Tag Archives: Nonprofit

Franchising for the Greater Good

Nonprofit organizations and franchised businesses operate in separate worlds.  But sometimes those worlds meet in a way that can be mutually beneficial.  When the franchise benefits the mission of the nonprofit, the organization might consider forming a separate entity that will become a franchisee.  The arrangement is sometimes referred to as “social franchising”. Starting any new business is a risk.  Even a franchise business.  Not every nonprofit organization will be willing to expose a portion of its assets to business risk.  But in some cases, and with proper legal advice, the arrangement can work. Here’s how it’s done: The nonprofit …