July 31, 2023 • 55 mins
Join us as we invite Giuseppe Grammatico, a seasoned franchise expert, to our conversation, providing valuable insights into the world of franchising. Ever wondered about the difference between starting your business versus buying into a successful franchise like Chick-fil-A or Dunkin' Donuts? We've got you covered! From dissecting the pros and cons of popular franchises, to evaluating the commitment each one demands, we cover all grounds for you to make an informed decision. Giuseppe also shares tips on picking a franchise that resonates with your skills, interests, and investment capacity.
Over the course of our conversation, Giuseppe sheds light on the rising trend of home service-based businesses and how COVID-19 has given them a popularity surge. We delve into the benefits of franchises that require lower investments and offer quicker returns, and discuss the challenges of finding employees for service-based businesses. But don't worry, we've got solutions up our sleeve too - think about involving subcontractors and offering phantom equity.
Lastly, we land on the vital topic of collective decision-making when choosing a franchise. From identifying the roles each team member would play to selecting a franchise aligned with everyone's goals, Giuseppe's experience and advice are invaluable. We wrap up the conversation by exploring the advantages of investing in a franchise system, understanding the interview process for potential franchise owners, and discussing the potential success that awaits with the right franchise. So, step into this episode, ready to unravel the promising world of franchising and side hustles.
As you're inspired to embark on your own side hustle journey after listening to this episode, you might wonder where to start or how to make your vision a reality. That's where our trusted partner, Reversed Out Creative comes in.
Specializing in strategic branding and digital marketing, Reversed Out Creative is an advertising agency dedicated to helping you turn your side hustle into your main hustle. With a team of experienced professionals and a track record of helping clients achieve their dreams, they are ready to assist you in reaching your goals.
To find out more about how they can elevate your side hustle, visit www.reversedout.com today and start your journey towards success. Our blog is also full of great information that we work hard on to provide you with a leg up on the competition. We also recently launched our YouTube Channel, Marketing Pro Trends, which summarizes all of our blog posts.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 2 (00:11):
Welcome to Side Hustle City and thanks for
joining us.
Our goal is to help you connectto real people who found
success turning their sidehustle into a main hustle, and
we hope you can too.
I'm Adam Kaler.
I'm joined by Kyle Stevy, myco-host.
Let's get started.
All right, welcome backeverybody to the Side Hustle
(00:33):
City podcast today.
Giuseppe Gramatico, how youdoing, sir?
Speaker 1 (00:38):
Awesome, Adam.
I appreciate the invite.
I'm looking forward to the showtoday.
Speaker 2 (00:42):
Yeah, yeah, I'm excited to have you on.
I'm reading a little bit aboutwhat you do.
It's very exciting to mebecause I'm always looking for
passive income and ways to, youknow, not have to be at the
office every day necessarily,and not that every franchise is
going to be like that.
You got a lot of franchiseopportunities that require you
to actually be in the businessworking for sometimes a specific
(01:05):
amount of time, and you knowChick-fil-A franchises are
awesome, but you actually, Ithink with those don't own the
franchise.
You're essentially buyingyourself a management position.
And then you've got otherfranchises, like Dunkin' Donuts
you see popping up all over theplace now in the Midwest.
But the problem with those isyou really don't.
I mean, the margins reallyaren't that great.
You don't make a lot of money.
(01:26):
There's a lot of waste.
Do you want to deal with foodall day and run rats off?
I don't know, and not that youknow Dunkin' Donuts is a bunch
of rats or anything run around.
But you know every franchisehas their own issues and they're
not necessarily something thatmight work for you.
And one of the things that youdo is you talk to people, you
target former executives, youhave your own niche, and then
(01:49):
you just have a conversationwith them and say, hey, what's
best for me?
Well, here's, based oneverything I know, maybe you'd
be best suited for thisfranchise, is that?
Is that pretty clear?
Is that a pretty accuraterepresentation there?
Speaker 1 (02:03):
Yeah, you nailed it.
A lot of people are looking atthe franchise brands and they
spend years looking at them andI go let's take a step back and
just let's just figure out ifowning a business is the right
fit.
But you know owning a franchiseor a startup.
So, absolutely, you know wespent a lot of time working in
reverse and figuring out what'sa good match based off of
(02:24):
skillset and interests andinvestment, and you know part
time ownership, full timeownership.
So a lot of time spent thereand at the very end which is the
opposite of what normal, whatpeople normally do, including
myself when I first startedthat's when we look at the
brands as opposed to startingwith brands and trying to make
them work and fit.
Speaker 2 (02:42):
So yeah, yeah, well, I mean that's, that's important.
I mean I've looked at a lot ofthings too, just because I mean
I'm in the side hustle businesshere and you know, it's kind of
like people ask me all the timeAdam, oh, what do you think
about a?
What do you think about a JiffyLube franchise?
What do you think about thisfranchise?
Or that franchise?
We had somebody on I don't know, maybe three or four weeks ago
(03:03):
from Everest and they do vendingmachines that spit out water
and ice and I mean there's nooverhead.
Really, you stick those thingsin a good location and you could
profit.
I mean, the profit actuallylooked great on it.
So I mean people ask me thesequestions all the time about
this stuff and I'm like I don'tknow, like it depends on what
you like, and now, after talkingto you, I have somewhere to sit
(03:25):
.
Speaker 1 (03:28):
Yeah, we could.
We could definitely break itdown, and that's the big thing.
The biggest thing is, which isbetter?
And I'm going to answer it.
You know, I've been doing this20 years and it's very simple a
startup or a franchise, and Ialways I always tell someone to
do drumroll, and the answer issimple.
There is no one is better thanthe other.
It's all about what you'relooking for, and part of what we
(03:49):
do is education and tellingpeople.
Simply put, do you want thebusiness built for you so that
you can run with that business,you know, in 30, 60, 90 days
especially, you know, if it'slike a home service business or
do you want to build thatbusiness from scratch and
develop the logo and get arevender on board and such such
(04:10):
a creative system from scratch?
So one is not better than theother.
A franchise could give you thatunfair advantage that I talk
about, but it's not the rightfit for everyone.
So I like to really start thereand then, once you make that
decision, it's like okay, whichare the brands?
So, if I'm looking at, let'sfocus on side hustles, which are
the brands that will allow me,and that's very you know.
(04:31):
I want to be very clear allowme to be semi absentee.
That will allow me to keep myjob, because there are certain
brands to your point that youhave to be full time and there's
nothing wrong with that.
You want someone to be full timein the beginning.
Learn the ropes, learn thebusiness before bringing on a
general manager.
And there are other brands thatwill support you as a part time
(04:52):
side hustle, support you via.
You know they'll train thetrainer, they'll help find and
train a general manager, theywill provide a call center, they
will provide turnkey marketingfor you.
So it will vary by brand.
So don't look at just theindustry.
You got to look at the specificbrand, because two brands that
offer a similar product, onewill be full time and one will
(05:15):
offer part time ownership.
Speaker 2 (05:17):
I like that.
Well, I just literally the lasttwo days I've been around these
college students.
There's an IT company here inCincinnati.
They have a bunch of interns.
They said, adam, come up, talkto the kids, tell them about
side hustles.
You know we don't want themthinking that you know if
they've got a full time job,that's it.
Right, I mean you remember.
I mean you and I.
You know we're about the sameage.
(05:38):
I mean you there was a timewhen your dad could go to work,
your mom could have stayed homewith the kids and there was
enough money there.
Right, I mean there waspossibly a pension that was
promised at one point, you know,in a generation earlier than us
.
There definitely was.
Right, I mean you work at, youknow, the auto workers union or
whatever.
There's going to be a pensionthat wife's taken care of.
(06:00):
You know there's this and that.
Well then the wife had to startworking.
Well then, the two incomesdidn't work.
Now you both have to have sidehustles.
So you know, going in heretalking to the kids, saying look
, guys live cheap, like one ofthe problems that happens with
people in America is is they getthese jobs?
You're working with executives.
You know, the more money youmake, the more money you think
(06:20):
you can spend.
Now you're living in a $1.2million house out in the burbs,
you're driving at Escalade,you're doing all this stuff.
Well, all your disposableincome is going out the out the
window and you're not investingthat in your freedom.
You could live like you'restill poor.
I tell them.
I said look, you're eatingramen noodles in school.
(06:41):
Just because you got your firstjob doesn't mean you go out and
buy a $3,000 month apartmentall of a sudden.
Be cheap, save your money,Build up a nest egg.
You probably talk to executivesbecause a lot of times those
executives have $100,000 in networth.
At least They've got $50,000 inthe bank that they could
(07:02):
probably throw at one of thesethings, because that's what
you're going to need.
You're going to need maybe 50.
I've seen some of them up to$250,000.
A million-dollar investment fora laundromat, for a Speed Queen
laundromat franchise.
A lot of capital expendituresgo up front to buy the equipment
and things to get yourfranchise off the ground.
Is that one of the reasons thatyou said hey, look, I'm going
(07:25):
to focus on these executives.
They understand business forone.
They know how to read thedocuments that these franchises
give you, but also they do.
They have some disposableincome and they're looking to
free themselves from thecorporate world they've lived in
.
Speaker 1 (07:41):
Yeah, absolutely, corporate execs have been doing
it.
They've been able to hone theirskills, whether they're in
sales or marketing, whatevertheir skill set is and what they
do.
Well, they have a few bucksaside which, quite frankly,
you'd be surprised that I seesome really large incomes and
very low net worth because youstart to make more, you start to
(08:02):
spend it on cars.
Cars, for the most part, aredepreciating day one as soon as
you drive it off the lot, soyou'd be really surprised.
But yeah, my thing is, you gotsome experience, you've had your
taste of employment and now youwant to know what else there is
.
And the great part is we showpeople hey, you don't have to
leave your job, you can keepyour job and your income and
(08:25):
your benefits and have this sidefranchise.
And eventually we put togethera time frame, maybe in two years
, the transition out of the joband then full-time business
ownership.
I've worked with families, onein particular, where a person
was doing really well, had thisside business and never left his
(08:47):
job because he's only working ahandful of hours a week I think
the last time we spoke was acouple hours a week, if that the
business has been up andrunning for several years and he
just kept his job because heloves his job and it creates.
It's giving him that income,the flexibility he gets to work
(09:07):
from home.
So he's like, why would I leavethat?
So it's really up to you.
You may have this plan of whatthe next couple of years looks
like, but in reality it can beflexible.
You may decide to stay at thejob a little bit longer because
you want to acquire a couple ofcomplementary brands.
And, to your point, withinvestment, the investments are
(09:27):
you have a franchise fee andthen you have the all-in
investment that they break downthe agreement.
So they could be anywhere from50,000 to 100,000 into the
millions.
And that's when you're gettinginto standalone buildings with
buildouts and things like that.
But there are 70 plus differentindustries, 4,000 plus
different franchises just in theUS and Canada, from picking up
(09:51):
pet waste to eyelash extensions,to business coaching, all the
way up to your Chick-fil-A.
So there's a franchise trulyfor everyone.
It's just spending the time andbeing honest with yourself to
find that brand.
Speaker 2 (10:05):
Yeah, and it has to be something that's right for
you and you know.
I also wanted to ask you, likewhat are some of the if you
could pick, say, three or fourfranchises that seem to be
popular for the target thatyou're going after?
Do you see a pattern?
Is there like, oh, I want to dothat, you know, or is there
something that people alwayscome to you asking for and then
(10:29):
maybe you steer them down adifferent path?
Speaker 1 (10:32):
Yeah, so I'll answer this way.
So everyone is going to bespecific, right?
They're looking for a lot ofthe similar things like
financial and time freedom, andthen you have to unpack that dig
a little deeper.
But ultimately what I'm hearingand this is just what I'm
hearing with the candidates wework with are we don't want food
(10:53):
, we don't want a restaurantbecause of the margins and the
build-out.
So that's been very common.
I would say.
At least the last since COVID,I would say, has been a very
popular comment.
People that I work with mayhave an idea in mind.
They like a certain bagel orthey may like, you know,
massages.
So they want to look at that.
And I said ultimately, we wantto make sure that your role in
(11:15):
the business matches up right.
You could buy a Chick-fil-Afranchise and get massages all
day long, and vice versa.
So, you know, at the end of theday, you want it to be a good
fit, but what I'm seeing arewhere the interest lies is, you
know, people are wanting to keeptheir investments on the lower
end and, with that being said,it rules out a lot of the brick
(11:36):
and mortar retail types ofbusinesses.
So what we've seen a lot of,especially since COVID, because
people are working from home isa home service-based businesses
that offer home services, suchas, you know, residential
cleaning, roofing, siding,windows, painting, you know the
list goes on anything to do withthe exterior of the home,
(11:59):
lighting and things like that.
So we're getting a lot ofindividuals coming to us saying
I want the investment to be onthe lower end and I want it to
be up and running relativelyquickly, and the typical
characteristic of a servicebrand is 30 to 90 days.
That's a range, depending if atruck is needed or equipment,
(12:19):
versus something that's brickand mortar that may take six
months, up to a year plus, toget open.
