Franchising USA - April 2013 - Veterans in Franchising Part 1

Part 1 of 3

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Veterans in Franchising One Company. Multiple Brands.

Unlimited opportunity Service Brands International:

We’ve got your “6”

Franchise Financing for Veteran Entrepreneurs

VetFran FAQs Franchising USA

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V eterans in F ranchisin g S upplement P art O ne of T hree

Contents

44

30 Veterans in Franchising Mary Thompson, VetFran, Mr. Rooter, The Dwyer Group

32 Cover Story Service Brands International

34 Veteran Franchisor Profile Karen Powell, DĂŠcor&You

38 Five Reasons Why Veterans Make Great Franchisees Tariq Farid, Edible Arrangments

42 VetFran FAQs 44 Franchise Financing for Veteran Entrepreneurs David Nilssen, Guidant Financial

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Veteran Profiles

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V eter ans i n Fr anch isi ng

Veterans in

Franchising

“One out of every seven franchise businesses are owned and operated by veterans of the U.S. military.”

VetFran, a key initiative of the International Franchise Association since 1991, is making great strides and making a difference in veterans’ lives.

A little more than a year ago, the International Franchise Association launched “Operation Enduring Opportunity,” our industry-wide campaign to hire as team members, and recruit as franchise business owners, 75,000 veterans and military spouses, plus 5,000 Wounded Warriors by the end of 2014.

Since the launch of Operation Enduring Opportunity in late 2011, nearly 65,000 veterans have started careers in franchising – with more than 4300 as franchise business owners using discounts offered by VetFran members. There are now more than 540 IFA member companies participating in VetFran, offering incentives to veterans through our websites, events, and media outreach. And to date thousands of veterans have visited

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our Veterans Franchise Toolkit, offering online education and tools to connect to franchise ownership opportunities.

VetFran members continue to push forward by offering opportunities and discounts to our deserving veterans.

Franchising is good for veterans and veterans are good for franchising. With its rapid training opportunities, scalability, and need for operational execution and excellence, franchising provides an ideal structure to enable returning veterans to become leaders of and productive participants in the U.S. economy. In the next five years more than a million service members will transition out of the service.

VetFran members ensure our veterans have the power to prosper. As tens of thousands of service men and women return from deployment in Afghanistan and Southwest Asia, expanded opportunities are needed to ensure veterans and their families are able to transition into the civilian economy. Not only is this critical for the economic and social stability of veterans and their families, but it is an important component of the U.S. economic recovery as well as the future of our nation.

Mary Thompson

Veterans have a proven track record of

success in franchising due to the structure, systems-orientation, training, need for

operational excellence and support that franchising offers. One out of every

seven franchise businesses are owned and operated by veterans of the U.S. military, according to a recent study conducted

by PwC for the International Franchise Association Educational Foundation

based on census data estimates. More than 66,000 veteran-owned franchise

businesses in the U.S. provide jobs directly for 815,000 Americans, and generate more than $41 billion in GDP.

In light of all our veterans have done for us, this is the least we can do for them.

They deserve the opportunity!

Mary Thompson - VetFran Committee Member, CFE, President, Mr. Rooter, The Dwyer Group

Nicole Pennell Thanks to a Naval Reserve Officer Training Corp (NROTC) scholarship, Nicole Pennell was one of the lucky people who had a job immediately after college.

On May 22, 2000, she was commissioned an Ensign in the United States Navy. Her first duty station was Pensacola, Florida, for flight school. After learning that she became violently ill in Navy airplanes, Nicole was medically disqualified from the flight program and sent to Carrier Air Wing FIVE in Atsugi, Japan.

While in Japan, the majority of Nicole’s duties included public relations with the host nation on issues like aircraft noise, military exercise schedules, and VIP visits to the base and aircraft carrier.

Later, while deployed to the Persian Gulf

Profile

on USS Kitty Hawk at the beginning of what would become Operation Iraqi Freedom, Nicole was one of three officers responsible for providing access to a group of over 30 international media representatives, while maintaining the operational security essential to the success of the military operation.

