keep reading. If not, perhaps start liking your job more…
BE PREPARED TO INVEST SOME TIME
Investing in a franchise is an important decision and you should allow sufficient time to do your due diligence. Remember too, that each franchisor will have its own recruitment and screening process as well as training programs for you to complete.
There are also Franchising Code of Conduct rules around time frames between steps. You should probably allow two to three months from initial enquiry to executing your franchise documents. You may then have to wait for a site to be located and built if it’s a new location or for vehicles to be fitted out. In some cases it could be many months from signing your docs to actually getting started.
YOU NEED TO CHOOSE THE RIGHT SECTOR FOR YOU
If you’re looking at emerging sectors with big opportunities – pat yourself on the back. But if the business you’re considering buying doesn’t ignite your passion and really fire you up, then you shouldn’t buy it!
There’s no point being in the right market if you don’t love the brand, the products and the customers. You’ll end up hating your ‘job’ again except this time, you can’t just leave your investment behind and walk out the door.
KNOW YOUR NUMBERS
Make sure you are clear on the investment levels. Not just the initial franchise fees but legal fees, fees for commercial advice and working capital.  You should also be clear on the ongoing fees and cost structures so you understand what you will actually be earning.
IS THE FRANCHISE SYSTEM PROVEN AND PROFITABLE?
Before you spend your life savings to buy your freedom, be sure you are investing in something worthwhile. Is the business established; can it demonstrate a track record of profitability; does it have growth potential? Are the current stores operating profitably and providing franchisees with a good return on their capital and time?
ARE THE CURRENT FRANCHISEES HAPPY?
Talk to current and past franchisees. Find out whether the franchisor provided initial training and support in the early stages of operation. Is the franchisor providing ongoing support to help make the franchisees’ business more profitable and improve performance? Is there a good working relationship and open communication? Get as much real feedback as you can.
HAS THE FRANCHISOR INVESTED IN BRAND AND MARKETING ACTIVITIES?
A strong brand is one of the keys to your success. More than just the name and logo, the brand is the customers’ experience and how the franchise is perceived by the world. If the franchisor has invested in building a brand that consumers know, understand and are engaged with, it will be easier for you to create a profitable business within that.
LOOK FOR SYSTEMS AND PROCESSES
Underpinning a strong brand in any good franchise are well-defined systems and procedures, a solid support infrastructure and a standardised approach. Look for systems that create efficiencies and make it easier for you to focus on doing more business with your customers.
These are just a few of the important areas you should include in your due diligence process when assessing a franchise system. It’s great to be ambitious and even quit your job for bigger and better things, but be sure to look at each franchise opportunity with a critical eye, get the right advice and make a fully informed decision.
John Di Natale is managing director of Axis Advisory, a boutique consulting firm working closely with entrepreneurs and business owners to help grow a more rewarding, more exciting and more profitable business.

Monday, January 27, 2014

Franchising in Iraq



UNLOCKING IRAQ’S FRANCHISING POTENTIAL

Iraq is virtually a greenfield market for franchisors. Demand for US products and services continue to rise as GDP increases steadily. Per capita GDP increased by 7% in 2011, and national GDP is expected to increase by 10% through 2016.  In the northern region of Iraq, the forecast is even brighter: GDP per capita increased by 40% as compared to the national average.  With increased disposable income throughout the country, and improved commercial laws and regulations, Iraq is an up and coming market ripe with franchise opportunities.

Major public and private infrastructure projects continue to drive Iraq’s growth and investment potential. Newly constructed shopping malls, commercial centers, and residential buildings have opened new opportunities for private sector expansion. The existence of franchises in Iraq like Pizza Hut, Ace Hardware, Carrefour, Fatburger, Coffee Bean & Tea Leaf, and Chester Chicken are paving the way for future franchisors as well as non-food products from Levi’s to Ford cars. There is a large and growing Iraqi/American community in both countries and a shared history with a keen interest in U.S. products.  Wealthy private sector investors in Iraq are eager to be involved in these opportunities.

