June 28, 2025 • 13 mins
Ready to invest in a franchise? DON'T sign anything until you watch this! 🛑 In this crucial solo episode, Giuseppe Grammatico lays out the complete "Franchise Due Diligence Roadmap" to help you research wisely and avoid costly rookie mistakes. Learn the 5 essential steps:
Understanding the FDD:Â
1. Key items to review in the Franchise Disclosure Document.
2. Franchisee Validation: What to ask current franchisees to get the REAL story.
3. Item 19 & Financials: Decoding performance claims and spotting red flags.
4. The Role of a Franchise Consultant: How an expert guide streamlines your search.
5. Discovery Day & Decision-Making: How to prepare for the final step.
Want a step-by-step due diligence checklist? Let's connect and I’ll walk you through it.
DISCLAIMER: The information on this podcast is for general information purposes only. Franchising involves risk and careful consideration should be given before making any decisions.
00:00 247:  The Franchise Due Diligence Roadmap. What you need to know before You Invest.
00:03  The Franchise Due Diligence Roadmap. What you need to know before You Invest.
01:29 Franchise Due Diligence Roadmap
01:46 Understanding the Franchise Disclosure Document (FDD)
04:22 Franchisee Validation: Key Questions to Ask
08:03 Role of a Franchise Consultant
11:43 Discovery Day and Decision Making
12:33 Conclusion and Next Steps
Connect with Franchise Freedom on:
Website: https://ggthefranchiseguide.com/podcast/
LinkedIn: https://www.linkedin.com/in/giuseppe-grammatico/
Facebook: https://www.facebook.com/GGTheFranchiseGuide
X: https://twitter.com/ggfranchguide
Instagram: https://www.instagram.com/ggthefranchiseguide/
YouTube: https://www.youtube.com/@ggthefranchiseguide
Apple: https://podcasts.apple.com/us/podcast/franchise-freedom/id1499864638
Spotify: https://open.spotify.com/show/13LTN5UzA57w2dTB4iV0fm
The Franchise Freedom: Discover Your New Path to Freedom Through Franchise Ownership, Book by Giuseppe Grammatico https://ggthefranchiseguide.com/book or purchase directly on Amazon.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
giuseppe_1_06-04-2025_15033 (00:03):
Our role is to bring experience to
the table and, have you look atthe big picture.
Not all, but many franchiseconsultants, including myself,
have owned franchises.
I've owned franchises, nonfranchises have had side
hustles, worked for corporateAmerica, have been downsized and
everything else in between.
I jokingly say if your plan isto buy a McDonald's to change
(00:23):
the menu, probably not a goodfit for franchising.
My one guarantee to you isyou'll learn something in the
process, won't cost you anythingbut 20 minutes.
Welcome to the Franchise FreedomPodcast, where you can escape
the corporate trap throughfranchise ownership.
Here's your host, Giuseppe gr,the franchise guide.
giuseppe_1_06-04-2025_1 (00:46):
Welcome to an exciting episode of the
Franchise Freedom Podcast.
I'm your host, GI Matico, yourfranchise guide, the show where
we help corporate executivesexperience time and financial
freedom.
Thanks for joining us today.
We are continuing our series ofanswering your questions.
Gonna be solo, gonna be a littlebit shorter in length, but wanna
address a key topic with fivesubtopics there.
(01:08):
Kind of, these bullet pointsthat we're gonna put here in the
show notes.
And I thought it would be reallyhelpful.
I get a lot of this contentbased off your questions.
Some people aren't ready tochat, so let me put it out
there.
There's no cost aside for sometime.
And if the 10, 15 minute showsare too quick.
I always jokingly say we, we put'em on one and a quarter, 1.5
speed.
We all sound like chipmunks.
(01:29):
All right, what are we talkingabout today?
The franchise due diligenceroadmap.
What you need to know before youinvest.
I wanna teach you guys, how toresearch get your due diligence
done and avoid any rookiemistakes.
So this was a.
This is an interesting one.
We're gonna jump into key areas.
Number one, understanding theFDD, the franchise disclosure
document.
