Miami, FL commercial litigation attorney Robert Zarco talks about the common mistakes made when opening and operating a new franchise. He notes that one of the most common mistakes franchisees make when opening a new franchise is failing to thoroughly read their franchise agreements. Another frequent error is neglecting to speak with existing franchisees to gain insights into their experiences. Additionally, franchisees often overlook reviewing the Franchise Disclosure Document (FDD), which outlines prior litigation involving the franchisor and franchise system over the past ten years.

He emphasizes that another critical mistake is not actively participating in the buildout or development of the physical location. Hiring the right personnel is essential, and problems can arise when franchisees deviate from the franchisor’s guidelines and standards in an effort to cut corners or rely solely on their own assumptions. While there may be cases where the franchisee’s approach is valid, he stresses that collaboration with the franchisor is crucial to ensure alignment with proven business practices.