success. The franchisor has invested a substantial amount of resources into making sure the systems and procedures work. Most studies show 80 percent of small businesses fail within the first five years of opening. Alternatively, approximately ten percent of franchised operations fail within the first five years of business. It is a pretty daunting statistic, but many entrepreneurs who consider opening a small business look into franchising for the increased chance of success. In the current economy, every potential advantage could mean the difference between success and bankruptcy. From marketing and financing to legal counsel and human resources, franchisees have access to a collective pool of intelligence. That experience doesn’t merely come from an experienced corporate office. New franchisees can call and visit existing, successful peers who have faced the same difficulties.
Yet another benefit to franchising is the buying power available, since a franchising company can buy the goods at a discounted rate compared to independent contractors. In many cases, the brand recognition in the community is already established. But the U.S. is not only in a recession; it is also in a war. What about the approximately one million veterans who will separate from the military by 2015? Veterans transitioning into the civilian economy are at risk of returning to a bleak job market. Franchising can be good for veterans and veterans can be good for franchising. In late 2011, the International Franchise Association, or IFA, launched Operation Enduring Opportunity with First Lady Michelle Obama. The initiative challenged for-profit businesses to hire or train 100,000 veterans and military spouses by the end of 2013. Since that time, many IFA members have made
hiring commitments and more than 65,000 veterans have been hired into franchising. Also three financial services members have committed to extraordinary measures to help finance veteran franchisees. According to White House officials, by August 2012, the effort resulted in a 20 percent decrease in veteran unemployment compared to 2011. Even before Operation Enduring Opportunity, the franchising industry was committed to hiring veterans. Since its inception in 1991, the VetFran (Veteran Franchise Initiative) program has helped more than 6,200 veterans start their own franchises. VetFran is a voluntary effort on behalf of IFA member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. Don Dwyer Sr., founder of The Dwyer Group, began the program after the Gulf war in the 1990’s as a way to thank our veterans for their service to America. The Dwyer
Franchising USA
vetera ns i n fra nchisi ng
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