You’ve just sold a new franchise. The margins are tight, and you want it open yesterday. Fast and cheap feels like the obvious move.
But here’s the truth: what starts as “saving money” can quickly turn into missed openings, stressed-out franchisees, and a franchise system that’s quietly falling apart.
In this industry, overspending isn’t the problem, underbuilding is.
The real cost of a cheap build
Let’s call it what it is: some franchisors are rolling the dice with their contractors. Lowest bid wins. Minimal vetting. As long as someone can throw up a sign and drop in a fryer, they’re good to go.
But franchises aren’t just selling food or coffee. They’re selling predictable experiences. A bad build undermines that, and once the standard slips, it’s hard to recover.
I’ve seen the fallout first-hand. Franchisees stuck with botched electrical work. Ceiling tiles never installed. Permits missing. Months-long delays that kill morale and trust. And worse, most of these disasters come from brands that knew better but went with the cheaper option anyway.
According to the Canadian Franchise Association’s 2024 data, over 35% of new franchisee complaints in the first year are tied to construction issues. That’s not bad luck. That’s a bad system, one that focuses on short-term savings instead of long-term brand protection.
What “Competitive” actually means
Paying 10–15% more for a competent contractor might sting upfront, but it can save 30–40% in the long run through fewer delays, no legal headaches, and a stronger brand presence. A competitive builder isn’t the cheapest, they’re the one who delivers once, properly, and sticks around after the grand opening.
This isn’t a sales pitch. Honestly, I’ve walked away from bids where the numbers didn’t make sense. I’d rather protect my reputation than win a race to the bottom.
If you’re a franchisor, ask yourself: are you choosing contractors who understand your brand, or just the ones who come in low and say “yes” to everything?
The cheapest option usually turns out to be the most expensive mistake. If you’re serious about scaling your franchise, build like you mean it.