Nicole served with CVW-5 until leaving active duty in 2004. She was introduced to the Dogtopia franchise when her own dogs attended daycare at the Tysons Corner, Virginia location while Nicole was at work, where she admits to frequently checking in on her dogs via the Dogtopia webcam. Impressed with the atmosphere and level of service, in 2007 Nicole began the discovery process, and was on her way to becoming a Dogtopia franchisee.

“The idea of going on a business adventure on my own was a little scary for me,” says Nicole. “I don’t come from an entrepreneurial family and I didn’t have a partner in the business, so I knew I was going to need a support structure to lean on. I would need people who understood

© Donna Foster

the build-out process for my location, permitting requirements, writing an employee schedule, training, etc. I didn’t want t to waste time re-inventing the wheel, when I knew I had already found a place I liked.”

Nicole sees a number of similarities between the military and franchising, primarily in the idea of a training manual or operations manual. “Someone has already done the hard work of figuring out how to do something so you don’t have to.” Nicole appreciates that there is still room for innovation, and speaks about the willingness of Dogtopia to work with franchisees to implement ideas into the overall franchise system. Nicole’s military background helped prepare her for franchising by teaching her how to be both a leader and a team player at the same time. Military service also prepared her for the hard work and dedication required in owning a business.

For more information: Web: www.dogdaycare.com

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S e r v i c e B r a n d s I n t e r n at i o n a l :

We’ve got your “6” “Because of their efforts, SBI’s three franchise concepts all rank in the top 50 franchises for veterans and the top 10 percent of all the nation’s franchises in recruiting military veterans to their franchise business opportunity.”

Mike Riegel is the Director of Franchise Development for Service Brands International. He is also a Military Veteran.

Mike Riegal

“As a Veteran myself, helping others who served in the military and are systems oriented find their next career in franchising has been incredibly rewarding. I have been in franchising for the past decade and have helped many Veterans pursue business ownership through franchising, and Service Brands International has given their discount to 79 owners representing nearly $200,000 since they began this effort. I’m excited to lead a team of people who are committed to our veterans.”

SBI’s three brands have stepped up their Veterans discount by 140% over last year’s offer. They are taking $6,000 off their initial franchise fees and promoting opportunities through the Hiring for Heroes initiative, actively working on programs through the IFA’s VetFran committee and sharing the stories on our

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military heroes and franchise owners through public relations outreach and social media. Riegel says “We hope that 30% of our newly awarded franchises in 2013 are to Veterans. As they say in the field, SBI has got your “6”. Six thousand dollars to help any Veteran kick off their new civilian career.”

Buddy Rhoades spent 25 years in the military reserves with tours in Afghanistan and at the Pentagon. He’s a logistics expert; he can set up anything, anywhere.

While in the reserves, Buddy was a decorated sales manager for Verizon, at one time responsible for 32 inside sales reps. Now he’s taking his marching orders from ProTect Painters professionals because he knows that following the system is a straight line to success. He basically ran a small business while working for the Department of Defense— setting goals, managing projects, coordinating resources, advising people, maintaining morale, and measuring results—leadership skills that have served him well when battling independent painting contractors for market share in Roanoke, VA. ProTect Painters is one of three brands under the parent company of Service Brands International (SBI), a company with a solid commitment to supporting military veterans. With Molly Maid, Mr. Handyman, and ProTect Painters under their umbrella, the team at Service Brands International (SBI) thinks of themselves as a Military Friendly Franchise, a

designation confirmed by G.I. Jobs in its June 2012 issue. Because of their efforts, SBI’s three franchise concepts all rank in the top 50 franchises for veterans and the top 10 percent of all the nation’s franchises in recruiting military veterans to their franchise business opportunity.

SBI was formed in 1984 with the mission of helping franchise owners and customers realize their dreams by offering a high level of training and support through every step of the franchising process.

Molly Maid, Mr. Handyman, and ProTect Painters are leading brand franchises for achievers who have the confidence, skills, determination and initiative to steer their own career course with simple business models, innovative systems, and familyfriendly hours.

