Some of Bonsucro’s key buyer members operate franchise models of business and are encouraging their franchised operations to also commit to, and support, sugarcane sustainability. However, Franchise companies cannot be included as part of the Buyer Membership Cohort in Bonsucro, since Buyer members (franchisors) cannot generally take responsibility for franchisee compliance to the Bonsucro Code of Conduct. Furthermore, some Franchise companies see the cost structure and membership structure of Bonsucro as a barrier to participation.
How does this category address these issues?
The Franchise credit buyer category, with nominal cost, will enable franchises to join our membership in their own right and access the Credit Trading Platform to support the procurement of credits, the Bonsucro Impact Fund and investments in sugarcane sustainability.
Bonsucro is offering a principle-based approach for franchise systems that is open to any company that meets the criteria. The offer consists of:
- Introduction of a “Franchisee” credit buyer membership category with nominal membership fee of £2000 per annum, irrespective of size or volumes.
- Franchisees must be associated with a Franchisor, which is a Bonsucro ‘End User’ member.
- Franchisees undergo the same due diligence process as other members and commit to the Bonsucro Code of Conduct
- Franchisee members have access to the Bonsucro Credit Trading Platform to purchase Credits only (i.e. do not have access to tools, services, events and dedicated account management in Bonsucro)
- Franchisee members commit to procurement of credits per annum – initially set at a minimum procurement of 25,000 raw sugar credits (or equivalent) per year
- Franchisee members can make claims in relation to their purchase of Bonsucro Credits
We have set the minimum purchase of credits based on the equivalent income to Bonsucro pegged to the mid-point cost of membership for end-users. This also ensures a minimum commitment to procurement in light of the reduced membership fee.
The minimum threshold applies to each individual Franchisee.
We did not receive sufficient information from stakeholders to set different thresholds for companies of different size.
Migration is not possible, the credit buyer category is only open to Franchises associated with a full Bonsucro members. Our current end user members are not Franchises.
The franchisees in this new class must be linked to a current End User members paying full membership dues (i.e. this new category is a benefit to current End User members as well). The benefits of this class are limited to access to the Credit Trading Platform, on-boarding and CTP support from Bonsucro, and access to Bonsucro credit claims. Unlike End User members, Franchises do not have access to other membership benefits such as Bonsucro’s tools, services and other support, events, and dedicated account management in Bonsucro.
If Franchise members do not access Bonsucro’s services and tools, what is the value to them in terms of supplier engagement?
Bonsucro will continue to support sugarcane farmers and mills interested in Bonsucro Certification regardless of their connection to Bonsucro members. In practice this means that we are able to support Franchises’ suppliers and we see this as a benefit to suppliers.
What types of legal entities are eligible for this category (e.g. bottlers, JVs, FOBOs, contract manufacturing)?
Franchises, including Franchise Owned Bottler Operations (FOBOs), are eligible. We will pilot the scheme and could look to expand eligibility to contract manufacturing in due course, subject to further analysis. Majority owned subsidiaries and JVs can already be included in the membership cohort of a full Bonsucro member without further cost. There is a question mark as to whether minority owned subsidiaries and other JVs could be eligible for this scheme that will be reviewed in due course.