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Franchising USA
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fea
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NOVEMBER 2014
PirteK the PerFect Fit
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Franchising USA
contents
V E T E R A N S I N F R A N C H I S I N g S U P P L E M E N TN O V E M B E R 2 0 1 4
Our Veterans in Franchising special supplement has become
a regular feature of Franchising USA.
TO SHARE YOUR STORY in the next issue, please contact
Vikki Bradbury, Publisher
Phone: 778 426 2446
Email: [email protected]
Franchisee in Action40 Teen Road to Safety
News & Expert Advice44 Franchises Offer a World of Opportunities Tariq Farid, Edible Arrangements
50 Will Crowdfunding Help Make Acquisition of Franchise Opportunities Easier? Jim Mingey, Veterans Business Services
54 Veteran News VetFran: A growing Network
Cover Story38 PIRTEK. The Perfect Fit
Profiles42 Furniture Medic
48 Tutor Doctor
Focus46 Money Mailer
52 gameTruck
Franchising USA
cover Stor y - PirteK
Franchising USA
One of the marks of a good leader is that he’s not only good at what he does, but makes others around him better at what they do. It’s this type of leadership that earned Jim Lager, owner of multiple PIRTEK locations in Dallas, the Multi-Unit Franchisee Magazine 2014 Most Valuable Performer Veteran Award.
AfterbuyinghisfirstPIRTEKfranchisein2010, Lager turned some heads by having thehighestfirstandsecondyearsalesofany United States PIRTEK franchise in its history.
PIRTEK is a business to business franchise that services, maintains, installs andreplaceshydraulichosesandfittings.All PIRTEK franchises consist of a storefront,andafleetofvanstoperformon-site service.
Because of his meteoric rise within PIRTEK, Lager joined the company’s franchise advisory council and immediately started contributing valuable ideas.
Lager then found himself giving motivational speeches at the owner’s conference to tell them how he was doing so well, which prompted vice-president of franchise development Gwyn O’Kane to approach Lager about working with some of the company’s franchises on the west coast,whichwerehavingadifficulttimerecovering from the recession.
Happy to help out his fellow franchisees, Lager headed to the west coast and spent a week in San Francisco before he and the company decided that he should develop
his own program and take it to the various other PIRTEK west coast franchises to help them get their sales up.
Some of those stores, like the PIRTEK in Kent, WA, went from being in the bottom 10 percent to being in the top 30 percent in the country under Lager’s tutelage.
“I took them from losing cash to making cash and now they’re actually growing to beaprofitablebusiness,”LagersaidduringarecentinterviewfromhisownofficeinDallas.
The program he developed was hardly rocket science, though, the veteran said. He merely took his experience from his time at Snap-On Tools and combined it with obvious sales techniques that focused on the customer relations experience.
But, sometimes, he pointed out, it’s the obvious techniques that people can miss the easiest. He actually went out with sales managers on customer calls and gave them direction on how to reach out to customers, what to say and how to keep track of what they were doing and he made it all simple enough that they could easily adopt it.
O’Kane said Lager really deserves the Veteran’s Award for franchising because he truly understands the importance of the franchising system and that it’s not just about the individual franchisees being successful, but about everyone within the system and the system itself being successful.
Snap On experienceLager had perhaps the perfect background for putting together the program that he did with PIRTEK. Prior to purchasing his PIRTEK franchise, he spent time with Snap On Tools as both a franchisee and an employeeofthecompanyasafieldsalesmanager, meaning he had 12 different
routes he was responsible for with training and helping franchisees grow their businesses.
Lager credits Snap On with giving him a great opportunity. He exited the army reserves young and with no money, as he recalled. But, Snap On gave him a chance and within nine months of joining the company as an employee, he was a franchisee.
He was with Snap On for several years, running a franchise and then moving intohisfieldsalesmanagerposition.Eventually, he left and opened his own independent business, but he sold that and went back to Snap On as a franchisee again, this time growing his business up to fivefranchises.
And then he found PIRTEK.
“That’s what really changed my life and it’s an opportunity that I was really able to grow with and do what I wanted to do with a franchise,” Lager said.
He currently owns two PIRTEK franchises and is working on opening his third one by the end of this year. What Lager likes about PIRTEK is that you can build a team around you to help run the business, meaning it’s not just a one-person show. Plus, it’s also a lucrative business.
“You can make a really good living with just one franchise in this business,” he noted.
military ServiceFor Lager, having a team that he can rely on harkens back to his military days. In the military, he said, you have to work in teams and you don’t get to choose your teammates, but you are expected to make it work regardless.
“You have to work as a team and your environment isn’t always ideal, but you
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the Perfect fit
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still have to make it work at the end of the day,” he said.
