Franchise Pitfalls and Prosperity – Giuseppe Grammatico

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Show Notes:

Starting a company from zero is not the only way to become a business owner. Buying into an existing franchise is a smart and strategic alternative. Our guest will tell you all about it!

Meet Giuseppe Grammatico. Giuseppe is a Franchise Consultant and the founder of Franchise Freedom. The company specializes in helping corporate executives become their own boss through full-time franchising. Over the years, Giuseppe and his team have helped thousands of clients find the right franchise opportunities that fit their interests and aspirations. Other than that, he is a published book author and a podcast host. Both his podcast and book are called ‘Franchise Freedom,’ providing a ton of value for anyone considering franchising.

In addition to his passion for the franchising world, Giuseppe is also enthusiastic about entrepreneurship and business ownership in general, as he believes this is the ultimate path to freedom and independence.

In this episode of the Think Business with Tyler podcast, we talk about the differences between starting a new business from scratch and buying into an existing franchise, why franchising is not ideal for everyone, the most common mistakes that franchisors make, and the benefits of reverse engineering your business.

If you’re eager to learn about alternative paths to entrepreneurship, don’t miss this episode with Giuseppe!



💡 Name: Giuseppe Grammatico

💡 What he does: He’s a Franchise Consultant for Corporate Executives.

💡 Noteworthy: Giuseppe is a podcast host and a published book author. Both his podcast and book are called ‘Franchise Freedom,’ providing a ton of value for anyone considering franchising.

💡 Key Quote:  “People ask why did I start a business? I said so I could become a coach and coach my kids’ soccer and not miss any events. So, that’s how I got into franchising essentially just unfulfilled wanted to own something where I can control my time, my effort, my income.”

💡 Where to find Giuseppe: LinkedIn

Key Insights


Buying a franchise vs starting a new business: What’s the main difference? Although these two may sound similar, the key difference lies in the system. When you’re starting a business from scratch, you’re building your own systems and processes. But when you’re buying into an existing franchise, you’re essentially buying into a ready-made system.

Giuseppe explains, “The value proposition of a franchise is essentially you want the business built for you. So you are looking, I wrote in my book several years back an unfair advantage. You’re looking when you buy a franchise for the system, the CRN, some vendors to be in place, best practices, operations, manuals, and things like that. […] It’s really a plug-and-play. You’re not creating everything from the ground up. The brand, the logos, the best ways of doing business.”

Franchising is not the right fit for everyone. Franchising is an amazing business model, but it’s not for everyone. When considering buying into an existing franchise, it’s important to consider different factors such as your motivation, financial situation, interests, etc. Giuseppe says, “Franchising is great. I’ve owned franchise and non-franchise brands. There’s tons of advantages, but that doesn’t mean it’s the right fit for everyone. And sometimes, it is the right fit, but financially, you just don’t have enough to cover the down payment on an SBA loan or cover the franchise fee. So we really work together and say, let’s figure out if a franchise is a good fit.”

The most common mistake in franchising is not following the system. One of the keys to success in franchising is following the ready-made system. According to Giuseppe, when you don’t stick to the existing system, what you’re doing is setting yourself up for failure. He explains, “We’ve seen people not follow the right system. We’ve seen people not capitalize. They went a little bit too aggressive. Maybe they didn’t get the funding that they said they were going to get and purchase too many territories and go very aggressively, too many employees to get started, so undercapitalized, and then it just affects the entire business, and the business kind of falls apart. Another reason is buying the wrong franchise.”

Reverse engineer your business. Whether you go down the franchising route or you decide to start a business from scratch, the journey may seem overwhelming at first. But if you start with the end goal in mind and reverse engineer it, you’ll find a clearer path forward. Giuseppe says, “Start with the end in mind and reverse engineer it just like we talked about with finding a franchise. So, is the exit to retire in 10 years? Are you looking to build a legacy? […] Do you want to start a business from scratch and, you know, you want to be done in 10 years, or would you rather just launch a franchise and get up and running relatively quicker? So, these are things I think if you start with the end in mind, that’ll narrow the search as to both looking at businesses as and if you have an existing business to planning appropriately.”

Top Quotes


“People ask why did I start a business? I said so I could become a coach and coach my kids’ soccer and not miss any events. So, that’s how I got into franchising essentially just unfulfilled wanted to own something where I can control my time, my effort, my income.”

“I use terms such as a business on training wheels where you just really have the franchise or supporting you, you have a coach, they travel with you, if need be training, you have access to other franchise owners to really motivate you and share ideas and best practices. So, really a great idea for someone that wants to get up and running relatively quickly.”

“I always tell people you’re buying the franchise franchise for the system itself. They’ve kind of figured out they’re leveraging what they’ve learned the hard way in order to get you the best results.”

“When you go to sell your business, I always recommend go back to the franchise agreement because there’ll be different terms. […] The key differentiator is that when you do find that buyer, that buyer needs to get approved from the franchise, which typically isn’t a major issue but the whole point of doing that is that the franchise can make sure that they meet the new owner, that’s another long term relationship. And then secondly, that they have a full understanding of how the franchise works.”

“Anything around the home, whether it be roofing, cleaning, things like that, people are working from home, and that area just since covid, it just has been growing year after year. People like that space. One of my favorites that is not affected by the economy is restoration. […] Other areas that we’ve seen growth is in the B2B space. […] There are franchises around reducing expenses for small business owners that’s been big. And then on the health and wellness.”

“Hire people better than you and in certain areas. So, in the beginning, I felt like I had to be an expert in marketing. I had to be an expert in social media and all these other areas. And what happened was I did learn a lot, and I definitely know a lot more than maybe some of my colleagues because of that experience, but it also slowed my growth. And what happened was if I just hired those people outright, I could have still learned, but we gave up essentially growth because of that, because I was fiddling my thumbs trying to figure out Facebook ads and if LinkedIn was a spot or Instagram.”


Franchise Freedom Book

Profit Comes First by Rocky Lalvani

Grammatico Website

The Franchise Freedom Podcast

Reach out to him at

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