an Eldis Resource
Franchising of health service in developing countries
Conditions for successfully operating a social franchise in developing country health services
Authors:
D. Montagu
Publisher:
Health Policy and Planning, 2002
This paper provides an introduction to the franchising of family planning services in developing countries and explores which aspects of a franchise’s context, business design, and market positioning are critical to the success of the franchise organization’s ability to achieve social goals. The goal of this paper is to present a model of social franchise activities that will provide a context for analyzing choices in the design and implementation of health-related social franchises in developing countries. In the ?rst section the types of commercial and social franchise are de?ned. In the second section the theoretical model of franchising is introduced, and in the third and fourth sections the implications of the model are explored, ?rst at the theoretical level, and then with respect to speci?c areas of franchise operation.
The paper begins by defining franchising, then moves on to elaborate what exactly the concept of franchising entails and then deals in detail with the implementation and standardization of services as is essential to effective franchising of health services. To this effect, franchise members are usually are offered training programs, brand and commodity advertising, and a range of other bene?ts which might include inter-franchise referrals and referral fees, follow-up and on-site technical support, opportunities for professional networking and exchange, and subsidized equipment, medicine and contraceptives. In return, providers may be required to meet sales quotas, maintain speci?c levels of service quality and pay franchise fees.
The paper argues that the primary advantage of business model franchising is the potential for fast, low risk expansion through local ownership, backed by a recognized brand with well-established attributes desired by consumers. With these advantages, the application of franchising to health services is more a matter of time than a matter of dispute. The services being franchised must, however, be sufficiently limited and de?nable that they can both be monitored and promoted with an assurance that quality can be maintained. Family planning services meet this goal, as might tuberculosis treatment or HIV/AIDS counseling. More general services such as pediatrics or internal medicine will be difficult to evaluate and thus do not lend themselves to dissemination through a business model based upon standardization. The paper concludes by stating that franchising, ultimately, is about clarity of service marketing and then assuring that the service qualities that are advertised are present throughout the franchise network.
