<blockquote>“The Air Force is about integrity, excellence and service before self, and those disciplines have prepared me to be diligent and thorough in work ethic. There is no cutting corners, and the work will be done right every time.”
~ Marc Stewart, retired U.S. Air Force officer and Office Pride franchisee</blockquote>
Franchisors like to recruit military veterans and their loved ones as franchisees. According to VetFran, veterans account for 14% of franchisees nationwide, which is well over 1 for every 10—well above the percentage veterans make up within the general population (7%). In addition, franchisors have indicated that their rate of hiring veterans has increased in recent years.
Why is the combination so successful? While they seem dissimilar at first glance, the foundations of military service and franchising share similar building blocks. Both are based heavily on following predetermined plans (i.e. a system) and the ability to work well with others in pursuit of a common goal. The discipline, work ethic, and leadership skills that are prevalent in military service are well-suited to running a franchise.
And these attributes are ones that franchisors value as signifiers for future success as a franchisee. As military veteran and writer on franchising for military veterans, Jim Wilson, writes:
<blockquote>“More important than their familiarity with the services produced by a franchise they may own is a veteran's familiarity with the structure and manner of producing those services from his/her military experience. Franchises are operated according to an Operating Manual in which the franchisor provides all procedures that must be followed to run the franchise... Veterans are familiar with having such a manual that details much of what they need to do to fly a plane, drive a tank, set up and operate a field hospital or kitchen.”</blockquote>
However, no matter how good the general fit is for veterans in franchising, military veterans should do the same due diligence as anyone else who wants to become a franchisee. As franchise expert Joel Libava says, “Veterans can make great franchise owners. But they have to do great research and have enough resources to make it through the initial startup period. Franchising isn’t for everyone, and that includes veterans.”
VetFran: A Service for Those Who Have Served
In searching franchises, military veterans will see a particular name pop up several times in their search: VetFran.
VetFran is the brainchild of Don Dwyer Sr., the founder of The Dwyer Group (now Neighborly). Originally called Veterans Transition Franchise Initiative, the non-profit program was first established in 1991 to assist veterans of the first Gulf War as they transitioned back to civilian life. However, shortly after its founding, participation gradually declined. But after 9-11, the program was re-established (predominately under the International Franchise Association) and has flourished since.
VetFran boasts the participation of over 630 franchise systems at the most recent count—and, according to the organization, is growing at about a rate of 10% each year. Franchises that participate in the VetFran program offer special financial incentives and other means of support to military veterans and, in some cases, family members of veterans.
The program’s website also utilizes a star system of 1 star, 3 star and 5 star rankings. According to VetFran, “In order to be a member of VetFran, it’s not enough for a company to just offer their best discount off the franchise fee to veterans – our companies also have to meet quality criteria. The decision to establish membership tiers and enforce these criteria is a core expression of the VetFran Committee’s commitment to steer veterans toward good opportunities…Many companies exceed the minimum requirements of their star level. The star system showcases the ability to meet increasingly higher criteria indicative of various strengths.”
As Chairwoman and CEO of Neighborly and daughter of the late Don Dwyer, Dina Dwyer-Owens elaborates, “He was an army veteran and he believed that those of us in franchising should be doing something to say thanks to the men and women of the military who protected our free enterprise system and help them live the American dream.”
Through VetFran, well over 4,000 veterans have become franchisees and around 60,000 veterans have found employment in franchising.
Finding the Right Franchise Opportunity as a Military Veteran
Like most people within the workforce, military veterans are looking for a career that will heighten opportunities to capitalize on existing skills and experiences—not just a job.
“After having served the U.S. Government for a combined 50 years between us, we are ready for a new challenge,” said Ken and Amanda Bowers. “The Sport Clips business model is a proven one and they give you the training and support new business owners (like us) can use to set us up for success. Both of us have years of experience managing and training teams of diverse people and leading them to accomplish a common goal. Having a military background means we know how to follow a system.”
Many servicemen and women facing the transition back to civilian life wonder exactly how to translate hard earned military skills into civilian skills beyond the amorphous work ethic. Fortunately, there are many valuable resources specifically tailored to veteran needs that provide much needed insight.
