What is Microfranchising?

If you know what a franchise is then you know what a microfranchise is – a scaled down franchise with a small enough price tag that low income people can afford it.  McDonald’s, Subway, Gold’s Gym, Ace Hardware, and Marriott Hotels are all traditional franchises.  Franchises are a huge part of the economic success in prosperous countries such as the United States. There is a direct correlation between the strength of the franchise economy and per-capita GDP in every country on earth. Strong franchises create wealth, provide jobs, and increase incomes. 

The problem is many traditional franchises are very expensive.  This is where microfranchising steps in. With some help even low income people in the developing world can afford a microfranchise that costs $5000, $10,000 or $15,000. 

99% of low income individuals in 3rd World countries do not possess the skills necessary to start up their own businesses from scratch.  Because of this they will never be able to lift themselves out of poverty.  However, many of them are fully capable of running a ready-made business in a box.  This is what microfranchising provides.  Microfranchisees don’t have to set up from scratch their financial, supply chain, IT and communication systems.  They don’t have to deal with legal issues, licensing, real estate and other things required to start up a business. Microfranchises are established companies with proven operating systems and powerful brands.  Microfranchisees purchase the right to use the name and benefit from the rich support net their microfranchise offers.

The beautiful thing about a microfranchise is that families can own a business that will allow them to lift themselves out of the lower class and into the middle class.  As middle class business owners, they can then provide jobs to their friends and neighbors.  Microfranchises can help most 3^rd World countries achieve prosperity.

Microfranchising is capitalism with a social conscience on a human scale.