For military veterans looking for their next successful career, SBI’s franchise concepts are all solid choices. In addition to well-established brands, comprehensive training, and ongoing support, Service Brands International is proud to offer a veteran discount of $6000 to military veterans joining the Molly Maid, Mr. Handyman, or ProTect Painters franchise families.

Alex Roberts is the President of Mr. Handyman, and a VetFran Committee Member. “I’m so grateful for the service, patriotism and sacrifices made for our country so we can all enjoy the freedoms and opportunities we have in business and in life,” he says. “The selfless work of our military makes the American Dream a possibility and it’s an honor to be part of the VetFran Committee and see the focus on making the transition to civilian life easier.”

Like Buddy Rhoades, veteran franchisees transition smoothly into all three of SBI’s brands. For Ms. Jo McCabe, joining the Mr. Handyman franchise team was a logical step in founding her business career. Jo graduated from the U.S. Naval Academy in 1991 with a Bachelor’s Degree in Aerospace Engineering. She went on to earn an MBA from Southern New Hampshire University. She was on active duty for six years and retired as a Reserve officer. During her stint in the military,

Jo was an aircraft maintenance officer and served in physical security, overseeing the Navy’s northeast region where she managed 1,500 people. In 2008, while in the Reserves, she wanted to put her MBA and management skills to work as a business owner. After investigating several franchise businesses she selected Mr. Handyman for their buttoned-down systems, support network, and the flexible workweek schedule, which allowed her to meet her Reserve obligations. Jo’s success in the military has carried over to civilian life. She was named the 2010 Mr. Handyman Franchisee of the Year for her sales growth and profitability. Jo is one example of highly trained and dedicated military veterans who are excelling as Service Brands franchise owners.

Cynthia Giammarinaro also worked in aircraft maintenance before making the transition from the Marine Corp to Molly Maid owner. Cynthia’s military training prepared her well for running her own Molly Maid franchise. “Marines don’t sleep. Now I get to. But, something as simple as getting up early and coming into the office gets you ahead of the day.”

Teamwork is essential in the military and Cynthia found that quality transfers perfectly to her Molly Maid business as she works with her team of home-service professionals to serve and meet the cleaning needs of their satisfied customers.

“In the military, and sometimes with Molly Maid, you have to be ready for anything. As I advanced in the Marines, I learned what it takes to be a good leader, and I’m applying that in my business. I work really hard to set a balance between communicating expectations to my team and holding people accountable, while being understanding and providing an enjoyable work environment.” This is a theme often repeated among the veteran franchise owners of Service Brands International. The skills and characteristics gained through military experience lead to a successful franchising experience.

Buddy Rhodes, ProTect Painters

Alex Roberts, President Mr. Handyman

Jo McCabe, Mr. Handyman

For more information: Web:

www.servicebrands.com

Cynthia Giammarinaro, Molly Maid

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Fra nchisor Prof ile - K a ren Power, Decor&Your

Functional Design Ta i l o r e d t o S u i t t h e Individual

An Independent Venture too Strong not to Share

The space a person spends time in unarguably influences the way they feel, think and interact with others. The layout, the colors, the light: all of these things are very important factors to a persons overall wellbeing.

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Decor&You is a company committed to creating beautiful interiors that will have you loving the space you’re in. Karen Powell, the woman behind the Decor&You franchise, ensures that her vision and passion is communicated through every Decor&You across the nation. All local decorators have the power to simplify how people achieve comfort, style and value in their homes and businesses. Every Décor Designer takes pride in their ability to truly listen and provide design options that meet their clients’ needs, wants and investments.

Karen and her husband established Decor&You in 1994. Karen had spent ten years working within another design company when they went out of business.

Karen was driven to continue what she had been doing and with her husbands support they began to assemble the Decor&You concept. After three years of operating their business with overwhelming success the couple investigated expansion and chose the franchise route. Karen launched the Decor&You franchise in 1998. Today, there are 30 Decor&You franchises in 20 states and this year they are beginning to investigate taking this franchise international.