(01:50):
So I had a couple franchiseattorneys on the on the show.
I asked them, silly me forasking this, but what was most
important areas of the FDD.
And they said, as an attorney,it's the entire agreement.
And that is true.
FDS are extremely important.
You need to read them cover tocover.
And by the way, the FDD is thelarge agreement and within the
FDD will be the franchiseagreement.
(02:12):
As part of the FDDI know a lotof people thought that was a
separate document.
That's the document thatactually gets filled in.
When you purchase, you put yourname, your legal entity.
The territory, any specialarrangements and agreements and
things like that.
A lot of key areas there's 23items.
There's gonna be a financialsection you wanna go through
that, you're gonna get listingsof existing franchisees that you
(02:34):
can speak with.
You're gonna get to see thefinancials of the franchisor how
many new franchises to whatchanges there have been
transfers.
Usually that happens when theysell terminations or closings.
There's gonna be a lot of greatstuff in there.
There's gonna be the item fiveand six, which are all your
costs.
Your item seven, which is gonnabe your itemized low and
(02:55):
high-end investment, initialinvestment, along with an item
19, which is a financialrepresentation used to be called
an earnings claim.
Did away with that because ofthe wording.
Franchisor doesn't know whatyou're gonna make, but they can
give you historical information,kind of what the top or average,
franchise, top, top 25%franchisees are doing middle
bottom, and kind of breaking itdown that way in different
(03:18):
tiers.
So the FDD is super important.
Now, with the FDDI tell everyoneit is a very large, it could be
2, 3, 4, 500 pages depending onsome of those areas.
Before diving in there.
Figure out the franchise is agood fit.
You're probably gonna have acouple calls with the franchisor
before reading that document.
It could get stale.
It's a legal document, but it'simportant to read.
(03:40):
You can comb through it.
Figure out the fits there and ifyou wanna go, you're gonna read
that cover to cover.
You're gonna ask questions asthey come up, bring up concerns.
Hey, I don't understand thissection.
Can you talk to me?
Why this reads this way?
And then towards the end of theprocess, once you've gone to a
discovery or, confirmation daynarrow it down to one brand you
have the option.
It's recommended, but notmandatory to hire a franchise
(04:02):
attorney.
They can set the expectation andsay, yeah, I know this kinda
reads funny, but this is what ittruly means.
Or this is a red flag.
We should bring this up to the,to the to the brands.
Maybe get some clarification.
Not really meant to be changed.
On occasion we, we've seen anaddendum here and there, not
often.
But really important topic twofranchisee validation.
(04:25):
What are you asking currentfranchisees?
So after a couple calls with thefranchisor, you get the
franchise disclosure document.
You're gonna be speaking withfranchisees, and as I talked
about in previous episodes, andI tend to repeat myself because
I don't know what order you'rewatching these episodes.
You're gonna get to speak withthose franchisees.
They may be one-on-oneconversations, it may be a group
(04:46):
live call which is great.
You get to hear other questionsfrom other potential franchise
owners as well as prerecordedcalls for those that are
working.
And maybe listening on the ridehome.
That's, franchisee validation iscrucial.
Usually happens after youunderstand the brand, the model.
Not just what the product orwidget is, but what the role of
the franchisee is.
And yeah, you're gonna spendsome time here, talk to me about
(05:09):
the good.
The positive, the negative.
Let me, let me talk to the topperformer.
Maybe he's been there 10, he orshe's been there 10 years.
And the person that just startedand everyone in between, the
person that started full-timeversus the person that started
semit absentee, all crucial.
You wanna speak with theseindividuals and when you buy the
franchise, you may be asked tohandle validation calls and
(05:29):
you're gonna be meeting withthem at the annual conference.
And you also may be partneringwith them.
If you have a couple franchisesin your state, you may share
resources and marketing.
Maybe do events together, maybeeven share vendors or labor.
Maybe you have a big job and youneed a few additional
technicians.
These are all important thingsand having those calls are
important.
(05:50):
It also shows you kind of theculture, everyone chipping in
for the greater good of thebrand.
So that is a very important wegot item 19 in financial
performance.