And these are ranges because itall depends on approvals and
permits and things like that.
So the interest has shiftedtowards a lot of service brands
where you're up and runningquickly.
And you know, let's call itwhat it is right.
People are concerned aboutfinding employees.
(12:40):
So a lot of our brands we havea franchise around windows and
doors and it's a one to twoemployee model utilizing
subcontractors to do the work.
So I'm not saying, you know,yes, a subcontractor, they have
to find their own employees, butit's on the subcontractor to
manage that part and it's kindof taken off your plate.
(13:01):
There's no ongoing payroll.
They get paid, obviously, afterthe job is complete.
So we're seeing service with a.
You know there's variouspillars or elements where
subcontractors are involved andyou're keeping the investment
lower, payrolls lower.
You're solving and checking offthat box, saying okay, the
subcontractors are going to dealwith that.
(13:21):
And now you're talking about ifyou're going to be part-time,
maybe two employees, if you'regoing to be full-time, possibly
one employee.
And that saves the headache.
You know how hard is it to findone employee, you know, given
your market.
So that's been increasing inpopularity.
Speaker 2 (13:37):
Yeah, I had a my cousin.
She's married to a dentist andhe started a sandwich.
There's a sandwich brand outthere that was popular across
the country that he purchased.
It didn't end up working outfor them and I think they ended
up selling that franchise maybea year or two into it, because
this was before COVID.
It was hard to find employeesto work at that sandwich shop.
(13:58):
And you know, just being in, youknow doing what I do.
After 140 episodes of sidehustle stuff, I'm realizing
people are waking up and thentalking to these kids the other
day, yesterday and today they'rejust waking up to all these
different opportunities.
I mean you could door dash andmake more than you do sitting
working at a sandwich shop everyday.
You could Uber and make moremoney.
(14:19):
You could rent your car onTurro and probably make more
money than you're making at oneof these places.
So people are.
There's so many opportunities.
Now it seems like I mean, fromwhen we were kids, I mean we had
there was like five things wecould do.
You know, when we were incollege you had to work at a
restaurant you had to work at.
I worked at a phone bank.
You know it was awful.
Speaker 1 (14:38):
There was no internet .
Yeah, exactly there was thatproblem.
The heck was that.
Speaker 2 (14:42):
Yeah now you've got so many things open to you.
It's crazy.
So investing in a franchisethat requires people, not only
are you worried about going outand finding business, but now
you got to worry about going outand find employees on top of
that.
So you're selling yourself tonot just your customers.
Now you're selling yourself tohey, why should I do this and
(15:02):
not just go make a thousandbucks a week or whatever working
at doing door dash?
You know?
Speaker 1 (15:08):
That's actually.
It's a great point and I'm gladyou brought that up.
And that's a question we hadthis morning with a family I'm
working with and I said you know, the particular business model
we were looking at had oneemployee because they were going
to be running it full time.
And I said you know, thatemployee is a key employee.
You're going to maybe need asecond hire at some point, but
the franchise company does allthe marketing for them.
(15:28):
So that's done.
They have a call center, that'sdone and taken off their plate.
So what the franchise are andthis is very common coming from
our last conference here inNashville, you know a lot of 130
franchise companies, ceos,founders, everyone in a room and
having discussions and some ofthe big takeaways were how do
you keep those key employees on?
(15:48):
And the idea I don't know ifyou've heard of this is phantom
equity.
Phantom equity has come upquite often where your general
manager or your key employee.
You're not giving them straightup equity but you're giving
them a percentage of the profitsevery quarter.
So when you go to sell thebusiness it's still 100% yours
but they're getting, you know,10%.
Maybe they're earning their wayup to 10% of the profitability
(16:10):
of the company.
So what is that?
What problems that solve?
Number one you prevents that GMfrom leaving because now
they're earning up to just say,you know, 5%, 10%, 15% plus
percent equity in the businessand their decision making,
progress.
Decision making, you know, justanother progress process,
(16:31):
excuse me is going to bedifferent, because every
decision they make, they'regoing to look at it as like, all
right, we have to ensurethere's going to be a profit
here.
We're not taking a loss becauseI'm going to be getting 10
cents on the dollar for everyyou know, every dollar on profit
.
I'm making 10%, 10 cents, sothat will number one they're
going to think twice do we needto really bring on an employee?
Or can we figure this out, youknow, utilizing AI, utilizing
(16:55):
some other type of method?
Where can we cut costs?
So it incentivizes them to stayon and incentivizes them to
keep the headcount lower and itjust, you know, incentivize them
to make as much money aspossible.
So they get a base, they get apiece of the profits and
typically, from what I've seen,people then tend to stay on a
little bit longer because nowit's like all right, if I leave
(17:16):
for this job, I'm giving away10% of the potential profits in
the business.
So that's a big takeaway.
When people say it's hard tofind people and it's like all
right, well, do you really needtwo people?
Can the role be consolidatedinto one?
Are you being competitive withyour compensation?
Are you giving them a cut ofthe profits?
Because that alone, you'regiving that cut.
(17:38):
I noticed in my last businessgiving my general manager a cut
of the profits.
He's like you know what we cansolve this utilizing XYZ.
He went back to vendors tonegotiate rates, lower our costs
or payment terms.
So that makes a huge difference.
So it's finding people, andthen stage two is how do we keep
them in on, how do we keep themmotivated and while reducing
(18:02):
the headcount as much aspossible?
Speaker 2 (18:03):
And I have.
I'm surprised.
I've never heard of this.
It sounds a little bit likestock options almost, but not as
I don't know.
It's almost seems like, hey,look, stick around, you're going
to get it, if you don't, youlose it, kind of thing.
Yeah, and it's.
It actually makes a ton ofsense.
You want to incentivize peopleand you've got to be able to
(18:24):
offer them something.
They're not getting equity inUber.
They're not getting equity inDoorDash.
You know this gives themsomething.
They feel like entrepreneurs ina way.
They're tied into this.
So if something happens, youknow at the company, you know
water, pipe, bus or something.
You're out of town.
Hey, I need somebody to go downand meet the plumber.
They're not like well, I'm offthe clock, right, I'm not going
down.
(18:46):
Do you want this business tostay open, like, let's get down
there and knock it out, right,so you've got, you've got a
little bit more incentive withthe employee to go out there and
do this stuff.
Now you know what is, what is,what are the benefits?
I guess People out here thatyou're dealing with are going to
(19:07):
say Giuseppe, look, you knowwhy.
Why do I want to do a franchise?
What do I want to bring on thefranchise for, like they're just
going to take a chunk of themoney.
You know I'm a businessman.
I now had to run a business.
Why don't I just start my ownlandscaping brand?
Why don't I just start my ownwindow cleaning brand?
What do I need to?
What do I need to franchise for?
Speaker 1 (19:27):
Yeah.
So you know that's a greatquestion because you know, when
people look at financials right,you know or performance, it
goes back to financials.
It's something easy to gauge,right?
It's $50,000 franchise feeversus starting it myself.
But I'm a finance guy, my firstcareer was was on Wall Street,
and you know it's opportunity,costs, time, value of money, and
(19:48):
the list goes on.
So what I tell everyone andagain not making the case for
franchising, but distinguishingthe difference is that you
create a business plan.
You don't need to pay 50K tostart to launch that business.
Maybe it's much less, but howlong have you been sitting on
that business plan?
And then you have trial anderror.
So you try vendors, you trydifferent CRMs and systems.
(20:10):
You know you lose a thousandhere, 10,000 there.
A franchise is really going toget you up and running If that's
your goal, as quickly aspossible.
As I mentioned, in some servicebrands you could be up and
running in as little as 30 days.
So you're benefiting number onefrom their systems in place.
The trial and error theyfigured out the hard way via
experimentation.
They're not charging you thehundreds of thousands, if not
(20:33):
millions, of dollars to get thesystem up and running.
Your everyone pays the samefranchise fee, which is a one
time fee, by the way, theongoing, you know fees and the
5% royalty, 10% or whatever itis.
You're getting something inreturn.
So if you're, when you're doingyour due diligence, if you feel
like you're not gettinganything return, I would say
don't.
Don't invest in that business.
You want a business that'sgiving you something.
(20:55):
So you can call it an expense,you can call it an investment,
but they're doing something onbehalf.
Some franchise companies willhave, just say, a 10% return I'm
sorry, 10% royalty, excuse me,and in that royalty it's
itemized.
Maybe 5% is just for support,any questions?
You have training 2% mayberolled in as a call center, 2%
(21:15):
maybe for online marketing andthen 1% national advertising
fund.
You know some some will bundlethem, some will break them up,
but you're benefiting in a bigway because you're utilizing the
system.
You're getting up and running.
We have a donut franchise, forexample.
It utilizes a trailer wherethey go to special events really
(21:35):
high margins.
They own the manufacturingplant that they make these
trailers, so you could be up andrunning in as little as 90 days
versus having to go out and buyfrom another vendor.
So they control.
You know that aspect of thebusiness and you're getting
better pricing since it'sbecoming.
It's coming directly from thefranchise company.
So there are a lot of benefitsfor those that want to get up
(21:57):
and running quickly, let alonethe added benefits of we call
them annual masterminds, whereyou get to sit with 10, 100,000
of other franchisees from alldifferent backgrounds, sharing
ideas and best practices.
That alone, I think, is just ispriceless because you get to
work with the other other guysyou know and you know in your
(22:19):
area and I'm in New Jersey andif at one point I ever want to
sell my business, a brokertypically could charge it a nice
percentage.
It could be anywhere from 10%or more.
Some have a fixed cost.
You can have your neighboracquire you and save that fee.
You pay maybe just a smalltransfer fee or those people can
be your future acquisitions,which we've seen quite a bit for
(22:42):
the brands that are doingreally well.
The franchisees are really kindof selling and buying from one
another.
So there are a lot of benefitsthere for the person looking for
that.
We've even had people buy thefranchise, get inspired by the
system because the franchise ortheir goals are in line.
As you grow, they make money onthe royalty.
They don't make moneynecessarily when you buy it.
(23:03):
They make it on the royalty.
So you get inspired with yourfranchise and because of that
motivation and systems, you goback and launch your startup on
your Word document, on yourlaptop.
So we've seen that happen aswell.
You can own both.
There's no limit as to what youcan own.
Speaker 2 (23:19):
Wow, yeah, now we had a lady on.
She runs an organization herecalled Aviature Accelerators and
it's a women's startup kind ofplatform and they help them kind
of get you know, hey, what kindof business you want to start,
similar to what you're doing forfranchises.
But the interesting thing thatI took away from that was that
there was a lot of women whostarted their own businesses at
(23:43):
home type of businesses from youknow, during COVID, before, as
COVID was happening and they'restill doing it at a much higher
rate than guys were doing it.
Is there now, when these womenexecutives come to you, are they
looking at starting a differenttype of business?
Is there something that?
Are there things that you wouldmention to them?
(24:03):
Hey, have you considered this?
Or are there things thatthey're telling you, where
they're saying, look, you know,I need to stay home with kids.
I've got this going on, I'vegot that going on.
Are there different needs andare there different types of
businesses that they're lookingto start?
Speaker 1 (24:17):
I wouldn't say so because what happens is whether
the husband or wife, boyfriend,whoever's contacting me I make
one request and I go.
You know everyone that's goingto be part of this business.
If it's a married couple, we'dlike both of them on that, at
least on one conversation, tomake sure everyone's on the same
page, because having theseconversations there needs to be
(24:39):
a comfort level right.
So-and-so is on board with it.
Well, you know what?
Let's have them get on a callbecause I want them to realize,
you know, that there's aninvestment, that there's funding
options.
I want them to make sure thatthey're comfortable with it and
they may come in and say youknow what?
I didn't realize.
I can be involved part-timebecause I have a skill set of
marketing and I could do someonline marketing on the side.
(25:01):
Or I have a sales backgroundand I could do some networking
at the Chamber of Commerceevents and things like that.
So really, I like to geteveryone involved, you know, in
the decision-making process andyou know whoever it is.
You know women, men, whoever'scontacting me, you know,
depending on you know if there'sanyone else going to be
involved in the business.
I want everyone to be on thesame page.
(25:22):
I want to know their skill setsand I want them to understand
that.
You know you may have aninterest in a certain brand or
service or product, but I wantyou to realize that if you're in
a golf retail type of businessbecause you like golfing,
realize that your role is goingto be, you know, dealing with
lots of employees workingholiday, nights and weekends.
(25:44):
You know, let's look at whatthe role is.
Do you have to be on a golfingfranchise to enjoy golf or can
you own a business coachingfranchise and still be able to
enjoy golf?
So we really get into thecharacteristics.
What does it look like?
What do you want?
What do you don't want?
What are you trying toaccomplish?
If this is a legacy for yourchildren or your family or
(26:08):
whoever it is, we want to makesure it's a business that you
know can grow, that there'sadditional territory.
So we really spend a lot oftime there.
But it's really you knoweveryone I work with it's truly
case by case once they start toexplain the entire process.
