The potential for franchising to help create high quality stable jobs in London

Posted on July 25, 2017

Jonathan Carmel

The Social Innovation Partnership (TSIP), in collaboration with the International Centre for Social Franchising (ICSF) and Numbers for Good, has published a report assessing the potential of franchises to provide quality employment for low income groups in London.

2.25 million people experience poverty in London and in-work poverty is increasing. At the same time, the franchising sector in the UK has experienced strong growth in the recent past: 621,000 people are employed in a franchise in the UK - a 70% increase in the last 10 years. Franchises have shown themselves to be an exceptionally stable and successful business model and have the potential to offer secure employment to disadvantaged individuals. Since 2001, 90% of new franchise businesses are still operating after 5 years, compared with only 30% of other types of business start-up.

The report, which was funded JPMorgan Chase Foundation, set out to assess the potential of franchises to provide stable, high-quality jobs in London and, if promising, to explore what a franchising employability programme could look like. The report team consulted over 40 stakeholders, franchisors, franchisees, a range of organisations supporting people into employment and social investors, to understand what the opportunities and potential solutions could be. We also held focus groups with individuals facing barriers to employment and completed desk research.

The findings show that, although there is great interest around the idea of harnessing franchising principles to address the need for quality jobs in London, any employability programme focused on commercial franchises would face operational challenges. However, an alternative approach, applying the principles of franchising to mission-led businesses, has the potential to achieve significant impact. 

To find out more, you can download the full report here