Social franchising, a concept closely related to social entrepreneurship, has two bottom lines: a social one (social impact) and a financial one (financial sustainability). The financing of social franchises is critical to the success of social franchises as it determines their financial sustainability. Financial sustainability is more likely when social franchises rely on a diversified portfolio of financial sources, including traditional financing sources (grants, debt, equity), non-traditional financing sources such as patient capital and social impact bonds, and company revenues. Case studies of two successful social franchises (Jibu, Unjani Clinics) are presented.
