Summary

Tom Scarda, owner of the Franchise Academy, joins the Harder, Not Smarter Podcast to discuss the ins and outs of franchising. He shares his personal experiences of owning successful and unsuccessful franchises, highlighting the importance of choosing the right franchise and understanding the business aspect behind it. Tom also addresses the misconceptions and challenges of franchising, including the prevalence of franchise lead companies on LinkedIn.

Tom provides insights into the vetting process for franchise opportunities, including the use of the franchise disclosure document and speaking with current franchise owners. This part of the conversation focuses on veterans transitioning to franchising and the benefits it offers. It explores the idea of franchising as a mission and how it provides a sense of purpose for veterans.

The discussion also covers the realities of owning a McDonald's franchise and the value of time in franchising. The concept of stacking franchises for success and the potential for mutually supporting businesses is explored. The coaching process and the role of business partnerships in franchising are also discussed.

Finally, the conversation touches on franchise agreements and negotiations. In this conversation, Tom Scarda discusses the various industries that offer franchise opportunities beyond fast food. He highlights service businesses as a popular option, emphasizing their low cost and high profit margins. Tom also addresses the misconception that franchises require a large amount of capital and explains the financing options available.

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Episodes also available on Spotify, Apple, and Amazon Music.

Tom's Links

https://www.linkedin.com/in/findafranchise/

https://tomscarda.com

Chapters

00:00 Introduction to Franchising

01:11 The Highs and Lows of Franchise Ownership

06:13 The Importance of Business Skills in Franchising

07:05 The Three B's of Entrepreneurship

08:04 The Misconceptions of Franchising

09:02 The Role of Franchise Lead Companies

10:20 The Phenomenon of LinkedIn Franchise Offers

12:10 Understanding Your Skills and Fit for Franchising

14:29 The Difference Between Owning a Business and Doing the Technical Work

16:16 Personal Journey into Franchising

23:40 Vetting Franchise Opportunities

26:58 Veterans Transitioning to Franchising

28:00 Franchising as a Mission

29:35 Finding the Right Franchise

30:33 Franchise Ownership as a Vehicle

31:18 Choosing the Right Franchise

32:17 The Realities of Owning a McDonald's Franchise

33:02 Building a Foundation for Success

34:48 The Value of Time in Franchising

36:05 Stacking Franchises for Success

37:08 Unsexy Businesses and High Margins

39:11 Buying Time and Building a Foundation

40:16 The Strategy of Stacking Franchises

43:11 Mutually Supporting Franchise Businesses

45:32 The Coaching Process

48:19 Business Partnerships in Franchising

50:23 Franchise Agreements and Negotiations

52:06 Franchises in Various Industries

53:11 Service Businesses and Low-Cost, High-Margin Franchises

54:02 Pre-Vetted Business Models and Backend Support

54:47 Raising Capital and Financing Options

58:01 Using Retirement Funds for Franchise Investment

58:59 Options for Financing a Franchise

59:56 Exploring Financing Options

01:00:53 Overcoming the Obstacle of Money

01:02:06 The Importance of Personal Motivation and Drive

01:03:14 Misconceptions and Pitfalls of Franchises

01:05:20 Skills and Experiences that Lead to Franchise Success

01:12:37 Autonomy and Support in Franchise Ownership

01:17:07 Building and Exiting a Franchise