Sunday, 15 February 2015

Can one franchise a non-profit organization?

Question

Can one franchise a non-profit organization?



Answer

Well that is essentially what many large national non-profits do when they have quasi or fully independent chapters. I'm not sure how a true franchise could be set up without the franchiser, the franchisee or both losing their non-profit status, because I can't think of a reason for setting up a franchise system except to make money. Which is why the big non-profits use a chapter system instead of franchising.



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