Franchising in Health : Emerging Models, Experiences, and Challenges in Primary Care

A franchise is a type of business model in which a firm (the franchiser) licenses independent businesses (franchisees) to operate under its brand name. A firm might choose to expand its business through franchising because the arrangement shifts capital investment and day-to-day managerial responsibilities to independent businesses, overcoming two major constraints to rapid growth. The franchiser typically has established a successful product line and so is able to provide specialized business strategies to franchisees in exchange for a fixed fee or royalty payment. Franchisers in the health sector, often supported by international donors and nongovernmental organizations (NGOs), establish protocols, provide training for health workers, certify those who qualify, monitor the performance of franchisees, and provide bulk procurement and brand marketing.