Decor&You is a design company that sells products and services. What’s different about this company is that they have a unique and proprietary methodology that helps their DecorDesigners create a space to fit the customers personality and style; not the decorator’s. Through their frustration-free StylePrint Design System and associated tools, they assist their clients in making quality, lasting, color-coordinated choices for their home

furnishings that reflect the customers’ style and practical needs while also delivering a beautiful, unique look. The whole package is the Style-Print-Design system. “We marry personal preferences and the rules of style. So the look, feel, and function all work together. We bring the expertise and we listen to enliven the space by expressing the personalities of our client.

We create designs truly unique to each individual,” explained Karen.

Why Change What Works?

Decor&You’s Style-Print-Design system has stood the test of time. Their system and business concept has stayed consistent since the company began in 1994. The attitude toward personalized designs and getting to know their customers is a refreshing change within the industry.

“We get to know our clients. Based on that individual and their needs, we make

“We marry personal preferences and the rules of style. So the look, feel, and function all work together. We bring the expertise and we listen to enliven the space by expressing the personalities of our client. We create designs truly unique to each individual.” recommendations based on our expertise and give them suggestions they would not have considered,” said Karen. “We educate clients on risks, green options, and the functionality behind our decorating.

We look for a design to best serve our clients.”

layout. Our goal with this project was

What has evolved, and continues to do so, are the companies programs, systems, and options. “We’ve revamped our website not long ago in order to have a more accessible

actual design is concerned, Karen and her

to present a new layout where our clients could find the information they needed much easier,” said Karen. On the web,

their new initiatives continue with more

outreach in the form of newsletters, blogs, and social media avenues. As far as the

corporate team continue to expand their

space plans, color plans, accessory plans,

and different service options. “Currently,

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Fra nchisor Prof ile - K a ren Power, Decor&Your

we’re going further into developing our options for our clients so that we can meet every need they have: clients can choose the whole package through to an a la carte service.”

Custom Designs with Quality Products While discount suppliers can provide short-term good looks, what Decor&You refers to as ‘curbside quality’, what Decor&You promises is professional decorating design, quality selection and proper placement. The company interacts with over 100 vendors who have been hand selected to ensure that Decor&You offers a range of products that can cater to most styles, qualities and price points. As a national decorating organization they buy at wholesale, without the overhead of a store, and are able to share these products at competitive pricing. The company is also proud to be committed to sustainable design. Decor&You is an active member of the Sustainable Furnishings Council, and all Decor&You decorators are Green AP Ccertified, which enables them to assess and specify appropriate products for your particular needs from a host of ‘environment friendly’ suppliers, many of whom manufacture in the USA. Franchisees interested in the Decor&You opportunity should note the five company values that are applied to every business relationship. “We respect everyone we interact with. There is no such thing as a ‘Decor&You’ look; we are client focused and bring our design expertise to meet the client. We have a big team here and we access every member needed to get the job done to the highest standards: teamwork is essential. Our business is all about helping

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World Market Group

people see the things they can’t on their own. We introduce possibilities that were invisible to our clients prior to meeting with us. Lastly, we want this experience to exude fun rather than being overwhelming and difficult,” shared Karen.

Individuals who align with those values must also be excited about the opportunity within this industry. Karen desires franchisees that can appreciate the systems and tools in place and recognize these tools as the powerful guides they are. “This is why a Veteran is an excellent franchisee for us. Veterans have been trained to work with tools and systems,” explained Karen. Additionally, Decor&You looks for people who dismiss any fear in regards to making a commitment to business and goal setting.

Franchisees must enjoy dealing with people. There is no need for a franchisee to have design knowledge: all of that will be taught. Opportunities to open a Decor&You franchise currently exist virtually all over this nation.

The Decor&You Company values continuous education. Each franchisee

has a mentor; sometimes for the business aspects of the business, other times for the design. The company offers certifications in all aspects of decorating and design and an array of tools to help with customer satisfaction and success. These tools are constantly changing in order to adapt to the changing needs of consumers. The annual conference Decor&You arranges is an opportunity to stay up to date with the companies new systems and trends. The corporate team takes their responsibility to remain educated on the international market trends very seriously and attends a number of trade shows and conferences themselves to support franchisees.

