Your business is thriving. Customers love your product, your team is solid, and you’re dominating your local market. Now, the big idea is knocking: Expansion. You see billboards in your mind’s eye, locations in new cities, and the word “franchise” is flashing like a neon sign promising rapid growth and legacy.
Hold on.
Before you print a single “Now Franchising” banner, understand this: the road to a franchise empire is littered with the wreckage of great businesses that were destroyed by their own ambition. They didn’t fail because their product was bad. They failed because they were unprepared for the seismic shift from running a business to running a franchise system.
As a franchise coach, I’ve seen brilliant entrepreneurs make catastrophic errors that not only halt their expansion but also cripple the original business they worked so hard to build. Here are the three deadliest sins you must avoid if you want to build an empire, not a bonfire of your brand.
Sin #1: The ‘Bargain Bin’ Franchise Fee
You’re tempted to set a low franchise fee. The logic seems sound: a lower price point will attract more applicants, you’ll expand faster, and you’ll quickly build market presence.
This is a trap.
A cheap franchise fee is the fastest way to devalue your brand and attract the wrong partners. You don’t want just anyone; you want high-caliber, well-capitalized, and fully committed entrepreneurs. A low fee attracts bargain-hunters and under-capitalized operators who are more likely to cut corners, fail, and ultimately tarnish your brand’s reputation.
The Coach’s Playbook: Your franchise fee isn’t just a number; it’s a statement of your brand’s value and a qualification tool. It funds the world-class support, training, and systems you must provide. A significant investment ensures your franchisees have skin in the game. Don’t sell your brand on clearance. Price it for the premium value and support you deliver. Ask yourself: “Does my fee give me the resources to make every single franchisee successful?” If the answer is no, you’re setting them—and yourself—up for failure.
Sin #2: ‘Location Roulette’ — Leaving Site Selection to Chance
A potential franchisee is excited. They’ve found a spot they “feel good about” in a new mall. You’re eager to get another unit open, so you approve it. Six months later, their sales are abysmal, and they’re blaming you.
This is a system failure, not just a bad location.
When you become a franchisor, your job is not to passively approve locations. Your job is to provide a bulletproof, data-driven site selection system. Your franchisees are investing in your expertise. Leaving location analysis up to their gut feeling is malpractice. The original story of the OFW who failed in a new mall is a textbook example: the wrong customer demographic killed a great product.
The Coach’s Playbook: You must develop a rigorous, scientific process. This includes detailed demographic analysis, psychographic profiling of your ideal customer, traffic pattern studies, competitor mapping, and even lease negotiation guidance. You provide the template, the data tools, and the final veto power. You are no longer just selling a product; you are selling a predictable business model. A prime location is not a bonus; it’s a non-negotiable part of that model.
Sin #3: The ‘Launch and Abandon’ Mentality
This is the sin that kills franchise systems. You host a great “discovery day,” sign the agreement, help with the grand opening, and then… radio silence. You believe your brand is so strong and your product so good that franchisees will just figure it out.
This is the definition of breaking the franchise promise.
Your franchisees are not just buying your logo and recipes. They are buying a complete support system. The phrase is, “In business for yourself, but not by yourself.” When you fail to provide comprehensive training, robust operational manuals, ongoing marketing support, and regular field visits, you abandon them. The story of the couple with the foreign franchise is a nightmare scenario: no management training, no systems, and a team of staff pulling in different directions. They didn’t buy a franchise; they bought a very expensive, stressful, and unsupported job.
The Coach’s Playbook: Before you sell a single franchise, your support infrastructure must be your top priority. This means:
- Comprehensive Operations Manuals: Your business “bible.”
- Intensive Training Programs: For franchisees and their key staff.
- Field Support Staff: Coaches who visit, audit, and mentor.
- Marketing Engine: National brand funds and local marketing kits.
- Supply Chain & Tech Support: Seamless and reliable.
Your primary customer is no longer the person buying your coffee or tacos. Your primary customer is your franchisee. Your new product is their success.
Your Next Move
Franchising can be the most powerful growth engine imaginable, transforming your successful business into a national legacy. But it demands a profound shift in your thinking. You must evolve from being a great operator to being a great teacher, systems-builder, and leader.
Before you take another step, look in the mirror and ask the hard questions. Have you mastered these three areas? Or are you about to commit one of these deadly sins?
Your empire depends on your answer.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