Speaker 2 (26:21):
Yeah, because I just know, if you know, my wife and I
wanted to start a franchise.
If we're like, look, we're bothdoing, stop doing what we're
doing, it would be hard to findsomething that overlaps because
we both have such differentinterests.
And to find something thatwe're both like, hey, look, we
want to work on this.
I'm sure you've had thosechallenges too, with couples and
everybody trying to get on thesame page.
Speaker 1 (26:44):
Yeah, and that goes to the and it's very, very
interesting you bring that upbecause it goes back to the
passion piece.
And I'm all about passion.
But I think where some people,including myself, you know I was
very passionate about soccer,I'm a big soccer fan, but that
doesn't mean I have to own asoccer franchise.
It's also a quick path oflosing my passion.
So, when you look at passions,the passion, when I took another
(27:07):
step back and said, okay, whatam I truly trying to accomplish?
It's to spend time with myfamily.
We love to go to games, right,Big difference.
Right, Love going to gamesversus having to do that in the
business.
We love traveling.
We just got back from Europe.
We love trying new restaurants.
So, if you take a step back,what are we trying to accomplish
(27:28):
here?
And it's that time freedom.
So what is a business that'snot going to require nights and
weekends?
Maybe it's a business thatoperates normal business hours,
like a business coachingbusiness, where that operates
nine to five, Monday to Friday,giving me the time to do what
I'd like on the weekend andevenings.
And just because it's a businesscoaching franchise, you may be
(27:48):
passionate about coaching andyour wife can be a complete
introvert.
That's fine, because it's notwhat the service offering is,
it's what's.
You know what the roles are inthe business and your wife may
be.
You know analytical, reviewingKPIs, financials, working with
the accountant, working with theattorneys, doing all the back
end which you're going to havein any business.
(28:09):
So it's not necessary what thebusiness produces, it's what
your role specifically is in thebusiness.
So once I break down the role,it opens up.
You know the ideas of variousbrands.
So, whether it be a businesscoaching or a window replacement
franchise, your roles in thebusiness may be very similar,
believe it or not, offering acompletely different service or
(28:31):
product.
Speaker 2 (28:31):
So it's just amazing to me.
Like you know, I've done alittle bit of digging around on
the internet and stuff, lookingat franchises and everything.
But I mean, in order to do whatyou do, I mean you've probably
got this stuff just boomautomatic in your head and
there's new franchises poppingup all the time.
But I mean, how much of thisstuff do you just like?
Do you have to research versuslike, you just know this stuff?
Speaker 1 (28:55):
It's an ongoing thing , so we have twice a year we
have meetings in person to meetwith 100 to 130 franchise
companies.
Meeting face to face.
Updates, challenges.
You know what's working, what'snot, what's been working since
COVID.
So we're constantly gettingupdates on brands.
Some brands are adding revenuestreams, but the big thing is I
(29:16):
don't do this all alone.
We have a team that worksfull-time employees that are
pre-screening companies on adaily basis.
So they're meeting managementof the brands, they're
contacting random franchisees tomake sure they're getting the
supporter happy.
They're reviewing the franchisedisclosure documents, making
sure that there's not a millionlawsuits in there.
(29:38):
And if there is, you know whathappened here, because every
lawsuit has to be disclosed.
What's your training like?
Right, so you may have a brand,a trendy brand that just sells
itself.
But okay, you're at 30franchisees.
How do you get to 50?
And then how do you get to 100?
Very few.
There's less than 10% offranchises pass 100 locations or
(29:59):
100 territories.
So how do we get to 100?
Is there a clear path?
And this is in no way replacingthe due diligence and the
coaching and everything we helpout with and working with every
family we work with, but it's away of narrowing down the search
to a manageable amount, to sayokay, now you know this, 4,000
(30:21):
brands should we be looking at4,000?
That's, you'll never get 4,000due diligence completed in 4,000
brands.
Maybe we chunk that down to 50or 20.
I present three brands to eachone of my candidates because
it's specifically based off ofwhat they're looking for.
So that's why we have full timestaff.
(30:42):
It's literally all they'redoing is pre-screening brands
and sometimes we're working withthe brand.
Sometimes maybe things changeor the brand is having issues.
They may come back and say weare no longer bringing on new
franchisees which rarely happens, but it does because we want to
restructure our training.
So let's put a pause oneverything, pump the brakes
until we fix some systems.
(31:02):
So it is a lot of work, buttypically, you know, we like to
break down and the number onefactor is is there availability
in your market?
Right, you're in one state, I'min another.
It may be available to me, butnot available to you.
So if it is not available, whatelse is out there?
Do they allow full timeownership and or part time
(31:23):
ownership?
That's another way of reducingthat list of, just say, 50 names
down to 20.
Is your investment in line, youmeet the financial requirements
.
Again, that's another way towhittle down the list, and
usually we get down to two orthree initially and work from
there, and each one will havedifferent ways of doing business
.
One may be B2B, one may be B2C,but it's a way to compare and
(31:47):
contrast between the brands.
So it's a lot of work.
So, yeah, it's not always thesame brands, it's you know.
Let's find something availableand a lot of times a good brand
will sell out in your market.
So we're looking foralternative brands that offer
great support, that can help youflourish and do well in
business.
Speaker 2 (32:05):
Yeah, and it's not like you go to McDonald's and
say, hey, mcdonald's, I want toopen a McDonald's in my
neighborhood.
No, mcdonald's told you whereyou're about to go.
Like you're moving.
If you want a McDonald'sfranchise, you're moving to
Omaha, nebraska.
I'm sorry.
Like you're going to be thereor wherever right.
Like you're not.
You know there's thoselimitations.
Are you open to the idea ofleaving?
(32:27):
Are you?
You know Doug Deep and whatevercity you live in?
Speaker 1 (32:31):
Tech territory is big .
So we'll come back and say thisis a home-based business
covering, you know, these threecounties in New Jersey.
Are you open to that?
And that's a service-basedbusiness that doesn't need a
brick and mortar location Forthe brick and mortars.
We have a lot of people call usand say I have some commercial
real estate, what can we put inhere?
And it's not that simple becauseat the end of the day you want
(32:53):
to find the brands you like andthen go back to the franchisor
and say these are some areas,you have availability in these
in these three counties.
Yes, great, now is thisspecific location?
Could you approve that?
And they're going to have to goback and do tests.
Is there enough foot tracktraffic?
Is there enough?
You know traffic in general.
How many cars are passing on adaily basis?
(33:13):
Is it facing the main road?
Is it not so?
Is it in a Class B?
Is it in a Class A building?
So the franchisor will have toapprove the actual location and
the franchisor will have toapprove the actual territory.
And the territory is for thoseservice brands, because some
brands will look for a specificnumber of populations, some will
(33:33):
look for a specific amount ofhousehold income that they're
looking for because theirservice or product is at a
premium.
So they're looking for, youknow, households that are making
over 100,000 in income.
So, yes, everything has beenkind of predetermined A little
bit more work on the brick andmortar, but much easier to put
together on the service side.
Speaker 2 (33:54):
Yeah, and I, you know I love the website like some of
the terminology used on heretired of feeling stuck in your
corporate job, working 60 plushours a week to make someone
else rich.
I mean, there's so many things.
Not only am I feel, do I feelstuck, I'm also it sucks that
I'm working 60 hours and oh yeah, by the way, I'm doing all this
to make someone else rich.
Like that is the reason I can't.
(34:16):
I just I can't do corporateLike I can't.
I just it's not in my thing,it's not in my personality.
And you've got people who havethat personality type, who have
that entrepreneurial mindset,who just thought they had to go
work in a corporate setting.
They just thought that you,this is what you do in America,
right?
You go to work and this is whatyou do, right, and they're
(34:37):
miserable.
Speaker 1 (34:38):
And I don't know, they don't know, they don't know
, they don't know, they don'tknow, they don't know, they
don't know.
Speaker 2 (34:42):
They can just go to you and you've got these
soldiers that are just out ofhere all the time digging into
these companies and trying tofigure out which ones are worth
it and which ones aren't worthit.
I mean, it's amazing, actually.
I mean the fact that, likethere's a resource out there,
like you, who they could go to,that already knows.
Like, let me just talk to you.
Find out what your personality,what are you into?
(35:04):
Like, if you go to a job, theydon't sit down with you and say
you know, giuseppe, what are you?
Speaker 1 (35:11):
into.
Speaker 2 (35:11):
What do you like?
Let's do a personality test andthen let's put you in a job
here.
Let's put you in something thatsuited for your personality.
They don't do that.
You know you're going to dothis and this is the one thing
you're going to do for the next40 years, and then we're going
to give you a gold watch, right?
Speaker 1 (35:28):
And give you a little hopefully a little bit of a pay
raise throughout every year.
Speaker 2 (35:32):
And maybe yeah.
Speaker 1 (35:34):
And that's the thing.
My goal is just to empower andeducate people.
Most people don't know we exist.
I'm not the only person thatdoes this.
There's no cost, there's nocontract or the franchise
companies pay us our fee.
So it's just like an executiverecruiter, a real estate agent.
I tell everyone, you know whenthey, when they look at
insurance and all the variousthings to protect themselves, a
(35:56):
business or a side hustle, again, doesn't have to be millions.
It could be much, much less ofan investment with plenty of
funding options.
It's your safety net.
You know you're protectingyourself from the next Amazon or
tech layoff that we've seen orwhatever industry we're looking
at.
So you got a job is one income,one revenue stream, and we
blindly invest money into a 401kthat we don't manage, that
(36:20):
we're putting in the hands ofthe five mutual funds that the
employer has given us and someother managers, hopefully trying
to beat the S&P or whatevertheir benchmark or index is.
Why not have the side incomeoffset some of your W2?
Protect yourself in the eventof a layoff?
What are they giving you whenyou get laid off?
A month severance, a couple ofmonths severance.
(36:40):
So this is a way of generatingsome income, some major tax
benefits.
You know your first year inbusiness may not show a profit,
could show a loss.
You can offset your W2 income.
So there's tax strategies,advantages and overall
diversification and guess what,With all the profits, I have my
own retirement plan.
I invest in whatever I want.
I don't have the five fundsthat I have to invest for my
(37:02):
employer.
I can invest.
There's so many differentoptions.
Right now I have it strictly inthe stock market, but I'm not
fixed mutual funds.
I can own equity, I can ownindex funds.
There's so many differentoptions.
So, and I can invest what is itin?
A SEP IRA up to 66,000 versuswhatever a 401k is.
Speaker 2 (37:21):
Well, you can do a SEP 401k too.
If you have your own business,you can do a SEP 401k and you
can actually invest even moreCorrect.
Speaker 1 (37:28):
You can invest as the individual and as the business.
Speaker 2 (37:30):
So yeah, which makes it even more awesome.
Well, and the crazy thing is, Icome from the startup world.
Right, we built a business, wesold it, we got up to over 200
employees and I was one of theearly founders in that business,
and then my co-founders kind ofran with it and built it up and
did their thing, but when wesold it, there was only there
(37:53):
was a stat One, and I think100,000 startups ever do what we
did, one in 100,000.
When you do a franchise, you'renot just, it's not a shot in
the dark.
This is a model that's workedin hundreds of locations,
possibly thousands of locationsaround the country.
(38:15):
You know, people are the same.
Cities are starting to evenlook the same because of
franchises.
Like, let's be honest, there'sa hotel in New Jersey off the
highway Looks just like thehotel here in Northern Kentucky
right off the highway.
Any exit you find the samestuff.
There's a Chipotle, there's aMcDonald's, there's probably a
Burger King.
You've got all these things andeverything is getting kind of
(38:39):
commoditized in a way, and thereason they do it is economies
of scale, the reason that thesethings are the way they are, and
every white castle looks like awhite castle every, because
it's cheaper to do it that wayinstead of these one-off things,
and it's kind of putting momand pop businesses out, you know
, out on the street in a way,because these people can do it a
(39:00):
lot cheaper and a lot fasterand it's proven.
You're investing in somethinglike that.
You're investing in a system.
You're not investing in aBurger King, you're investing in
Burger King system, right?
Speaker 1 (39:12):
That's exactly it.
And, by the way, to add to that, and you own a.
Some of us said, well, they ownpart of your business.
No, you own 100% of yourbusiness.
You pay a royalty, justhypothetically 5%.
It's not like you're givingaway 5%.
You're getting something inreturn, but you're not giving
away equity, you own thatbusiness and economies of scale.
I had a painter contact me andsaid I have my own business for
(39:35):
20 years.
I'm thinking about a franchise.
I said why?
And we talked about and he saidjust the vendor relationships
alone, helping me find my laborand the discount I get alone
will offset the franchise fee,and that was his comment to me.
So there are and I'm not sayingthat's the case for every brand,
but that's what he came back tome with.
This is not me telling him this, so it's really interesting.
(39:58):
But the economies of scale arehuge because they're saying,
okay, we have another brand thathelps.
The term they use or the lineis we try to make your home,
instagram, ready to sell thefranchise or offers an in-home
studio, a design studio.
