Community Franchising Insights - Investigating a Franchise

In January-March 2011, the Cinnamon Network conducted research into Community Franchising. Several thousand Churches in the UK were contacted as well as franchisors/ees of 9 ‘ministries’. We had responses from 190 churches/ministries. Results are as follows:

Investigating the franchise

77% of churches running Full Franchises* attended a ‘look/see’ session/day before taking on a franchise. This seems to a vital part of the evaluation process for both Franchisee and Franchisor.

Franchisors report that less than 50% of churches that attend such days actually go on to take on a franchise. Most report less than 25% take up.

We asked Franchisors what were the key reasons for not proceeding or stopping having started. We also asked churches who had investigated a franchise but not proceeded why they had stopped. The reasons were given as follows:

Key Reasons for Not Proceeding with a Franchise

Franchisors’ Perspective (weight)

1. Church Leadership Support (27)
2. Unable to attract enough clients (17)
3. Unable to gather enough volunteers (15)
4. Unable to afford costs without external funding (15)
5. Key Leaders not available enough (12)

Franchisees’ Perspective (weight)

1. Key Leaders not available enough (17)
2. Unable to afford costs without external funding (16)
3. Unable to gather enough volunteers (12)
4. Another church in area started same or similar franchise (5)
5. Unable to use methods or materials (5)

To overcome lack of resources, there is always the option to partner with other churches. 43% of franchisees had done this (57% were running the franchise themselves). Partnering may be a way to go to increase take up of franchises.

Surprisingly perhaps, only 43% of Franchisees did a community needs assessment before taking on the franchise. This could be put down to sufficient local knowledge and/or a passion for the ministry of the franchise i.e. if a community needs assessment had shown an alternative pressing need, there might not have been the gifting necessary for that alternative ministry.

Quotes:

“Other projects taking priority.”

 “We did not have the resources within our church - financial and people.”

“The other churches wanted this to proceed but would not commit time, people or money.”

“I don't know any leaders with gifting required who would cope with the admin side of the post.”

 “We were prepared to go ahead but could not agree with all the ways the Franchisor was asking us to go.”

“Felt that the Franchisor was too prescriptive.”

*The Full Franchises reported on were; Christians Against Poverty, Street Pastors, Black Boys Can, Care Confidential, The Lighthouse Group, Romance Academy and Trussell Trust Foodbanks.