Decor&You is this nation’s leading interior decorating company. The home furnishings market is a $200 billion industry. Everyone has a home or workspace. There is unlimited opportunity for a passionate entrepreneur to succeed with Decor&You. If you want to facilitate change that will help people love the space they’re in, then this may be the franchise fit for you.

Justin Ruschell enlisted in 2003 and served 5 years in the USAF as an EMT/ Medic. He managed the care of wounded soldiers from down range through the CASF stop in Ramstein AB ,Germany.

He also worked the Geriatric and Pediatric Ward in Biloxi MS at Keesler AFB and also spent a period working the labor and delivery ward where he was able to see new life and not always just the pain of war.

Justin Ruschell During his time at Keesler AFB Justin served as part of the Hurricane Evacuation Team for all natural disasters needing military assistance. The team stayed behind in the aftermath and took care of patients, family members and the surrounding area.

When Katrina hit the gulf coast Justin describes that it was like a bad post war zone. “The destruction was insane and the surrounding families had no idea what to do.

While the National Guard went to New Orleans, our base took care of our surrounding neighborhoods. Without hot water for almost a month it was extremely hard on many people. We were able to get essential supplies needed, which helped

Profile

immensely, but still didn’t change the fact that the area had been decimated.”

After Keesler AFB Justin transferred to Nellis AFB in Las Vegas NV, where he worked the Family Practice Clinic until 2008. Although his career was brief by military standards, the things he experienced left Justin with a profound appreciation of the human spirit and American dream.

Justin’s military training is a great fit for his current career as a business owner because of the fundamental skills that he learned during his enlistment. Being able to make a command decision based on his surroundings, and also having confidence in those decisions is a big part of what has made him successful. Justin

understands that, just like in the military, “you are always as strong as your weakest link and that a great team can accomplish anything.”

As co-founder of Capital Funding Financial, Justin is part of a team that finances hundreds of franchises. He saw the need and the struggle that families were having while attempting to finance their franchise businesses. Justin’s goal is to use his knowledge and experience to achieve a positive outcome for as many franchisees as possible.

For More Information: Email:

Web:

Justin@Capitalfunding financial.com www.Capitalfunding financial.com

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E x p er t Ad v ice - Ta r iq Fa r id, CEO, Edible A r ra ng ements

Five Reasons

Veterans Make Great Franchisees One thing I have learned since Edible Arrangements® began offering franchises over a decade ago is that if a prospect meets all requirements and is a military veteran, chances are excellent that he or she will be successful.

Many of our most successful franchisees are veterans.

They have been through experiences most of the general public will never encounter; they are accustomed to high stress situations that can break a man or woman that has not been properly prepared to face them. From the first days of basic training, military veterans have been taught discipline, leadership and adaptability. Their military training has made them goal-oriented and they have been trained to organize teams to accomplish strategic objectives.

“You have to adapt, overcome and move forward no matter what.

That’s the only way to succeed in anything, and that’s especially true as a franchisee because it’s hard work.”

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These skill sets are exactly those needed to run a successful franchise. Within our own system, a perfect example is Maurice Welton. By the end of his six years of service, Maurice was an E5 sergeant in the Army, a cook and a food inspector. Today he has four highly successful Edible Arrangements® locations in South Texas.

“Everything that l learned in the Army about being all that I could be, became life skills and characteristics that really define who I am,” Maurice told me recently when discussing how his military training had helped him in the

business world. “The major emphasis is that you have to give your all, all the time, no matter what it is that you’re doing.

There is no such thing as ‘mission failure’ because it’s simply not an option. So you do whatever you have to do to succeed.

That expectation of success taught me fortitude and discipline and it gave me a ‘never quit’ mentality, and that kind of thinking really teaches you how to live life and run a business.”

As I considered our successful franchisees who are also veterans, I came up with five key traits that I believe give military veterans a head start on the path to successful business ownership.

Leadership The ability to inspire employees to reach quarterly objectives in a franchise is a must. And that requires leadership, which is at the core of military training.

The military depends on teamwork to accomplish missions and, in many cases, keep each other alive. The key to a successful team is strong leadership and in the military leaders must lead by example if they want others to follow.

