Pink Connect are now offering franchise opportunities to those sales people who are sick of losing their pipeline every time they move. Is now the time for a new opportunity? Here, James Pink, MD of Pink Telecom explains as he looks for 10 new franchisees in 2019.
David Dungay (DD): Set up costs?
James Pink (JP): It costs £19,950 to become a franchisee and we give them all the training, we come out to customer visits and walk them through it at first. We get nothing if they don’t succeed, most of the £20k fee is put back into the franchisee through training and opportunity costs.
DD: Profit potential?
JP: Our average profit margin of our franchisees is between 32-35%. We take 15% as a management fee for running the customer, taking the financial risk, billing etc. We credit check the customer and we take that risk of them not paying. The goods and services take about 50% and the franchisee takes the rest in the middle. I don’t know many businesses where gross profit is 35% of turnover. Plus you have none of the aggregation of chasing customers or debt.
DD: Expected results?
JP: The key thing for us is they go out and get ten grand a month of turnover as soon as possible. That’s the first milestone, it should take about a year for them to get to that point. We want people to crack 10k as soon as possible because that’s sustainable and their bills are paid, then they could take on someone else and build them up. The opportunity is huge, there are 1.9 million businesses in the UK.
DD: Support available?
JP: We have a monthly sales workshop and we go through all the new product development and their business plans so they have a chance to talk things over. All the basic stuff you don’t get when you are on your own we give to people.