It’s this ability to make the best of any situation regardless of the team you’re surrounded by that Lager said he brings over to his franchising business from his military days. He joined the U.S. Army airdefensein1985andwasstationedinGermany for two years before joining the Army Reserves in Minnesota. He left the reservesin1991andjoinedSnapOn.
veteran SavvyVeteransareanaturalfitintoafranchisingsystem, PIRTEK’s O’Kane said.
In the U.S., PIRTEK has about 10 owners who are veterans that come from the Navy, Army and Marines.
“Wefindveteransareexcellentbecausethey make great franchise entrepreneurs because they’ve got that entrepreneurial spirit and they’ve got that willingness to follow a program,” O’Kane said during an interview from the company’s Rockledge headquarters.
With their U.S. headquarters stationed inRockledge,FL.,PIRTEKnowhas48locations and another two set to open in the U.S. by the end of the year. The company started in Sydney, NSW in Australiabackin1980andiscurrentlyactive in 23 countries with about 400 locations worldwide.
PIRTEK is part of the VetFran Directory program, run by the International Franchise Association, and the company offers discounts off of its franchise fee for veterans, O’Kane said.
As for advice for veterans who are transitioning out of the military and into civilian life and are looking at franchising, Lager said it’s important to do research and pick the right franchise for themselves because there are a lot to choose from andtheymightnotbeagoodfitforallof them. But, he added, with so many franchises to choose from, any veteran shouldbeabletofindonethatisagoodfitfor them.
For more information visit: www.pirtekusa.com
Article by Rob Swystun.
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Jim L
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Jim Lager
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Often with franchises, an employee who works for the business will enjoy it so much that they want to get involved as an owner. That’s exactly what happened with Dan Mulrenin, a former instructor with driving academy Teen Road to Safety, who is the company’sfirstfranchisee.
Mulrenin, who served with the U.S. MarineCorpsfrom1975-79(honorablydischarged as a sergeant) and then as a Los AngelesPoliceofficerfrom1980-2008
(retired as a lieutenant) purchased his Teen Road to Safety franchise in May 2011.
Prior to purchasing his franchise, Mulrenin was an instructor at the driving academy. He respected the fact that Teen Road to Safety president Andrew Wunderlich was dedicated to teaching safe driving.
“I purchased the franchise because of the business model of using retired law enforcementofficersasinstructorsandtheprofessionalism of the way we teach,” the franchisee said in a recent interview.
Although focusing on teenagers, the company teaches all people who are old enough to drive using the same training
“i purchased the franchise because of the business model of using retired law enforcement officers as instructors and the professionalism of
the way we teach.”
Franchising USA
Dan Mulrenin
FroM eMPloyee to Franchise owner
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methodsthatpoliceofficersreceivefortheir own driver training.
captain of his own shipAfter serving in the military and then on apoliceforceandfinallyasanemployeein a business, Mulrenin wanted to know what it was like to be his own boss, so he jumped at the chance to go from instructor to franchisee.
Being involved with the business already meant that it was extremely easy for him to transition into being an owner. Mulrenin said Wunderlich was helpful in showing him the management side and the on-going support that TRTS provides continues to be an important resource for him.
Like most franchisees, Mulrenin found that getting the business started was a
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lot of work, but his work/life balance is getting better now. He doesn’t do as much instructing anymore, instead leaving that to his top notch team while he concentrates on the marketing of the business. Learning this side of the business is something that prospective franchisees need to be prepared for he says, however having the support of a great system behind you really makes the difference.
“It is challenging, fun and you have to
be very dedicated,” Mulrenin said. “The rewards of being your own boss are very gratifying.”
However, even more gratifying for Mulrenin is the fact that Teen Road to Safety can have such a positive impact on people’s lives through the company’s dedication to teaching teens and adults to drive safely.
For more information visit: www.teenroadtosafety.com
Franchising USA
Furn i ture medic
When ron Pierce retired from the U.S. Air Force after 20 years as a cardiopulmonary technician, he was interested in maintaining that sense of fulfillment and joy in a new vocation. he found it as a Furniture medic franchise owner. Transitioning from repairing hearts and lungs to repairing furniture may not seem like a natural next step, but Pierce says his new career lets him use his problem-solving and free-thinking skills to help otherpeoplefindnewlifeinobjectstheyvalue and cherish.
“I have always been one to reap what I sow,” Pierce said. “Being fully responsible for my results brings a sense of accomplishment that you can’t get anywhere else.”
And Pierce knows about rewarding work. Not only did he work stateside as a medic in the cardiac cath lab and manager of a sleep disorders clinic for the Air Force, he had two deployments as a member of a critical care trauma team. His deployments supported Operations Northern Watch and Iraqi Freedom in 2002 and 2003. Pierce’s expertise was recognized by Air Force leadership, and he culminated his career as the advanced course curriculum developer forhiscardiopulmonarycareerfield.