So all you have to do is take apicture of a home, the
franchise or does all the work,and then you provide the labor
(40:21):
and the actual, the actual workto be done.
So they'll make all therecommendations.
But the studio is in one office, there's a team.
They do it out of one locationvia technology, via video and
cameras, and that alone savesyou trips.
It saves you employees thatyou'll need.
So there's so many greatoptions out there, but keeping
in mind you got to find becausepeople say, well, how much more
(40:43):
successful I'd be, and I say, atthe end of the day, I don't
like using stats because youknow how was the study run and
franchise will increase yourodds of success, can increase
your odds of success, keeping inmind you bought the right
franchise, that you wereproperly capitalized, that you
follow the system.
The number one reason I seepeople franchise these fail is
(41:05):
that they don't even follow thesystem.
They buy it to be run adifferent way.
So the good franchise brandswill interview you kind of like
a job interview.
They want to make sure you're agood fit, they want to make
sure there are no red flags,that you're going to follow the
system, and that's why they havefinancial requirements.
They want to make sure that dayone, if it takes you a couple
months to generate a profit orgenerate some revenue, you have
(41:27):
a cushion, you have liquidcapital there.
You know at least you knowthree to six months working
capital, because if thefranchise investment is 100,000
and you come in with a total of100,000, well what happens the
first month?
Who's going to pay youremployees and your rent when you
invested the entire sum intothe franchise?
So the better brands willinterview you and at the very
(41:49):
end they will award you, basedoff of how the meetings went,
the input making sure there wereno red flags, because they want
the right fit.
You know you're an extension oftheir brand.
So they truly spent a lot oftime finding the right partners.
Speaker 2 (42:02):
Well, you know what the funny thing is too.
One thing I've noticed is youknow, I've got a lot of friends
who you know they've gotdisposable income They've.
You know they're professionals.
What they end up doing is isthey end up flipping houses or
something.
They get into real estate.
They think that's the way, andyou know what.
Real estate's a great game.
The problem is it's gettingvery saturated, and I think it's
because of all these shows A&Eand Discovery.
Speaker 1 (42:24):
Channel.
Speaker 2 (42:25):
Flip this house, Flip the house, you know they oh,
I'm going to go in and take thiswhole beat up house and I'm
going to make you know 20, 30grand off of it and it's.
I don't think they know howmuch work it is.
And, and you know, finding theright contractor sucks and
people show up drunk and theydon't show up at all or they
finish half the job and nowyou've got to finish it.
Like it is tough and there is alot of people out there doing
(42:48):
that kind of thing right now andit may not be necessarily
suited for you.
So when these, when thesefranchiseeers are interviewing
the possible, or when they'reinterviewing me, they're going
to say they're actually helpingme out because if the franchise
isn't right for me, I don't haveto do it.
I don't have to invest a bunchof money in a house just to find
(43:08):
out.
I'm not good at building a house, I'm not good at doing this,
I'm not good at managingemployees, that type of employee
.
They have so much of the stuffin place.
It's almost like if you justdid the work, follow the process
, like you said, you're gonnamake the money, and they could
even show you a lot of timesproject how much money you're
(43:30):
gonna make, Depending on whereyou're at, they've got the data,
they've done the research,they've got, hopefully, hundreds
of thousands of use cases andsay, look, we could the median
franchise in an area like yours,with a population like yours,
with a household income likeyours, you're probably gonna
(43:51):
make about this much money.
Speaker 1 (43:53):
Yeah, they're gonna help you put together proformas.
Obviously, they can't guaranteewhat you're gonna make, but
there's gonna be a proforma.
There's gonna be a low kind ofand a high investment.
It's called the item seven,with an itemized breakdown of
the investments and everythingthat goes along in the
investment, including three tosix months working capital.
But, yeah, they will assist youbecause you also have to gauge
(44:14):
how many locations, how manyterritories do I need to offset
my $300,000 income.
It may be one location andmaybe three, so you wanna put
together the best number.
So they will provide you stats,which is the first phase of the
franchise due diligence process.
And the second stage, which ismy favorite part, is validation.
You're gonna speak one-on-onewith franchisees.
(44:35):
You're gonna have group calls.
You're gonna have prerecordedcalls for guys that are working
that need the information maybein the evening that I wanna
listen on their time andbasically you're gonna go back
and say, realistically, what wasthe investment?
Realistically, as a part-timeowner and a full-time owner,
what could I make my first year?
And you're not gonna talk toone, you're gonna talk to five,
(44:58):
10.
Maybe a dozen, maybe more, butyou're gonna get averages and
say, okay, well, this is basedoff of this.
But I'm in New Jersey, so maybeI have to factor in a little
bit more on the wage or a littlebit less on the rent or
wherever you are.
So you wanna put those in kindof a high, medium and low
amounts and figure that out,because that's gonna affect your
(45:20):
overall investment and what youcan make.
So, keep in mind.
It may happen quicker, it maytake a little bit longer, but
you wanna general idea of whatthe costs are If you're involved
full-time and if not, you wannamake sure to factor in a GM's
salary if you're gonna bekeeping your job.
So the franchisor will educateyou the best they can.
You speak with the franchiseesand ultimately, with that
(45:41):
information, you're like okay, Ihave a general idea of what we
can do.
I'm gonna start off with twoterritories.
Maybe I'll develop one year one, develop the other, year two,
and by then I'm gonna be doing Xamount of revenue at 20% and
this is what I'm gonna benetting.
So, yeah, they will assist you,but ultimately, as any other
(46:03):
business, I always say there'sno guarantees.
But they can give you kind ofaverages profit and losses,
potentially of other franchisees.
So you have all that data towork off of.
Speaker 2 (46:11):
Yeah, and there's on your website here it says 4,000
franchise companies.
I mean that's just too many tohave to go through on your own
and chances are maybe you can.
What vet?
Maybe 10, 15, 20, that'sreasonable If you really wanted
to dig in.
I mean that's.
It just seems like you're gonnapick something wrong.
(46:31):
I mean, just go to somebodylike Giuseppe here and do that.
I mean you've got a 25 minutelong video on your website.
Talks about the buying process.
There's three big challengesthat you go over facing any
successful executive who'sthinking about potentially
getting into becoming afranchise owner.
You've got the five key changesto go from getting stuck
(46:56):
working these stupid hourstrying to make somebody else
rich.
You've got a four step processfor starting the journey.
You've really broken it down tohelp people and they could just
go on the websiteggthefranchiseguidecom the
letter G G, g thefranchiseguidecom.
Watch the video.
You make it really easy.
You've got a book that you'regiving away for free franchise
(47:18):
free.
Speaker 1 (47:18):
Right here, right here, talk about that, yeah,
talk about the book.
It's a 48 pages, 30 minute readand it's my entire process
summarized in a book.
We actually recorded a fewpodcasts transcribed.
It had a copywriter in therecleaning it up with some case
studies and it's my exactblueprint.
It's everything that I did.
So if you're not ready to chat,you could download the book for
(47:40):
free.
Shows you exactly how to decide, figuring out if a franchise is
a good fit, how to go aboutfinding a franchise.
I go into details like puttingtogether a team where you have a
financial advisor, youraccountant, cpa, your franchise
consultant, broker, attorneys,putting that team together.
(48:02):
But I break it down in 30minutes.
If you're not ready to chat andyou can use that, I bring to
the table, obviously, theexperience and the brands that
we can talk about and when wemake introductions, the brands
are contacting you prettyquickly day or two, typically
the same day versus.
Let me just blindly fill out aform on a franchise website.
(48:23):
I think the odds of getting anyresponse is 50-50.
Many cases, states and areasare just sold, so they don't
have the time or the manpower torespond to every email.
So we're saving you the time.
I had a gentleman I worked with.
He spent six hours researchinga franchise on his own,
contacted the brand directly,found that his entire state is
(48:44):
sold.
Wow, he was not willing to moveand I said well, we won't get
to that stage, we will.
That's one of the first checks.
Do you have territory available?
No, okay, is he open?
He's in New Jersey.
Is he open to moving to NewYork or Pennsylvania, delaware?
No, great, let's rule them out,and it's as simple as that.
So we take a lot of that off.
But we also we help in the verybeginning.
(49:05):
Should you own a business atall?
And we talk about that.
So sometimes I have to, I gottagive some tough love to some
people and maybe the franchiseis great and it's a perfect
match.
But we decide, hey, the timingisn't right, the financials
aren't there.
You got about.
You know, you need a little bitmore in liquidity to get you
(49:26):
there.
Why don't you save for the next12 months and maybe not
vacation, maybe not go out toeat so often, and kind of build
up that nest bag?
And so I work with people.
Sometimes they'll buy, you know, a franchise year, two years
later, after fixing their creditscore and their financial
situation.
So anyone that has any interestin franchising, you know, reach
(49:47):
out, it's 20 minutes.
If the timing isn't right, forwhatever reason, then we talk
every six months.
You have access to the book,the podcast and the webinar.
So between those three, thereis plenty of info, from
franchising to exit strategies,to everything in between.
So your investment is 20minutes and the service is
always free.
Speaker 2 (50:07):
So yeah, giuseppe, why not?
Yeah, why not?
This has been great.
I mean, you don't seem likeyou're gonna.
You know high pressure sales.
You're not.
You're not sweating it.
You're like look, if it's notright for you, I don't want you
coming back on me two years fromnow and saying, giuseppe, you
told me to start a business andI suck at starting a business.
Speaker 1 (50:23):
I mean, some people are just institutionalized, you
know, they just need to have aboss for some reason, and that's
fine, because the franchise,the franchise companies, you
need employees as well andthat's and that's fine.
Maybe they can get some fan ofequity.
But the worst thing I could dois say yes, you have to buy,
everyone should buy a franchise.
That I talked to.
The franchise companies aregonna come back saying you know,
you sent me so and so, but theytold me that they don't.
(50:45):
They don't want to invest anymoney, they just want a
franchise given to them.
Obviously, we're gonna filterthat out.
So if your intention is to buy,no money down you know a lot of
these ads you'll see on TV onhome no money down.
You could buy real estate.
I don't know of any franchisewith no money down, unless it's
a special kind of funding dealwhere the franchise or is gonna
(51:05):
be funding primarily.
You know a big chunk of thefranchise fee, but there's no.
You know this is it.
Everyone pays the samefranchise fee.
If you're a veteran, you knowcertain people will get
discounts and they offerdiscounts First responders,
veterans, minority, you knowwomen owned businesses.
They'll break it down dependingon the franchise itself.
(51:28):
So sometimes there is adiscount on the franchise fee.
But the cool part is you don'tneed experience in these brands
99% of the time.
So if you have the skill setand you're willing to follow a
system, for example, a cleaningcompany has a lot of people.
If you have good managementskills and a willingness to
follow a system, you know youmay have not ever cleaned your
home ever, or your apartment.
(51:49):
You know they're looking forpeople that can truly follow a
system.
They will teach you how toclean, they will teach you how
to find a manager, to findcleaning and you know personnel.
So you know, obviously you knowthe 1% do require some
experience and if you don't haveexperience but we won't look at
those brands.
It's as simple as that.
Speaker 2 (52:07):
I love it.
I love it.
Just happy man.
Thanks for being on the show.
Actually, you've cleared upsome things for me and you got
me fired up.
Now it's like I always thoughtit was all me.
You know, like I would have todo it, I would have to be the
one that goes out and does theresearch and everything.
So it's good to know we gotsomebody out here that's, you
know, looking after our backsand doing the research and has
an actual team of people who dothis all day and go to these
(52:30):
events Vegas things and, youknow, nashville it sounded like
and actually vet some of thesecompanies, and I would be very
cautious of any franchise thatsaid, hey, no money down, don't?
You know?
You don't have to put anythingin, you don't need any net worth
whatever.
I mean, that sounds desperate,so I probably wouldn't go to one
of them.
Speaker 1 (52:49):
Yeah that, yeah that I don't see many of them, and
maybe just because it neverpasses our screen.
But yeah, you know, fine,really fine.
You got to be comfortable Ifyour gut's telling you, now
figure out why.
But if they're pressuring youto go out, you know, meet with
the French, the founders.
On the first call I would sayit's probably someone that's
looking for a quick sale.
Because why would you, you know, spend money or spend the
(53:12):
weekend or a couple of days togo visit a brand when you know
nothing about it?
You know that's later on in theproduct.
And I also outline when toexpect certain things, when you
should go to an event.
In many cases it's like datingit's the first date.
Give it a shot.
You're meeting one another.
See how the second date goes.
If you're going from first date, let's talk about wedding plans
(53:32):
and meeting the parents.
You know that's kind of movinga little bit too quickly.
Yeah so I would advise peoplethat's way too quick.
I would not like that, I wouldnot be comfortable with it and
there's a whole process and Ioutline that for every person I
work with.
Speaker 2 (53:48):
This is great, giuseppe.
So you know, get on the websiteguys.
There's a way for you to get onthere and fill it a form, or
give him a call and set up acall, and that's how you get
started, right, that's it.
Speaker 1 (54:01):
Book a call, we'll talk it through.
If you're not ready, downloadthe book.
