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Franchising USA- Veterans In Franchising Supplement- August 2013

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Franchising USA- Veterans In Franchising Supplement- August 2013

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  • Franchising USA

    Page 41

    pOwer in numbers

    OperatiOn american Dream

    the ups store

    packs great incentiVes fOr

    Veterans

    fea

    ture

    veterans in Franchising

    the gOOD, the baD, anD

    the legal

    www.franchisingusamagazine.com

  • Franchising USA

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  • Franchising USA

    Page 43

    Our Veterans in Franchising special

    supplement has become a regular feature of

    Franchising uSA.

    TO SHARE YOuR STORY in the

    September issue, please contact

    Jenn Dean, Business Development Manager

    Phone: 250-590-7116

    Email: [email protected]

    44 The uPS Store Packs great Incentives for Veterans

    46 A Franchise How-to for Veterans

    50 The good , The Bad, and The Legal of Franchising Richard Ashe, Veteran Franchise Centers

    53 Operation American Dream Signal 88 Security

    54 Empowerment through Collaboration Dorothy Arndt, giftavet.org

    56 Totally Accessible Homes Monti Marsters, Totally Accessible Homes

    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 TA u g u S T 2 0 1 3

  • Franchising USA

    tHe UPS StOre

    As the worlds largest franchisor of retail shipping, postal, printing and business service centers, the UPS Store is a rapidly growing franchise.

    Starting out as Mail Boxes Etc. in the

    1980s as a convenient alternative to the

    post office, the company grew to 2,000

    franchises. In 2001, UPS acquired Mail

    Boxes Etc., Inc., and in 2003, introduced

    The UPS Store brand. Approximately

    3,000 Mail Boxes Etc. locations in the

    United States re-branded to The UPS Store

    and began offering the lower UPS-direct

    shipping rates. In 2004, the company

    sold more than 500 new The UPS Store

    franchise locations in the U.S. a record for the company and exceptional growth

    for a quarter-century-old franchise.

    Today, The UPS Store brand consist of nearly 4,400 independently owned

    locations in the United States, Puerto Rico and Canada. The company strives to provide the most convenient, high-quality

    business services to start-ups, small

    business owners and consumers. Non-traditional locations like college

    campuses, military bases, convention centers and hotels have also helped grow the franchise, creating opportunities to provide services to consumers, regardless

    of where they live, work or travel.In 2012, the franchisor, Mail Boxes Etc.,

    Inc., became The UPS Store, Inc. The centers remained locally owned and operated, and continued to offer their well-

    known world-class service. Throughout

    the companys history, there is one constant they have prided themselves on: their commitment to their franchisees. In recent years, veterans have begun to make up a large part of these franchisees.Working alongside the International Franchise Association with its VetFran Program since 2004, The UPS Store

    reduces the franchise fee by $10,000

    for qualifying veterans and spouses of

    active duty personnel for new locations, as well as takes 50 percent off the initial

    Ve

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    the ups store PACkS greAt InCentIVeS

    FOr VeterAnS

    Franchising USA

  • Ve

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    application fee. This is their way of saying thank you to veterans for their service to the country. As part of the Operation Enduring Opportunity, a national initiative to recruit or hire as many as 75,000 military veterans and their family

    members by the end of 2014, The UPS

    Store waived the franchise fee for 20

    qualified veterans last year.

    The UPS Store believes veterans make excellent franchisees because they are

    used to following an established system, theyre dedicated and hardworking. To date, more than $1 million in discounts

    have been given to veteran franchisees, which account for more than 250 of The

    UPS Store locations in the United States. Additionally, Tim Davis, President of The UPS Store, Inc., is a former United States Marine Corps captain and a Gulf War Veteran.It is humbling to see other veterans realize their dream of opening their own business, Davis says. Veterans have experiences that really apply to running

    a small business. They are accustomed to structure and the skills taught and nurtured in the armed forces: listening, problem solving, being able to think on your feet, laying out a mission, setting goals and executing.

    The UPS Stores franchise development team is dedicated to providing its franchisees with the tools they need to be successful. By completing over 40

    Web-based training modules introducing

    Franchising USAFranchising USA

    Veterans have experiences that really apply to running a small business. they are accustomed to structure and the skills taught and nurtured in

    the armed forces.

    them to The UPS Store system, followed by a 10-day University Business Course at

    The UPS Store offices in California, new

    franchisees are provided with instructor-

    led training on marketing, finances,

    printing and staffing management. New

    franchisees then spend two weeks placed in an In-Store Experience, where they will

    work alongside a certified trainer to learn

    the daily operations.The UPS Store franchisees not only benefit

    from a recognized top retail brand name, but they also receive national and local advertising support, dedicated support and tools, and corporate retail solutions. Records show that approximately 34

    percent of The UPS Store franchisees own more than one franchise location, due partly to the companys reduced franchise fees and world-class training.

    The startup costs for a franchise vary based on size and location. The total initial franchise cost to operate a new The UPS Store franchise at a traditional location ranges from $148,734 to $347,241*.

    Franchisees must meet The UPS Store minimum financial requirements and be

    in a position to provide capital for the

    franchise investment, including working capital and living expenses during the

    set-up period. All potential franchisees

    are also required to prove a minimum of

    $60,000 in liquid assets.

    In 2013, Entrepreneur magazines

    annual Franchise 500, a ranking of

    franchise opportunities based on factors like financial strength, growth rate and

    size, rated The UPS Store/Mail Boxes Etc.

    number one in the postal and business services category for the 23rd consecutive

    year. In 2012, The UPS Store ranked in

    the top ten percent of Military Friendly Franchises by GI Jobs Magazine, and in 2011 Entrepreneur magazine placed

    the company at number two for 10 Most

    Popular Franchises for Military Veterans. The company also has an ongoing history of award-winning marketing and public

    relations campaigns.For more information, visit

    www.theupsstorefranchise.com.

    * These figures are subject to change; see Franchise Disclosure Document (FDD) for current amounts. Meeting the minimum liquid assets requirement does not guarantee approval or award of a The UPS Store franchise.

    Page 45

  • Franchising USA

    Whether you are a neophyte or experienced veteran to franchising, there are a lot of things to consider before you buy into a franchised brand.

    The decision points are different if you are opening your first location or your

    fifteenth, but you might be surprised

    by the similarity of the criteria. Here are some helpful steps to follow when considering a franchise transaction:

    do thorough due diligenceThis may sound obvious, but the best advice I can give is to read the Franchise Disclosure Document (FDD) in its entirety. The industry has changed significantly in the last 30 years. FDDs

    used to be fairly short documents, but they have grown in scope as a litigious society has taken over. The FDD is there to protect you, the franchise partner, and the franchisor, therefore It is imperative you understand the partnership you are entering into. The FDD should be used to discover: key

    personnel in the organization, existing

    ownership of the franchise, the lawsuits that may be filed against the franchisor,

    and the location of all stores. In addition, read the Earnings Claim (and build your own business plan using the information provided), find phone numbers

    of existing franchisees (and call several of

    them) and learn how many company stores are owned. Visit stores and ask questions.

    Your research will help you make an educated decision. Make sure you spend an equal amount of

    time reviewing the Franchise Agreement (FA) when you receive it. You should have it reviewed by a lawyer or a trusted advisor who is knowledgeable about franchising. Do not be afraid to ask for advice and help., many franchise owners are eager to share their knowledge and experiences.

    evaluate the business model Sometimes people are motivated to go into business based on their previous hobbies. Be sure you are making a business decision and not an emotional choice. Lets say a man has always loved model

    trains. He finally finds a franchise business

    that has a

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