At a friend’s suggestion, Pierce worked inmovingclaimswhenhefirstretiredfrom the military in December 2010. Seeingfirst-handthebumpsandbruises
Franchising USA
a family’s belongings sustained during relocation, he understood the enormous need in the furniture repair industry. Pair that demand with his lifelong hobby of building furniture and the fact that he also loves engine mechanics, and purchasing a Furniture Medic franchise was a match made in Heaven.
Or at least, for Pierce, a match made in Wichita Falls, Texas.
The North Texas town is home to Sheppard Air Force base and is just across the state line from Fort Sill in Oklahoma. Among Pierce’s many clients, he’s happy to count people serving in the military.
“I’m humbled every day to be able to interact a lot with Army and Air Force personnel,” he said. “Giving back to folks in the military is a really rewarding part of my business.”
Pierce normally limits his service area to a 75-mile radius, but has had special requests to travel 250 miles or more. A few of his many satisfying projects, include refinishingall175diningroomchairsfora retirement village, thrilling the elderly residents with their “new” chairs, and restoring an antique Partners Desk from the1800s.Atfourbyeightfeet,itwasavery large piece with built-in drawers in the top slab and three leather inlays that all required precision detail restoration. The owner, the president of an oil and gas company, remembered the piece from decades earlier and had originally wanted it in his home. But when he saw the restoreddesk,hewanteditinhisofficeforall to see.
Beyond his profession of bringing new life to cherished possessions, renovating cabinetry and rescuing new furniture from delivery mishaps, Pierce gives back personally. He supports a therapeutic horseback riding farm in his community, teaches Sunday School, and serves on the Education Policy Team of his state representative’soffice.Healsoenjoysgolf and camping with his wife and three teenage sons.
For more information visit: www.furnituremedic.com
ron Pierce Profile
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I’m retired and looking for
something to supplement my income.
- Robert
I just sold my business and am looking or my next
success!
- James
I always wanted to own my own business, but I didn’t know
how.
- Jenny
I’m tired of working for
someone, so I’m going to be my
own boss!
- AlexisSponsored by:
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• Explore 200+ franchises in all industries, both full and part-time.
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I’m retired and looking for
something to supplement my income.
- Robert
I just sold my business and am looking or my next
success!
- James
I always wanted to own my own business, but I didn’t know
how.
- Jenny
I’m tired of working for
someone, so I’m going to be my
own boss!
- AlexisSponsored by:
www.FranchiseExpoSouth.com
• Explore 200+ franchises in all industries, both full and part-time.
• Attend 40+ FREE seminars and learn the ins-and-outs of franchising.
• Franchises from $5,000 to over $5 million; find the one that fits you.
• Get vital legal and financial info and advice.
Whether you’re considering buying your first franchise or you own one already, we would like to invite you to attend the Franchise Expo South as our guest.
FEBRUARY 5-7, 2015NRG CENTER - HOUSTON, TX
www.FranchiseExpoSouth.com
• Benefit from a proven business plan and system.
• Work for yourself, but not by yourself.
• Receive endless support and marketing.
• Established brand recognition.
• Achieve personal & financial stability.
Why attend? Why a franchise?THE ONLY PLACE TO GO
USE PROMO CODEREGISTER NOW
FRANUSAFREE
EXPOSURE TO OVER200 LEADING FRANCHISES
All under one roof.
REGISTER NOW
FREEUSE PROMO CODE
FRANUSA
Learn how with the best show in the industry. We’ve helped thousands become business owners.OWNING YOUR OWN BUSINESS IS EASY!
I’m retired and looking for
something to supplement my income.
- Robert
I just sold my business and am looking or my next
success!
- James
I always wanted to own my own business, but I didn’t know
how.
- Jenny
I’m tired of working for
someone, so I’m going to be my
own boss!
- AlexisSponsored by:
www.FranchiseExpoSouth.com
• Explore 200+ franchises in all industries, both full and part-time.
• Attend 40+ FREE seminars and learn the ins-and-outs of franchising.
• Franchises from $5,000 to over $5 million; find the one that fits you.
• Get vital legal and financial info and advice.
Whether you’re considering buying your first franchise or you own one already, we would like to invite you to attend the Franchise Expo South as our guest.
FEBRUARY 5-7, 2015NRG CENTER - HOUSTON, TX
www.FranchiseExpoSouth.com
• Benefit from a proven business plan and system.
• Work for yourself, but not by yourself.
• Receive endless support and marketing.
• Established brand recognition.
• Achieve personal & financial stability.
Why attend? Why a franchise?THE ONLY PLACE TO GO
USE PROMO CODEREGISTER NOW
FRANUSAFREE
EXPOSURE TO OVER200 LEADING FRANCHISES
All under one roof.