Iraq’s National Investment Commission, in cooperation with the Department of Commerce (U.S. Commercial Service and the Commercial Law Development Program), invite US companies looking to expand to Iraq to meet with potential franchisees.  Take advantage of this opportunity to discover the franchising potential of Iraq, one of the Middle East’s most exciting franchising markets.  Through the support of the National Investment Commission, U.S. Franchisors will be provided meals, lodging and ground transportation in secure locations along with VIP treatment courtesy of the Government of Iraq, some of the many benefits of the franchising program include:

• Customized one-on-one meetings with key partners and potential franchisees;
• Assess the culture and market opportunities first hand;
• Connect with Iraq’s premier private sector 
• Provided free meals and lodging
http://upload.wikimedia.org/wikipedia/commons/thumb/f/f6/Flag_of_Iraq.svg/220px-Flag_of_Iraq.svg.png


Join the Department of Commerce and the National Investment Corporation of Iraq on a franchise trade mission:

Where: Baghdad, Iraq with spinoff to Erbil on March 20 - 21
When:  March 18 - 19, 2014
Why: To discover partnership opportunities with potential investors and key partners.
Cost: The National Investment Commission will sponsor all lodging, ground transportation, security, program fees, and provide exclusive treatment for participating businesses in the secure International Zone of Baghdad, Iraq.  Participants must make their own flight arrangements to Baghdad, Iraq and obtain a valid Iraqi Visa.
Application Deadline: February 7, 2014

For an application and further information:  http://export.gov/industry/franchising/eg_main_068982.asp
For additional information, contact Elizabeth Graham at Elizabeth.Graham@trade.gov; 817 684 5350 or Jennifer Loffredo at Jennifer.Loffredo@trade.gov;
248-452-2254.






3 Lessons Learned From a Decade in Franchising


 http://www.reuters.com/article/2014/01/26/idUS135531159520140126

As the Franchise 500® celebrates its 35th year, I'm marking a milestone of my own. I joined Entrepreneur's franchise listings team in late 2003, fresh out of college and with only the faintest idea of what franchising was. But I set to work, sorting Uniform Franchise Offering Circulars (UFOCs), shuffling through forms and calling and e-mailing franchisors.
A lot has changed in 10 years. UFOCs became FDDs. I no longer shuffle through forms, since our submission process has gone digital. But perhaps what has changed the most is my perspective. Here are a few of the lessons I've learned:
Nothing lasts forever. In the 25th annual Franchise 500®, Subway ranked No. 1 for the 12th time, and it continued to hold on to the top spot for another three years after that. The sandwich chain appeared to be unbeatable.
But then came 2008, with a surprising new No. 1: 7-Eleven. And though Subway made its way back to the top in 2009 and 2010, it came as less of a surprise when it was unseated again, in 2011, this time by Hampton Hotels. And after Hampton held on to that No. 1 ranking for three years in a row, this year the title was handed off yet again, to Anytime Fitness, which entered the top 10 just last year.
What I've learned is this: No matter how big a business gets, the competition never stops coming. Change is constant, and nothing--or at least no Franchise 500® ranking--lasts forever.
Growth isn't everything. If you'd asked me 10 years ago if any company had a chance of overtaking Subway, I would have pointed at the rest of the top 10. Two companies in particular were experiencing phenomenal growth, adding hundreds and even thousands of units a year. If any franchise was destined to be the next Subway, surely it was one of them.
Yet 10 years later, four of those top 10 companies don't even rank in our Franchise 500® anymore. And the two that experienced such explosive growth? They imploded, and lost those units just as quickly.
Don't get me wrong. Growth is an important measure of a franchise's success; that's why it's such a big part of our rankings. But growth isn't everything. And the way a company grows--and how that growth is supported--can mean the difference between a flash in the pan and a lasting success.
Anything can be franchised (but not always successfully). The franchise world may be dominated by a few big sectors, but there's still plenty of variety to be found. Over the years, I've seen franchises that specialize in arm-wrestling tournaments, hypnosis, dating services, groundwater surveying and peanut butter and jelly sandwiches, just to name a few. As a writer, I find myself drawn to the more unusual offerings because they stand out from the crowd. Unfortunately, those tend to be the franchises that aren't around a few years down the road, while those offering less unique but more time-tested products and services--hamburgers, senior care, hotels--are in it for the long haul.
That's not a knock on new ideas in franchising. After all, 10 years ago a small, 24-hour-access gym was a pretty new idea, and this year, it's our No. 1 franchise.
So bring on the crime-scene cleaners, kolaches, luxury dog hotels and yoga classes for kids. Because, really, anything can be franchised--and sometimes those crazy ideas even succeed.

