Social Enterprise in the Millennial Age

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John Wuycheck

Why Brands Offering Franchise Ownership Opportunities with a Higher Purpose Are Thriving

In recent years, there has been a trend of nonprofit organizations teaming up with well-known franchises to create brilliant social enterprises. In a social enterprise arrangement, a nonprofit typically owns and operates a franchise location that donates most or all annual profits to the nonprofit organization.  At the end of the fiscal year, profits from the franchise are either donated to benefit the nonprofit or are declared a dividend payment toward the nonprofit shareholder, depending on the amount of revenue that is generated.

Brands that have offered their franchise owners the opportunity to invest in this business model are thriving in a modern economy driven by young, millennial minds who love business models built for a higher purpose.  This innovative concept sets up both the franchise and the nonprofit for a mutually beneficial and sustainable business venture.

Benefits for franchise locations

Partnering with a nonprofit organization can be a very beneficial endeavor for a franchise location.  The nonprofit is often well-known in the area prior to the franchise being built, so the nonprofit’s pre-existing relationship with local residents expedite the pace with which the new franchise location finds and secures loyal customer relationships.

A franchise location that is run by a nonprofit organization also possesses an inherent marketing advantage. Obviously, the franchise’s contribution to the nonprofit, and thus the community, is important in and of itself.   However, promoting the nonprofit relationship with in-store/point of purchase signage and handouts accompanying meals ensure the customer understands their purchase is supporting a greater cause.   This inspires customers to return to your location and continue supporting the cause as opposed to patronizing a competitor who is not affiliated with a charity/nonprofit.

An affiliation with a nonprofit organization will also help build a franchisee’s reach, influence and reputation. Contributing to a charity in a personal and involved manner will set the franchisee apart from competitors.  It demonstrates a deep community involvement that leads to networking opportunities and meaningful relationships with other business owners and community leaders.

Finally, this business model incentivizes franchisees to open additional locations to generate more money for the nonprofit with which they’re affiliated.   In a modern age where government funding and grants are dwindling, nonprofits are in desperate need of diversified revenue streams.   So, if the first franchise location proves successful, it’s wise for franchisee to work with the franchisor to expand the franchise operation to multiple units.

Benefits for nonprofit

Nonprofits typically rely heavily on private donations. While those donations are valuable, they often are quite limited.   Plus, many private donors specify how they’d like the nonprofit to use their contribution – often leaving basic needs like mortgage payments, electric bills and payroll unaccounted for.

Thus, a franchise location specifically designed to benefit the nonprofit is incredibly important because it can establish a predictable and viable revenue stream that the organization can use to cover any costs.  This reliable income source can make up for the inevitable dips that come with private donations, thus making the cost of the organization’s day-to-day operations easier to afford.

To increase the likelihood of success, many nonprofits choose to team up with proven franchise systems that possess a recognizable brand name, such as Blimpie.  When an established brand name is paired with a community need for a specific product or service, these programs thrive. For example, Bobby Calvillo, executive director for Affordable Homes of South Texas, decided to launch a social enterprise Blimpie location outside of San Antonio when he realized students at a local nursing school frequently patronized a competing sub shop miles away from where he launched his Blimpie. His location is thriving as it makes lunch easier for those students and allows them contribute to the cause.

And lastly, it’s much easier for nonprofit executives to set up a franchise business as opposed to starting their own company.  Compared to launching your own business, purchasing a franchise minimizes risk and eliminates some front-end costs while providing franchise owners with a brand name with which local residents are already familiar. Additionally, the franchisor will provide proven systems and training programs that help stores get up and running much quicker!

Interested in learning more about social enterprising? Talk to Blimpie!

If this business structure seems appealing, visit Blimpie.com to learn more. Blimpie is an ideal franchisor for a nonprofit organization seeking to establish a diversified portfolio of more reliable and consistent revenue streams. As the Affordable Homes of South Texas example suggests, Blimpie has a proven track record with social enterprise entrepreneurs and would be happy to guide you every step of the way.

Investing in a franchise location with a higher purpose is a modern and sustainable concept that resonates with younger customers and potential investors. Blimpie can help you be a part of this phenomenal social enterprise that continues to grow in this new millennial age.

John Wuycheck has served as Kahala Brands’ Senior Vice President of Development since September 2014. Mr. Wuycheck is a distinguished franchising professional who has worked for a wide variety of successful and nationally-recognized franchise brands, including HomeSmart International, Edible Arrangements, and Seattle’s Best Coffee. As an accomplished and visionary development executive, Mr. Wuycheck helps Kahala franchisees make smart decisions when buying a world-class food franchise. He works hand-in-hand with each franchise business owner to design concepts, strategies and processes to build profitable franchise locations.

www.kahalamgmt.com