---
title: "CNBC: Marcus Lemonis: Common Pitfalls Any Franchise Must Avoid to be Successful"
url: https://burnaze.com/article/f495759e-891c-481e-ab0f-cefc316a5ef1
source: "1851 Franchise"
original_url: https://1851franchise.com/cnbc-marcus-lemonis-common-pitfalls-any-franchise-must-avoid-to-be-successful-6537
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A"]
published: 2016-10-14T21:16:47.000Z
modified: 2026-11-01T03:09:05.964Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/194474c244877d5f023b3efd467387ba3977.jpg
---

# CNBC: Marcus Lemonis: Common Pitfalls Any Franchise Must Avoid to be Successful

**TL;DR:** Marcus Lemonis shares lessons from his reality TV show 'The Profit' to avoid common pitfalls in franchising, citing a $1 million debt example from Tea 2 Go. Lemonis emphasizes the importance of communication, mastering the flagship store, providing adequate support to franchisees, and having passion for the franchise concept.

*originally published in 1851 Franchise on 2016-10-14. [Read the original](https://1851franchise.com/cnbc-marcus-lemonis-common-pitfalls-any-franchise-must-avoid-to-be-successful-6537).*

## Story

While franchising can make it easier for companies to expand quickly, if it the process is rished with an unproven concept, it can quickly go south. Jeff Hunt learned this after his mistakes led his company into solvency with $1 million in debt. According to a recent CNBC article , the founder of fast casual tea franchise Tea 2 Go was featured in the latest episode of CNBC’s reality business how “The Profit,” where he learned four very important lessons.

Communication is key in any business model, but in the franchise model, hearing from local stores and taking their feedback into consideration will help you earn respect. Lemonis explains, in order to do this, "they have to feel like you're invested in their business, not because you want a royalty check, because they're essentially buying and believing in what you're selling."

Before rushing into expansion, franchisors should focus on mastering the flagship store and its processes before moving on to opening more locations. Borrowing money to open stores that will not flourish will land you in a pile of debt, which Lemonis admits they are working towards servicing with future franchise sales for Tea 2 Go.

Providing franchisees with the bare minimum can hurt when it comes to their sales. Tea 2 Go is hoping that adding on accessories and food to the menu will help bring the average check per customer from $3 to around $10.

Lemonis asks one final question for future franchisors, "Why get into a business that you're not excited about?" Passion for your franchise concept should be a main factor driving expansion plans for your business. Without that, it will show in your service and the product you present to customers and franchisees.

## Entities

- 1851 Franchise (publication)
- franchise expansion (topic)
- Franchise Industry (sector)
- franchise support (topic)
- debt management (topic)
- passion for business (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/cnbc-marcus-lemonis-common-pitfalls-any-franchise-must-avoid-to-be-successful-6537). Summarized by Burnaze (https://burnaze.com/article/f495759e-891c-481e-ab0f-cefc316a5ef1).