But our conversation I may comeback to you and let you know
these are some options.
If it's not, I'll put you intouch with my other.
With my, you know, did 156shows, I put someone in touch
with a career transition coachwhere they just were looking for
a new career and that's not aproblem as well.
So we have those connectionsLinkedIn profile creators and
(54:23):
editors.
You know we have thoseconnections as well for those
that maybe the you know, thetiming is unright, so we're.
If we can't help directly, weknow someone that can.
Speaker 2 (54:32):
That's right.
The franchise GG, the franchiseguidecom.
Thanks a lot, giuseppe.
Thanks, adam, it wasappreciated, it was fun.
Thanks for joining us on thisweek's episode of Side Hustle
City.
Well, you've heard from ourguests.
Now let's hear from you.
Join our community on Facebook,side Hustle City.
It's a group where people shareideas, share their
(54:53):
inspirational stories andmotivate each other to be
successful and turn their sidehustle into their main hustle.
We'll see you there and we'llsee you next week on the show.
Thank you.
Welcome to Side Hustle City and thanks for
joining us.
Our goal is to help you connectto real people who found
success turning their sidehustle into a main hustle, and
we hope you can too.
I'm Adam Kaler.
I'm joined by Kyle Stevy, myco-host.
Let's get started.
All right, welcome backeverybody to the Side Hustle
(00:33):
City podcast today.
Giuseppe Gramatico, how youdoing, sir?
Speaker 1 (00:38):
Awesome, Adam.
I appreciate the invite.
I'm looking forward to the showtoday.
Speaker 2 (00:42):
Yeah, yeah, I'm excited to have you on.
I'm reading a little bit aboutwhat you do.
It's very exciting to mebecause I'm always looking for
passive income and ways to, youknow, not have to be at the
office every day necessarily,and not that every franchise is
going to be like that.
You got a lot of franchiseopportunities that require you
to actually be in the businessworking for sometimes a specific
(01:05):
amount of time, and you knowChick-fil-A franchises are
awesome, but you actually, Ithink with those don't own the
franchise.
You're essentially buyingyourself a management position.
And then you've got otherfranchises, like Dunkin' Donuts
you see popping up all over theplace now in the Midwest.
But the problem with those isyou really don't.
I mean, the margins reallyaren't that great.
You don't make a lot of money.
(01:26):
There's a lot of waste.
Do you want to deal with foodall day and run rats off?
I don't know, and not that youknow Dunkin' Donuts is a bunch
of rats or anything run around.
But you know every franchisehas their own issues and they're
not necessarily something thatmight work for you.
And one of the things that youdo is you talk to people, you
target former executives, youhave your own niche, and then
(01:49):
you just have a conversationwith them and say, hey, what's
best for me?
Well, here's, based oneverything I know, maybe you'd
be best suited for thisfranchise, is that?
Is that pretty clear?
Is that a pretty accuraterepresentation there?
Speaker 1 (02:03):
Yeah, you nailed it.
A lot of people are looking atthe franchise brands and they
spend years looking at them andI go let's take a step back and
just let's just figure out ifowning a business is the right
fit.
But you know owning a franchiseor a startup.
So, absolutely, you know wespent a lot of time working in
reverse and figuring out what'sa good match based off of
(02:24):
skillset and interests andinvestment, and you know part
time ownership, full timeownership.
So a lot of time spent thereand at the very end which is the
opposite of what normal, whatpeople normally do, including
myself when I first startedthat's when we look at the
brands as opposed to startingwith brands and trying to make
them work and fit.
Speaker 2 (02:42):
So yeah, yeah, well, I mean that's, that's important.
I mean I've looked at a lot ofthings too, just because I mean
I'm in the side hustle businesshere and you know, it's kind of
like people ask me all the timeAdam, oh, what do you think
about a?
What do you think about a JiffyLube franchise?
What do you think about thisfranchise?
Or that franchise?
We had somebody on I don't know, maybe three or four weeks ago
(03:03):
from Everest and they do vendingmachines that spit out water
and ice and I mean there's nooverhead.
Really, you stick those thingsin a good location and you could
profit.
I mean, the profit actuallylooked great on it.
So I mean people ask me thesequestions all the time about
this stuff and I'm like I don'tknow, like it depends on what
you like, and now, after talkingto you, I have somewhere to sit
(03:25):
.
Speaker 1 (03:28):
Yeah, we could.
We could definitely break itdown, and that's the big thing.
The biggest thing is, which isbetter?
And I'm going to answer it.
You know, I've been doing this20 years and it's very simple a
startup or a franchise, and Ialways I always tell someone to
do drumroll, and the answer issimple.
There is no one is better thanthe other.
It's all about what you'relooking for, and part of what we
(03:49):
do is education and tellingpeople.
Simply put, do you want thebusiness built for you so that
you can run with that business,you know, in 30, 60, 90 days
especially, you know, if it'slike a home service business or
do you want to build thatbusiness from scratch and
develop the logo and get arevender on board and such such
(04:10):
a creative system from scratch?
So one is not better than theother.
A franchise could give you thatunfair advantage that I talk
about, but it's not the rightfit for everyone.
So I like to really start thereand then, once you make that
decision, it's like okay, whichare the brands?
So, if I'm looking at, let'sfocus on side hustles, which are
the brands that will allow me,and that's very you know.
(04:31):
I want to be very clear allowme to be semi absentee.
That will allow me to keep myjob, because there are certain
brands to your point that youhave to be full time and there's
nothing wrong with that.
You want someone to be full timein the beginning.
Learn the ropes, learn thebusiness before bringing on a
general manager.
And there are other brands thatwill support you as a part time
(04:52):
side hustle, support you via.
You know they'll train thetrainer, they'll help find and
train a general manager, theywill provide a call center, they
will provide turnkey marketingfor you.
So it will vary by brand.
So don't look at just theindustry.
You got to look at the specificbrand, because two brands that
offer a similar product, onewill be full time and one will
(05:15):
offer part time ownership.
Speaker 2 (05:17):
I like that.
Well, I just literally the lasttwo days I've been around these
college students.
There's an IT company here inCincinnati.
They have a bunch of interns.
They said, adam, come up, talkto the kids, tell them about
side hustles.
You know we don't want themthinking that you know if
they've got a full time job,that's it.
Right, I mean you remember.
I mean you and I.
You know we're about the sameage.
(05:38):
I mean you there was a timewhen your dad could go to work,
your mom could have stayed homewith the kids and there was
enough money there.
Right, I mean there waspossibly a pension that was
promised at one point, you know,in a generation earlier than us
.
There definitely was.
Right, I mean you work at, youknow, the auto workers union or
whatever.
There's going to be a pensionthat wife's taken care of.
(06:00):
You know there's this and that.
Well then the wife had to startworking.
Well then, the two incomesdidn't work.
Now you both have to have sidehustles.
So you know, going in heretalking to the kids, saying look
, guys live cheap, like one ofthe problems that happens with
people in America is is they getthese jobs?
You're working with executives.
You know, the more money youmake, the more money you think
(06:20):
you can spend.
Now you're living in a $1.2million house out in the burbs,
you're driving at Escalade,you're doing all this stuff.
Well, all your disposableincome is going out the out the
window and you're not investingthat in your freedom.
You could live like you'restill poor.
I tell them.
I said look, you're eatingramen noodles in school.
(06:41):
Just because you got your firstjob doesn't mean you go out and
buy a $3,000 month apartmentall of a sudden.
Be cheap, save your money,Build up a nest egg.
You probably talk to executivesbecause a lot of times those
executives have $100,000 in networth.
At least They've got $50,000 inthe bank that they could
(07:02):
probably throw at one of thesethings, because that's what
you're going to need.
You're going to need maybe 50.
I've seen some of them up to$250,000.
A million-dollar investment fora laundromat, for a Speed Queen
laundromat franchise.
A lot of capital expendituresgo up front to buy the equipment
and things to get yourfranchise off the ground.
Is that one of the reasons thatyou said hey, look, I'm going
(07:25):
to focus on these executives.
They understand business forone.
They know how to read thedocuments that these franchises
give you, but also they do.
They have some disposableincome and they're looking to
free themselves from thecorporate world they've lived in
.
Speaker 1 (07:41):
Yeah, absolutely, corporate execs have been doing
it.
They've been able to hone theirskills, whether they're in
sales or marketing, whatevertheir skill set is and what they
do.
Well, they have a few bucksaside which, quite frankly,
you'd be surprised that I seesome really large incomes and
very low net worth because youstart to make more, you start to
(08:02):
spend it on cars.
Cars, for the most part, aredepreciating day one as soon as
you drive it off the lot, soyou'd be really surprised.
But yeah, my thing is, you gotsome experience, you've had your
taste of employment and now youwant to know what else there is
.
And the great part is we showpeople hey, you don't have to
leave your job, you can keepyour job and your income and
(08:25):
your benefits and have this sidefranchise.
And eventually we put togethera time frame, maybe in two years
, the transition out of the joband then full-time business
ownership.
I've worked with families, onein particular, where a person
was doing really well, had thisside business and never left his
(08:47):
job because he's only working ahandful of hours a week I think
the last time we spoke was acouple hours a week, if that the
business has been up andrunning for several years and he
just kept his job because heloves his job and it creates.
It's giving him that income,the flexibility he gets to work
(09:07):
from home.
So he's like, why would I leavethat?
So it's really up to you.
You may have this plan of whatthe next couple of years looks
like, but in reality it can beflexible.
You may decide to stay at thejob a little bit longer because
you want to acquire a couple ofcomplementary brands.
And, to your point, withinvestment, the investments are
(09:27):
you have a franchise fee andthen you have the all-in
investment that they break downthe agreement.
So they could be anywhere from50,000 to 100,000 into the
millions.
And that's when you're gettinginto standalone buildings with
buildouts and things like that.
But there are 70 plus differentindustries, 4,000 plus
different franchises just in theUS and Canada, from picking up
(09:51):
pet waste to eyelash extensions,to business coaching, all the
way up to your Chick-fil-A.
So there's a franchise trulyfor everyone.
It's just spending the time andbeing honest with yourself to
find that brand.
Speaker 2 (10:05):
Yeah, and it has to be something that's right for
you and you know.
I also wanted to ask you, likewhat are some of the if you
could pick, say, three or fourfranchises that seem to be
popular for the target thatyou're going after?
Do you see a pattern?
Is there like, oh, I want to dothat, you know, or is there
something that people alwayscome to you asking for and then
(10:29):
maybe you steer them down adifferent path?
Speaker 1 (10:32):
Yeah, so I'll answer this way.
So everyone is going to bespecific, right?
They're looking for a lot ofthe similar things like
financial and time freedom, andthen you have to unpack that dig
a little deeper.
But ultimately what I'm hearingand this is just what I'm
hearing with the candidates wework with are we don't want food
(10:53):
, we don't want a restaurantbecause of the margins and the
build-out.
So that's been very common.
I would say.
At least the last since COVID,I would say, has been a very
popular comment.
People that I work with mayhave an idea in mind.
They like a certain bagel orthey may like, you know,
massages.
So they want to look at that.
And I said ultimately, we wantto make sure that your role in
(11:15):
the business matches up right.
You could buy a Chick-fil-Afranchise and get massages all
day long, and vice versa.
So, you know, at the end of theday, you want it to be a good
fit, but what I'm seeing arewhere the interest lies is, you
know, people are wanting to keeptheir investments on the lower
end and, with that being said,it rules out a lot of the brick
(11:36):
and mortar retail types ofbusinesses.
So what we've seen a lot of,especially since COVID, because
people are working from home isa home service-based businesses
that offer home services, suchas, you know, residential
cleaning, roofing, siding,windows, painting, you know the
list goes on anything to do withthe exterior of the home,
(11:59):
lighting and things like that.
So we're getting a lot ofindividuals coming to us saying
I want the investment to be onthe lower end and I want it to
be up and running relativelyquickly, and the typical
characteristic of a servicebrand is 30 to 90 days.
That's a range, depending if atruck is needed or equipment,
(12:19):
versus something that's brickand mortar that may take six
months, up to a year plus, toget open.
And these are ranges because itall depends on approvals and
permits and things like that.
So the interest has shiftedtowards a lot of service brands
where you're up and runningquickly.
And you know, let's call itwhat it is right.
People are concerned aboutfinding employees.
(12:40):
So a lot of our brands we havea franchise around windows and
doors and it's a one to twoemployee model utilizing
subcontractors to do the work.
So I'm not saying, you know,yes, a subcontractor, they have
to find their own employees, butit's on the subcontractor to
manage that part and it's kindof taken off your plate.
(13:01):
There's no ongoing payroll.
They get paid, obviously, afterthe job is complete.
So we're seeing service with a.
You know there's variouspillars or elements where
subcontractors are involved andyou're keeping the investment
lower, payrolls lower.
You're solving and checking offthat box, saying okay, the
subcontractors are going to dealwith that.
(13:21):
And now you're talking about ifyou're going to be part-time,
maybe two employees, if you'regoing to be full-time, possibly
one employee.
And that saves the headache.
