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Franchising USA
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fea
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JULY 2014
hoMe Franchise concepts
MiLLion doLLar Franchise event
www.franchisingusamagazine.com
What Business shoulD i start ?
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Franchising USA
50 Cover Story: Home Franchise Concepts Million Dollar Franchise Event
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 TJ U LY 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]
Expert Advice54 Answering the “What Business Should I Start” Question Darcella K. Craven
60 Are You Qualified to do the Deal? Jim Mingey
62 VetFran News Moving Forward Strategically
Profiles52 Marco’s Pizza
56 CruiseOne
58 Maui Wowi
64 Precision Auto Care
Franchising USA
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No one is more deserving of attaining the American Dream than the fearless men and women who have served our country in the U.S. Military.
Because of their experience, commitment to team efforts, and work ethic, countless companies work hard to recruit and hire our heroes, but one company in particular is going the extra mile to make Veteran’s dreams of owning their own franchise business a reality. Through a new incentive program dedicated to providing $1 Million in discounts towards the purchase of one of its franchise companies,
Budget Blinds® and Tailored Living®, Home Franchise Concepts (HFC) is thrilled to welcome ten new U.S. Veteran franchisees to their team. This discount provides deserving individuals the ability to translate the discipline, teamwork and experience gained from their military service into owning and growing their own business.
On Veteran’s Day 2013, HFC launched the Million Dollar Franchise Event, a commitment to give away $1 Million in discounts to U.S. Veterans interested in owning their own business. The program’s goal is to honor those that have worked hard protecting our country’s freedom and help them secure a promising financial future for themselves and their families.
With over 50 U.S. Veteran franchisees
MiLLion doLLar FranChise event
in their ever-growing team of franchise business owners, HFC’s Co-Founder and Chief Executive Officer Chad Hallock, truly values the skills military veterans gain while on active duty. Hallock states, “The training, discipline and teamwork instilled in members of the U.S. Armed Forces prepares every Veteran for a successful role as a franchise business owner. Our goal in creating the Million Dollar Franchise Event is to honor the men and women who have sacrificed so much for our country and provide significant financial incentives to make their transition into the civilian workforce smooth and successful for both them and their families.”
“Business ownership makes me appreciate the service I gave to this country because now I can translate my leadership experience into a valuable opportunity for myself,” said Rick Grimes, one of the newest Budget Blinds franchise business owners as a result of the Million Dollar Franchise Event.
After suffering a recent layoff and wondering how his military career could translate into the next chapter of his life, Grimes researched how his IRA might help him start his own business. Budget Blinds’ franchise model provided the
Rob Jones and wife christina chick, (both of the U.S. Air Force), Budget Blinds of the
oceanfront ,vA.
Franchising USA
kind of corporate support and financial opportunities that made Grimes confident in his ability to finance college for his children and be comfortable in retirement. Grimes is now leveraging the skills he gained through his seven year Army career in personnel management and operations to create a successful business focused on a “mission” of superior customer service.
Along the same lines, 34-year-old U.S. Army Veteran, Maurice Coombs, also came to Budget Blinds through the Million Dollar Franchise Event. During his military career as a generator mechanic and logistics coordinator, Coombs was able to study Business Management between combat deployments to Iraq, Saudi Arabia, and Afghanistan. With the desire to take control of his own career through business ownership, Coombs sought the support structure of a franchise system as he transitioned into the civilian workforce. Now serving Davie, FL, with his new Budget Blinds franchise, Coombs is using the leadership experience he gained through service to build his own business.
With the vision of running his franchise as a family business, U.S. Air Force Veteran Michael Dunn is another recent addition to the HFC family as a result of the company’s $1 Million commitment to support U.S. Veteran entrepreneurs. A 10-year military career afforded Dunn the opportunity to obtain a Masters Degree, spending the next 18 years in sales management in the computer hardware industry.
“Home improvement has always been a passion of mine, so I jumped at the opportunity to make a career out of improving the lives of other families through a window treatment franchise,” said Dunn. Now serving Killeen, TX, and Temple, TX, Dunn’s Budget Blinds business will be supported by his wife and two sons who will be assisting with administration and marketing.