REGISTER NOW
FREEUSE PROMO CODE
FRANUSA
Learn how with the best show in the industry. We’ve helped thousands become business owners.OWNING YOUR OWN BUSINESS IS EASY!
Franchising USA
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Tariq Farid, Founder and CEO, Edible Arrangements
For years, franchising has been known as a fulfilling post-service career option for military veterans. the numbers back it up too. One out of every seven franchise businesses in America is owned and operated by veterans of the U.S. military, according to a recent study conducted for the International Franchise Association Educational Foundation, and based on
U.S. Census data. More than 66,000 veteran-owned franchise businesses in the U.S.providejobsfor815,000Americans,generating more than $41 billion.
At Edible Arrangements, some 600 veterans are employed in our locally-owned stores and we have a goal to ensure that we create at least 1000 jobs within the next year. We currently have dozens of franchisees who are veterans and we plan to boost this number with our Hero’s Welcome program which offers a reduced franchise fee for U.S. military veterans.
It is estimated that one million vets will
Franchising USA
Tariq Farid
NOW MORE THAN EVER,FRANCHISES OFFER A WORLD OF OPPORTUNITIES FOR TODAY’S VETS
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“U.S. military veterans have the qualities that every franchisor is looking for and have a huge
potential to become the standard-bearers for their brands.”
bereturninghomeoverthenextfiveyears. Opportunities to transition from the military to the civilian job market are critical, to prevent returning vets from having higher-than-average unemployment rates. Franchising can play a major role in this transition. There are number of reasons that the franchise business model has always been - and will continue to be - aperfectfitforAmerica’sveterans.
Franchise operations mimic military ones Strict protocols and chain of command are a way of life in the military, and also in franchise operations. While vision and drive are critical, it’s also important that franchisees have an ability to work within prescribed guidelines that have proven the test of time.
most franchises offer veterans reduced-fee loans and subsidiesSome franchise companies provide a discounted franchising fee to veterans. We do this at Edible Arrangements and it’s just a small way to thank veterans for their courageous service. Additionally, loans in excess of $1billion are available to returning service men and women through special veterans’ programs administered by the government.
Veterans’ ability to handle risk, adapt to change and continue to persist, make them more suited, in many cases, to handle everything that business ownership may throw their way. Lenders know this and that is why franchises remain one of the nation’s most stable and healthy investments.
Franchises provide trainingFrom the day they enter boot camp, veterans know that ongoing training is a part of military life. An ability to stay abreast of the latest techniques and technologies can mean the difference between success or failure and, in some cases, life or death.
As a result, I have found veterans some of the best students when it comes to our
training programs at Edible Arrangements. I have found that veterans are always on the look-out for a competitive advantage andtheyareamongthefirsttoasktobe a part of testing new programs and initiatives.
Franchises need leadership and decision making abilityLeadership and an ability to make decisions are two characteristics I have found in every veteran who has become a franchisee at Edible Arrangements. Through training and experience, they have honed these skills to where they have become second nature.
Business owners are faced with circumstances that are constantly changing, sometimes without warning, and snap decisions must be made. Last year’s severe winter caused some of our franchisees to make unique, in-the-moment choices that enabled them to weather the storms and provide 100 percent satisfaction for our customers, safely and without incident!
Franchises thrive on commitmentEven with proven systems and processes in place, running a franchise business is hard work, sometimes requiring long hours. Of course, that is nothing new to someone who has spent any time in the military.
In fact, this is often when veterans are at their best - riding the adrenaline rush that comes by pushing yourself more than you ever thought possible, seeing a situation through to success.
Franchises inspire and encourage philanthropyAccording to FranchiseHelp, whether
it’s on a national level or in an individual franchisee’s neighborhood, the world’s bestfranchisesnotonlygenerateprofitsbut contribute meaningfully in their communities.
Veteransknowaboutsacrificeandservice.I have found that our military veterans appreciate everything they have and the opportunities our country has given them. As a result, they have a burning desire to continue to serve and help others.
In short, U.S. military veterans have the qualities that every franchisor is looking for and have a huge potential to become the standard-bearers for their brands. If, over the next few years, franchisors make a concerted effort to reach out to U.S. military veterans, not only will their companiesbenefit,butwemightbeginto close the unemployment gap faced by those who have given so much to our country.
Tariq Farid is the Founder and CEO of Edible Arrangements. The company began in 1999 with one small store in East Haven, Connecticut. Through franchising, the company has grown to 1,200 stores in 14 countries and territories in just 15 years. Farid is a champion of the franchising model as a great way to grow a large business, but also firmly believes becoming a franchisee is the pathway for successful small business ownership.
