What is Microfranchising?

Microfranchising is a business model that applies elements and concepts of traditional franchising to small businesses in the developing world. It refers to the systemization and replication of
microenterprises. Microfranchising is broadly defined as small businesses that can easily be replicated by following proven marketing and operational concepts

The OFoundation Microfranchising Platform

On this page, we will provide you with all the information you will need to join the microfranchising network and help you establish your own microenterprise. Below you will find guides, interviews, research papers and examples of successful microfranchises. Furthermore, we offer you assistance in developing your microenterprise through the Circular Development Challenge.

The Circular Development Challenge

The Circular Development Challenge is organized by OFoundation to investigate the possibilities for microfranchising as a scaling model for NGOs. We seek successful SMEs that are ready for an investment, and which are willing to use the microfranchise model to scale up. The SMEs with the biggest potential will have the chance to receive an investment by a financial risk bearing partner.

The Circular Development Challenge Pitch Event

Interviews

To get a better insight of the practicalities of microfranchising, we have consulted a number of organizations and experts in the field. Below, you will find all the interviews that we have conducted.

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 Tracey Chambers

 The Clothing Bank

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Jelle Hanskamp

Microfranchise010

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Nicolas Chevrollier

Bottom of the Pyramid

Research

 

Development aid is complex and does not always run smoothly. To improve our work, we can learn from theory and from practice. Firstly, OFoundation aims to understand how we can optimize our investment by looking at how business operated and succeeded in the past. Secondly, OFoundation recognizes the growing amount of literature that discusses microfranchising. On this page, we analyze the global importance of microfranchising as an addition to development aid from a theoretical perspective.

Recomended articles

Brautigum, D., Expert Group on Development Issues (2000). Aid Dependency and Governance. Stockholm: Almqvist & Wiksell International Daly, H. E. (2005). Economics in a full world. Scientific American, 293(3), 100-107 Dione, J. (2008). Sustainable Development Report on Africa: Managing Land-Based Resources for Sustainable Development. Economic Commission for Africa. Feigenberg, B., Field, E. M., Pande, R.…

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MicroFranchising: Creating Wealth at the Bottom of the Pyramid

by Jason S. Fairbourne, Stephen W. Gibson, W. Gibb Dyer This book is a must read for business scholars and economists, practitioners and lenders, members of NGOs dedicated to poverty alleviation and anyone else who is interested in learning about an innovative, business focused tool to alleviate poverty.

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Microfinance and Beyond: Introducing Microfranchising and Social Businesses

by Naoko Felder-Kuzu An introduction to microfinance, microfranchising and social businesses.  

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Microfranchising: How Social Entrepreneurs are Building a New Road to Development

by Nick Sireau It is increasingly clear that 50 years of international development have done little to reduce poverty in Africa. Indeed, more and more academics and practitioners are highlighting the detrimental effect of traditional development – as carried out by international agencies and NGOs – which often leads to dependency, inefficiency, waste and poor…

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How the Other Half Dies

by Susan George George examines and disputes two popular ideas: first, that there is not enough food, and second, that the world is over-populated. She argues that the planet could easily feed its present population and many more.

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Examples of Existing Microfranchises

Helpful Organizations & Institutions

During the establishment of the microfranchising platform, OFoundation has been in contact with numerous Netherlands-based organisations and institutions. Below is a list of partners whose services can be helpful when establishing or improving your microfranchise.

Minister van Buitenlandse Zaken

The Dutch government wants to promote sustainable economic growth in developing countries. The Netherlands also want to work on stability and security in the world and the guarantee of human rights. The Dutch development cooperation policy focuses on four key themes: safety and rule of law, water, food, and sexual and reproductive health and rights (SRHR).

Hmlef

As experts in their field, Licentie en Franchise offers franchising services including arrangement of judicial affairs, brand and intellectual property registration, and expansion and export of successful products. Additionally, they have provided valuable advise in the conceptualization of the microfranchising platform.

BiD Network

BiD Network aims to increase economic development in emerging markets through the mobilization of capital and knowledge to small and medium-sized enterprises (SMEs). By offering customized matchmaking and support services to both financiers and entrepreneurs we aim to grow the number of businesses that can start, grow and expand.

The BoP Innovation Center

The BoP Innovation Center offers business development services for developing markets. They provide a range of services including developing market entry strategies, designing business cases, brokering smart partnerships, organizing pilots, and linking ventures to impact investors in their network.

Partin

Partin is the branch organization for private initiatives. They aim to give them a voice at discussions about development cooperation and serve in their interest. The advantage it has over individual small NGO's is that it can achieve more through association. Examples include joined requests for subsidies, improving the quality of the work and learning by cooperating, and being able to collectively contact other parties in the sector.