With a history and passion for assisting U.S. Veterans and being recognized by Military Times and Franchise Business Review for achievements in supporting
Veterans and Veteran-related causes, HFC’s Million Dollar Franchise Event continues the tradition by granting military Veterans of all backgrounds significant discounts off the purchase of a Budget Blinds or Tailored Living franchise. The ultimate goal of the Million Dollar Franchise Event is to award at least 30 Budget Blinds and/or Tailored Living franchises to deserving veterans totaling $1,000,000 in financial discounts. In addition to the financial assistance, HFC also offers numerous support and mentoring groups, such as the Vets4Vets program that connects existing HFC veteran franchisees with new, incoming veteran franchisees in order to produce a mentoring relationship.
Home Franchise Concepts is proud to offer two very different business models under one roof. Tailored Living provides whole-home organization solutions offering franchisees an exciting hands-on business, ideal for design-minded Veterans.
Budget Blinds provides homeowners with
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Ryan wilde, Budget Blinds of east Raleigh, Nc – (U.S. Army).
Joel thode (U.S. Navy Reserves) and his wife Bailey thode, New Budget Blinds® veteran
Franchisees.
window treatments and room accessories, from drapes and plantation shutters, to pillows and rugs. Requiring no inventory storage, Budget Blinds appeals to Veterans seeking a low overhead business model with the option of operating as a home-based business.
Veterans can begin learning more about this unique opportunity and explore the application process by visiting www.BB4Vets.com or www.TL4Vets.
Marco’s Piz za
MarCo’s pizza sets goaL to raise $50,000 For veteransFrom Memorial Day, through Flag Day, June 14, Marco’s Pizza, celebrated 500 Strong, by honoring veterans and military families nationwide. During the three week period Marco’s stores accepted $1 donations to benefit USA Cares Jobs Assistance Program, a national nonprofit that provides financial and advocacy assistance to post-9/11 U.S. military families. The veteran unemployment rate is around double the general population, and donations will directly benefit veterans seeking employment.
The 500th location held its grand opening celebration on Flag Day, June 14 at Hoggard High across from the new store located at 2305 S. College Road in Wilmington, NC. The milestone location is owned by area representative and military veteran, Joe Walker. Walker spent four years in active duty serving as an Infantry Platoon Leader in Iraq. After leaving the military in 2008, Walker saw franchise ownership as an appealing option given the similarities between the military and franchising. This milestone location adds to Walker’s resume of owning and operating 11 locations with plans to open an additional three Marco’s Pizza stores this year.
“This is really an exciting time in our brand’s history, expanding across the country, entering new markets and opening our 500th location, with plans
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to open a total of 200 new stores this year,” said Bryon Stephens, Marco’s Pizza President and COO. “We share this milestone and our successes with our dedicated franchise partners and their hardworking teams - and of course with our loyal customers.”
With hundreds of veteran employees and franchisees in the system, Marco’s Pizza sees veterans as a great fit both as employees and franchise owners. Many of the attributes gained from military service such as leadership, attention to detail, working as a team, and following a structured plan directly translate to operating a successful franchise business. For this reason, and in celebration of the milestone 500th opening, Marco’s Pizza is determined to help 500 veterans find employment.
As members of the International Franchise Association’s (IFA) VetFran program, Marco’s Pizza is dedicated to help provide ownership and job opportunities to returning veterans. In conjunction with
the White House and the U.S. Chamber of Commerce, VetFran helped more than 151,000 veterans, military spouses and wounded warriors enter the franchise industry by the end of 2013, with nearly 5,200 as franchise owners.
Marco’s Pizza’s recipe for growth has been a combination of a robust authentic product, a strong community image, and a mission to delight customers. As the only national franchise chain founded by a native Italian, Marco’s Pizza has carved out a niche in the industry as experts in authentic Italian pizza, known for its fresh never-frozen dough made daily on site, a proprietary cheese blend that is fresh never frozen and a secret pizza sauce recipe. With 500 locations strong and more than 1,500 new franchise deals signed in 2013, the company is on track to quadruple its store count in the coming 5-7 years.