For information on Edible Arrangements’ franchise opportunities for Veterans: www.ediblearrangements.com/FranchiseOpportunities/RequestInformation.aspx
For information on International Franchise Association’s VetFran Program: www.vetfran.com/about-vetfran/
Franchising USA
money mai ler
Franchising USA
Living up to his name, tom Wisdom made a wise decision about two-and-a-half decades ago when he purchased a money mailer franchise.
Now this army veteran and his wife Judy are getting ready to pass along the business to their son, who has been involved with it for the past 10 years.
Money Mailer is a hyper-local marketing services franchise that provides local business owners with marketing solutions so they can reach their best prospects with coupons delivered in the mail, on the
Internet to mobile devices and on social media.
While Wisdom had a lot of sales and management experience as an executive at 3M, he credits his military experience with giving him the discipline to follow Money Mailer’s proven 35-year operating system to get out on the street and scale his business.
He even credits it with inspiring his sales technique. “I joke to people, but I sell by ambush, I really do,” Wisdom said during arecentinterviewfromhishomeofficeinSan Antonio, TX.
The “ambush” that Wisdom refers to is the way he goes into a business armed with so much knowledge about it that he may even know the business better than
VEtEran translatEs
military training into
BusinEss saVVy
Tom Wisdom
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VEtEran translatEs
military training into
BusinEss saVVythe people he’s talking with who work there. Money Mailer provides extensive marketing databases on every business category so franchisees can work with business owners as marketing consultants understand their goals and objectives and develop customized marketing campaigns that bring more of the right customers in the door.
“I’m part of their marketing staff,” he said. “I’m the cheapest employee they’ve got. They don’t pay me a salary, they don’tpaymebenefits,theydon’tpaymeworkman’s comp, they don’t have to pay me termination fees and if I’m not doing a good job for them, they just quit talking to me.”
He goes in focused on what the client needs and how he can help them and is highly motivated to perform to make them successful and, Wisdom said, the army taught him that focus.
Service careerWisdom attended Texas A&M and joined the Corps of Cadets, leaving the school as asecondlieutenantin1960.Heandhis
wife Judy got married after school and he stayed on active duty for eight years. Wisdom commanded a tank company in Germany, spent a year in Vietnam and held staff positions at a few different army bases.
Through all his service, Wisdom said, he learned a lot about following a plan, following an operations order, and about self-discipline. The only way it didn’t prepare him for the business world was not havinganyfinancialtraining.However,histime with 3M would provide him with that financialtrainingwhichhasservedhimwell as he has built a thriving business in San Antonio.
back to texasOnce he had held a variety of positions in 3M, he and Judy decided they wanted to exit the corporate culture and get back to their beloved Texas. So, they decided to look for a franchising opportunity and Money Mailer kept popping up. So, in1991,thecoupleboughtaregionalfranchise with a territory that stretched from Waco to the Rio Grande Valley and included Austin and San Antonio.
As regional operators in a three-tier system their responsibilities included looking after all franchisees within this large geography. In 2004, Money Mailer changed their structure and became a traditional two-tier system, buying back regional licenses and resulting in a very profitableoutcomefortheWisdoms.They were now able to run a substantial operation in San Antonio from the comfort of their home with extremely low overheads.
“It allows us to run lean and mean and still be highly effective” Wisdom explained.
For Wisdom and his wife, purchasing their MoneyMailerfranchisebackin1991was probably the best decision they could have made. And, thanks in large part to the discipline from his military career, invaluable assistance from his wife Judy and the training, support and systems provided by Money Mailer they have built a highly lucrative marketing consulting business in San Antonio.
For more information visit: www.franchise.moneymailer.com
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through a great collaborative effort of tutor Doctor’s Operations team and bob rosedale, a U.S. veteran and a tutor Doctor franchisee based in idaho, tutor Doctor won the bid and secured a $3.25 million contract with the U.S. veterans Administration.Thefive-yearcontractwillprovidevocational training and transition services to military veteran men and women pursuing non-military careers.
Tutor Doctor, the Number One at-home tutoring franchise in the world, was the only franchise company capable of providing services across all of the nine states in the western region, ranging from Colorado to Hawaii, which the VA was looking for.
TutorDoctor’s22localofficesacrossthe region and its ability to recruit, train and retain the best tutors and trainers with specialized skills were the primary factors in the VA’s decision to work with
Tutor Doctor. Bob Rosedale will lead the regional Tutor Doctor team to ensure our veterans are receiving professional and high quality training.
Rosedale’s franchise success in Idaho and his enthusiasm and support of Tutor Doctor’s principles and values combined with his entrepreneurial spirit were instrumental in securing this contract. He applies the same commitment and dedication to his Tutor Doctor business as he did to his country during his 26-year military career. He retired as a U.S. Air Force squadron commander in the late 2000.
Tutor Doctor offers help in any subject to students of all ages including adults going back to school. Rosedale has a roster of more than 100 tutors, including active and retired school principals, teachers, engineers, business professionals, veterans and professionals with experience working with special-needs students.
