Since 2011, there have been over 200,000 US veterans who have started their second career with franchise ownership. Approximately 1 in 7 franchises in the US are owned by veterans. With their developed discipline skills, veterans are a natural fit for this business expansion model.
If you’re a veteran, you already have the blueprint for successful leadership. This leadership can translate into entrepreneurial success.
You can explore further here on why franchising opportunities are an ideal path for veterans transitioning back into the workforce. Be a part of the effort to take a business to its next exciting level.
What is Franchise Ownership?
Franchise ownership is a business contract between a franchisee and a franchiser. The franchiser owns the company. They sell privileges to use their product and name to other parties or “franchisees.”
Franchisees buy the original franchiser’s goods and trademark. They use an established company model to promote these products in other territories.
The main advantage of franchise ownership is that franchisees don’t need to develop a brand name. They’ll get to promote products or brands that are already well-known to the public.
Franchisees also don’t need to invest more capital into creating a business plan. The franchiser already created one.
Franchise History: Where it all Began
Franchising began during the mid-19th century in the United States. Issac Singer created the first franchise model to help him sell more of his patented sewing machines. Today, franchises are thriving with some pretty familiar names like Anytime Fitness and Dairy Queen.
Federal regulations currently promote the rights of both the franchisee and the franchiser. The US Federal Trade Commission (FTC) developed the laws that protect a franchiser’s brand.
The FTC also enforces franchise laws that give franchisees complete disclosure on the specifics of the company. These details are necessary before they can invest.
There are two types of franchise business ideas for veterans to choose from. These types are called a product distribution franchise and a business format franchise.
Product distribution franchises sell manufactured products made by the franchiser. These goods can range from automobile accessories to mattresses.
A business format franchise assumes the franchiser’s current business model and brand to promote products. A business format franchise is one of the best franchise opportunities for veteran entrepreneurs. This model associates veterans with levels of dependable service throughout most market territories.
Why Franchise Ownership is the Perfect Path for Veterans
During their active duty, veterans cultivated the skills needed that make them an asset to any franchise opportunity. Here’s a look at a few of these abilities and how they can set up veteran entrepreneurs to win.
Vision and Leadership
Military personnel access a robust leadership development process to help them fulfill their service. This process includes adapting to a chain of command system. They can use this system later when they’re working with their own manager or team.
Veterans also know how to measure and analyze any important key performance indicators (KPI’s.) These KPI’s will help them adjust their business strategies. Then their business can improve or grow.
Follow Direction Within an Established Structure
Veterans soon notice that franchises operate in ways very much like a military setting. Franchisees don’t start companies from scratch. They receive support from an established structure with specific procedures to follow.
Franchises allow veterans to flex their teamwork skills. Veterans are experts at following instructions. They know how to take direction to execute a proven company expansion plan.
What’s an Expansion Plan?
When companies decide to franchise, they must first develop their expansion plan. These plans outline how territories can grow and how fast they should develop.
These plans also detail what staffing or support services are available to franchisees. They also outline what fees franchisees pay throughout their partnership.
Larger companies will have an expansion plan that usually addresses more complex concerns. These plans cover areas like channel conflicts and anti-trust disputes. Any costs associated with territory expansion are analyzed regularly. That way a franchiser can change their growth strategy when necessary.
Transitioning service members understand what “dedication to a cause” means. They know how to get results in pursuit of this cause.
Veterans also have a unique combination of integrity and motivation. These skills help them work under pressure to reach their goals. This level of dedication is what fuels franchise opportunities for veterans.
Well-defined Mission and Objective
Military personnel do their best when they have a well-defined road map and a clear mission to follow. Well-defined company objectives also allow team members to perform at their professional best.
Leadership must always follow up with their team to ensure that they understand their mission. Team members should also know what role they play in ensuring a successful outcome.
Funding Incentives Available
Transitioning veterans have countless resources available to them to start a franchise. Many franchises like UPS and 7-Eleven offer special financing for veteran partners.
The US Small Business Administration (SBA) offers a host of funding resources to veterans re-entering the workforce. They also provide other support services to help veterans succeed in their new business venture. All of these resources are available through the Office of Veterans Business Development (OVBD.)
The SBA offers a Veteran Advantage Loan Program that allows veterans to secure loans up to $350,000. Applicants can expect to receive a response to their application in 36 hours.
The SBA also provides specialized entrepreneurial training programs for women veterans. One of these programs is the Women Veterans Igniting the Spirit of Entrepreneurship (V-WISE).
This 3-day program provides participants resources for starting businesses They also offer advice for improving their current enterprises. The V-WISE initiative is an opportunity for participants to network with other women veteran business owners.
Are you a veteran considering entering the exciting world of franchise ownership? If so, the good news is that you can start your journey right now. Your first stop should be the SBA website to apply for a Veterans Advantage Loan.
If you are a woman veteran, check out the V-WISE program 15-day online learning website. This platform teaches students the “language of business.” They learn how to recognize opportunities to create new, sustainable ventures.
Don’t forget to check our website for more helpful tips for franchise owners. Come learn more about how we’re revolutionizing an industry dedicated to quality by providing exceptional service. These services can be an essential part of your business too.