Social relationships and communication as key characteristics of social franchising in Africa

Abstract

PurposeThis paper, using a case study on Jibu, a water distribution chain that distributes bottled water in Africa, aims to underline the importance of social relationships and communication within franchise chains operating in the social sector in developing countries and their contribution to the clarification of the concept of social franchising.Design/methodology/approachThe research is based on a case study of Jibu, a water distribution chain composed of 122 franchised units and 2,100 independent retailers. The primary data were gathered through an analysis of in-depth interviews with 67 people (Jibu co-founder, headquarters staff, franchisees, micro-franchisees and customers) in Uganda and Rwanda.FindingsThe findings showed that the extent and richness of social relationships and communication existing within the Jibu chain are not limited to top-down and build a feeling of belonging to a family. These social relationships and communication are key characteristics of social franchising.Practical implicationsThis research can assist franchise experts, franchisors and franchisees to better assess the importance of social relationships and communication in social franchise chains in developing countries and help national and local governments better understand how franchising works in the social sector.Social implicationsFranchising is not limited to hotels, restaurants and retail businesses. Franchising can be applied to businesses that have social goals, in addition to profit goals. For example, the Jibu franchise is a relevant and efficient solution to providing the African people with access to drinking water at an affordable resale price. This paper, thus, contributes to increasing the awareness of this franchising phenomenon in social sectors in developing countries and in Africa, in particular.Originality/valueAccess to drinking water is an important issue in many developing countries, above all in African countries. Franchised water services are an innovation in terms of a business model in developing countries with micro-treatment plants run by franchisees and small units run by micro-franchisees or retailers, both franchisees and micro-franchisees being local entrepreneurs.