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
Answered by John Pratt
John Pratt Writes: In the UK, there are no legal restrictions on anyone becoming a franchisor, but... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: I’m often asked to define franchising and this is a good place to start... read more
Answered by Shelley Nadler
Shelley Nadler writes: The franchise agreement should cover a number of areas that will protect a franchisee. It... read more
Answered by Louise Harris
Louise Harris writes: Franchisors will usually have an outline avatar that may include age, skill set, past... read more
Exciting Franchise Opportunities
Companies to Consider
Assists in securing third party funding
£600,000 to £800,000
Jackson Fire & Security
Homecare by Kare Plus
The Christmas Decorators
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 2 days ago | 2 min read
Added 5 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