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What Veterans Need to Know About Franchises
What do veterans need to know about franchises?
According to the U.S. Small Business Administration, roughly a quarter of all veterans are interested in starting their own business. The lifestyle you became accustomed to in a structured environment like the military could help you find success in opening your own franchise. We want to share exactly what veterans need to know about franchises.
What is a franchise?
The International Franchise Association (IFA) explains franchising as, “…a method for expanding a business and distributing goods and services through a licensing relationship.” Franchising allows new business owners the opportunity to use a proven system to gain expedited success. This provides a support system that trumps any new business model. The best part? It comes packaged into an established brand.
If you’re looking to get your hands wet running an operation but still want a support system to lean on, franchising is right for you.
Although franchising is a cost effective method, the following are typical fees you can expect when opening a franchise:
- Franchise Fee
- Franchise Marketing Fee
- Initial Investments
All fees are set by the Franchiser and can range from a couple thousand dollars to millions. Most franchises will list out fees upfront in a Franchise Sales Kit or Guide. You can learn about Omni Fight Club’s fees using our Franchise Guide here.
Is a franchise right for you?
Over the next few years, more than 1 million military personnel will transition out of active duty. Upon transitioning,most veteran say finding employment is their biggest challenge. If you think owning a franchise is right for you, ask yourself the following four questions:
- Am I passionate about the industry I’m considering?
- Is this merely a hobby you enjoy or do I actually want to take this on as a business?
- Is there room in the market for this business?
- Is this the right time in my life to open a business?
If you answered yes to all of these questions, you’re in the right place. The IFA reported that 1 of every 7 franchises in America is owned by a veteran, generating more than $41 billion annually.
Why are veterans great at running a franchise?
There are plenty of reasons why veterans are great at running franchises, however, we’ve recognized three specific traits that make veterans the perfect franchise owners: leadership abilities, dedication to a system, and perseverance. Most veterans learned these traits while still in the military and are looking to continue using these skills in their civilian life.
The advantages of learning respect and chain of command in the military translates to the core duties of being a franchise owner. These strong leadership abilities allow veterans to operate the business accordingly by delegating and ensuring every aspect of the business is taken care of.
Dedication to a System
Many veterans miss the structured life of the military, and franchises give the opportunity to bring that back. Franchise organizations that develop, teach, and support tend to be the most successful. By following the system provided by the franchise organization, veterans experience a sense of structure unlike creating a business from scratch.
When the going gets tough, the tough get going. Veterans are no strangers to hard times, but they also know what it takes to get through them. Most companies experience hard times at one point or another, and it’s leaders who understand hard work and perseverance that can pull the company up by the bootstraps and work towards a better future.
How can veterans get funding for a franchise?
If you’re financially prepared to open a franchise without the need for financing, congratulations! You can skip this section and enjoy. However, as a veteran, you have access to a wealth of funding options, both from public and private services. There are pros and cons of each option, both pertaining to your specific situation.
According to VetJobs.com, the Patriot Express Pilot Loan Initiative is a great resource for low interest, non-predatory loans:
“The Patriot Express Pilot Loan Initiative was announced in 2007 as, “a streamlined loan product based on SBA’s highly successful SBA Express Program, but with enhanced guarantee and interest rate characteristics.” This SBA guaranteed loan program is for military veterans or those currently in the military who are close to retirement (check the SBA website at www.sba.gov for eligibility requirements) or their spouses. The SBA will guarantee up to 85% of the loan (for loans up to $150,000), meaning the lender only is at risk for 15%, which makes these loans much more attractive to the lender. Best of all, the credit score requirements for Patriot Express loans are significantly lower than what we otherwise see in the current market so these loans are easier to qualify for.”
There are plenty of other ways to secure funding (including term loans, personal loans and credit cards). However, if you need to talk to a professional, consider reaching out to a Franchise Funding Specialist in your area.
What incentives do veterans receive from franchises?
Not all franchises are created equally, and the same goes for the benefits you could receive as a veteran. Normally, a franchise will advertise their discounts to the public on their franchise information pages. If you can’t find any discount information, reach out to the franchise and ask. Even if the offer isn’t advertised, there could still be discounts or added benefits to learn about.
What’s the final verdict?
If you’re looking for the one of the best franchises for veterans that opens new opportunities and will utilize many of the skills you’ve already honed, franchising could be your next adventure. With the right resources and support, finding the best franchises for veterans has never been easier.
To learn about Omni Fight Club’s franchising opportunities, check out our free resources.