We talked about that.
One key topic here is the item19 will read differently.
So let's set the expectation.
Some will be blank if it's anewer brand or they change their
model.
They're kind of redoing things.
(06:11):
Some will have the profit andloss of every franchisee that
has over a year in the, ofperformance before the closing,
which is usually, if you'retoday is June 4th of 25.
So the franchise, usually thatdata ends.
Usually we would end December31st, 2024 depending on their
fiscal year.
(06:31):
And that could change dependingon the brand.
So yeah, so going through thatreviewing it making sure you're
comfortable with it.
Some will give you just top, toplevel, top, top 25%, next 25,
the third quarter, and thefourth kind of breaking it down
what they're doing on average.
Ultimately, you're getting yourkind of investment range.
You're putting together a proforma.
(06:52):
There's gonna be some variablesthere.
Cost could go up.
Maybe you hire an employee, itcosts you a little bit more.
Your involvement's gonna be alittle bit less.
Now you need a general manager.
You gotta factor all this stuffin so you know exactly what your
break even is.
And you know exactly what youneed to bring in revenue in
order to make a profit on amonthly basis.
Really important stuff.
But ultimately, you're gonna askthese specific questions to the
(07:14):
franchisees.
Keep in mind today's June 4th,so from January 1st until today,
none of this information thathas occurred is gonna be in the
current FDD'cause it only getsupdated once a year.
Usually they come out in thespring.
So talking to the franchiseesHey, you started in December you
got about six months in.
Talk to me about was theinvestment in line.
What are some things I shouldconsider?
(07:36):
Maybe some ways to cut costs.
Financially they, have you madea profit?
Were you able to pay yourself?
What does that look like?
Remember, everyone's situation'sdifferent.
Some people don't need to paythemselves, so they're able to
reinvest back in the business,and some people do need to pay
themselves.
So ask those questions and divein a little bit deeper.
Prepare five to 10 questionswhen we work one-on-one.
I think we have a listing ofabout 40 questions that we have
(07:59):
prepared that I sent to all ofthe families that I work with.
I'd love to share that with you.
Role of a franchise consultant.
Our role is to bring experienceto the table and, have you look
at the big picture.
Not all, but many franchiseconsultants, including myself,
have owned franchises.
I've owned franchises, nonfranchises have had side
hustles, worked for corporateAmerica, have been downsized and
(08:21):
everything else in between.
So a good franchise consultantcan really not start talking to
you about brands on the firstcall, but they really spend time
getting to know you.
What are your goals?
Not simply asking you in an,kind of an interrogation style
as they jokingly say, do youwant a restaurant or not?
Great?
Do you want brick and mortar ornot great and checking down the
(08:41):
list like a portal.
Sometimes you need to go in downa few layers.
I don't want brick and mortar.
Why is that?
It takes too long to get open.
All right, that's maybe aquestion.
If that business couldpotentially get up and running
in less than a year, would yoube able to, yeah.
Okay.
Let's talk to that franchisorabout their selection process.
The third party that theypotentially hire to find the
(09:02):
right location to reallyexpedite things.
Now no one can predict how longthat will take, but let's put
that fear aside and not leaveany stone unturned to make sure
that.
We figure out, okay, if we'reruling out brick and mortar,
that's great.
We, we have a selection.
We gotta narrow this down.
But let's look at the specifics.
We're gonna look at, financials.
If you can't afford it, why lookat it.
What are the funding options?
(09:23):
Just because you have a milliondollars and a traditional IRA
that you can use, you may not becomfortable using retirement.
So we'll look at should you useit?
The pros and cons, should youlook at different resources?
The skillset you bring to thetable.
Most people think, to own aMcDonald's, you need to know,
you had to have worked in fastfood and you do not.
That franchisor will easily puttogether a system and teach you
(09:43):
and train you on that.
But what skillset do you need tothe table?
If that specific business hasyou knocking on doors and cold
calling and that is not for youthat may not be a good fit,
regardless of what the widget,what the product or service is.
So we really spend the timeexplaining.
