Honoring U.S. Military Veterans with Opportunities for Small-Business Ownership

To honor those men and women who have served in the U.S. military, VetFran was developed to help them transition to civilian life. The idea of the late Don Dwyer Sr., founder of The Dwyer Group, VetFran is a voluntary effort of International Franchise Association member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. 

Nearly 1800 Veteran-Franchisees and Growing
Taking advantage of the financial incentives offered by participating companies, veterans, by early 2010, had acquired over 1,779 franchises through the VetFran program and nearly 250 were in various stages of negotiation.

Financial Incentives
Due to the wide variety of franchises, the criteria for financial incentives is determined by the franchise system in a manner that allows the greatest flexibility for the system and, at the same time, offers veterans a better deal than is offered to otherwise qualified investors. Typically, VetFran participants offer discounts of their initial fees, but that is not a requirement.

A current list of participating companies and the discounts these franchise systems offer is available on this Web site, www.franchise.org, under “VetFran Directory.” Prospective franchisees may review a franchise’s details and contact company representatives directly via e-mail. While the program does not offer financing, many franchise systems either provide financing or assist in the process by recommending preferred lenders.

Program Partners
In 2002, the International Franchise Association and the U.S. Department of Veterans Affairs signed an official memorandum of understanding to jointly promote the VetFran program. IFA’s work has also been recognized by VA’s Center for Veterans Enterprise which honored the association by naming it a “Support Sector Champion.” IFA also works with the U.S. Small Business Administration, Congress, military organizations and other entities to promote VetFran via additional government channels as well as through news media outlets. (The association receives no government funding; the program is entirely voluntary and supported by IFA members as a benefit of membership.)

Veteran Benefits
Another benefit the association provides to veterans is free entry to the International Franchise Expo in Washington, D.C., West Coast Franchise Expo in Los Angeles and Franchise Expo South in Miami Beach where they can view many business options, meet with company representatives and attend the “Franchising 101 for Veterans” seminar free of charge. More information is available here. Use Source Code GPVETS.

Franchise program lets vets take aim at business success
By Darrell Smith, The Sacremento Bee
May. 07, 2010

Stanley White looks around his small storefront and considers himself fortunate.
Business is difficult in a struggling economy, but the one-time U.S. Army soldier knows he likely wouldn't have achieved his dream of running his own business if not for a program to bring more military veterans into franchise ownership.

"It's been tough and it's been a learning experience from day one," White said of business at his Cartridge World outlet off Bruceville Road. "The sky's the limit. It took time to build up word of mouth, but it's not as scary now. I expect things to go well."

White, who lives in Elk Grove, bought the ink cartridge refill franchise in 2006 with the help of the International Franchise Association's VetFran, or Veterans Transition Franchise Initiative. Start-up costs begin at $30,000, but VetFran partner Cartridge World offers veterans a 15 percent discount.

Relaunched after 2001's terrorist attacks, the program by the Washington, D.C.-based trade group for franchisers and franchisees is part of a nationwide campaign to encourage veterans to purchase franchise businesses once they leave military service.

"Running a business takes dedication, focus and discipline. That, you learn by serving your country in the military," said Alisa Harrison, a franchise association spokeswoman.|

The group offers incentives to would-be franchisees, from training to discounts on franchise fees.
Military veterans returning to private life in an uncertain economy are turning in greater numbers to VetFran.
Some are enticed by a proven business model, others to the access to capital and marketing services a franchiser can offer, according to the franchise association.

"That's where a franchise is beneficial," White said. "It still doesn't guarantee you won't go out of business, but it's definitely a huge help."

White just wanted to start over.
On paper, his past life was a good one. A young husband and father with a promising and lucrative career in insurance sales, he was earning north of $100,000 by age 30.

But the veteran knew he was missing something. He wanted to spend more time with his family and less time on the road and he was itching to run his own business.

By the time White bought his franchise in 2006, veterans had purchased more than 600 franchises using VetFran's incentives since the 2001 relaunch, the association said.

That number has climbed rapidly over the last five years. By early 2010, veterans had purchased nearly 1,800 franchises through the program with another 250 deals in negotiation.

