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Honoring U.S. Military Veterans with Opportunities for Small-Business Ownership
IFA’s Veteran’s Assistance Program Wins Coveted Summit Award
The International Franchise Association was honored earlier this year by the American Society of Association Executives as a winner of the organization’s 2008 Summit Award in recognition of its Veterans Transition Franchise Initiative, known as VetFran.
As part of the ASAE’s Center for the Association Leadership’s Associations Advance America program, the Summit Award is given to the very best efforts engineered by associations across the country in areas like public education/information, economic development, business and social innovation, skills training/development and civic and volunteer activities.
“We are honored to win the coveted Summit Award,” said Matthew Shay, IFA president and CEO. “This award validates the hard work by our members and staff to provide opportunities to help former military personnel achieve the American dream of small-business ownership. We are grateful that the ASAE committee recognized the many contributions that franchising makes to our society. “
ASAE serves approximately 10,000 associations that represent more than 287 million people and organizations worldwide. Each year, up to 50 associations are selected to receive the ASAE Associations Advance America Award of Excellence for improving the quality of life in America today. This year, 38 organizations were selected in three rounds. The six Summit Award winners, including IFA, were chosen from this group.
To honor those men and women who have served in the U.S. military, VetFran was developed to help them transition to civilian life. The idea of the late Don Dwyer Sr., founder of The Dwyer Group, VetFran is a voluntary effort of International Franchise Association member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans.
To date, purchases of franchised businesses by former military personnel have surpassed 1,200 and more than 200 others were in negotiation as this issue of Franchising World went to press. There are nearly 350 franchised businesses from which to choose. Most participating franchise companies offer significant reductions of the initial franchise fee required at purchase. Company details and their incentives for veterans may be viewed at www.franchise.org “VetFran Directory.”
IFA Pres. Shay accepts ASAE 2008 Summit Award from ceremony host and ASAE Chair-elect Velma Hart, who is CFO for AMVETS.
VetFran Incentives Pave Way for Multi-unit Operations
When Peter Turner decided to turn in his military uniform for civilian life in 2007, he began to explore business options. The International Franchise Association’s VetFran program quickly popped up on his radar screen. After investigating several franchise opportunities, he picked Dunkin’ Donuts.
But Turner didn’t launch his entry into franchising in small way. The Minnesota native signed on to open a dozen units in the Raleigh-Durham, N.C. area and now he’s ready to tackle operations in his hometown, recently making the commitment with several partners to develop more than 20 new restaurants in suburban Minneapolis.
Turner’s agreement is a key element of Dunkin’s strategy for the Twin Cities, where it continues to seek new franchisees to develop a minimum of 20 restaurants in four available areas. The franchise system offers franchisees a variety of designs and venues, including free-standing stores, sites within shopping centers and convenience stores, as well as other retail environments. The company has more than 7,900 restaurants in 30 countries worldwide. In 2007, Dunkin' Donuts' global system-wide sales were $5.3 billion.
“I am proud to be the first to bring Dunkin’ Donuts’ to Minneapolis,” said Turner. “We look forward to being a vibrant part of the community and playing an important role in the daily lives of the people who live and work here.”
As an existing Dunkin’ Donuts franchisee, Peter brings a wealth of knowledge to Minneapolis, and we think he’ll be able to hit the ground running,” said the companys’ Vice Pres. of Franchising Lynette McKee, CFE. “We look forward to his presence in the market.”
“Two hundred thousand servicemen and women separate from military service annually, and it’s up to all of us … whether in the public or private sector … to help them start … or re-start … their civilian careers.”
To honor those men and women who have served in the U.S. military, the Veterans Transition Franchise Initiative, known as “VetFran,” was developed to help them transition to civilian life. The idea of the late Don Dwyer Sr., founder of The Dwyer Group, VetFran is a voluntary effort of International Franchise Association member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. To date, more than 388 franchise companies participate in the program. Their company profiles, as well as the financial incentives they offer to veterans, can be viewed on this Web site under “VetFran Directory.”
Nearly 1400 Veteran-Franchisees and Growing
Taking advantage of the financial incentives offered by participating companies, veterans, by early 2009, had acquired nearly 1400 franchises through the VetFran program and more than 200 were in various stages of negotiation.