For more information visit: www.marcosfranchising.com or to donate visit: www.marcos.com/500STRONG
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Darcella. K. Craven, Executive Director, Veterans Business Resource Center
You guessed it. the most common question posed to me by transitioning military and veterans when they visit our center is “what business should I start?”
I must admit that I have come up with some pretty snarky responses over the last eight years. My favorite is “tape cassette recorders, retro is in”. In all seriousness, the real response is “it depends”. What makes you happy? What do you want to accomplish being a small business owner?
answering the
“What Business shoulD i start”
QuestionHow much money do you want to make? What kind of impact do you want to make in the world?
For that reason I push back and ask you to hit the pause button to evaluate priorities before trying to find a quick answer about what small business to begin. When we were in the service, we never just ran into a situation without scanning the environment. In fact, sometimes we over planned but that is a discussion for another day. There are a few steps you should take before deciding which business to start.
Step 1: Assess Your Reasons for Entering Small Business: When you are considering what business opportunity you are going to invest your hard earned dollars in. What opportunity you are going to bleed, sweat and cry over. What business you are going to potentially give up missing important milestones in your family’s life to do. You had better make sure it is something that you love. Something that makes you happy. Something that is going to achieve your ultimate goal whatever that may be.
ASk YouRSElf thESE quEStionS:
• Whatismyendgoalinstartingthisbusiness? You should know what the desired outcome is for you personally. Perhaps you want to make a specific
dollar amount or when your children have made it through college or you want to give back to a community. Knowing what the end looks like will help you determine which business opportunities might be right for you.
• WhatwouldIdoforfreeifmoneywere no object? Make a list of all the ideas you have in your mind. Review that list and whittle it down to three ideas that really make you smile. This is important because there are days when you might just be working for free and a smile is all you have.
• Askifwhatyouarecreatingisajobfor yourself? Creating a job for yourself is counterproductive to your happiness as an entrepreneur. We are Veterans. There are hundreds of initiatives designed to help us find employment. If you simply need a job to pay bills, there are many to be had. I am not arguing these are jobs you want to do or that will make you happy. This is exactly my point. If you are going to do something that is not fun, you do not like, and does not make you joyful, then let someone else worry about making payroll or keeping the lights on.
Step 2: look At Your Surrounding Community for this Answer: I am never surprised by how many people believe that they need
Darcella. K. Craven
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to reinvent the wheel in order to create a small business. The community in which you live is telling you what they need. Start with your immediate environment then look to the region and then nationally. Listen to your friends when they say “I wish someone would invent something to help me to….” fill in the blank. Have you noticed in the greeting card isle there are more 90th or 100th birthday cards? With the rising age of our population there are tremendous opportunities. Adult day care, computer education classes and mobilization concerns are a few that come to mind. Take a few days, no more than a few weeks, to scan your environment for opportunities. Read periodicals, watch or listen to news programs and pay attention to your surroundings. Your market is calling you.
Step 3: Decide on Ground-up or franchise: Once you have completed these exercises you can then begin to ask if you want to start one of these opportunities on your own or if there is a franchise system that already exists in which you can invest. If the answer is a franchise, then our business consultant Damon Chaffin, who has over 20 years of experience in developing strong franchises offers up this advice. “When looking at a franchise, you should be evaluating three things: 1) the brand, 2) the operating system, and 3) the ongoing support.” We rarely see few franchises that excel in all three areas. To determine which is right for you, Damon suggests the following actions:
• SpeaktoExistingFranchiseOwners.Contact as many existing owners as you can in order to determine if they are satisfied with the franchise, how they do financially, and if they would make the same decision. Look at how the brand is perceived in their marketplace; ask what tools are available to ensure success, and whether or not the organization is responsive to their concerns. A negative franchise owner is not a deal killer in and of itself, but if
“what would I do for free if money were no object? Make a list of all the ideas you have in
your mind. Review that list and whittle it down to three ideas that really make you smile.”
many are unhappy and/or doing poorly, this should be a concern.
• ObtainandReadtheFranchiseDisclosureDocument(FDD). This is an arduous task however the FDD is a legal document that explains the franchise – what each party is responsible for in the enterprise. This is a critical document that explains the franchise in legal terms. Pay particular attention to costs to open, fees, litigation, how territory is determined, and the earnings claim.
