Survey: Veteran Franchise Small Business Ownership Spikes in Past Year
FOR IMMEDIATE RELEASE
SURVEY: VETERAN FRANCHISE SMALL BUSINESS OWNERSHIP SPIKES IN PAST YEAR
WASHINGTON, May 22, 2012 — The total number of veteran-owned franchise businesses among the most military-friendly franchise companies jumped nearly 4,000 or 35 percent to a record 11,469 in the last year, with the average percentage of veteran-owned franchise businesses in military-friendly franchise systems climbing to 28 percent, a spike from 17 percent just a year ago.
The full results will be released in a news conference Tuesday, May 22 at 10:30 am ET at (800) 354-6885 or by registering for the Webinar.
The new research is part of the 2012 Military Friendly Franchise ®list, compiled by IFA Members GI Jobs and MlitaryFranchising.com, which surveyed more than 4,000 franchise companies as part of IFA’s VetFran program and Operation Enduring Opportunity.
“We are very pleased to see such a sharp increase of veterans who have become franchise business owners in the last year,” said IFA President & CEO Steve Caldeira. “As an industry, franchisors continue to extend career opportunities to our nation’s veterans. We commend those companies recognized by the Military Friendly Franchise list who are setting the right example for our entire nation.”
“Demand from veterans who are interested in starting their own business has never been higher, but they are often unclear where to begin the process,” said Sean Collins, Vice President for G.I. Jobs. “The list is a transparent, data-driven resource for veterans to compare which franchise opportunities are doing the most to recruit military vetrepreneurs.”
As Memorial Day approaches, the unemployment rate among some groups of veterans is as high as 18 percent. On Nov. 10, 2011, IFA launched Operation Enduring Opportunity, a campaign to hire and recruit 75,000 veterans and their spouses and 5,000 wounded warriors by 2014. Since the campaign was launched, the number of companies offering discounts off the initial franchisee fee to veterans through the VetFran program has risen to 468, a 16 percent increase.
“With 468 companies now members of VetFran and pursuing Operation Enduring Opportunity to enable our veterans to access opportunities in franchising, the franchise industry continues to raise awareness and help the franchising community access the tools and solutions they need to attract this exceptional talent in our nation into our industry,” said Caldeira.
The survey said the percentage of Military Friendly Franchises who offer a veteran discount rose from 88 percent in 2010 to 94 percent in 2012. Total estimated discounts to veterans in 2012 were $1,195,000, with the average discount rising to over $5,800 – a 20 percent gain over 2011.
IFA’s VetFran strategic initiative, founded in 1991, includes IFA franchisor member companies offering financial incentives, training and mentoring to veterans interested in small business ownership and/or a career path in franchising. According to the 2007 U.S. Census, there is currently more than 66,000 veteran-owned franchised businesses in the U.S., and since November, 2011, over 6,000 veterans have become team members and franchise business owners through Operation Enduring Opportunity. This is in addition to the 2,100 veterans who became franchise business owners prior to 2011 through VetFran. “Military experience instills a ‘ just do it, failure is not an option’ attitude,” added Caldeira. “These are exactly the kind of folks we want in franchising.”
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.