Covering the process and what toexpect, setting the expectations
figuring out more important thananything else if a franchise is
(10:06):
a good fit or not, based off ofwhat you're looking to
accomplish.
I, I jokingly say if your planis to buy a McDonald's to change
the menu, probably not a goodfit for franchising.
But if you're looking to buyinvest in a franchise and have
some autonomy and run thebusiness, handle the marketing.
Over and beyond, do a podcastand do meetings and town halls
(10:27):
and TED talks and stuff likethat over and beyond.
That's great.
You know that those are thingsto actually talk about with the
franchisor.
About the different roles of thefranchisee.
So we look at everything.
We don't just simply take it atface value.
We break it down, we dive alittle bit deeper.
Why are you attracted to acertain brand?
I like food because there's alot of demand people have to
eat.
What about business coaching?
(10:49):
What about expense reduction?
What about it's inevitable,right?
Water and smoke damage.
There's gonna be fires andnatural disasters.
That's falls in the category,recession resistant types of
businesses.
We recently had COVID that was astress test for some businesses
where they were forced tochange.
We saw the businesses thatthrive, the businesses that
closed.
We don't wanna ever see thatagain, but what, which companies
(11:12):
thrive, which, what were thedifferences?
What has changed since then?
Those are all things toconsider.
We have our finger on the pulseof franchising.
We talk to on a weekly basis,founders, CEOs, presidents
franchise professionals, fundingprofessionals, franchise
attorneys CPAs financialadvisors, regular attorneys.
The list goes on.
(11:32):
So kind of see what's going on.
Love talking about the impact ofAI marketing, how franchisees
are taking advantage of certainand helping their franchisees in
the process.
And then finally discovery dayand decision making.
What happens what happens, andthat's usually end of the
process.
You're hiring that franchiseattorney if you decided to go
that route and doing either avirtual or in person.
(11:56):
There's a handful of brands thatdon't do any discovery because
the founders involved heavily inthe calls.
But what does that look like?
And really I tell everyone, youwanna be about 80% certain about
moving forward with that brandbefore committing to a discovery
day.
You don't have to say, have tomake that decision, but be close
to it.
The franchise team, you'll askyour questions, get to hear from
(12:19):
other Fran potentialfranchisees, and then the team
will meet as a group to see ifyou're formally approved for the
franchise and the number oflocations and territories.
And then from there, you'regiving us some time to kind of
make, your final decision on thebrand itself.
So if you wanna step by stepguide to or essentially a due
diligence checklist schedule acall with me, we'll go through
(12:39):
that of what other things to belooking for.
There's a lot more here that wecan unpack.
We can share those questions.
I think it's about 40 questionsor so to ask the franchisees.
And better yet, we also have alist of questions to be asking
the franchisor.
Would love to share that withyou.
And that's something that Ioffer to everyone we work with.
I'd love to share all that withyou.
Book a call with me, gigi thefranchise guide.com.
(13:01):
Take advantage of the resources.
Take advantage of the free call.
We'll figure out together in 20minutes or less if a franchise
is a good fit.
My one guarantee to you isyou'll learn something in the
process, won't cost you anythingbut 20 minutes.
Thanks again for joining, guys,and I'll talk to you guys soon.
See you.
Our role is to bring experience to
the table and, have you look atthe big picture.
Not all, but many franchiseconsultants, including myself,
have owned franchises.
I've owned franchises, nonfranchises have had side
hustles, worked for corporateAmerica, have been downsized and
everything else in between.
I jokingly say if your plan isto buy a McDonald's to change
(00:23):
the menu, probably not a goodfit for franchising.
My one guarantee to you isyou'll learn something in the
process, won't cost you anythingbut 20 minutes.
Welcome to the Franchise FreedomPodcast, where you can escape
the corporate trap throughfranchise ownership.
Here's your host, Giuseppe gr,the franchise guide.
giuseppe_1_06-04-2025_1 (00:46):
Welcome to an exciting episode of the
Franchise Freedom Podcast.
I'm your host, GI Matico, yourfranchise guide, the show where
we help corporate executivesexperience time and financial
freedom.
Thanks for joining us today.