Step 4: Stay off the island of Me: Too many entrepreneurs isolate themselves during this process. They believe they need to have the exact answer before reaching out to get help. Remember, above all else you do not need to do this alone. There are strong organizations all around you to assist. If you need support with thinking through these exercises, determining if small business is right for you and what direction(s) you might choose, please do not hesitate to reach out. Organizations like those who create this periodical and the Veterans Business Resource Center,
are truly here to assist. We stand ready to assist.
If you do not want to do any of these things then my suggestion is “No really! Tape cassette recorders, retro is in.”
For more information: Website: www.vetbiz.com
Darcella K Craven has over 20 years of experience in corporate, government, non profit and military organizations. She is currently the Executive Director of the Veterans Business Resource Center, a nonprofit organization dedicated to assisting Honorably Discharged Veterans, National Guard and Reservist and Active Duty personnel and their families with transitioning back into civilian life with starting and expanding businesses.
An Army Veteran, she holds a Masters of Arts in Management from Webster University and is currently pursuing her Doctors of Management focusing on impact of military experience on small business decision making. Darcella has been featured in numerous articles for her transition from the military and the welfare system to an accomplished business woman and is actively involved in many civic organizations.
Franchising USA
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third annual “operation vetrepreneur: Become Your own General” franchise giveaway contest for military veterans began May 19.CruiseOne®, the nation’s leading home-based and military-friendly travel franchise as part of World Travel Holdings, celebrated Military Appreciation Month this May with the launch of its third annual Operation Vetrepreneur: Become Your Own General contest, which began on Monday, May 19, 2014 and continues until Friday, August 8, 2014. Five
deserving U.S. veterans will each receive a CruiseOne home-based travel franchise, a total value of $63,500.
“We not only thank our veterans for performing the highest call of duty by serving our country, but we also invite them to put their military skills to use in the civilian workforce by owning a travel franchise and making vacation dreams come true,” said Debbie Fiorino, senior vice president of CruiseOne.
The CruiseOne franchise contest is open to former members of any of the five branches of the U.S. military (Army, Air Force, Navy, Marine Corps and Coast Guard) who are retired, off active duty and/or honorably discharged prior to
the contest start date. To participate, candidates must complete an online entry form by Friday, August 8. The form and all contest details can be found at www.OperationVetrepreneur.com or on CruiseOne’s Facebook page, www.Facebook.com/CruiseOneFranchise.
There will be three rounds of judging as part of this contest. First, candidates will participate in a phone interview with a CruiseOne franchise development specialist. Semi-finalists will be required to submit a franchise application, business plan and resume, all of which will be scored by the CruiseOne executive team. Final candidates will be invited to participate in follow-up phone interviews before winners are selected.
in celebration of Military appreciation Month,
cruiseone® reWarDs MilitarY veterans
with Free Franchises
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Five grand prize winners will be announced in August 2014. Valued at $12,700, each grand prize includes a free CruiseOne franchise with a waived $9,800 initial start-up fee and monthly service fees. The new recruits will report for active duty in October, when they participate in weeklong franchise training at CruiseOne’s state-of-the-art world headquarters in Fort Lauderdale. Winners will be reimbursed up to $500 for their travel and provided with complimentary accommodations during the training program. Once their training is completed, winners will be armed with all the tools and knowledge that they need to start up their own CruiseOne franchise.
“Studies show that veterans are among the most successful business owners in the franchising industry and that approximately 250,000 transition out of the military each year,” said Tim Courtney, vice president of franchise development and ambassador of veteran affairs for CruiseOne. “We recognize this fact and proudly recruit military veterans to join our network when they return home. In fact, veterans appreciate our extensive training program and the flexible work-life balance owning a home-based business provides, enabling them to simultaneously be successful and maximize their family time. Operation Vetrepreneur is just one way CruiseOne supports military veterans.”
“Winning Operation Vetrepreneur and owning a CruiseOne franchise has been a tremendous experience. Through the Army I had the opportunity to travel the world and live overseas, and now through my travel franchise I get to help others experience the gift of travel by planning their vacations. In addition, I love how CruiseOne gives me the tools I need to succeed and I have the opportunity to spend more time with my wife, as well as work alongside her.” – Grant Springer, 2013 Operation Vetrepreneur winner and CruiseOne franchise owner.
