The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Does a franchisor provide franchisees with sales leads?
John Pratt writes:
The majority of franchises do require franchisees to sell and very few franchise businesses can simply rely on leads being provided to them. Within that simple statement there are a number of variations.
Some franchise agreements envisage that the franchisor will obtain national or regional accounts, which will be contracts the franchisor enters into with a customer and which one or more franchisees will be required to perform.
Usually, these contracts are less profitable for franchisees than contracts they obtain themselves. The reason for this is that large customers will generally seek to obtain better terms than smaller ones.
The danger for the franchisor of this approach is that franchisees become accustomed to the work simply flowing at albeit a reduced margin and, as a result, become too comfortable.
Other franchises, such as parcel delivery specialists, simply require franchisees to perform services in respect of contracts entered into by the franchisor, but many do not consider these arrangements to be true franchises.
Usually franchisees have to find their own customers and that’s why franchisors appoint franchisees, because franchisees are local, know their local market and it’s much easier for them to find customers in their allocated territory than it is for the franchisor.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in
Will a franchisor tailor its initial training to me or will it only provide set instruction that covers all aspects of the business?
Answered by Alan Wilkinson
Alan Wilkinson writes: When a franchisor recruits franchisees, it will have a set profile of the type... read more
Answered by John Pratt
John Pratt writes: There may be none if you’re not suited to dealing with businesses. Many people like... read more
Answered by Louise Harris
Louise Harris writes: Not all franchises are based on territories. Some may be split into business sectors,... read more
Answered by Renata Selley
Renata Selley writes: Your ‘year-end’ is the date when your franchise accounting period ends. Communication is king... read more
Exciting Franchise Opportunities
Companies to Consider
The Best Magic Mirrors...
Franchise can be in profit in year two, with net profits rising from 7% to 40% on maturity
Up to £230,000
£14,000 per week
Multi-unit opportunities available
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added one year ago | 2 min read
Added 4 hours ago | 2 min read
Added 3 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news