You know how hard is it to findone employee, you know, given
your market.
So that's been increasing inpopularity.
Speaker 2 (13:37):
Yeah, I had a my cousin.
She's married to a dentist andhe started a sandwich.
There's a sandwich brand outthere that was popular across
the country that he purchased.
It didn't end up working outfor them and I think they ended
up selling that franchise maybea year or two into it, because
this was before COVID.
It was hard to find employeesto work at that sandwich shop.
(13:58):
And you know, just being in, youknow doing what I do.
After 140 episodes of sidehustle stuff, I'm realizing
people are waking up and thentalking to these kids the other
day, yesterday and today they'rejust waking up to all these
different opportunities.
I mean you could door dash andmake more than you do sitting
working at a sandwich shop everyday.
You could Uber and make moremoney.
(14:19):
You could rent your car onTurro and probably make more
money than you're making at oneof these places.
So people are.
There's so many opportunities.
Now it seems like I mean, fromwhen we were kids, I mean we had
there was like five things wecould do.
You know, when we were incollege you had to work at a
restaurant you had to work at.
I worked at a phone bank.
You know it was awful.
Speaker 1 (14:38):
There was no internet .
Yeah, exactly there was thatproblem.
The heck was that.
Speaker 2 (14:42):
Yeah now you've got so many things open to you.
It's crazy.
So investing in a franchisethat requires people, not only
are you worried about going outand finding business, but now
you got to worry about going outand find employees on top of
that.
So you're selling yourself tonot just your customers.
Now you're selling yourself tohey, why should I do this and
(15:02):
not just go make a thousandbucks a week or whatever working
at doing door dash?
You know?
Speaker 1 (15:08):
That's actually.
It's a great point and I'm gladyou brought that up.
And that's a question we hadthis morning with a family I'm
working with and I said you know, the particular business model
we were looking at had oneemployee because they were going
to be running it full time.
And I said you know, thatemployee is a key employee.
You're going to maybe need asecond hire at some point, but
the franchise company does allthe marketing for them.
(15:28):
So that's done.
They have a call center, that'sdone and taken off their plate.
So what the franchise are andthis is very common coming from
our last conference here inNashville, you know a lot of 130
franchise companies, ceos,founders, everyone in a room and
having discussions and some ofthe big takeaways were how do
you keep those key employees on?
(15:48):
And the idea I don't know ifyou've heard of this is phantom
equity.
Phantom equity has come upquite often where your general
manager or your key employee.
You're not giving them straightup equity but you're giving
them a percentage of the profitsevery quarter.
So when you go to sell thebusiness it's still 100% yours
but they're getting, you know,10%.
Maybe they're earning their wayup to 10% of the profitability
(16:10):
of the company.
So what is that?
What problems that solve?
Number one you prevents that GMfrom leaving because now
they're earning up to just say,you know, 5%, 10%, 15% plus
percent equity in the businessand their decision making,
progress.
Decision making, you know, justanother progress process,
(16:31):
excuse me is going to bedifferent, because every
decision they make, they'regoing to look at it as like, all
right, we have to ensurethere's going to be a profit
here.
We're not taking a loss becauseI'm going to be getting 10
cents on the dollar for everyyou know, every dollar on profit
.
I'm making 10%, 10 cents, sothat will number one they're
going to think twice do we needto really bring on an employee?
Or can we figure this out, youknow, utilizing AI, utilizing
(16:55):
some other type of method?
Where can we cut costs?
So it incentivizes them to stayon and incentivizes them to
keep the headcount lower and itjust, you know, incentivize them
to make as much money aspossible.
So they get a base, they get apiece of the profits and
typically, from what I've seen,people then tend to stay on a
little bit longer because nowit's like all right, if I leave
(17:16):
for this job, I'm giving away10% of the potential profits in
the business.
So that's a big takeaway.
When people say it's hard tofind people and it's like all
right, well, do you really needtwo people?
Can the role be consolidatedinto one?
Are you being competitive withyour compensation?
Are you giving them a cut ofthe profits?
Because that alone, you'regiving that cut.
(17:38):
I noticed in my last businessgiving my general manager a cut
of the profits.
He's like you know what we cansolve this utilizing XYZ.
He went back to vendors tonegotiate rates, lower our costs
or payment terms.
So that makes a huge difference.
So it's finding people, andthen stage two is how do we keep
them in on, how do we keep themmotivated and while reducing
(18:02):
the headcount as much aspossible?
Speaker 2 (18:03):
And I have.
I'm surprised.
I've never heard of this.
It sounds a little bit likestock options almost, but not as
I don't know.
It's almost seems like, hey,look, stick around, you're going
to get it, if you don't, youlose it, kind of thing.
Yeah, and it's.
It actually makes a ton ofsense.
You want to incentivize peopleand you've got to be able to
(18:24):
offer them something.
They're not getting equity inUber.
They're not getting equity inDoorDash.
You know this gives themsomething.
They feel like entrepreneurs ina way.
They're tied into this.
So if something happens, youknow at the company, you know
water, pipe, bus or something.
You're out of town.
Hey, I need somebody to go downand meet the plumber.
They're not like well, I'm offthe clock, right, I'm not going
down.
(18:46):
Do you want this business tostay open, like, let's get down
there and knock it out, right,so you've got, you've got a
little bit more incentive withthe employee to go out there and
do this stuff.
Now you know what is, what is,what are the benefits?
I guess People out here thatyou're dealing with are going to
(19:07):
say Giuseppe, look, you knowwhy.
Why do I want to do a franchise?
What do I want to bring on thefranchise for, like they're just
going to take a chunk of themoney.
You know I'm a businessman.
I now had to run a business.
Why don't I just start my ownlandscaping brand?
Why don't I just start my ownwindow cleaning brand?
What do I need to?
What do I need to franchise for?
Speaker 1 (19:27):
Yeah.
So you know that's a greatquestion because you know, when
people look at financials right,you know or performance, it
goes back to financials.
It's something easy to gauge,right?
It's $50,000 franchise feeversus starting it myself.
But I'm a finance guy, my firstcareer was was on Wall Street,
and you know it's opportunity,costs, time, value of money, and
(19:48):
the list goes on.
So what I tell everyone andagain not making the case for
franchising, but distinguishingthe difference is that you
create a business plan.
You don't need to pay 50K tostart to launch that business.
Maybe it's much less, but howlong have you been sitting on
that business plan?
And then you have trial anderror.
So you try vendors, you trydifferent CRMs and systems.
(20:10):
You know you lose a thousandhere, 10,000 there.
A franchise is really going toget you up and running If that's
your goal, as quickly aspossible.
As I mentioned, in some servicebrands you could be up and
running in as little as 30 days.
So you're benefiting number onefrom their systems in place.
The trial and error theyfigured out the hard way via
experimentation.
They're not charging you thehundreds of thousands, if not
(20:33):
millions, of dollars to get thesystem up and running.
Your everyone pays the samefranchise fee, which is a one
time fee, by the way, theongoing, you know fees and the
5% royalty, 10% or whatever itis.
You're getting something inreturn.
So if you're, when you're doingyour due diligence, if you feel
like you're not gettinganything return, I would say
don't.
Don't invest in that business.
You want a business that'sgiving you something.
(20:55):
So you can call it an expense,you can call it an investment,
but they're doing something onbehalf.
Some franchise companies willhave, just say, a 10% return I'm
sorry, 10% royalty, excuse me,and in that royalty it's
itemized.
Maybe 5% is just for support,any questions?
You have training 2% mayberolled in as a call center, 2%
(21:15):
maybe for online marketing andthen 1% national advertising
fund.
You know some some will bundlethem, some will break them up,
but you're benefiting in a bigway because you're utilizing the
system.
You're getting up and running.
We have a donut franchise, forexample.
It utilizes a trailer wherethey go to special events really
(21:35):
high margins.
They own the manufacturingplant that they make these
trailers, so you could be up andrunning in as little as 90 days
versus having to go out and buyfrom another vendor.
So they control.
You know that aspect of thebusiness and you're getting
better pricing since it'sbecoming.
It's coming directly from thefranchise company.
So there are a lot of benefitsfor those that want to get up
(21:57):
and running quickly, let alonethe added benefits of we call
them annual masterminds, whereyou get to sit with 10, 100,000
of other franchisees from alldifferent backgrounds, sharing
ideas and best practices.
That alone, I think, is just ispriceless because you get to
work with the other other guysyou know and you know in your
(22:19):
area and I'm in New Jersey andif at one point I ever want to
sell my business, a brokertypically could charge it a nice
percentage.
It could be anywhere from 10%or more.
Some have a fixed cost.
You can have your neighboracquire you and save that fee.
You pay maybe just a smalltransfer fee or those people can
be your future acquisitions,which we've seen quite a bit for
(22:42):
the brands that are doingreally well.
The franchisees are really kindof selling and buying from one
another.
So there are a lot of benefitsthere for the person looking for
that.
We've even had people buy thefranchise, get inspired by the
system because the franchise ortheir goals are in line.
As you grow, they make money onthe royalty.
They don't make moneynecessarily when you buy it.
(23:03):
They make it on the royalty.
So you get inspired with yourfranchise and because of that
motivation and systems, you goback and launch your startup on
your Word document, on yourlaptop.
So we've seen that happen aswell.
You can own both.
There's no limit as to what youcan own.
Speaker 2 (23:19):
Wow, yeah, now we had a lady on.
She runs an organization herecalled Aviature Accelerators and
it's a women's startup kind ofplatform and they help them kind
of get you know, hey, what kindof business you want to start,
similar to what you're doing forfranchises.
But the interesting thing thatI took away from that was that
there was a lot of women whostarted their own businesses at
(23:43):
home type of businesses from youknow, during COVID, before, as
COVID was happening and they'restill doing it at a much higher
rate than guys were doing it.
Is there now, when these womenexecutives come to you, are they
looking at starting a differenttype of business?
Is there something that?
Are there things that you wouldmention to them?
(24:03):
Hey, have you considered this?
Or are there things thatthey're telling you, where
they're saying, look, you know,I need to stay home with kids.
I've got this going on, I'vegot that going on.
Are there different needs andare there different types of
businesses that they're lookingto start?
Speaker 1 (24:17):
I wouldn't say so because what happens is whether
the husband or wife, boyfriend,whoever's contacting me I make
one request and I go.
You know everyone that's goingto be part of this business.
If it's a married couple, we'dlike both of them on that, at
least on one conversation, tomake sure everyone's on the same
page, because having theseconversations there needs to be
(24:39):
a comfort level right.
So-and-so is on board with it.
Well, you know what?
Let's have them get on a callbecause I want them to realize,
you know, that there's aninvestment, that there's funding
options.
I want them to make sure thatthey're comfortable with it and
they may come in and say youknow what?
I didn't realize.
I can be involved part-timebecause I have a skill set of
marketing and I could do someonline marketing on the side.
(25:01):
Or I have a sales backgroundand I could do some networking
at the Chamber of Commerceevents and things like that.
So really, I like to geteveryone involved, you know, in
the decision-making process andyou know whoever it is.
You know women, men, whoever'scontacting me, you know,
depending on you know if there'sanyone else going to be
involved in the business.
I want everyone to be on thesame page.
(25:22):
I want to know their skill setsand I want them to understand
that.
You know you may have aninterest in a certain brand or
service or product, but I wantyou to realize that if you're in
a golf retail type of businessbecause you like golfing,
realize that your role is goingto be, you know, dealing with
lots of employees workingholiday, nights and weekends.
(25:44):
You know, let's look at whatthe role is.
Do you have to be on a golfingfranchise to enjoy golf or can
you own a business coachingfranchise and still be able to
enjoy golf?
So we really get into thecharacteristics.
What does it look like?
What do you want?
What do you don't want?
What are you trying toaccomplish?
If this is a legacy for yourchildren or your family or
(26:08):
whoever it is, we want to makesure it's a business that you
know can grow, that there'sadditional territory.
So we really spend a lot oftime there.
But it's really you knoweveryone I work with it's truly
case by case once they start toexplain the entire process.
Speaker 2 (26:21):
Yeah, because I just know, if you know, my wife and I
wanted to start a franchise.
If we're like, look, we're bothdoing, stop doing what we're
doing, it would be hard to findsomething that overlaps because
we both have such differentinterests.
And to find something thatwe're both like, hey, look, we
want to work on this.
I'm sure you've had thosechallenges too, with couples and
everybody trying to get on thesame page.
Speaker 1 (26:44):
Yeah, and that goes to the and it's very, very
interesting you bring that upbecause it goes back to the
passion piece.
And I'm all about passion.
But I think where some people,including myself, you know I was
very passionate about soccer,I'm a big soccer fan, but that
doesn't mean I have to own asoccer franchise.
It's also a quick path oflosing my passion.
So, when you look at passions,the passion, when I took another
(27:07):
step back and said, okay, whatam I truly trying to accomplish?
It's to spend time with myfamily.
We love to go to games, right,Big difference.
Right, Love going to gamesversus having to do that in the
business.
We love traveling.
We just got back from Europe.
