IFA Delegation Advocates Micro-Franchise Development for Africa AIDS Relief

Franchising World July 2008

The health crisis in Africa and lack of government resources combine to make a desperate situation that has drawn the attention of IFA leaders and franchising executives who are working to advocate for and implement sustainable solutions.

By Jason Straczewski

A delegation of International Franchise Association representatives, led by Chairman Steve Greenbaum, CFE, recently met with U.S. Sen. Norm Coleman (R-Minn.) in Washington, D.C. to lobby on behalf of micro-franchise business development language in pending African AIDS relief legislation.

Greenbaum was joined by Michael Seid, CFE, of Michael H. Seid & Associates and IFA Vice Pres. of Government Relations David French. Both Greenbaum and Seid serve on the board of directors for the HealthStore Foundation which has been a member of IFA since 2004. They have traveled to Kenya and Rwanda to lend their leadership assistance to the development of the HealthStore Foundation’s operations in Africa.

IFA is working with Coleman and other lawmakers to promote the foundation’s work and seek potential federal funding for its important work. The President’s Emergency Plan for AIDS Relief initiative had an original goal to prevent seven million new HIV infections, treat two million people living with AIDS related illnesses, and provide care and support for 10 million persons affected by AIDS. The program needs to be reauthorized in 2008, and the U.S. House of Representatives has already allocated $50 billion over the next five years. IFA staff is working to add language to the Senate version of the bill that favorably highlights the importance of the franchise business model to building a sustainable network of health-care delivery.

In their meeting with Coleman, Greenbaum and Seid explained how the franchised business model has helped establish a network of health-care outlets in Kenya. The foundation operates as a typical franchisor, and franchises are licensed under the Child and Family Wellness Shops brand name. Each franchise is locally-owned and operated by a licensed nurse or by a community health worker with a nurse on staff. The model incorporates key elements of any successful franchise network: strong branding, proven operating systems and training; strict quality controls enforced through regular inspections; and well-chosen locations.

Both Greenbaum and Seid also described the success of franchising in the United States as evidenced by the recent IFA Educational Foundation study conducted by PricewaterhouseCoopers on the economic impact of franchising. The study shows that nearly one million U.S. franchised establishments account for 21 million jobs and more than $2.3 trillion in annual economic activity. The industry has also outpaced the economy as a whole in terms of the rate of growth of jobs, payroll and output between 2001 and 2005.

The HealthStore Foundation, based in Minneapolis, was established more than a decade ago to “prevent needless death and illness by sustainably improving access to essential medicines.” Since then, the foundation has established a network of more than 65 profitable franchises in Kenya, serving some 525,000 patients and customers in 2007. Currently, the program is expanding to Rwanda, and the first franchise opened earlier this year. By 2012, it plans to expand to more than 14 countries serving millions of patients per year.

Jason Straczewski is director of government relations of the International Franchise Association. He can be reached at 202-662-0797 or jstraczewski@franchise.org.