The 5 Biggest Mistakes New Franchisors Make—And How to Avoid Them

Franchising can be a powerful way to grow your business—but it’s not just about duplicating your store or service. Many new franchisors dive in without the right preparation, and this often leads to costly mistakes that could’ve been avoided.

At Francorp Philippines, we've helped hundreds of brands scale successfully through franchising. In this article, we’ll walk you through the five most common mistakes new franchisors make—and how you can avoid them.

1. Franchising Too Early

One of the biggest errors is franchising a business that hasn’t proven itself yet. Without a solid track record, systems, or consistent profitability, your franchisees may struggle—and your brand reputation may suffer.

✅ Avoid it: Make sure your business is replicable, profitable, and operationally sound before considering franchising. If you're unsure, our team at Francorp can help assess your franchise readiness.

2. Lack of a Clear Franchise System

Franchising isn’t just about cloning your store—it’s about transferring your entire business model. Without documented operations, training programs, and franchise manuals, you’ll leave franchisees guessing.

✅ Avoid it: Work with professionals to build your franchise structure, including manuals, fees, territories, and franchise support systems.

3. Setting the Wrong Franchise Fee or Royalty

Pricing your franchise too low may hurt your profitability. Too high, and you’ll scare away quality franchisees. Many new franchisors guess or copy others—without understanding what works for their model.

✅ Avoid it: Let experts guide you in developing a financial model that’s fair, sustainable, and scalable.

4. Failing to Support Franchisees

Franchising isn’t passive income—it’s a partnership. Neglecting franchisee training, marketing support, or regular check-ins can result in poor performance or brand inconsistency.

✅ Avoid it: Design a support and mentoring system to help franchisees succeed from day one.

5. Skipping Legal and Strategic Planning

Many skip the legal groundwork—like franchise agreements, disclosure documents, and IP protection—or fail to build a long-term growth strategy.

✅ Avoid it: Consult with franchise legal and strategic experts (like Francorp!) to set a strong foundation for expansion.

Ready to Franchise the Right Way?

Avoiding these mistakes can save you time, money, and brand reputation. At Francorp Philippines, we offer a full suite of franchising services—from feasibility studies and manual development to legal setup and franchise marketing.

📞 Ready to scale your business through franchising? Let’s talk.

Book a free franchise consultation today