Avoiding Common Pitfalls in Franchise Development
- Barry Money
- 3 days ago
- 3 min read
Taking your business down the franchising path is an exciting venture, but it’s also filled with potential missteps that can cost you time, money, and momentum. Many businesses rush into franchising without fully understanding the process or the challenges involved. Here are some of the most common mistakes entrepreneurs make when developing a franchise—and how to avoid them.
Beware the Cookie-Cutter Consultant
Not all franchise consultants are created equal. Some promise tailored solutions but deliver generic, off-the-shelf templates that don’t align with your business model. Others charge hefty fees for what should be standard inclusions, like customising your franchise agreements or providing industry-specific operations manuals. Before signing on the dotted line, scrutinise exactly what you’re getting. A franchise consultant should provide real value, not just a one-size-fits-all approach.
Take Control of Your Payment Plan
Franchise consultants are in the business of selling their services—and their payment structures often suit them more than they suit you. Many require large upfront fees or rigid instalment plans that don’t take your cash flow into account. Remember, you’re the client. Negotiate a payment plan that aligns with your financial situation. If they can’t accommodate you, there are plenty of other consultants who will.
Define Clear Deliverables
A common trap business owners fall into is accepting whatever package a franchise consultant offers without questioning what’s actually included. The key here is to negotiate beyond the basics. Are they offering hands-on guidance throughout the process? Will they provide on-site consulting? Are they including marketing support or franchisee recruitment assistance? Understand exactly what you’re paying for and push for additional value where possible.
Don’t Neglect Your Existing Business
The prospect of launching a franchise network can be thrilling, but don’t let it distract you from running your current business. Too many business owners shift their focus entirely to franchise development, only to see their core business suffer. Your existing cash flow is likely funding the transition to franchising, so maintaining strong operations is critical. Treat franchise development as an expansion project—without neglecting the business that made franchising possible in the first place.
Prioritise Marketing From Day One
Surprisingly, many franchise consultants don’t emphasise marketing as part of the franchise development process. But make no mistake—marketing is one of the most important investments you’ll make. A strong, consistent brand is what attracts franchisees and customers alike. If your brand identity, messaging, and marketing strategy are underdeveloped, your franchise model will struggle to gain traction. A solid marketing plan fuels both franchise recruitment and revenue generation, so don’t leave it as an afterthought.
Maintain a Healthy Dose of Scepticism
Franchise consultants will move on to their next client in a few months, but your franchise system needs to be built for long-term success. That means asking tough questions, demanding clear explanations, and challenging any advice that doesn’t sit right with you. Don’t assume everything they say is gospel—push them to justify their recommendations in the context of your specific business. If something doesn’t make sense, keep pressing until it does.
Franchising Done Right: Learning from Mistakes
Franchising can be a powerful tool for business growth and wealth creation, but only if it’s done right. Avoiding these common mistakes will give you a stronger foundation for success. Learn from the experiences of those who’ve come before you, question everything, and stay in control of your own destiny. And remember—mistakes are part of the journey. Make the right ones, learn from them, and use them to build a franchise that stands the test of time.
Bio - Barry Money, Founder - Bane Enterprises
For the first ten years of Barry’s career, he consulted in global franchise standards and led significant transformation and innovation projects.
Barry has diverse corporate experience across multiple disciplines including sales, marketing, customer service, product management, export, quality assurance, engineering, IT and supply chain with full accountability for P&L
At the end of Barry’s corporate career, where he earned the nickname “Goliath Slayer,” Barry transitioned to the C-Suite. Barry Money is a graduate of the Australian Institute of Company Directors and a C-Suite professional, with an MBA in entrepreneurship.
Barry has held director, board member, CEO and and leadership positions in start-ups, NFPs, Founder-operated entities, industry peak bodies and commercial organisations.
He held a leadership role at Australia’s largest franchise group, where he was instrumental in driving disruption and growth.
Barry has worked in franchised industries, franchise consulting companies and some of the largest franchised brands globally.
After many years living and working all around the world, he is fluent in Japanese, French, German and conversant with several other languages.
A dynamic, results-driven leader who prides himself on lateral, entrepreneurial thinking and creativity, Barry is renowned for developing and fostering strong teams and a collegiate spirit.
Barry Money now heads up Australia’s ethical, efficient, effective, end-to-end choice for franchising solutions,
Bane Enterprises.
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