Can subsidiaries or franchises pursue B Corp Certification?

Subsidiaries, franchises, and companies with related entities may pursue B Corp Certification, only in certain conditions. Read more about related entities here.

Franchisor Moratorium

In 2023, B Lab Global established a partial moratorium on the certification of Franchisor / Licensor businesses, in response to identified risk and potential brand confusion when a Franchisor is certified without its Franchisees and vice versa. This tension is best illustrated in cases where companies franchise or license their intellectual property and related support services, but do not operate store / franchise locations in their markets. Accordingly, B Lab applies a certification moratorium to Franchisors / Licensors who operate less than 50% of their branded locations globally.

The current moratorium on franchisors/franchisees (Chapter 5) remains in effect until further notice.

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