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September - October 2013
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Are you cut out to own a franchise? by Heidi Lynn Russell Contributing Editor
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oger Gauert and Jeff Olson own two completely different types of business franchises: Gauert has two Sport Clips – haircutting franchises in Maryland. Olson has one Papa Murphy’s – a take-and-bake pizza franchise in Wisconsin. But, both have one thing in common: Each chose veteran-friendly corporations to launch their businesses, through the VetFran® program offered by the International Franchise Association (IFA). VetFran helps returning service members access franchise opportunities through training, financial assistance and industry support. When all is said and done, veterans taking care of veterans makes all the difference to a fledgling business, Gauert and Olson say. Not only that, they observe that the military’s leadership culture also lends to workplace climates that in turn lead to franchise success. Gauert’s business was so successful after he opened in 2012 that he launched a second store in 2013, and Olson is also experiencing strong gains in his operation, which he opened just this January. “In the military, we take care of the people we work with and the people who work for us. When you do that in a business, those people take care of you,” says Gauert, who initially served as a Marine and later became an aviator in the Air Force for 17 years. “Yesterday we had a Sport Clips’ picnic for our two stores and had a get-together like we would in the Air Force. Not all civilian businesses do it. The camaraderie the military provides sets the tone for how you handle employees. When you do that for employees, it makes a big difference to them.”
Since the IFA launched “Operation Enduring Opportunity” in 2011 to help veterans in the transition from the military, more than 4,300 veterans have become new franchise owners, says Joe Lindenmayer, VetFran Committee Chair. Lindenmayer also is a veteran and President/COO of TSS Photography Inc. in Duluth, Ga. He exited the Marines as a corporal in 1996. Veterans fill one of seven jobs in the franchise field. In total, 56,000 veteran-owned franchises are open nationwide, Lindenmayer says. Do you have an entrepreneurial bent for franchise ownership? And, if you decide to take the plunge, how do you secure financial support through VetFran and other programs? When can you expect to start seeing success? Here’s a
is military-friendly by whether it is flexible with your preparation time, Lindenmayer adds. “Some organizations really want people to go through their process in a pre-determined amount of time, and if you’re not ready to go in three months, they put you off. But, a good franchise organization who understands the military knows it’s not possible,” he says. Evaluate companies: Don’t just stick with Internet research, either. “In some respects, with social media, folks can post negative feedback without having to back it up,” Lindenmayer says. Follow Lindenmayer’s recommended steps to properly evaluate: 1) Look at ratings on the company. Study its website, including what people are posting and any media or publicity
“Veterans fill one of seven jobs in the franchise field. In total, there are 56,000 veteran-owned franchises nationwide,” Lindenmayer says. primer from Lindenmayer, Gauert and Olson. Lead time: Give yourself a minimum of three to six months. If possible, talk to veterans who own franchises one to two years before you exit the military, Lindenmayer says. “If you have a passion, you can learn it, even if you don’t have prior experience,” he says. “Give yourself time to look at the geographic area for your franchise. Stay a few days or for a long weekend. All of these things lead to the right organization: category of franchise, location, service brand.” Evaluate whether a company
surrounding the organization. 2) Visit franchise owners. Ask them how much money can be made and how much training is needed. “Some questions, people aren’t comfortable answering over the phone. Develop a rapport. Make sure it’s not a potential competitor so that you’re asking proprietary or personal questions. The franchisor may have a process where they’ve cleared you to contact existing owners. Always ask them, ‘Would you do it again, if you had it over?’” Lindenmayer says. 3) Continue digging even after
contacting three franchise owners. “Call a fourth and try to find something that isn’t as good as you’d like it to be about this franchise,” Lindenmayer says. Assess your strengths: Ask current colleagues and supervisors if you’re cut out for franchising. “Ask for a 360-degree evaluation from your command officer, people at higher levels, peers and people that may report to you,” Lindenmayer says. “Ask, ‘Would I be good at managing a business?’ People are willing to do that. If you have honest people around you, you will get great feedback.” Secure funding: “I call it, ‘shopping for money,’” Lindenmayer says. Franchise fees vary, from under $25,000 for home-based businesses all the way up to $4 to $6 million for other franchise concepts, he says. Under the VetFran program, 540 franchise companies have agreed to give their best discount or incentives to veterans. “For some, it may be a $5,000 discount on the franchise fee; for others, a free franchise fee,” he says. VetFran.com offers a mentorship
Roger Gauert, Sport Clips
program, in which military members can register for free with no obligation. The IFA is also in discussions with the VA to set up an educational program to teach veterans about building a business plan and hiring practices, Lindenmayer says. “Whatever veterans save, that allows them to use those savings towards equity in getting a (Veterans Administration) Patriot Express Loan,” he adds. In Olson’s case, Papa Murphy’s gives him a break through VetFran continues page 6
INSIDE THIS ISSUE Transition Talk: How to ID careers ....................page 3
Continuing Education Profiles ........pages 4 & 13
Spouse Series:
Career Coach’s Corner:
Job Fairs:
It’s Time for The Talk .............page 10
More Education Yes or No? ..................page 17
Employers Ready to Hire ........page 18