Fortitude Construction Management delves into how franchisors and franchisees can tackle the pain points faced during the construction process

BY KAYLEIGH BRADSHAW, FORTITUDE CONSTRUCTION MANAGEMENT

In the wild world of franchising, where dreams of busi­ness ownership collide with the harsh realities of con­struction woes, navigating the maze of challenges can often feel like an uphill battle.

From runaway budgets to tough leases to DIY disas­ters, franchisees often find themselves grappling with a myriad of issues that threaten to derail their aspira­tions. However, amidst the chaos, there shines a bea­con of hope: collaboration with third-party commercial general contractors.

Here, we’ll delve into how this strategic alliance can alle­viate the pain points faced by franchisors and franchisees, and pave the way for smoother, more successful ventures.

The cost conundrum

First and foremost on the list of headaches for the fran­chise industry are the ever-growing construction costs. Like a relentless force of nature, these costs seem to escalate uncontrollably, leaving franchisees scratching their heads in bewilderment.

However, by partnering with experienced construc­tion managers, both franchisors and franchisees gain access to invaluable expertise in budget management. These professionals have their fingers on the pulse of the industry, enabling them to provide accurate cost projec­tions and identify cost-saving opportunities.

This is also very useful for updating the leasehold improvements budgets in the financial disclosure docu­ment and can help with making financial decisions on rebranding. With this, the franchisees can align their expectations with reality and mitigate the risk of bud­get overruns.

The “as-is” lease

Another common challenge that plagues the brick-and-mortar franchise world is the issue of “as-is” leases that landlords are often presenting.

Confronted with dilapidated spaces and daunting ren­ovation tasks, franchisees often find themselves over­whelmed by the prospect of transforming their premises into viable business establishments.

However, by enlisting the assistance of a commer­cial construction manager during the lease negotiation process, franchisees can safeguard their interests and negotiate favourable terms that alleviate the financial burden of renovations.

Experienced contractors can help spot some of the visible red flags (behind the walls is a different story), and they can help put a budget to work that has to go into making the space ready to build the franchise, which can help with negotiating the landlord inducement (mon­etary value that the landlord agrees to contribute to the construction work). Or, if there are too many unknowns, they will advise to keep looking.

In-house construction management

While in-house construction management may seem appealing for franchisors seeking control and quality assurance, it often proves overwhelming due to project management complexities.

Partnering with a trusted construction management company allows franchisors to delegate effectively, lever­aging specialized knowledge and experience without adding to payroll burdens.

This advice also applies to franchisees with personal connections to contractors, where potential issues such as unmet expectations and business disruptions can bring the business issues into their personal lives.

Things like this can be mitigated through clear quali­fications, expectations, and contracts. Professional gen­eral contractors alleviate these risks and allow franchi­sees to focus on business planning without distractions.

Navigate construction with confidence

Finally, by prioritizing transparency and efficiency in construction processes, franchisors can foster trust and collaboration among all stakeholders, ultimately driving the success of their franchise endeavours.

It’s no surprise that the journey of building a franchise is fraught with challenges, but by partnering with the right third-party commercial contractors, franchisees can navi­gate the complexities of construction with confidence, knowing that they have a trusted ally by their side.

From managing budgets to negotiating leases and overseeing construction projects, these professionals play a pivotal role in ensuring the success of franchise ventures. So, the next time construction woes threaten to derail your dreams, remember to reach out to a pro­fessional commercial general contractor—they can help with more than just construction.

ABOUT THE AUTHOR

Kayleigh Bradshaw is co-owner of Fortitude Construction Management and has over 10 years experience in the com­mercial construction industry. Starting as an administrator and working her way up to project manager in five short years, Bradshaw is an expert when it comes to construction process­es, and loves to educate and share her knowledge with anyone who is considering a commercial construction project.