Rosedale’s business has provided over 10,000 tutoring sessions to over 500 families since opening in 2011. About 100 new families have signed up this year, giving Rosedale’s Tutor Doctor the greatestyear-over-yearfirstquartergrowthrate among Tutor Doctor franchises in the western U.S.
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tutor doctor to assist VEtEransTUTOR DOCTOR FRANCHISEES PARTNER WITH VETERANS ADMINISTRATION TO ASSIST TRANSITIONINg VETERANS
“We are in a fortunate position to be helping our transitioning veterans,” says Rosedale. “I personally went through a transition over ten years ago and am thankful to now have the opportunity to help others.”
Today, there are a few areas included in the contract with VA where a Tutor Doctor franchisee is required including:
• Honolulu, HI
• Salt Lake City, UT
• Fort Harrison, MT
There are also a few remaining territories in the western U.S. region which could benefitfromthecontract!Ifyouorsomeone you know is a community leader with strong people skills looking to start their own business in these areas, get in touch with Tutor Doctor immediately!
For more information visit: www.veteransbusinessservices.us/product-item/tutor-doctor
Bob Rosedale
Franchising USA
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You will notice some innovative changes at IFA's 2015 annual convention! We've upped the ante with new enhanced features and paramount educational and networking events. You
don’t want to miss franchising’s biggest and best event of the year!
HERE’S WHY:
DON'T MISS THE BIGGEST FRANCHISE EVENT OF THE YEAR!
Unique networking opportunities will connect you with other franchise executives to expand your portfolio of contacts and cultivate partnerships that will help you and your brand get to the next level.
Interactive roundtable discussions led by experienced and savvy franchise leaders will give you an array of new and exciting information that will help you grow and evolve your brand.
Informative educational sessions focus on hot topics that impact your bottom line – everything from operations, technology, franchise relationships, sales & development and more. This is the perfect event to showcase your innovative brand in the exhibit hall!
convention.franchise.orgTHE EARLY BIRD CATCHES THE SAVINGS!IFA Members: Register before October 24 and save $50!
REGISTER NOWRegistering online is now easier than ever with our
newly improved and streamlined
process!
Contact Lynette James at 202-662-0782 or [email protected] if you are interested in exhibiting or sponsoring.
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One would think that a non-profit crowdfunding platform for honorably discharged service disabled veterans who want to start small businesses is particularly well suited for a number of reasons.
First is the fact that being a veteran is the Number One indicator of successful business ownership. One out of every ten businesses is owned and operated by a veteran. Secondly, many disabled veterans have issues that allow them to tap into caring support networks. So what is crowdfunding and could it help fund a veteran franchise acquisition?
Jim Mingey, Veterans Business Services
WILL CROWDFUNDINg HELP MAKE ACQUISITION OF FRANCHISE
OPPORTUNITIES EASIER FOR VETERANS?
Franchising USA
Crowdfunding is the process of raising public money to fund a private campaign. It allows you to tap into your social network and receive contributions from all of your “friends” to develop an idea or event. The majority of crowdfunding money raised today is on rewards-based platforms like Kickstarter and Indiegogo websites. With these sites, supporters of a project typically get some kind of incentive, from a coffee mug to a listing on a marquee, in return for their contribution. In addition to rewards-based systems, the equity crowdfunding market now allows investors to receive a share of the company in exchange for funds.
While Kickstarter and Indiegogo are generalist platforms for raising money, niche sites are springing up that may serve to help drive equity to veteran small business and complement new peer to peer lending platforms for veterans like Street
Shares. The crowdfunding market is going to be full of specialized players that serve particular market segments very well. So why not veterans in franchising deals and what are the problems?
One problem is that the crowdfunding platforms mentioned need campaigns that are relatively expensive to organize and promote. Another is that the success rate of their veteran campaigns to date is poor and only raises amounts that are typically below $5,000. With millions of crowdfunding opportunities out there,it’sdifficultforpeopletochoosewhat to support or invest in. However as crowdfunding becomes more mainstream, some expect to see crowdfunding funds start that aggregate multiple causes or investment opportunities. This could be a great new risk capital pool for veterans in franchising. This could be particularly true as equity-based crowdfunding success
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Jim Mingey
stories spread and the public wants in on the action. Franchising provides a relatively stable business analysis platform for investors and consistent regulatory information requirements.
While it will be exciting to watch crowdfunding evolve into new areas like franchising, it’s important to note that each crowdfunding site must ensure that themoneyisdistributedefficientlyandthat contributors get what they bargained for (the initial incidents of fraud have been low, less than .1 of 1 percent on Kickstarter).Itwillbeeasytofindveteranfranchise deals that need money and toughtofinddealsthatwillworkoutfor investors. For now SEC accredited investor rules still apply for due diligence requirements to over 1000 crowdfunding platforms worldwide.