We are continuing our series ofanswering your questions.
Gonna be solo, gonna be a littlebit shorter in length, but wanna
address a key topic with fivesubtopics there.
(01:08):
Kind of, these bullet pointsthat we're gonna put here in the
show notes.
And I thought it would be reallyhelpful.
I get a lot of this contentbased off your questions.
Some people aren't ready tochat, so let me put it out
there.
There's no cost aside for sometime.
And if the 10, 15 minute showsare too quick.
I always jokingly say we, we put'em on one and a quarter, 1.5
speed.
We all sound like chipmunks.
(01:29):
All right, what are we talkingabout today?
The franchise due diligenceroadmap.
What you need to know before youinvest.
I wanna teach you guys, how toresearch get your due diligence
done and avoid any rookiemistakes.
So this was a.
This is an interesting one.
We're gonna jump into key areas.
Number one, understanding theFDD, the franchise disclosure
document.
(01:50):
So I had a couple franchiseattorneys on the on the show.
I asked them, silly me forasking this, but what was most
important areas of the FDD.
And they said, as an attorney,it's the entire agreement.
And that is true.
FDS are extremely important.
You need to read them cover tocover.
And by the way, the FDD is thelarge agreement and within the
FDD will be the franchiseagreement.
(02:12):
As part of the FDDI know a lotof people thought that was a
separate document.
That's the document thatactually gets filled in.
When you purchase, you put yourname, your legal entity.
The territory, any specialarrangements and agreements and
things like that.
A lot of key areas there's 23items.
There's gonna be a financialsection you wanna go through
that, you're gonna get listingsof existing franchisees that you
(02:34):
can speak with.
You're gonna get to see thefinancials of the franchisor how
many new franchises to whatchanges there have been
transfers.
Usually that happens when theysell terminations or closings.
There's gonna be a lot of greatstuff in there.
There's gonna be the item fiveand six, which are all your
costs.
Your item seven, which is gonnabe your itemized low and
(02:55):
high-end investment, initialinvestment, along with an item
19, which is a financialrepresentation used to be called
an earnings claim.
Did away with that because ofthe wording.
Franchisor doesn't know whatyou're gonna make, but they can
give you historical information,kind of what the top or average,
franchise, top, top 25%franchisees are doing middle
bottom, and kind of breaking itdown that way in different
(03:18):
tiers.
So the FDD is super important.
Now, with the FDDI tell everyoneit is a very large, it could be
2, 3, 4, 500 pages depending onsome of those areas.
Before diving in there.
Figure out the franchise is agood fit.
You're probably gonna have acouple calls with the franchisor
before reading that document.
It could get stale.
It's a legal document, but it'simportant to read.
(03:40):
You can comb through it.
Figure out the fits there and ifyou wanna go, you're gonna read
that cover to cover.
You're gonna ask questions asthey come up, bring up concerns.
Hey, I don't understand thissection.
Can you talk to me?
Why this reads this way?
And then towards the end of theprocess, once you've gone to a
discovery or, confirmation daynarrow it down to one brand you
have the option.
It's recommended, but notmandatory to hire a franchise
(04:02):
attorney.
They can set the expectation andsay, yeah, I know this kinda
reads funny, but this is what ittruly means.
Or this is a red flag.
We should bring this up to the,to the to the brands.
Maybe get some clarification.
Not really meant to be changed.
On occasion we, we've seen anaddendum here and there, not
often.
But really important topic twofranchisee validation.
(04:25):
What are you asking currentfranchisees?
So after a couple calls with thefranchisor, you get the
franchise disclosure document.
You're gonna be speaking withfranchisees, and as I talked
about in previous episodes, andI tend to repeat myself because
I don't know what order you'rewatching these episodes.
You're gonna get to speak withthose franchisees.
They may be one-on-oneconversations, it may be a group
(04:46):
live call which is great.
You get to hear other questionsfrom other potential franchise
owners as well as prerecordedcalls for those that are
working.
And maybe listening on the ridehome.
That's, franchisee validation iscrucial.
Usually happens after youunderstand the brand, the model.