“My leadership experience from the Army applies to my franchises because my employees and I are a team and we have to work together,” Welton said. “If you motivate your ‘troops’ to believe in what you’ve got going on and lead by example, then they’ll rally behind you and help you get there.”

Discipline Running a franchise business requires extreme discipline and an ability to follow systems and procedures. Veterans are comfortable doing this because following rules in the military is a way of life. And this discipline typically remains a core value of veterans throughout their civilian life. While their employees head out when their shift is over, franchisees often have to

work late into the night, finishing payroll, filling orders and preparing for the next day. They do this because they understand that it is the price of success.

I know from personal experience within our own system that veterans bring an exceptional level of passion and discipline to their business.

Adaptability Veterans are great at responding to unexpected challenges. It is another survival tactic learned during their service to our country. This lesson helps vets to clearly evaluate what is and what is not working and to change strategy with confidence.

“You have to adapt, overcome and move forward no matter what. That’s the only way to succeed in anything, and that’s especially true as a franchisee because it’s hard work,” Welton told me. “There’s always a new challenge to overcome, but if you’re ready for it, it’s always worth the effort in the end.”

Calm Under Fire The stress level does not get any higher than being stationed in an active war zone.

Therefore former military members are ready to handle anything that is thrown at them as a business owner. At Edible Arrangements®, that may be dealing with operational issues on Valentine’s Day, the company’s busiest day of the year, or reacting quickly when a supply shipment does not arrive on time. No matter the situation, a veteran tends to remain calm and examine the situation, then quickly find the best resolution.

Goal Oriented The military is a goal-oriented organization. The final objective always must be at the forefront of each soldier’s mind and this applies to a franchisee as well. Welton explained just how the military does this.

“When I was serving, they taught us to always set our sights two ranks higher than the level we were at so that we were always raising the bar for ourselves, and continually raising our standards for what we wanted to achieve,” he said. “That taught me that forecasting the future is really easy if you’ve got exactly what you want for your future in mind because once you’ve set your sights, you go out and make it happen. You can’t be afraid of failure, you just have to go and do it.

That’s how I’ve lived my life and that’s how I’ve been able to be successful with Edible.”

Despite having the qualities so needed in today’s business environment, veterans still have an unemployment rate of 7.6 percent according to the Bureau of Labor Statistics. It is a statistic that all of us at Edible Arrangements® want to help change. As a result, we have launched “Hero’s Welcome”, a new initiative designed to provide veterans with a path to franchise ownership and mentoring from other veteran franchisees once they have become part of our system. In addition, we have set a goal to hire at least 1,000 veterans in our locations nationwide and provide them with a path to a successful career.

We hope others within the franchise community will join us in this effort.

The brave men and women of our military are the ones who have made it possible for each of us to enjoy the American Dream.

I believe it is our obligation to help those who have sacrificed so much by doing what we can to give them the tools and support to achieve that dream themselves.

Tariq Farid is founder and CEO of Edible Arrangements International, LLC, which recently made a $125,000 contribution to the IFA’s VetFran program, and is committed to helping veterans make a smooth transition from military back into civilian life.

For More Information: Web: www.ediblearrangements.com

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Military Veterans Impress Us! We Want More!

Now offering

50% Franchise Fee Discount for any retired or former veteran with an honorable discharge!

the

GROUT Doctor

速

Since 1992

Find out more about this Home Based Business at

www.GroutDoctorFranchise.com or call 877-476-8800 ext. 722

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Leading National Franchise For Grout Repair

J.C. Sneyd

J.C. Sneyd was commissioned in the USAF in 1971 where he attended Undergraduate Navigator Training and Navigator-Bombardier Training. J.C. flew B-52 and RF-4C aircraft before transitioning to USAF Reserves in 1977. He served as Liaison Officer to Civil Air Patrol. With the rank of Lt. Colonel, J.C. retired from the Reserves in 1998.

Profile

After retiring from corporate life in 2009 as Director of Marketing and Sales, J.C. wanted to run his own business.

Specifically, he was looking for a way to incorporate his experiences from both military and corporate life into running a successful small business.