A member of VetFran, CruiseOne offers many military veteran incentive programs including a 20 percent discount off the franchise fee and additional discounts for hiring former members of the U.S. military or active-duty military spouses as associates. The company aims to have 25 percent of its travel franchise system consist of veterans and their spouses by December 2014.
CruiseOne’s Vetrepreneur program will aid military veterans in finding work that will separate them from their past lives while still using the disciplinary skills they have acquired. This opportunity will enable military veterans to rise to success
in the travel franchise industry while still granting them time to also relax and vacation anywhere in the world.
Consistently recognized by leading industry publications as a military-friendly franchise, CruiseOne’s accolades include a number one ranking by Forbes in its “Top 10 Military Friendly Franchise,” inclusion on USA Today’s “50 Top Franchises for Military Veterans” and recognition as a “Top Veteran-Friendly Franchise” by Entrepreneur and U.S. Veterans magazines. For the past four years, CruiseOne was named to G.I. Jobs magazine’s Military Friendly Franchises® lists, which represents the top 10 percent of the nation’s franchises that are doing the most to support military veterans.
Military veterans with a passion for travel and entrepreneurism who are interested in working as a CruiseOne franchise owner, please visit www.OperationVetrepreneur.com or call 888-249-8235.
About cruiseone®Celebrating 22 years in business, the home-based travel franchise CruiseOne® is ranked in the top one percent of all franchises worldwide and is a member of the International Franchise Association. As part of World Travel Holdings, the world’s largest cruise retailer, CruiseOne franchisees are able to offer their customers the lowest possible pricing on vacations with its 100 percent “Best Price and Satisfaction Guarantee.” CruiseOne has received partner of the year, a top-ranking status, by all the major cruise lines including Norwegian Cruise Line®, Royal Caribbean International®, Celebrity Cruises® and Carnival® Cruise Line.
For more information on CruiseOne,
visit www.CruiseOneFranchise.com,
like CruiseOne on Facebook at
www.facebook.comCruiseOneFranchise,
and follow us on Twitter at
@CruiseOneBiz
Maui wowi
Maui WoWi CoMes to Carlsbad, California
Los Angeles Fire Fighter and Marine veteran adds Maui wowi business owner to his portfolio with his wife and family by his side. Robert and Lorraine Hinojosa and their three children are excited to join the Maui Wowi ‘ohana as the newest franchisees.
“Maui Wowi is what we have been looking for in a company and we look forward to making this into a fun and exciting time in our family’s lives.”
Maui Wowi Hawaiian, a well-known brand in Southern California that specializes in Hawaiian coffees and freshly blended fruit smoothies, is adding more fun to the area with a new franchisee in Carlsbad, California. The company has granted a franchise agreement to Marine veteran and Los Angeles fire fighter, Robert Hinojosa, and his wife Lorraine. Together with their three children, the Hinojosa family make up a powerhouse team.
The couple is hardworking, goal oriented, and ready for their next adventure. As they set out to find the perfect business to invest in, they knew that it had to be flexible to fit in with their busy schedules. Robert will continue to work in the community as a fire fighter but his schedule will allow time to run the business on his days off.
“Being able to run our own business and set our own schedule is great,” said Robert. “We find it very appealing to know that what we put into making Maui Wowi successful is what we will get in return.”
A company that accommodated their desire for flexibility was high on their list of criteria but Maui Wowi also fulfilled their top priority; allowing them to make it
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a family business with their three children.
“We came across Maui Wowi and instantly fell in love,” said Lorraine. “Maui Wowi is what we have been looking for in a company and we look forward to making this into a fun and exciting time in our family’s lives.”
Lorraine, who has previous experience in running a business, plans to put her knowledge to great use as they get started. They plan to bring the brand to their community with a mobile event unit known as the Ka’anapali Cart. The busy Southern California area has no shortage of events, creating lots of opportunities for the Hinojosa’s right out of the gate.