“crowdfunding is the process of raising public money to fund a private campaign.”
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One very interesting facet of crowdfunding that has emerged is that communities are expected to use the crowdfunding vehicle for public/private partnerships. Envisioning community economic development actors partnering with veterans on franchising projects is a refreshing thought. Even if veterans have to bring their own “crowds” I believe at least a few franchise deals will probably get done with crowdfunding.
Happy Veterans Day!
VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the Veteran small businessperson, and
possesses the practical knowledge to
implement his experience in today’s
market. Jim participated in the EBV
Program at Purdue University, is a
mentor at American Corporate Partners,
developed the first approved franchise
training program for the Vocational
Rehabilitation and Employment(VR&E)
Program at Veterans Administration,
and was instrumental in forming the
first equity fund in the United States
exclusively for Veteran owned small
businesses and franchises: The Veterans
Opportunity Fund. Jim intends to
keep on ‘advocating’ for Veterans in
franchising.
For further information visit:
www.veteransbusinessservices.us
Franchising USA
Gametruck
Franchising USA
Joshua brasure is a marine corps veteran, a stay-at-home dad and an accomplished business owner who has found success in joining Gametruck as a franchisee.
GameTruck is a mobile video game theater company that brings people together to enjoy gaming in an interactive multiplayer environment. The video game parties feature all the latest consoles including Xbox 360,PS3 and Wii and can accommodate a minimum of sixteen players. In addition to video games, they also offer laser tag parties that take place outside of the theater and are complete with specialty missions, challenges and obstacles.
During Mr. Brasure’s eight years with the Marine Corps he’s been deployed three times, twice to Iraq and once to Afghanistan. During one of the deployments he unfortunately was forced towatchhisfirstdaughterbeingbornona web cam. Having missed out on such a miracle, Joshua knew he wouldn’t miss another special moment like that in his family’slife,andneededtofindacareerthatprovidedhimwiththeflexibilitytodojust that.
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gamE oVEr? not For this Marine corPs Vet!
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gamE oVEr? not For this Marine corPs Vet!
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“I’ve done a lot of deployments, and unfortunately missed out on many events in my kids’ lives. I knew it was time to be home with my kids and my wife. We have been together for almost nine years, and my wife had to take care of the kids when I was away for as many as seven or eightmonthsatatime.Imissedmyfirstchild being born, I missed birthdays, I missed lots of things. We talked about it and as much as I loved the Marine Corps very much, I wanted to do something that I loved just as much, but could be with my family at the same time,” recalled Joshua.
The Veteran learned about GameTruck while he was working as a land surveyor in Charlotte, North Carolina and was surprised with the fact that GameTruck parties were booked three months in advance. Hearing about GameTruck’s
popularity and its veteran discount offering for Vets prompted Mr. Brasure to research the company and how to become a franchisee.
“I thought that was very interesting, so I did a lot of research and found out the company is very veteran friendly. I started talking to them and I was hooked from the beginning,” said Joshua.
The veteran started the franchising process in October 2013 and bought his franchise in April 2014. In fact, he decided to begin the process before he had completed his time with the military.
“It was an extremely hard transition. The hardest part was that the military takes very good care of you, in all aspects, with your money, housing, food, medical and a lot of people don’t realize that when you get out you’re on your own and you suddenly have to take care of all those things. Especially for me, since I have a family; I had to make sure they were taken care of,” said Mr. Brasure.
Thankfully for Joshua, GameTruck’s training process involves step-by-step phases with education to help candidates get to the next level. The company considers everyone a member of their team and their success rate is linked to consistent support, growth and overall strength in the brand. Franchisee training helps operators run their business fromstarttofinishincludingincomingcustomer phone calls to hosting parties and maintaining their rig. Joshua said that every single time he reaches out to the corporateofficesforsupporthegetstheanswers he needs.
“The training was amazing. They gave me everything I needed and they were nothing but helpful. I am a very outgoing person, even if I have one question I will call someone and there is always someone there. I created a great working relationshipwiththecorporateofficesand that continues today. They made it as simple as possible even though it is not an easy process,” explained the franchisee.
Joshua has found a very big difference in his work-life balance since he became a GameTruck franchisee. Of course he
is now out of the Marine Corps and no longerfindshimselfbeingsentaway,andthankfully he now has the ability to work from home and be more available to his family whenever he’s needed.
Now that Joshua works from home, he is able to pick his kids up from school and never misses a birthday party, a school concert or a sporting event. He can commit to his family and work his business around their needs.
“The work-life balance is almost unreal. It is like a dream in comparison,” he said. “When my kids come home from school, I am there waiting for them.”
Joshua Brasure wants veterans to know that their potential does not peak with the military.
