As franchising continues to grow across New Zealand, TMPlus principal Tereza Murray says one of the biggest mistakes happens before a network even expands.

According to Murray, too many franchise systems are designed around what is easiest for head office, rather than what helps franchisees succeed day to day.

That can create problems once the business begins to scale.

Franchisees may be strong operators, good with customers and capable of delivering the product or service. But that does not mean they are naturally strong at admin, reporting, billing, compliance, local marketing and every other task that can be pushed down to them.

When too much sits with the franchisee, performance can suffer. The owner becomes distracted from the work that actually grows the business.

Murray says franchisors need to think carefully about where responsibility should sit. Centralised billing, automated reporting, structured marketing and clearer systems can reduce friction across the network.

This is especially important for emerging franchise brands that are trying to scale quickly. A model that works for one company-owned site may not automatically work when multiple owner-operators are involved.

When franchise networks experience tension, the instinct can be to add more control. Murray argues the better answer is often stronger structure.

For small business owners considering franchising, the lesson is clear: do not just sell the model. Build the system properly first.