We love trying new restaurants.
So, if you take a step back,what are we trying to accomplish
(27:28):
here?
And it's that time freedom.
So what is a business that'snot going to require nights and
weekends?
Maybe it's a business thatoperates normal business hours,
like a business coachingbusiness, where that operates
nine to five, Monday to Friday,giving me the time to do what
I'd like on the weekend andevenings.
And just because it's a businesscoaching franchise, you may be
(27:48):
passionate about coaching andyour wife can be a complete
introvert.
That's fine, because it's notwhat the service offering is,
it's what's.
You know what the roles are inthe business and your wife may
be.
You know analytical, reviewingKPIs, financials, working with
the accountant, working with theattorneys, doing all the back
end which you're going to havein any business.
(28:09):
So it's not necessary what thebusiness produces, it's what
your role specifically is in thebusiness.
So once I break down the role,it opens up.
You know the ideas of variousbrands.
So, whether it be a businesscoaching or a window replacement
franchise, your roles in thebusiness may be very similar,
believe it or not, offering acompletely different service or
(28:31):
product.
Speaker 2 (28:31):
So it's just amazing to me.
Like you know, I've done alittle bit of digging around on
the internet and stuff, lookingat franchises and everything.
But I mean, in order to do whatyou do, I mean you've probably
got this stuff just boomautomatic in your head and
there's new franchises poppingup all the time.
But I mean, how much of thisstuff do you just like?
Do you have to research versuslike, you just know this stuff?
Speaker 1 (28:55):
It's an ongoing thing , so we have twice a year we
have meetings in person to meetwith 100 to 130 franchise
companies.
Meeting face to face.
Updates, challenges.
You know what's working, what'snot, what's been working since
COVID.
So we're constantly gettingupdates on brands.
Some brands are adding revenuestreams, but the big thing is I
(29:16):
don't do this all alone.
We have a team that worksfull-time employees that are
pre-screening companies on adaily basis.
So they're meeting managementof the brands, they're
contacting random franchisees tomake sure they're getting the
supporter happy.
They're reviewing the franchisedisclosure documents, making
sure that there's not a millionlawsuits in there.
(29:38):
And if there is, you know whathappened here, because every
lawsuit has to be disclosed.
What's your training like?
Right, so you may have a brand,a trendy brand that just sells
itself.
But okay, you're at 30franchisees.
How do you get to 50?
And then how do you get to 100?
Very few.
There's less than 10% offranchises pass 100 locations or
(29:59):
100 territories.
So how do we get to 100?
Is there a clear path?
And this is in no way replacingthe due diligence and the
coaching and everything we helpout with and working with every
family we work with, but it's away of narrowing down the search
to a manageable amount, to sayokay, now you know this, 4,000
(30:21):
brands should we be looking at4,000?
That's, you'll never get 4,000due diligence completed in 4,000
brands.
Maybe we chunk that down to 50or 20.
I present three brands to eachone of my candidates because
it's specifically based off ofwhat they're looking for.
So that's why we have full timestaff.
(30:42):
It's literally all they'redoing is pre-screening brands
and sometimes we're working withthe brand.
Sometimes maybe things changeor the brand is having issues.
They may come back and say weare no longer bringing on new
franchisees which rarely happens, but it does because we want to
restructure our training.
So let's put a pause oneverything, pump the brakes
until we fix some systems.
(31:02):
So it is a lot of work, buttypically, you know, we like to
break down and the number onefactor is is there availability
in your market?
Right, you're in one state, I'min another.
It may be available to me, butnot available to you.
So if it is not available, whatelse is out there?
Do they allow full timeownership and or part time
(31:23):
ownership?
That's another way of reducingthat list of, just say, 50 names
down to 20.
Is your investment in line, youmeet the financial requirements
.
Again, that's another way towhittle down the list, and
usually we get down to two orthree initially and work from
there, and each one will havedifferent ways of doing business
.
One may be B2B, one may be B2C,but it's a way to compare and
(31:47):
contrast between the brands.
So it's a lot of work.
So, yeah, it's not always thesame brands, it's you know.
Let's find something availableand a lot of times a good brand
will sell out in your market.
So we're looking foralternative brands that offer
great support, that can help youflourish and do well in
business.
Speaker 2 (32:05):
Yeah, and it's not like you go to McDonald's and
say, hey, mcdonald's, I want toopen a McDonald's in my
neighborhood.
No, mcdonald's told you whereyou're about to go.
Like you're moving.
If you want a McDonald'sfranchise, you're moving to
Omaha, nebraska.
I'm sorry.
Like you're going to be thereor wherever right.
Like you're not.
You know there's thoselimitations.
Are you open to the idea ofleaving?
(32:27):
Are you?
You know Doug Deep and whatevercity you live in?
Speaker 1 (32:31):
Tech territory is big .
So we'll come back and say thisis a home-based business
covering, you know, these threecounties in New Jersey.
Are you open to that?
And that's a service-basedbusiness that doesn't need a
brick and mortar location Forthe brick and mortars.
We have a lot of people call usand say I have some commercial
real estate, what can we put inhere?
And it's not that simple becauseat the end of the day you want
(32:53):
to find the brands you like andthen go back to the franchisor
and say these are some areas,you have availability in these
in these three counties.
Yes, great, now is thisspecific location?
Could you approve that?
And they're going to have to goback and do tests.
Is there enough foot tracktraffic?
Is there enough?
You know traffic in general.
How many cars are passing on adaily basis?
(33:13):
Is it facing the main road?
Is it not so?
Is it in a Class B?
Is it in a Class A building?
So the franchisor will have toapprove the actual location and
the franchisor will have toapprove the actual territory.
And the territory is for thoseservice brands, because some
brands will look for a specificnumber of populations, some will
(33:33):
look for a specific amount ofhousehold income that they're
looking for because theirservice or product is at a
premium.
So they're looking for, youknow, households that are making
over 100,000 in income.
So, yes, everything has beenkind of predetermined A little
bit more work on the brick andmortar, but much easier to put
together on the service side.
Speaker 2 (33:54):
Yeah, and I, you know I love the website like some of
the terminology used on heretired of feeling stuck in your
corporate job, working 60 plushours a week to make someone
else rich.
I mean, there's so many things.
Not only am I feel, do I feelstuck, I'm also it sucks that
I'm working 60 hours and oh yeah, by the way, I'm doing all this
to make someone else rich.
Like that is the reason I can't.
(34:16):
I just I can't do corporateLike I can't.
I just it's not in my thing,it's not in my personality.
And you've got people who havethat personality type, who have
that entrepreneurial mindset,who just thought they had to go
work in a corporate setting.
They just thought that you,this is what you do in America,
right?
You go to work and this is whatyou do, right, and they're
(34:37):
miserable.
Speaker 1 (34:38):
And I don't know, they don't know, they don't know
, they don't know, they don'tknow, they don't know, they
don't know.
Speaker 2 (34:42):
They can just go to you and you've got these
soldiers that are just out ofhere all the time digging into
these companies and trying tofigure out which ones are worth
it and which ones aren't worthit.
I mean, it's amazing, actually.
I mean the fact that, likethere's a resource out there,
like you, who they could go to,that already knows.
Like, let me just talk to you.
Find out what your personality,what are you into?
(35:04):
Like, if you go to a job, theydon't sit down with you and say
you know, giuseppe, what are you?
Speaker 1 (35:11):
into.
Speaker 2 (35:11):
What do you like?
Let's do a personality test andthen let's put you in a job
here.
Let's put you in something thatsuited for your personality.
They don't do that.
You know you're going to dothis and this is the one thing
you're going to do for the next40 years, and then we're going
to give you a gold watch, right?
Speaker 1 (35:28):
And give you a little hopefully a little bit of a pay
raise throughout every year.
Speaker 2 (35:32):
And maybe yeah.
Speaker 1 (35:34):
And that's the thing.
My goal is just to empower andeducate people.
Most people don't know we exist.
I'm not the only person thatdoes this.
There's no cost, there's nocontract or the franchise
companies pay us our fee.
So it's just like an executiverecruiter, a real estate agent.
I tell everyone, you know whenthey, when they look at
insurance and all the variousthings to protect themselves, a
(35:56):
business or a side hustle, again, doesn't have to be millions.
It could be much, much less ofan investment with plenty of
funding options.
It's your safety net.
You know you're protectingyourself from the next Amazon or
tech layoff that we've seen orwhatever industry we're looking
at.
So you got a job is one income,one revenue stream, and we
blindly invest money into a 401kthat we don't manage, that
(36:20):
we're putting in the hands ofthe five mutual funds that the
employer has given us and someother managers, hopefully trying
to beat the S&P or whatevertheir benchmark or index is.
Why not have the side incomeoffset some of your W2?
Protect yourself in the eventof a layoff?
What are they giving you whenyou get laid off?
A month severance, a couple ofmonths severance.
(36:40):
So this is a way of generatingsome income, some major tax
benefits.
You know your first year inbusiness may not show a profit,
could show a loss.
You can offset your W2 income.
So there's tax strategies,advantages and overall
diversification and guess what,With all the profits, I have my
own retirement plan.
I invest in whatever I want.
I don't have the five fundsthat I have to invest for my
(37:02):
employer.
I can invest.
There's so many differentoptions.
Right now I have it strictly inthe stock market, but I'm not
fixed mutual funds.
I can own equity, I can ownindex funds.
There's so many differentoptions.
So, and I can invest what is itin?
A SEP IRA up to 66,000 versuswhatever a 401k is.
Speaker 2 (37:21):
Well, you can do a SEP 401k too.
If you have your own business,you can do a SEP 401k and you
can actually invest even moreCorrect.
Speaker 1 (37:28):
You can invest as the individual and as the business.
Speaker 2 (37:30):
So yeah, which makes it even more awesome.
Well, and the crazy thing is, Icome from the startup world.
Right, we built a business, wesold it, we got up to over 200
employees and I was one of theearly founders in that business,
and then my co-founders kind ofran with it and built it up and
did their thing, but when wesold it, there was only there
(37:53):
was a stat One, and I think100,000 startups ever do what we
did, one in 100,000.
When you do a franchise, you'renot just, it's not a shot in
the dark.
This is a model that's workedin hundreds of locations,
possibly thousands of locationsaround the country.
(38:15):
You know, people are the same.
Cities are starting to evenlook the same because of
franchises.
Like, let's be honest, there'sa hotel in New Jersey off the
highway Looks just like thehotel here in Northern Kentucky
right off the highway.
Any exit you find the samestuff.
There's a Chipotle, there's aMcDonald's, there's probably a
Burger King.
You've got all these things andeverything is getting kind of
(38:39):
commoditized in a way, and thereason they do it is economies
of scale, the reason that thesethings are the way they are, and
every white castle looks like awhite castle every, because
it's cheaper to do it that wayinstead of these one-off things,
and it's kind of putting momand pop businesses out, you know
, out on the street in a way,because these people can do it a
(39:00):
lot cheaper and a lot fasterand it's proven.
You're investing in somethinglike that.
You're investing in a system.
You're not investing in aBurger King, you're investing in
Burger King system, right?
Speaker 1 (39:12):
That's exactly it.
And, by the way, to add to that, and you own a.
Some of us said, well, they ownpart of your business.
No, you own 100% of yourbusiness.
You pay a royalty, justhypothetically 5%.
It's not like you're givingaway 5%.
You're getting something inreturn, but you're not giving
away equity, you own thatbusiness and economies of scale.
I had a painter contact me andsaid I have my own business for
(39:35):
20 years.
I'm thinking about a franchise.
I said why?
And we talked about and he saidjust the vendor relationships
alone, helping me find my laborand the discount I get alone
will offset the franchise fee,and that was his comment to me.
So there are and I'm not sayingthat's the case for every brand,
but that's what he came back tome with.
This is not me telling him this, so it's really interesting.
(39:58):
But the economies of scale arehuge because they're saying,
okay, we have another brand thathelps.
The term they use or the lineis we try to make your home,
instagram, ready to sell thefranchise or offers an in-home
studio, a design studio.
So all you have to do is take apicture of a home, the
franchise or does all the work,and then you provide the labor
(40:21):
and the actual, the actual workto be done.
So they'll make all therecommendations.
But the studio is in one office, there's a team.
They do it out of one locationvia technology, via video and
cameras, and that alone savesyou trips.
It saves you employees thatyou'll need.
So there's so many greatoptions out there, but keeping
in mind you got to find becausepeople say, well, how much more
(40:43):
successful I'd be, and I say, atthe end of the day, I don't
like using stats because youknow how was the study run and
franchise will increase yourodds of success, can increase
your odds of success, keeping inmind you bought the right
franchise, that you wereproperly capitalized, that you
follow the system.
The number one reason I seepeople franchise these fail is
(41:05):
that they don't even follow thesystem.
They buy it to be run adifferent way.
So the good franchise brandswill interview you kind of like
a job interview.
They want to make sure you're agood fit, they want to make
sure there are no red flags,that you're going to follow the
system, and that's why they havefinancial requirements.
