SCP has come to understand through experience just how challenging it is to start a social enterprise, or any business for that matter, from scratch. Considering that a typical private sector entrepreneur must manage dozens of business-related variables in order to reach financial success, it is only logical that a social entrepreneur must control dozens more variables in order to reach both financial and social success. This challenge is compounded by the fact that truly great social enterprise business models are difficult to find.

In early 2005, as a result of this learning, we began researching ways in which we might increase the probability of success for social enterprises by controlling some of the variables inherent in any business. In essence, we were looking for ways to invest in proven business concepts with well-defined operating models that would make the business easier to run while at the same time allowing the social mission to be successfully introduced.

The realization that franchises may be just the right business model to accomplish our goals was inspired by conversations with one of our community partners - the YMCA of Greater Toronto. The YMCA introduced us to two entrepreneurs who had each faced employment barriers in their lives. One had immigrated to Canada and had trouble integrating into the workforce despite his significant overseas experience and the other was a young person who had limited education and a somewhat troubled youth but an excellent ability to work with his hands.

Both of these individuals overcame their challenges with help from YMCA employment programs. Over time and through hard work they each built enough capital to purchase their own franchises.

Today, both individuals operate successful franchises and have chosen to hire the majority of their employees from the YMCA job training programs that once helped them to overcome their employment barriers. In essence these entrepreneurs have gone full circle to help those who are facing employment barriers similar to what they once faced.

We were intrigued by these examples and began testing the idea that franchises might be the ideal business model for SCP. We worked with our strategic partner The Monitor Group to understand the franchising landscape in Canada and engaged an expert franchise-consulting agency called Northern Lights to convene a series of focus groups with respected franchisors in order to get their opinions on the concept of “social enterprise franchises”.

Through this research we came to view franchises as strong potential vehicles for accomplishing our mission. We also learned that there were several highly respected franchisors interested in working with SCP on this program.