Financial Incentives
Due to the wide variety of franchises, the criteria for financial incentives is determined by the franchise system in a manner that allows the greatest flexibility for the system and, at the same time, offers veterans a better deal than is offered to otherwise qualified investors. Typically, VetFran participants offer discounts of their initial fees, but that is not a requirement.
A current list of participating companies and the discounts these franchise systems offer is available on this Web site, www.franchise.org, under “VetFran Directory.” Prospective franchisees may review a franchise’s details and contact company representatives directly via e-mail. While the program does not offer financing, many franchise systems either provide financing or assist in the process by recommending preferred lenders.
Veterans Scholarship Program
The IFA Educational Foundation, with the generous support of Michael Seid & Associations LLC, Figaro's Italian Pizza, Luce Smith and Scott, Valpak Direct Marketing Systems, and The Dwyer Group has created a Veterans Scholarship Fund. The fund provides $2,500 annual scholarships to a qualified veteran of the U.S. military, to encourage his or her pursuit of continuing education focused on entrepreneurial studies. Click here to learn more.
Financing
To speed and improve the process, the International Franchise Association serves as a conduit between veterans and the participating franchise systems, but does not engage in negotiations, nor does IFA provide financing or financial guidance. Many franchise systems offer financing, others help prospective franchisees locate the necessary capital to acquire a franchise.
Program Partners
In 2002, the International Franchise Association and the U.S. Department of Veterans Affairs signed an official memorandum of understanding to jointly promote the VetFran program. IFA’s work has also been recognized by VA’s Center for Veterans Enterprise which honored the association by naming it a “Support Sector Champion.” IFA also works with the U.S. Small Business Administration, Congress, military organizations and other entities to promote VetFran via additional government channels as well as through news media outlets. (The association receives no government funding; the program is entirely voluntary and supported by IFA members as a benefit of membership.)
Veteran Benefits
Another benefit the association provides to veterans is free entry to the International Franchise Expo in Washington, D.C., West Coast Franchise Expo in Los Angeles and Franchise Expo South in Miami Beach where they can view many business options, meet with company representatives and attend the “Franchising 101 for Veterans” seminar free of charge. More information is available here. Use Source Code GPVETS.
VetFran Committee Members:
Chairman - Lonnie Helgerson, CFE, President, IDENT-A-Kid Services of America
Vice Chairman - Mary Thompson, CFE, President, Mr. Rooter
• Ron Berger, CEO, Figaro's Italian Pizza, Inc.
• Ryan Cunningham, President, Javelin Solutions
• Scott Denniston, Veteran Business Advocate, National Veteran Owned Business Association (NaVOBA)
• Janice M. Dwyer, CFE, President, Luce, Smith and Scott, Inc.
• Marisa D. Faunce, Partner,Plave Koch PLC
• John Francis, PostNet Area Franchisee for Minnesota & Wisconsin
• Christine Galli, Executive Director, Technology in a Box
• Nancy Ghanem, President, NG Franchise Services, Inc.
• Clint Lee, Director Franchise Development, Wing Zone Franchise Corporation
• Mark Liston, CFE, Director, New Franchise Development, Valpak
• Chris Loudermilk, Military Development Officer, The Dwyer Group
• Bret Lowell, CFE, Partner, DLA Piper US LLP
• G. Thomas Macintosh, Partner, Krass Monroe, P.A.
• Joseph McCord, Vice President of Corporate Development, Steak-Out
• Steve Olson, Publisher, Franchise Update, Inc.
• H. Scott Presley, CFE, Managing Partner, Van New Capital Advisors
• Michael H. Seid, CFE, Managing Dir., Michael H. Seid & Associates
• Jerrod Sessler, CEO, HomeTask Handyman Service, Inc.
• Chuck Southern, Corporate Liaison Officer, Center for Veterans Enterprise
• Phil Trigg, Consultant, AcquireWeb, Inc.
• Marcea Weiss, Veteran Business Advocate, National Veteran Owned Business Association (NaVOBA)
IFA Staff Liaison, Terry Hill, Vice President Publishing