“After leaving the military, veterans may think they have to get a regular job just to pay the bills. I want them to know that we have a lot out there for us and that they need to take that leap. I was scared to death but looking back I am glad that I did it, because there are so many great things that have happened for me since then. I am just a regular guy but there are a lot of great things out there that we are entitled to and we don’t have to settle. I hope people look at their options and think to themselves ‘hey, maybe I can do this too.’”
For more information visit: www.gametruckparty.com
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Franchising USA
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For veterans and their spouses interested in small business ownership, consider that successful franchisees are fundamentally different than entrepreneurs. While entrepreneurs are essential to the American economy, franchising provides an alterative for creating jobs and being the master of your own destiny. Many people with a military background gravitate towards well-organized systems, such as the franchise business model. The franchise industry has certainly responded by helping veterans enter the franchise industry with fewer barriers.
VetFran is a network of the International Franchise Association member companies thatofferfinancialdiscounts,training,mentorship and other incentives for veterans and military spouses. This is
a network of nearly 650 participating companies offering discounts on franchise fees, reduced royalties, credits for marketing, and other materials needed during startup.
VetFran recently revamped it’s website to make it easier to engage with member companiesandfindtheresourcestogetyou started. The VetFran Toolkit is an educational portal designed to teach you about the franchise industry, and supply resources to help veterans succeed in their business goals.
No matter what stage of the process you are, the Toolkit can help further your education in the industry. There are eight primary resources to help guide you through the process of franchising and increase your chances for success.
1. Franchisee Personality type Profile
This is an easy to use assessment tool that helps veterans determine their potential for success as a franchisee and identify and explore the types of opportunities at
which they may have the greatest chance for success.
2. An introduction to FranchisingThis will help a prospective franchisee understand the very basics of franchising with questions such as: What is a franchise? What are common franchise terms? What are the alternatives to franchising and the advantages and disadvantages of owning one? And what are the legal issues in franchising?
3. iFA Franchise UniversityThe IFA Franchise University is part oftheCertifiedFranchiseExecutiveprogram. There are free courses available on the basics of franchising. There is also the option to take the entire course andbecomecertified,whichwillgiveyou a comprehensive understanding of franchising.
4. making the Franchise Decision
This workbook is a tool to evaluate franchise opportunities. Once you
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vetFran: A gROWINg NETWORK OF FRANCHISE COMPANIES DEDICATED TO PROVIDINg OPPORTUNITIES FOR VETERANS AND MILITARY SPOUSES
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“the vetFran toolkit is an educational portal designed to teach you about the franchise
industry.”
understand the basics of franchising and some of the mechanics, the next stage may be the evaluation stage. At this point youwillwanttostartevaluatingspecificfranchise companies to determine the best fitforyou.
5. the Federal trade commission’s consumer Guide to buying a Franchise
The Federal Trade Commission, the nation’s consumer protection agency, has prepared this booklet to explain how to shop for a franchise opportunity, the obligations of a franchise owner, and questions to ask before you invest. This resource goes into much more detail about franchise laws and understanding Franchise Disclosure Documents (FDD).
6. the vetFran video LibraryThe VetFran video library is designed to support veterans in understanding and assessing franchising through video-based discussion from experienced veteran franchisees and franchisors. The videos cover the fundamentals of franchising, legalissues,franchisefinance,andmore.Featuring veterans in the franchise industry, these seminars offer best-in-class education from the perspective of industry leaders and Board Members of the International Franchise Association.
7. Financial and Other Small business resources for veterans
ThefinancialresourcessectionoftheToolkitprovidesfinancialandsmallbusiness resources that include state, local, federal, and public funding sources, verificationprocessforVeteran-OwnedSmall Business from the SBA and VA, and other general resources for veteran entrepreneurs.
8. the vetFran DirectoryThe VetFran Directory is a list over 650 plus VetFran member companies and their discounts for veterans and military spouses. You can search by industry or investment and view each company’s VetFranprogramintheirprofile.
vetFrAn mentOrShiP netWOrKOnce all the material in the Toolkit has been reviewed, VetFran is able to match interested veterans and spouses with a
mentor closest to their location of interest. Experienced franchise executives and franchisees have the opportunity to apply and become a VetFran Mentor.
A VetFran Mentor assists transitioning veterans with an understanding of the options available to them in the franchise sector. Such options may include franchise ownership, employment, internship or other roles to build a career after their military service.
Mentors must be available to listen to what the veteran is saying, inform by sharing information on franchising, help him or her understand and navigate various aspects of their journey, and in general, be a resource of unbiased and worthwhile information to help the veteran make the best decision for them and their future. All mentors have to satisfy a set of requirements and be vetted by the Chairman of the Mentorship Network to ensure the veteran’s best interest is in mind.
For more information visit: www.vetfran.com