Not just what the product orwidget is, but what the role of
the franchisee is.
And yeah, you're gonna spendsome time here, talk to me about
(05:09):
the good.
The positive, the negative.
Let me, let me talk to the topperformer.
Maybe he's been there 10, he orshe's been there 10 years.
And the person that just startedand everyone in between, the
person that started full-timeversus the person that started
semit absentee, all crucial.
You wanna speak with theseindividuals and when you buy the
franchise, you may be asked tohandle validation calls and
(05:29):
you're gonna be meeting withthem at the annual conference.
And you also may be partneringwith them.
If you have a couple franchisesin your state, you may share
resources and marketing.
Maybe do events together, maybeeven share vendors or labor.
Maybe you have a big job and youneed a few additional
technicians.
These are all important thingsand having those calls are
important.
(05:50):
It also shows you kind of theculture, everyone chipping in
for the greater good of thebrand.
So that is a very important wegot item 19 in financial
performance.
We talked about that.
One key topic here is the item19 will read differently.
So let's set the expectation.
Some will be blank if it's anewer brand or they change their
model.
They're kind of redoing things.
(06:11):
Some will have the profit andloss of every franchisee that
has over a year in the, ofperformance before the closing,
which is usually, if you'retoday is June 4th of 25.
So the franchise, usually thatdata ends.
Usually we would end December31st, 2024 depending on their
fiscal year.
(06:31):
And that could change dependingon the brand.
So yeah, so going through thatreviewing it making sure you're
comfortable with it.
Some will give you just top, toplevel, top, top 25%, next 25,
the third quarter, and thefourth kind of breaking it down
what they're doing on average.
Ultimately, you're getting yourkind of investment range.
You're putting together a proforma.
(06:52):
There's gonna be some variablesthere.
Cost could go up.
Maybe you hire an employee, itcosts you a little bit more.
Your involvement's gonna be alittle bit less.
Now you need a general manager.
You gotta factor all this stuffin so you know exactly what your
break even is.
And you know exactly what youneed to bring in revenue in
order to make a profit on amonthly basis.
Really important stuff.
But ultimately, you're gonna askthese specific questions to the
(07:14):
franchisees.
Keep in mind today's June 4th,so from January 1st until today,
none of this information thathas occurred is gonna be in the
current FDD'cause it only getsupdated once a year.
Usually they come out in thespring.
So talking to the franchiseesHey, you started in December you
got about six months in.
Talk to me about was theinvestment in line.
What are some things I shouldconsider?
(07:36):
Maybe some ways to cut costs.
Financially they, have you madea profit?
Were you able to pay yourself?
What does that look like?
Remember, everyone's situation'sdifferent.
Some people don't need to paythemselves, so they're able to
reinvest back in the business,and some people do need to pay
themselves.
So ask those questions and divein a little bit deeper.
Prepare five to 10 questionswhen we work one-on-one.
I think we have a listing ofabout 40 questions that we have
(07:59):
prepared that I sent to all ofthe families that I work with.
I'd love to share that with you.
Role of a franchise consultant.
Our role is to bring experienceto the table and, have you look
at the big picture.
Not all, but many franchiseconsultants, including myself,
have owned franchises.
I've owned franchises, nonfranchises have had side
hustles, worked for corporateAmerica, have been downsized and
(08:21):
everything else in between.
So a good franchise consultantcan really not start talking to
you about brands on the firstcall, but they really spend time
getting to know you.
What are your goals?
Not simply asking you in an,kind of an interrogation style
as they jokingly say, do youwant a restaurant or not?
Great?
Do you want brick and mortar ornot great and checking down the
(08:41):
list like a portal.
Sometimes you need to go in downa few layers.
I don't want brick and mortar.
Why is that?
It takes too long to get open.
All right, that's maybe aquestion.
If that business couldpotentially get up and running
in less than a year, would yoube able to, yeah.
Okay.
Let's talk to that franchisorabout their selection process.
The third party that theypotentially hire to find the
(09:02):
right location to reallyexpedite things.
Now no one can predict how longthat will take, but let's put
that fear aside and not leaveany stone unturned to make sure
that.
