Franchise Hub

A Franchise Hub, a Cooperative Pattern, streamlines the replication of sub-cooperatives that have similar business models. The hub creates a new cooperative by creating new separate entities from the start and providing the new entities resources and funding to then begin to operate independently. It’s related to an Innovation Hub except that the new entities are made separate earlier and are likely to be more well defined from the start.

Pros:

• Ensures sibling cooperatives are shielded from the failure of any individual sibling when they startup.
• Maintains shared knowledge of starting up and developing in the hub.

Cons:

• Created sibling cooperatives may end up competing with each other like any franchise business.
• Funding model requires some dues from sibling cooperatives paid back to the hub.