"Lending to small businesses is really tight. There's no lack of qualified prospects, but it's difficult to access capital," Harrison said. "This demonstrates the importance of VetFran. The need is there."

And, more businesses are joining the fold, too. Nearly 400 companies from AAMCO transmissions to Cinnabon to PIP Printing participate in the program, compared with about 200 companies in 2006.

The franchise association hopes to encourage even more veterans to own franchises and they have taken their message to Congress.

A bill called the Help Veterans Own Franchises Act, co-written by U.S. Reps. Leonard Boswell, D-Iowa, and Aaron Schock, R-Ill., would offers a tax credit to businesses that offer discounted franchise fees to qualified veterans. The bill is still being considered in the House Ways and Means committee.

The credit would amount to half of the discount capped at $25,000 per franchise unit. As for White, the franchise life continues to suit him well.

"I work harder here, but I'm able to coach youth football, go home for lunch," he said. "Things tend to fall in place for me by sheer luck. No one's going to mistake me for a Fortune 500 company, but I'm happy." 
 
IFA’s Veteran’s Assistance Program Wins Coveted Summit Award

The International Franchise Association was honored earlier this year by the American Society of Association Executives as a winner of the organization’s 2008 Summit Award in recognition of its Veterans Transition Franchise Initiative, known as VetFran.

As part of the ASAE’s Center for the Association Leadership’s Associations Advance America program, the Summit Award is given to the very best efforts engineered by associations across the country in areas like public education/information, economic development, business and social innovation, skills training/development and civic and volunteer activities.

“We are honored to win the coveted Summit Award,” said Matthew Shay, IFA president and CEO. “This award validates the hard work by our members and staff to provide opportunities to help former military personnel achieve the American dream of small-business ownership. We are grateful that the ASAE committee recognized the many contributions that franchising makes to our society. “

ASAE serves approximately 10,000 associations that represent more than 287 million people and organizations worldwide. Each year, up to 50 associations are selected to receive the ASAE Associations Advance America Award of Excellence for improving the quality of life in America today. This year, 38 organizations were selected in three rounds. The six Summit Award winners, including IFA, were chosen from this group.

Left: IFA Pres. Shay accepts ASAE 2008 Summit Award from ceremony host and ASAE Chair-elect Velma Hart, who is CFO for AMVETS.

VetFran Committee Members:

Chairman - Lonnie Helgerson, CFE, Helgerson Franchise Group
Vice Chairman - Mary Thompson, CFE, President, Mr. Rooter

• Ron Berger, CEO, Figaro's Italian Pizza, Inc.
• Jerry Darnell, SVP, Strategic Development, Benetrends, Inc.
• Scott Denniston, President, Scott Group of Virginia
• Janice M. Dwyer, CFE, President, Luce, Smith and Scott, Inc.
• Marisa D. Faunce, Partner,Plave Koch PLC
• John Francis, PostNet Area Franchisee for Minnesota & Wisconsin
• Christine Galli, Executive Director, Technology in a Box
• Nancy Ghanem, President, NG Franchise Services, Inc.
• Herbert Greenberg, President & CEO, Caliper
• Chris P. Holman, COO & Director of Franchising, Advanced Maintenance
• Joe Lindenmayer, Presdient, TSS Photography, Inc.
• Mark Liston, CFE, VP Operations, Glass Doctor
• Chris Loudermilk, Military Development Officer, The Dwyer Group
• Bret Lowell, CFE, Partner, DLA Piper US LLP
• Thomas Macintosh, Partner, Krass Monroe, P.A.
• Andrew Perrin, Attorney, Larkin Hoffman Daly & Lindgren
• Michael H. Seid, CFE, Managing Dir., Michael H. Seid & Associates
• Jerrod Sessler, CEO, HomeTask Handyman Service, Inc.
• Chuck Southern, Corporate Liaison Officer, Center for Veterans Enterprise (ex officio)
• Christopher Warren, Director Franchise Network Relations, Valpak
• Marcea Weiss, Veteran Business Advocate, National Veteran Owned Business Association (NaVOBA)
• Steve White, President, Signs Now

IFA Staff Liaison, Miriam L. Brewer, Director Education and Diversity