J.C. joined the Grout Doctor Global Franchise Corp. in 2009. He started two franchises, and later joined the corporation as a franchisor in 2012. J.C. says of his experience with Grout Doctor, “The Grout Doctor provided me with a low cost opportunity in a home-based franchise, in the home services industry, with a very flexible work schedule.” This was an ideal combination of attributes that inspired J.C. to be able to go to work for himself.

J.C.’s military training also played a key role, as it does for many veterans, in his decision to explore opportunities to

own his own business. “Confidence and

military bearing and demeanor provided me with an attitude that I could be very successful running my own business.”

The Grout Doctor looks for dedicated, performance-driven individuals and

couples who desire to enjoy the freedom of running their own low-cost franchise with the business and technical leadership and brand recognition of The Grout Doctor® behind them. Franchisees combine

their personal set of skills with business management and technical training

provided by The Grout Doctor training

center in order to provide customers with the best service, and enhanced pride in their homes.

For More Information: Web:

www.groutdoctor.com

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VetFran

FAQs

What is VetFran?

IFA’s VetFran strategic initiative, founded in 1991, includes over 530 IFA franchisor member companies offering financial incentives, training and mentoring to veterans interested in small business ownership and/or a career path in franchising.

Why was VetFran founded?

VetFran was founded by the IFA in 1991 in an effort led by Chairman Don Dwyer, Sr. (USAF, Ret.), founder of The Dwyer Group, to support veterans returning from the Gulf War transition to the civilian economy.

What is Operation Enduring Opportunity?

As hundreds of thousands of young men and women return from Iraq and Afghanistan, including many wounded warriors, the International Franchise Association and franchised businesses have launched Operation Enduring Opportunity, a campaign to hire, and recruit as franchise owners, 75,000 veterans and their spouses, and 5,000 Wounded Warriors, through 2014.

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How does it work?

The IFA has partnered with the White House Joining Forces Initiative, VFW, the U.S. Department of Veterans Affairs, the Small Business Administration, the U.S. Chamber of Commerce and others in this unprecedented recruitment effort.

Members set company targets through the VetFran program, which offers recruitment tools and solutions as well as outreach to veterans.

How many veterans have chosen franchising as a career path?

One out of every seven franchise businesses are owned and operated by veterans of the U.S. military, according to a recent study conducted for the International Franchise Association Educational Foundation based on U.S. Census data. More than 66,000 veteranowned franchise businesses in the U.S. provide jobs directly for 815,000 Americans, and generate more than $41 billion in GDP. Since the November, 2011 launch of Operation Enduring Opportunity, over 64,000 veterans started careers in franchising, including over 4,300 new franchise business owners.

Why are veterans successful in franchising?

• Veterans come back with strong leadership skills and a thorough understanding of teams. Military experience includes leading people, improving processes, and accomplishing the mission. Just like in the military, in franchising, the mission is accomplished by the team.

• Franchises run on systems.

Implementing systems and following procedures with precision, emphasized in military training, leads to success in franchising.

• Franchises provide training. Veterans are trained and taught very specific skills to be used to carry out very specific

“Military experience includes leading people, improving processes, and accomplishing the mission. Just like in the military, in franchising, the mission is accomplished by the team.” tasks. Franchises have comprehensive training and support built into their opportunities. This means a veteran can enter into a completely new field, follow the franchisor’s proven business model, and receive the training, guidance, and support a new business owner needs to succeed.

• Franchises offer support. In franchising, you’re in business “for” yourself, but not “by” yourself.

Is the Wounded Warrior component distinct from the effort to assist non-wounded veterans?

Many disabled veterans are successful in franchising. The Wounded Warrior component focuses on industries that may be particularly suited to disabled veterans, such as franchises in Information Technology and tax preparation. Yet, given the range of disabilities and warriors’ ability to work through them, the VetFran program has a track record of placing disabled veterans in a wide variety of franchise roles and companies.

What should veterans consider when exploring franchise opportunities?

Seek out other veterans in the franchising business. Create and access support networks. Prioritize what’s important.

Consider different models (home-based vs. office-based, capital requirements, etc.) to find franchises that will be a good fit. Do research to understand the history of the franchise business and meet others who know and have succeeded in the franchise.