They want to make sure that dayone, if it takes you a couple
months to generate a profit orgenerate some revenue, you have
(41:27):
a cushion, you have liquidcapital there.
You know at least you knowthree to six months working
capital, because if thefranchise investment is 100,000
and you come in with a total of100,000, well what happens the
first month?
Who's going to pay youremployees and your rent when you
invested the entire sum intothe franchise?
So the better brands willinterview you and at the very
(41:49):
end they will award you, basedoff of how the meetings went,
the input making sure there wereno red flags, because they want
the right fit.
You know you're an extension oftheir brand.
So they truly spent a lot oftime finding the right partners.
Speaker 2 (42:02):
Well, you know what the funny thing is too.
One thing I've noticed is youknow, I've got a lot of friends
who you know they've gotdisposable income They've.
You know they're professionals.
What they end up doing is isthey end up flipping houses or
something.
They get into real estate.
They think that's the way, andyou know what.
Real estate's a great game.
The problem is it's gettingvery saturated, and I think it's
because of all these shows A&Eand Discovery.
Speaker 1 (42:24):
Channel.
Speaker 2 (42:25):
Flip this house, Flip the house, you know they oh,
I'm going to go in and take thiswhole beat up house and I'm
going to make you know 20, 30grand off of it and it's.
I don't think they know howmuch work it is.
And, and you know, finding theright contractor sucks and
people show up drunk and theydon't show up at all or they
finish half the job and nowyou've got to finish it.
Like it is tough and there is alot of people out there doing
(42:48):
that kind of thing right now andit may not be necessarily
suited for you.
So when these, when thesefranchiseeers are interviewing
the possible, or when they'reinterviewing me, they're going
to say they're actually helpingme out because if the franchise
isn't right for me, I don't haveto do it.
I don't have to invest a bunchof money in a house just to find
(43:08):
out.
I'm not good at building a house, I'm not good at doing this,
I'm not good at managingemployees, that type of employee
.
They have so much of the stuffin place.
It's almost like if you justdid the work, follow the process
, like you said, you're gonnamake the money, and they could
even show you a lot of timesproject how much money you're
(43:30):
gonna make, Depending on whereyou're at, they've got the data,
they've done the research,they've got, hopefully, hundreds
of thousands of use cases andsay, look, we could the median
franchise in an area like yours,with a population like yours,
with a household income likeyours, you're probably gonna
(43:51):
make about this much money.
Speaker 1 (43:53):
Yeah, they're gonna help you put together proformas.
Obviously, they can't guaranteewhat you're gonna make, but
there's gonna be a proforma.
There's gonna be a low kind ofand a high investment.
It's called the item seven,with an itemized breakdown of
the investments and everythingthat goes along in the
investment, including three tosix months working capital.
But, yeah, they will assist youbecause you also have to gauge
(44:14):
how many locations, how manyterritories do I need to offset
my $300,000 income.
It may be one location andmaybe three, so you wanna put
together the best number.
So they will provide you stats,which is the first phase of the
franchise due diligence process.
And the second stage, which ismy favorite part, is validation.
You're gonna speak one-on-onewith franchisees.
(44:35):
You're gonna have group calls.
You're gonna have prerecordedcalls for guys that are working
that need the information maybein the evening that I wanna
listen on their time andbasically you're gonna go back
and say, realistically, what wasthe investment?
Realistically, as a part-timeowner and a full-time owner,
what could I make my first year?
And you're not gonna talk toone, you're gonna talk to five,
(44:58):
10.
Maybe a dozen, maybe more, butyou're gonna get averages and
say, okay, well, this is basedoff of this.
But I'm in New Jersey, so maybeI have to factor in a little
bit more on the wage or a littlebit less on the rent or
wherever you are.
So you wanna put those in kindof a high, medium and low
amounts and figure that out,because that's gonna affect your
(45:20):
overall investment and what youcan make.
So, keep in mind.
It may happen quicker, it maytake a little bit longer, but
you wanna general idea of whatthe costs are If you're involved
full-time and if not, you wannamake sure to factor in a GM's
salary if you're gonna bekeeping your job.
So the franchisor will educateyou the best they can.
You speak with the franchiseesand ultimately, with that
(45:41):
information, you're like okay, Ihave a general idea of what we
can do.
I'm gonna start off with twoterritories.
Maybe I'll develop one year one, develop the other, year two,
and by then I'm gonna be doing Xamount of revenue at 20% and
this is what I'm gonna benetting.
So, yeah, they will assist you,but ultimately, as any other
(46:03):
business, I always say there'sno guarantees.
But they can give you kind ofaverages profit and losses,
potentially of other franchisees.
So you have all that data towork off of.
Speaker 2 (46:11):
Yeah, and there's on your website here it says 4,000
franchise companies.
I mean that's just too many tohave to go through on your own
and chances are maybe you can.
What vet?
Maybe 10, 15, 20, that'sreasonable If you really wanted
to dig in.
I mean that's.
It just seems like you're gonnapick something wrong.
(46:31):
I mean, just go to somebodylike Giuseppe here and do that.
I mean you've got a 25 minutelong video on your website.
Talks about the buying process.
There's three big challengesthat you go over facing any
successful executive who'sthinking about potentially
getting into becoming afranchise owner.
You've got the five key changesto go from getting stuck
(46:56):
working these stupid hourstrying to make somebody else
rich.
You've got a four step processfor starting the journey.
You've really broken it down tohelp people and they could just
go on the websiteggthefranchiseguidecom the
letter G G, g thefranchiseguidecom.
Watch the video.
You make it really easy.
You've got a book that you'regiving away for free franchise
(47:18):
free.
Speaker 1 (47:18):
Right here, right here, talk about that, yeah,
talk about the book.
It's a 48 pages, 30 minute readand it's my entire process
summarized in a book.
We actually recorded a fewpodcasts transcribed.
It had a copywriter in therecleaning it up with some case
studies and it's my exactblueprint.
It's everything that I did.
So if you're not ready to chat,you could download the book for
(47:40):
free.
Shows you exactly how to decide, figuring out if a franchise is
a good fit, how to go aboutfinding a franchise.
I go into details like puttingtogether a team where you have a
financial advisor, youraccountant, cpa, your franchise
consultant, broker, attorneys,putting that team together.
(48:02):
But I break it down in 30minutes.
If you're not ready to chat andyou can use that, I bring to
the table, obviously, theexperience and the brands that
we can talk about and when wemake introductions, the brands
are contacting you prettyquickly day or two, typically
the same day versus.
Let me just blindly fill out aform on a franchise website.
(48:23):
I think the odds of getting anyresponse is 50-50.
Many cases, states and areasare just sold, so they don't
have the time or the manpower torespond to every email.
So we're saving you the time.
I had a gentleman I worked with.
He spent six hours researchinga franchise on his own,
contacted the brand directly,found that his entire state is
(48:44):
sold.
Wow, he was not willing to moveand I said well, we won't get
to that stage, we will.
That's one of the first checks.
Do you have territory available?
No, okay, is he open?
He's in New Jersey.
Is he open to moving to NewYork or Pennsylvania, delaware?
No, great, let's rule them out,and it's as simple as that.
So we take a lot of that off.
But we also we help in the verybeginning.
(49:05):
Should you own a business atall?
And we talk about that.
So sometimes I have to, I gottagive some tough love to some
people and maybe the franchiseis great and it's a perfect
match.
But we decide, hey, the timingisn't right, the financials
aren't there.
You got about.
You know, you need a little bitmore in liquidity to get you
(49:26):
there.
Why don't you save for the next12 months and maybe not
vacation, maybe not go out toeat so often, and kind of build
up that nest bag?
And so I work with people.
Sometimes they'll buy, you know, a franchise year, two years
later, after fixing their creditscore and their financial
situation.
So anyone that has any interestin franchising, you know, reach
(49:47):
out, it's 20 minutes.
If the timing isn't right, forwhatever reason, then we talk
every six months.
You have access to the book,the podcast and the webinar.
So between those three, thereis plenty of info, from
franchising to exit strategies,to everything in between.
So your investment is 20minutes and the service is
always free.
Speaker 2 (50:07):
So yeah, giuseppe, why not?
Yeah, why not?
This has been great.
I mean, you don't seem likeyou're gonna.
You know high pressure sales.
You're not.
You're not sweating it.
You're like look, if it's notright for you, I don't want you
coming back on me two years fromnow and saying, giuseppe, you
told me to start a business andI suck at starting a business.
Speaker 1 (50:23):
I mean, some people are just institutionalized, you
know, they just need to have aboss for some reason, and that's
fine, because the franchise,the franchise companies, you
need employees as well andthat's and that's fine.
Maybe they can get some fan ofequity.
But the worst thing I could dois say yes, you have to buy,
everyone should buy a franchise.
That I talked to.
The franchise companies aregonna come back saying you know,
you sent me so and so, but theytold me that they don't.
(50:45):
They don't want to invest anymoney, they just want a
franchise given to them.
Obviously, we're gonna filterthat out.
So if your intention is to buy,no money down you know a lot of
these ads you'll see on TV onhome no money down.
You could buy real estate.
I don't know of any franchisewith no money down, unless it's
a special kind of funding dealwhere the franchise or is gonna
(51:05):
be funding primarily.
You know a big chunk of thefranchise fee, but there's no.
You know this is it.
Everyone pays the samefranchise fee.
If you're a veteran, you knowcertain people will get
discounts and they offerdiscounts First responders,
veterans, minority, you knowwomen owned businesses.
They'll break it down dependingon the franchise itself.
(51:28):
So sometimes there is adiscount on the franchise fee.
But the cool part is you don'tneed experience in these brands
99% of the time.
So if you have the skill setand you're willing to follow a
system, for example, a cleaningcompany has a lot of people.
If you have good managementskills and a willingness to
follow a system, you know youmay have not ever cleaned your
home ever, or your apartment.
(51:49):
You know they're looking forpeople that can truly follow a
system.
They will teach you how toclean, they will teach you how
to find a manager, to findcleaning and you know personnel.
So you know, obviously you knowthe 1% do require some
experience and if you don't haveexperience but we won't look at
those brands.
It's as simple as that.
Speaker 2 (52:07):
I love it.
I love it.
Just happy man.
Thanks for being on the show.
Actually, you've cleared upsome things for me and you got
me fired up.
Now it's like I always thoughtit was all me.
You know, like I would have todo it, I would have to be the
one that goes out and does theresearch and everything.
So it's good to know we gotsomebody out here that's, you
know, looking after our backsand doing the research and has
an actual team of people who dothis all day and go to these
(52:30):
events Vegas things and, youknow, nashville it sounded like
and actually vet some of thesecompanies, and I would be very
cautious of any franchise thatsaid, hey, no money down, don't?
You know?
You don't have to put anythingin, you don't need any net worth
whatever.
I mean, that sounds desperate,so I probably wouldn't go to one
of them.
Speaker 1 (52:49):
Yeah that, yeah that I don't see many of them, and
maybe just because it neverpasses our screen.
But yeah, you know, fine,really fine.
You got to be comfortable Ifyour gut's telling you, now
figure out why.
But if they're pressuring youto go out, you know, meet with
the French, the founders.
On the first call I would sayit's probably someone that's
looking for a quick sale.
Because why would you, you know, spend money or spend the
(53:12):
weekend or a couple of days togo visit a brand when you know
nothing about it?
You know that's later on in theproduct.
And I also outline when toexpect certain things, when you
should go to an event.
In many cases it's like datingit's the first date.
Give it a shot.
You're meeting one another.
See how the second date goes.
If you're going from first date, let's talk about wedding plans
(53:32):
and meeting the parents.
You know that's kind of movinga little bit too quickly.
Yeah so I would advise peoplethat's way too quick.
I would not like that, I wouldnot be comfortable with it and
there's a whole process and Ioutline that for every person I
work with.
Speaker 2 (53:48):
This is great, giuseppe.
So you know, get on the websiteguys.
There's a way for you to get onthere and fill it a form, or
give him a call and set up acall, and that's how you get
started, right, that's it.
Speaker 1 (54:01):
Book a call, we'll talk it through.
If you're not ready, downloadthe book.
But our conversation I may comeback to you and let you know
these are some options.
If it's not, I'll put you intouch with my other.
With my, you know, did 156shows, I put someone in touch
with a career transition coachwhere they just were looking for
a new career and that's not aproblem as well.
So we have those connectionsLinkedIn profile creators and
(54:23):
editors.
You know we have thoseconnections as well for those
that maybe the you know, thetiming is unright, so we're.
If we can't help directly, weknow someone that can.
Speaker 2 (54:32):
That's right.
The franchise GG, the franchiseguidecom.
Thanks a lot, giuseppe.
Thanks, adam, it wasappreciated, it was fun.
Thanks for joining us on thisweek's episode of Side Hustle
City.
Well, you've heard from ourguests.
Now let's hear from you.
Join our community on Facebook,side Hustle City.
It's a group where people shareideas, share their
(54:53):
inspirational stories andmotivate each other to be
successful and turn their sidehustle into their main hustle.
We'll see you there and we'llsee you next week on the show.
Thank you.
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