Franchising comes to the social impact sector

A new initiative is calling for nominations of successful social impact organisations that could be scaled up, through franchising, to reach greater numbers of people
The world’s first social franchising accelerator will be established in South Africa this January, in a move that is expected to help meet the needs of greater numbers of poor and vulnerable people through scaling up proven solutions.
Funded by the Rockefeller Foundation, the initiative is a unique academic-NGO-private sector partnership between the UCT Graduate School of Business Bertha Centre for Social Innovation and Entrepreneurship, the International Centre for Social Franchising (ICSF), and Franchising Plus.
Former President Bill Clinton aptly noted “Nearly every problem has been solved by someone, somewhere. The frustration is that we can’t seem to replicate (those solutions) anywhere else”.
Social franchising is a powerful way to scale up projects that are helping to solve social and environmental problems. Using the tools of commercial franchising, which have proven to be highly effective in growing businesses, creating local ownership and economic wealth, the idea behind the Accelerator is to take successful social impact organisations, whether they be NGOs or social enterprises and create the systems and support necessary to replicate these effectively.
The Social Franchising Accelerator will initially take three South African social impact organisations under its wing, and is calling for a first round of nominations of successful and proven projects that are in a good position to be scaled up.
According to Dan Berelowitz, CEO of the International Centre for Social Franchising, the Accelerator has the potential to lead the way globally in terms of developing hands on expertise related to social franchising, and learning whether such support can help to scale social innovations dramatically.
“By combining the best of the private sector and social sector practice on two continents, we are well-placed to ensure that positive social impacts can be multiplied so that greater numbers of people benefit from models that already working well,” said Anita du Toit, Franchise Consultant and Partner at Franchising Plus.
Dr François Bonnici, Director of the Bertha Centre at UCT says “Instead of reinventing the wheel and wasting scarce resources, social franchising enables successful social impact organisations to reach greater numbers of beneficiaries far more quickly than would be possible if they were to expand on a wholly owned or branched basis as it makes use of social franchisees’ resources and local knowledge.”
The goal for the first year of the Accelerator is to work with the three pilot organisations and create sustainable social franchise systems and launch pilot franchisees in three new geographical locations for each, enabling them to collectively reach at least 500 new beneficiaries within this time.
“These numbers are based on realistic projections grounded in the experience of ICSF, but we also know that the impact of social franchising can be exponential over time,” said Dr Bonnici.
Child Line India, for example, which started in Mumbai 14 years ago, has – through a franchise system that ICSF co-founder and Bertha Centre Fellow Michael Norton helped to develop – been replicated 415 times. It now operates in 172 cities across India and has received over 21 million calls from vulnerable children.
In addition to offering one-to-one in-depth franchising support, the Accelerator will also offer one-to-many training, funding and mentoring to create a comprehensive package of support to enable impact enterprises to franchise and scale up their social impact sustainably.
Learning from this programme will be captured and replicated in a practical way in other contexts and countries around the world by the ICSF.
“We know that there are already a great number of social impact organisations in South Africa making a tremendous contribution and many of them are ripe for expansion, but the lack of expertise and support meant that there was nowhere to signpost them too,” said Bonnici. “We hope that the Accelerator can start to change this. Working smarter we hope to find ways to accelerate the impact of those whose work really counts and benefit ever greater numbers of people in need.”
To nominate a social impact organisation that is primed to scale up through franchising, please contact: berthacentre@gsb.uct.ac.za by 15 February 2014.