How Much Build Out Support Is Enough?

A big selling point of franchise opportunities is the support franchisees receive from the franchisor. While each system is a little different, the three things most franchisees can expect when signing their franchise agreements is an established operations manual, extensive training, and marketing/advertising direction.

When it comes to building out a new franchised location, the support level becomes more varied across systems. It's not uncommon for franchisors to assist with site selection. They will also likely provide design guidelines and equipment lists as well as approve floor plans for the space. From there, it becomes less predictable as to how involved the franchisor will be.

Some franchisors take their programs a step further and contract with vendor partners that work with the franchisor to create an entire build out program that offers everything from construction management to interior decor and equipment. This approach helps the franchisor retain control over the final outcome, keeps the franchisee from becoming overwhelmed and bogged down with the build out details, and keeps costs fairly constant and predictable from one location to the next.

Other franchisors leave their franchisees to find their own contractors and suppliers to complete the build out. For an experienced franchisee that has built locations in the past, this may not be a big deal because they likely have a team of suppliers already in place. For the new franchisee, however, this can be a huge undertaking. With all the details involved in build out, it's all too easy to get tied up in the process applying for permits, managing the contractor bid process, and answering questions once build out begins. If the franchisee is tied up with these things, it's likely that other areas like pre-opening promotion and staff hiring and training are suffering because of it.

So the question I'd like to ask is how much build out support should the franchisor really supply? In my line of work, I've seen plenty of franchisees (And even a few franchisors) struggle to manage the build out process on their own. I've also seen a handful of franchisees master it beautifully. It really does come down to how experienced the franchisee is with construction and purchasing; and is it fair for franchisors to implement programs that can find new franchisees struggling?


--Troy Schwehr (Connect with me on LinkedIn.)