Bookmark and Share

New Bill Supports Veteran Business Ownership

For Immediate Release

Contact: Alisa Harrison 202-628-8000
aharrison@franchise.org
www.twitter.com\IFADC

IFA STRONGLY SUPPORTS NEW BILL TO HELP VETERANS BUY SMALL BUSINESSES

Award Winning IFA VetFran Program Reaches New Milestone

WASHINGTON, June 3, 2009---The International Franchise Association today applauded Congressmen Aaron Schock (R-Ill.) and Leonard Boswell (D-Iowa) for introducing The Help Veterans Own Franchises Act that encourages franchise businesses to offer discounts for veterans interested in buying a franchise. 

“Franchising is a major contributor to the U.S. economy in terms of jobs and economic output,” said IFA Chairwoman Dina Dwyer-Owens, who is also chairwoman and CEO of the Dwyer Group, a holding company of six service-based franchise companies.  “Over 900,000 franchise businesses in the U.S. are responsible for 21 million jobs and generating $2.3 trillion in economic output.  By helping veterans purchase franchise small businesses, this bill will help stimulate the economy and put the country on the road to economic recovery.  We thank Congressmen Schock and Boswell for leading this important effort.”

The bill introduced today establishes a tax credit for franchise businesses that choose to offer qualified veterans a discounted initial franchise fee.  The tax credit would amount to 50 percent of the total franchise fee discount offered by the franchisor to the franchisee and would be capped at $25,000 per unit.  It also provides a tax credit to the veteran who chooses to purchase a franchise and open a business in their local community.

The IFA has a long history of helping veterans become franchise owners through its award-winning Veterans Transition Franchise Initiative (VetFran) established in 2002 to help those who have honorably served their country to seek the dream of small business ownership.  The program is endorsed by the U.S. Department of Veterans Affairs.

Dwyer-Owens, whose company is the founding member of the IFA VetFran program, said the introduction of this bill is timely given the economic climate, which is making it harder for prospective franchise investors to access the necessary financing, and the increasing number of service members and women leaving the military who may be looking for new career opportunities. 

Franchise small businesses find that veterans make great franchise owners because of the skills and experiences they have acquired through their military service.  The number of franchise businesses participating in VetFran reached an all time high of 411 in May.  To date, purchases of franchised businesses by former military personnel have surpassed 1,370 and 222 others are in negotiation.  A wide variety of franchise amall businesses from which to choose and most offer significant reductions of the initial franchise fee required are available to veterans for purchase .  Company details and their incentives for veterans may be viewed at www.franchise.org Franchising for Veterans.

###

About The International Franchise Association  
The International Franchise Association, the world’s oldest and largest organization representing franchising, is the preeminent voice and acknowledged leader for the industry worldwide. Approaching a half-century of service with a growing membership of nearly 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry, IFA protects, enhances and promotes franchising by advancing the values of integrity, respect, trust, commitment to excellence, honesty and diversity. For more information, visit the IFA Web site at www.franchise.org .