How can I find out about specific franchise ownership incentives for Veterans?

The VetFran Toolkit includes a Franchising 101 online course, a finance assessment, a workbook for prospective franchise owners and partner links. U.S. military veterans can also access the VetFran Mentor Network. IFA VetFran members list incentives and training opportunities by company in our VetFran Directory at http://www.franchise.org/ Veteran-Franchise.aspx.

What is the International Franchise Association?

The International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the franchise industry, which supports nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.

For More Information: Web: www.franchise.org/vetfran.aspx

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V eter ans i n Fr anch isi ng

E x p er t Ad v ice - Dav id Nilssen, CEO & C o-founder, G uida nt Fina ncial

Franchise Financing for Veteran Entrepreneurs As U.S. veterans return home from active duty and transition back into civilian life, many are choosing to take the skills learned serving our country and invest those in a business that instead serves them.

The military trains our honored men and women to solve complex problems and thrive under pressure. Combine this with exemplary discipline and leadership skills, and it’s easy to see why veterans often make the best candidates for business ownership.

Many of our service men and women are discovering that franchising offers a viable alternative for these individuals. While many choose to become a franchisee to enjoy the freedom to be one’s own boss, other benefits include the security of a proven business model, built-in brandname recognition, and a proven system

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also provide them security in making this life changing decision. Really, the very nature of franchising sets new owners up for success.

“Really, the very nature of franchising sets new owners up for success.”

That said, many veterans may not have the cash on hand for startup costs, and getting a loan could prove difficult in times of economic volatility. Thankfully, there’s a little-known option that can provide veterans with 100 percent of the funding necessary to get their franchise up and running.

Rollovers as Business Startups (ROBS) allow individuals to invest their retirement funds into a new franchise without incurring any tax penalties. The process works like this: • A C Corporation is filed on behalf of the new franchise owner.

• A 401(k) is formed that will provide for the purchase of corporation stock.

• The new franchise owner rolls their eligible retirement account funds (up to 100%) into the new 401(k) plan.

• The new plan then invests into the stock of the corporation.

• The corporation obtains the business.

Better yet, these transactions are fast (some take just a few weeks to process); funds can be combined with other forms of financing including the retirement accounts of spouses and business partners; and the military Thrift Savings Plan (TSP) is an eligible type of account for this transaction.

What’s more, if the entrepreneur chooses to use retirement funds exclusively or a combination of retirement funds and cash to start their franchise, they can enter into the venture debt-free. This will allow them to use capital they would have devoted to loan interest for other things

such as equipment for their franchise or advertising opportunities.

The trouble is, many of our returning heroes have no idea that this option is available to them. Many may assume that debt financing is the only way to go because traditional firms deal exclusively with these types of transactions.

So, I’m here to get the word out—there is help available for our veterans to realize their dreams of franchise ownership and build a successful civilian life for themselves.

David Nilssen co-founded Guidant Financial and has been a featured speaker at over 350 national and international events, covering topics from entrepreneurship to small business financing. In addition, he and his

company have been highlighted in such media sources such as CNBC, Fortune Magazine, Entrepreneur, CNN and The Wall Street Journal. In 2007, the Small Business Administration (SBA) named Nilssen the National Young Entrepreneur of the Year and the Puget Sound Business Journal named him one of the top 40 businesspeople under 40 years of age. In both 2008 & 2009, Ernst and Young named him a finalist for their coveted Entrepreneur of the Year award. In 2011, David released a book called Making the Jump into Small Business Ownership and was named one of the Top 100 Small Business Influencers.

For More Information: Web:

www.guidantfinancial.com

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DON’T MISS OUR NEXT ISSUE!

Part two of a three part special supplement featuring veterans in franchising.

Advice from the experts helping veteran franchisees succeed.

Opportunities are still available in our May and June Veterans in Franchising special supplements.

Share your story with new franchisees from the Veteran community

News and information specific to veterans searching for a fresh start in franchising.

Contact: Jenn Dean, Senior Sales Executive jenn@cgbpublishing.com 250-590-7116

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