Social Franchising: Domestic and Foreign Experience in Construction

Abstract

The objective of this study is to conduct a comparative analysis of models, tools, and empirical effects of implementing the social franchise mechanism in the Russian Federation and international markets, with a view to identifying best practices and critical drivers of success. The research methodology includes systematic analysis, comparative analysis, case study analysis, and a review of academic literature, industry reports and regulatory documents. The analysis revealed fundamental differences between social franchise models: in Russia, it is based on a donor-project paradigm with intensive methodological support and symbolic royalties, while in global practice, an entrepreneurial-sustainable model prevails, focused on partial or complete economic self-sufficiency of franchisees. A comprehensive review of existing literature reveals several key factors that contribute to the success of a social franchise. These factors include service standardization and the measurement of social impact achieved, the comprehensive development of franchisee potential, the implementation of a system for monitoring key performance indicators (KPI) and social return on investment (SROI), and the use of digital platforms and CRM systems. The findings confirm the effectiveness of social franchising as a tool for scaling socially ­significant initiatives. In order to develop the mechanism in Russia, several measures are proposed, including the introduction of hybrid financial models, the establishment of consulting centres, the strengthening of influence based on assessment data, and the adaptation of the regulatory environment.