As corporate layoffs and other economic shifts impact the American job market, veterans and other laid-off workers can look to franchising as a viable career option. Coming out of the military, veterans also have many of the skills required to own and operate a business. That’s why it’s natural that many veterans consider buying a franchise business.
But just like founding any business, becoming a franchise owner requires some understanding and research. Franchise owners must do due diligence and select the right franchise from among hundreds of different concepts. They must be informed about the franchise model as well as their specific business opportunity, and be prepared to invest sufficient funds, commit to the business, and operate it in accordance with the franchisor’s systems.
This article shares the most frequently asked questions (FAQs) about franchising for veterans. From the many franchise opportunities available to the financial investment required to operate a franchise business, this article helps veterans better understand the business of franchising, and make an informed decision.
What are the Franchise Opportunities Available for Veterans?
Veterans have multiple franchise opportunities available to them depending on their military skill set, financial resources, and preferences.
There are several Franchisors in the U.S. that provide veterans the opportunity to become franchise owners. In addition, the IFPG offers its own Veteran Franchise Program, which provides discounts on franchise business brokerage services for qualified veterans.
Veterans who have served as officers, for example, have leadership skills that make them well-suited for higher-level service businesses. Veterans who have served as non-officers and worked in specialized fields can use those experiences to build and operate a franchise in the same industry. Veterans in other fields can also take advantage of existing franchises in areas where they have the most experience.
Generally, any veteran can qualify to become a franchise owner. The franchisor will determine whether the veteran meets the requirements, which may include meeting certain credit and financial criteria and having prior management experience.
What Knowledge is Necessary for Becoming a Franchise Owner?
Although veterans do have some business skills from their military experience, becoming a successful franchise owner requires certain knowledge on the operational side. Before investing, veterans should learn everything they can about franchising, including what operating systems, training, operational manuals, and marketing programs franchisors require.
Veterans should also understand the franchise model, as well as all their rights and responsibilities as a franchisee. A good first step is to connect with a knowledgeable IFPG franchise broker, who can guide veterans through the research and selection process.
What Financials Will I Need to Invest in a Franchise Business?
The costs to become a franchisee vary on the concept, size, and type of business you select. Franchisees should consult the franchise’s Franchise Disclosure Document (FDD) to get a clear picture of the estimated investment required to become a franchisee.
Typically, investors should expect to commit to an initial franchise fee and ongoing royalty fees. New franchisees may also need to pay for use of a facility, equipment, and working capital. In some situations, veterans may be able to secure special financing from veterans organizations.
How Can Veterans Obtain Real Expertise and Advice?
Veterans may find it difficult to navigate the franchising process or find the resources they need when researching franchise opportunities. That’s why the services of an experienced IFPG franchise industry expert can be invaluable.
IFPG’s Professional Consultants assist veterans through the process of researching, selecting and investing in franchises. Our Consultant Group consists of experienced franchise brokers, franchise consultants, and funding providers who specialize in helping veterans become successful franchise owners.
Final considerations
Franchise ownership can be an excellent option for veterans looking to start their own business. With the right guidance and expert advice, veterans can better understand the franchising process and the franchise opportunities available, as well as the risk factors associated with becoming a franchisee.
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