Non – profit organizations have begun leveraging the franchise model to grow their missions into new geographic areas. The idea more or less involves sharing best practices and intellectual property to further advance the organization’s cause.
Basically, a company could expand its reach by creating offices in a new geographic location or by selling a franchise to a local business. In the same vein, a non – profit organization can also grow its reach by creating a “chapter” in a new geographic location or by selling a franchise to a local, independent non – profit organization, and this can also be referred to as social franchising.
Social franchises are established by people who recognize a problem in society and strive to solve it by using the entrepreneurial principles that make up traditional franchising to create, organize, and manage a venture. Using a social franchise model, an organization seeks to find a person in each geographic area with a common passion.
Note that this local leader will team together with the organization to grow a local chapter (or “franchise”). This puts together the operational strengths of the organization with the local person’s relationships and history in the community.
As you might imagine, when social franchising is used, it is usually in a charitable or health setting. One of the first known instances of social franchising came to be in 1995 within the medical services field. Nowadays, Greenstar, a Pakistani social franchise, provides family planning and reproductive health care to people with lower income by way of its 80,000 retail outlets and over 24,000 providers.
Other industries that social franchises operate within include: the employment of disabled persons, energy saving, renewable energy, recycling and reusable goods, cleaning, cycling and cycling accessories, halfway housing, and more.
Expanding a non – profit organization to a new geographic area is exciting, but it does have substantial costs. Howbeit, those costs are less than starting from scratch in each area, which is why many organizations are exploring this new avenue.
There are various ways to structure a social franchise relationship. Options include using contracts or license agreements between independent organizations, creating a subsidiary non – profit corporation, and registering a franchise.
Even though this option is consistently utilized in Europe, as well as parts of the Middle East, Africa and Asia, social franchising is still finding its basis in the United States. There are over one million non – profits in the United States. Align that with the number of social franchises: the ratio might not be that encouraging. Howbeit, here are the top non profit franchises to consider in the United States.
7 Best Non Profit Franchise Opportunities and Their Cost
1. Donatos Pizza
Donatos Pizzeria, LLC owns and operates a chain of pizza restaurants in the United States. The company was established in 1963 and is based in Columbus, Ohio. It also offers pizzas at entertainment and sports venues. In addition, the company provides catering services.
For every Pink Ribbon Dessert Twist they sell, Donatos Pizza donates $0.50 to the Breast Cancer Foundation of Dayton. They also support the Reeb Avenue Center, which helps people to build independence through education, job training, and local job growth.
- Initial investments: $375,500 – $699,900
- Net – worth Requirement: $850,000
- Liquid Cash Requirement: $200,000
- Initial Franchise Fee: $30,000
- Ongoing Royalty Fee: 5%
- Ad Royalty Fee 5%
2. Elder – Well Adult Day Program
You can join this program to become part of the first social model adult day care to enter the franchise industry. Elder – Well Adult Day Program is expanding domestically and seeking compassionate entrepreneurs to join its team.
Their program provides non – medical, social – supportive day care services to older adults with mild to moderate cognitive and/or physical care needs. Note that the ability of caregivers to utilize the company’s services gives them the much needed respite they may otherwise not receive.
- Initial Investment: $43,000
- Total Investment: $52,000 – $149,000
This Corporation operates as a residential cleaning franchise in the United States and Canada. It provides maid and home cleaning services. MaidPro’s non – profit MaidPro Cares aims to create a change for orphaned and at – risk children around the world. They have worked with three different international children’s homes and a mentoring home in Massachusetts since 2013.
- Initial investments: $57,560 – $207,450
- Liquid Cash Requirement: $20,000
- Initial Franchise Fee: $17,000 – $68,000
- Ongoing Royalty Fee: 3.5 – 6.5%
- Ad Royalty Fee: 1.5%
4. The Little Gym
The Little Gym partners with SeriousFun Children’s Network to help kids with serious childhood illnesses and their families enjoy an unforgettable camp experience where nobody is defined or limited by their illness. SeriousFun Children’s Network provides camp programs, entirely free of charge, to more than 75,000 kids and their families around the world each year.
- On Request
5. Apex Fun Run/Leadership Co.
Apex Leadership Co. combines fitness, fundraising, and leadership into a powerful united event that helps kids understand the power of giving and makes fundraising fun. Apex Leadership Co. has helped over 2,600 schools raise more than $50 million for education.
If you have an entrepreneurial background, take your experience and tools and apply them to a successful, proven business model. And here’s what you get back – you get to give, you get to receive. From your first step of the race – with the company founder and his highly – trained management team surrounding you – you will be given the support, encouragement, tools, and opportunity to build a brand in your marketplace that creates value to schools.
- Initial Investment: $80,500 – $113,200
- Net – Worth Requirement: $50,000
- Liquid Cash Requirement: $50,000
- Total Investment: $80,500 – $113,200
6. Taziki’s Mediterranean Cafe
Taziki’s Mediterranean Cafe’s special needs job placement program is on a mission to raise the employment rate of disabled and special needs people. Herbs Offering Personal Enrichment (HOPE) is an initiative that helps establish herb gardens in restaurants across the country and encourages restaurants to employ individuals with special needs. Each HOPE garden employs 5 – 10 special needs or disabled students. They also aim to have at least one special needs employee in each Taziki’s location.
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7. Peoples Organic Coffee
Peoples Organic offers financial support to Harvest for the Hungry, a program of Minnesota non – profit, The Food Group. This program focuses on purchasing fresh fruits and vegetables from local Minnesota and Wisconsin farmers. This produce is delivered to The Food Group’s over 240 partner food shelves and meal programs at no cost.
It is then distributed to low – income Minnesotans who often cannot afford or lack access to fresh fruits and vegetables. People’s Organic cafes partner with farms and feature handcrafted, original works of art from talented artists.
- Initial Investment: $179,500 – $1,222,000
- Total Investment: $179,500 – $1,222,000
With most franchises, the motivation – or end goal – is profit. However, the motivation behind a social franchise is the expansion of a goal, such as increasing the employment rate of a group of disadvantaged people.
Profit, while still a needed component for success, is viewed as a means to achieve, not the achievement itself. Nonetheless, an attorney experienced in both non – profit law and franchise law can listen to your circumstances and explain your options including the associated costs for each option.