Miami, FL commercial litigation attorney Robert Zarco talks about the common mistakes made when opening and operating a new franchise. The first common mistake made by franchisees when opening a new franchise is the failure to read their franchise agreements. The second mistake involves neglecting to engage with existing franchisees to gain insights into their experiences. Additionally, there may be an oversight in reviewing the language in the Franchise Disclosure Document (FDD) that outlines prior litigation involving the franchise and franchisor over the preceding years, typically the last 10 years.

Another notable error is the lack of active participation in the buildout or the construction and development of the physical location. Hiring the right people is deemed crucial, and concerns arise when franchisees deviate from the franchisor’s guidelines and standards, attempting to cut corners or assuming they know better. While there may be instances where the franchisee’s approach is valid, collaboration with the franchisor to ensure alignment with proven business methods is considered essential.