Most franchise owners get surprised by the final invoice.

Not because their contractor is dishonest. Not because the project went completely off the rails. But because somewhere in the middle of the build, a decision was made, work was done, and nobody formalized what that decision actually cost.

That is the change order trap. And it catches more franchise operators in the GTA than any permit delay or material shortage ever will.

The good news is that it is entirely preventable. But only if you understand what a formal change order process looks like, why it matters, and what questions to ask before you ever sign a construction contract.

What a Change Order Actually Is

A change order is a written, agreed-upon document that modifies the original scope of work in a construction contract.

It is not a verbal agreement. It is not a text message. It is not a nod on-site when your GC says "we can handle that."

A formal change order documents three things specifically: what work is being added, removed, or changed; what the pricing impact is; and what the schedule impact is. All three must be reviewed and approved by the franchise owner before a single nail is driven on the new scope.

That last part is the one most operators miss.

Why Scope Changes Happen on Every Commercial Build

Scope changes are not a sign that something went wrong. They are a normal part of commercial construction.

You sign a lease on a space that has not been fully assessed. You start demolition and find that the existing electrical panel cannot support your equipment load. Your franchisor updates the brand standards mid-build and requires a different flooring specification. Your landlord's base building work was not completed to the standard outlined in your lease.

These things happen in Toronto, Mississauga, Brampton, and every other market across the GTA. They are not rare. They are expected.

The problem is not the change itself. The problem is what happens when there is no formal process to manage it.

What Happens Without a Formal Change Order Process

When a GC operates without a formal change order process, scope changes get absorbed into the daily rhythm of the job site. Work gets done. Decisions get made. Costs accumulate.

And then the final invoice arrives.

Suddenly there are line items you do not recognize. There are charges for work you thought was included in the original scope. There are material upgrades you approved verbally but never saw priced out. There are labour costs tied to decisions made three weeks ago that you have no documentation for.

This is not a hypothetical. This might be the most common source of construction disputes between franchise owners and general contractors in Ontario. The work was done. The cost was real. But the approval process was never followed, and now you are arguing over a bill at the end of a project when your opening date is two weeks away and your staff are already hired.

That is maximum leverage in the wrong direction.

What a Proper Change Order Process Looks Like

A formal change order process has a clear sequence, and it does not deviate from it regardless of how urgent the situation feels.

When a scope change is identified, the GC prepares a written change order document before any work begins. That document must include the full description of the change, the cost impact broken down by labour and materials, and the schedule impact measured in days. The franchise owner reviews all three components, asks questions, negotiates if necessary, and then provides written approval.

Only after that approval is in hand does the work proceed.

This process protects both parties. The contractor gets documented authorization for the additional cost. The franchise owner gets a clear record of every decision made and its financial consequence. There are no surprises at the end because every change was captured in real time.

Nathan Oliveira, known in the industry as Mr. Franchise, has seen what happens on both sides of this process. Projects that follow a formal change order protocol finish with invoices that match expectations. Projects that skip it almost always end in conflict.

The Three Questions to Ask Your GC Before You Sign

Before you sign a construction contract for your next franchise location, you need to ask your general contractor three specific questions about their change order process.

The first question is: what triggers a change order in your process? You want to hear that any deviation from the original scope, regardless of size, triggers a written change order. If the answer is vague, that is a red flag.

The second question is: what information is included in your change order documentation? You want to hear pricing impact, schedule impact, and a clear description of the scope change. If they cannot tell you what their standard change order document contains, they likely do not have a standard process.

The third question is: do you require written approval before proceeding with changed work? The answer must be yes. If a GC tells you they will proceed and sort out the paperwork later, you are being told exactly how your project will be managed.

These questions cost you nothing to ask. The answers will tell you more about how a contractor operates than any reference check or portfolio review.

How to Respond When a Change Happens Mid-Project

Even with the best process in place, changes will come fast on a live construction site. A decision that needs to be made today can feel like it needs an answer in the next ten minutes.

Do not let that urgency bypass the process.

When a change is identified mid-project, your job as the franchise owner is to respond quickly but not carelessly. Ask for the written change order immediately. Review the pricing impact and the schedule impact before you approve anything. If the change affects your opening date, understand by how many days and what that means for your staffing timeline, your training schedule, and your lease obligations.

In the GTA, a one-week delay on a commercial build can mean an additional week of rent with no revenue. At $8,000 to $15,000 per week in occupancy costs for a typical franchise space, the cost of a poorly managed change order is not just the change itself. It is everything downstream from it.

Respond quickly. Approve formally. Document everything.

The Conversation You Should Have Before Construction Starts

The time to establish your change order expectations is not when the first change happens. It is before the contract is signed.

Ask your GC to walk you through their change order process. Ask to see a sample change order document. Ask how they handle urgent changes when a decision is needed the same day. Ask what their turnaround time is for pricing a change order once a scope issue is identified.

If a contractor cannot answer these questions clearly and confidently, that is information. It tells you how your project will be managed when things get complicated. And in commercial construction, things always get complicated.

The franchise owners who avoid surprise invoices are not lucky. They are prepared. They asked the right questions before they signed, they understood the process before the first day of demolition, and they responded quickly and formally every time a change came up.

That discipline is what separates a clean project close from a billing dispute that follows you into your opening week.

If you want to talk through how Olive Tree Builds manages change orders on franchise build-outs across the GTA, book a call with our team here.