We figure out, okay, if we'reruling out brick and mortar,
that's great.
We, we have a selection.
We gotta narrow this down.
But let's look at the specifics.
We're gonna look at, financials.
If you can't afford it, why lookat it.
What are the funding options?
(09:23):
Just because you have a milliondollars and a traditional IRA
that you can use, you may not becomfortable using retirement.
So we'll look at should you useit?
The pros and cons, should youlook at different resources?
The skillset you bring to thetable.
Most people think, to own aMcDonald's, you need to know,
you had to have worked in fastfood and you do not.
That franchisor will easily puttogether a system and teach you
(09:43):
and train you on that.
But what skillset do you need tothe table?
If that specific business hasyou knocking on doors and cold
calling and that is not for youthat may not be a good fit,
regardless of what the widget,what the product or service is.
So we really spend the timeexplaining.
Covering the process and what toexpect, setting the expectations
figuring out more important thananything else if a franchise is
(10:06):
a good fit or not, based off ofwhat you're looking to
accomplish.
I, I jokingly say if your planis to buy a McDonald's to change
the menu, probably not a goodfit for franchising.
But if you're looking to buyinvest in a franchise and have
some autonomy and run thebusiness, handle the marketing.
Over and beyond, do a podcastand do meetings and town halls
(10:27):
and TED talks and stuff likethat over and beyond.
That's great.
You know that those are thingsto actually talk about with the
franchisor.
About the different roles of thefranchisee.
So we look at everything.
We don't just simply take it atface value.
We break it down, we dive alittle bit deeper.
Why are you attracted to acertain brand?
I like food because there's alot of demand people have to
eat.
What about business coaching?
(10:49):
What about expense reduction?
What about it's inevitable,right?
Water and smoke damage.
There's gonna be fires andnatural disasters.
That's falls in the category,recession resistant types of
businesses.
We recently had COVID that was astress test for some businesses
where they were forced tochange.
We saw the businesses thatthrive, the businesses that
closed.
We don't wanna ever see thatagain, but what, which companies
(11:12):
thrive, which, what were thedifferences?
What has changed since then?
Those are all things toconsider.
We have our finger on the pulseof franchising.
We talk to on a weekly basis,founders, CEOs, presidents
franchise professionals, fundingprofessionals, franchise
attorneys CPAs financialadvisors, regular attorneys.
The list goes on.
(11:32):
So kind of see what's going on.
Love talking about the impact ofAI marketing, how franchisees
are taking advantage of certainand helping their franchisees in
the process.
And then finally discovery dayand decision making.
What happens what happens, andthat's usually end of the
process.
You're hiring that franchiseattorney if you decided to go
that route and doing either avirtual or in person.
(11:56):
There's a handful of brands thatdon't do any discovery because
the founders involved heavily inthe calls.
But what does that look like?
And really I tell everyone, youwanna be about 80% certain about
moving forward with that brandbefore committing to a discovery
day.
You don't have to say, have tomake that decision, but be close
to it.
The franchise team, you'll askyour questions, get to hear from
(12:19):
other Fran potentialfranchisees, and then the team
will meet as a group to see ifyou're formally approved for the
franchise and the number oflocations and territories.
And then from there, you'regiving us some time to kind of
make, your final decision on thebrand itself.
So if you wanna step by stepguide to or essentially a due
diligence checklist schedule acall with me, we'll go through
(12:39):
that of what other things to belooking for.
There's a lot more here that wecan unpack.
We can share those questions.
I think it's about 40 questionsor so to ask the franchisees.
And better yet, we also have alist of questions to be asking
the franchisor.
Would love to share that withyou.
And that's something that Ioffer to everyone we work with.
I'd love to share all that withyou.
Book a call with me, gigi thefranchise guide.com.
(13:01):
Take advantage of the resources.
Take advantage of the free call.
We'll figure out together in 20minutes or less if a franchise
is a good fit.
My one guarantee to you isyou'll learn something in the
process, won't cost you anythingbut 20 minutes.
Thanks again for joining, guys,and I'll talk to you guys soon.
See you.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.