For instance, Military.com provides a general skills translator tool that reveals certain career areas that veterans may be suited for outside of the armed forces. The results of this tool can also help you when developing your resume and other materials to be used when you meet with franchisors about becoming a part of their franchise system.
All franchise industries feature opportunities that work well for veterans who wish to bring military skills into a franchise concept they believe in. Like other prospective franchisees of different backgrounds, the area you end up in is truly a function of your interests and lifestyle.
Why Veterans Make Great Franchise Owners
Veterans may recognize the acronym "GOPS," which stands for Goals, Objectives, Policies, and Strategies. These are the basic elements of every military plan, and they'll likely serve you well in franchise ownership.
As it happens, the same organizational skills that make effective military leaders also tend to make successful franchise owners. As a franchise owner, you'll be in business mostly for yourself but with remote support and assistance when needed. Here's a breakdown of how the military leadership framework translates to veteran franchise owners:
- Goals: Every growing business is growing toward something, even if it's unclear where you'll max out. Articulating your goals clearly is the first step in working toward them, which is the difference between having a plan and groping in the dark.
- Objectives: Where goals are longer range and more of a directional idea, your business objectives are specific, short-term, and as straightforward as possible. Ideally, they should all fit into a single sentence when you write them down.
- Policies: Like the military, every franchise has its own set of policies that have been carefully drafted and tested across the franchise network for validity. This framework can be exceptionally helpful for veterans who are used to structure and looking for a supportive business opportunity.
- Strategies: As a franchise owner, you can access a large support network that offers practical advice about solving problems and growing responsibly. Many veteran-friendly franchises have in-person support from an experienced mentor who knows what they're up against and can help strategize solutions for the inevitable challenges.
The discipline and work ethic you learned on day one of basic may come in handy while you're working to launch a new franchise. You've learned teamwork, integrity, people management skills, and a raft of other less tangible elements of the veteran mindset.
Qualified veterans may also have health and disability benefits through the VA. That safety net can be invaluable during your rough early days as you work to establish your new franchise. You might also qualify for special veteran financing and education benefits for learning business management.
Why Veterans Should Consider a Franchise Opportunity
A lot of the reasons why veterans should consider a franchise overlap with the reasons other people could benefit from having one. It's a good balance between independence and security; there's great potential for earning, and you get valuable experience running a business in an established, successful business environment.
Disabled Veterans
Disabled veterans often have trouble reintegrating into the civilian workforce. This can be because of physical issues that require employers to make accommodations, or it could be mental health and trauma-related issues that impose special conditions on your ability to devote time and work to a conventional job.
Incentives for Veterans
More than a few franchisors offer special veteran incentives, from a lower initial franchise fee to financing access to community and peer support. You can also find mentorship and advice from more experienced franchise owners through veterans' networks, which can be a great help when you're just starting out or you hit a rough patch.
Veterans' Dependents
Your loved ones may have been the reason you signed up for the service in the first place, and they're a big part of the reason you should run your own business now. Higher earnings, great benefits, and the support inherent in the franchise relationship can be ideal for entrepreneurial veterans who still have dependents at home who count on them for support.
How Much Does It Cost to Start a Franchise?
The cost of starting a franchise varies wildly, from over $5 million to basically free, depending on the brand you're working with. The majority of franchisors will get you started in the $100,000-$300,000 range, but there's so much variation here that it's hard to generalize. Here's a quick snapshot of the options you have and the likely initial franchise fee:
- Proforma ($0): Proforma specializes in the sale and distribution of printed business documents and materials. This includes packaging, apparel, POS displays, and some multimedia services.
- Chick-fil-A ($10,000): Unlike many other food service companies, Chick-fil-A corporate buys the land and equipment franchisees need to operate and offers these for lease. That lets you operate with a monthly rent payment rather than a huge buy-in.
- Culver's ($20,000-$55,000): Culver’s received the number-one rating for franchisee satisfaction among restaurants, according to a survey conducted by the Franchise Business Review, but that success comes at a cost. Culver's charges top-of-the-world franchise fees to start, and the initial investment you have to make is cost-prohibitive.