After a week-long training program held in Colorado where the international franchise company is based, the Hinojosa’s will have every tool at their disposal to set them up for success. The hands-on sessions are designed to give new franchisees real life experience and knowledge on how to build their business by using a system proven for over three decades. Robert and
Lorraine are well on their way to adding a little more of the Aloha Spirit to sunny California.
For more information: Website: www.mauiwowifranchise.com
For more information on Maui Wowi franchise opportunities, please visit http://www.veteransbusinessservices.us/product-item/maui-wowi-hawaiian/
About Maui wowi Hawaiian coffees & Smoothies Since 1982, Maui Wowi Hawaiian has embraced the Hawaiian culture and has been serving paradise in a cup since the day it began, over 30 years ago. From event carts, mall kiosks and stand-alone retail locations Maui Wowi Hawaiian offers premium, all-natural, gluten-free, fresh fruit smoothies, as well as gourmet Hawaiian coffees and espresso beverages. With over 450 operating units in seven countries, Maui Wowi Hawaiian has truly gone “Global” by adding an online store, shop.mauiwowi.com.
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3 great features of the IFG 50/50 franchiseLeverage your capital
We handle the paperwork
Create exponential growth
This is your opportunity to be in control ofYour Income potential
Your Capital
YourWork Schedule
While earning a well above average ROI!
IFG 50/50 franchisees provide short term workingcapital for small businesses by purchasing current,
quality invoices at a discount.
Thumbs up for the New Franchise Opportunity fromIFG!
Formore information:Tel: 800 387 0860
Email: [email protected]: www.interfacefinancial.com
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with all the franchise advertisements out on the market today, it gets a little confusing to confirm if you are really qualified for a franchise opportunity.
Learning about the structure of a franchise
offering and about the terminology before pursuing a franchise is very important. Most advertisements do not constitute an actual offering. Until you review the Franchise Disclosure Document (FDD) you really don’t know the exact details of any franchise opportunity.
Understanding what liquid capital equates too, and calculating your total Net Worth and how it applies to being considered for a franchise opportunity, is very important and can save you a lot of time in your
are you reaLLy quaLiFied to do the deaL?
franchise discovery process. All franchise organizations want potential candidates to have stability, both financially and professionally. Having liquid capital or savings to help you ramp up with a business is essential. Ask yourself “What am I going to do if in the first six months of my business I do not turn a profit, what funds will I use to survive?
A common statement I hear about funding a franchise opportunity is “If I have enough capital to cover the franchise fee, will this be enough to get approved for a franchise”. Starting any business requires you to complete a feasibility study to see if the franchise is a good investment and to understand if you wish to proceed with a franchise opportunity you always need to devise a business plan. Starting a franchise requires a franchise fee, considerable investment capital and on top of that initial fee, there are usually marketing and royalty fees and other costs.
Even if you are lucky enough to have all the capital to cover the total investment of the franchise opportunity, this may not be the funding route you wish to take. Capitalizing your franchise opportunity is the most important decision in the franchise decision process. Will I use my own savings? Will I use my 401K fund? Will I take out a loan and which one, what terms? Can I use a partner or get an outside investor?
Being realistic about this financial process is essential to look at before you even approach a franchise. VBS has
Jim Mingey, Veterans Business Services
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formed relationships with many franchise organizations and we are always prepared to inform all the Veterans we work with if they are qualified for any opportunity and teach them how to become a better qualified franchise candidate. We educate Veterans about the loan process and use resources to assist them in finding out if they are qualified for a loan to meet the capital requirements of a franchise. Our goal is to be as realistic as possible so the Veteran can clearly understand the risk reward process of owning your own franchise opportunity.
VBS identifies incentives offered by franchise organizations and offers incentives itself to assist Veterans with getting started with a franchise opportunity, but these incentives do not cover total capital required to start a business. You must either have capital, have assets which make you eligible for a loan and have a good credit background to qualify for a loan. Every franchise has different financial requirements to start a franchise and some have low franchise fees and low capital investment requirements, but almost all of the
franchises require an investment on your part and you have to be able to define how you will cover this investment.
Outside of the occasional Veteran franchise give-a-way promotion, most franchises require you to at least cover the franchise fee, and secondly be able to have capital to cover the operating costs of the business. Some of those costs are phased in over time with the franchise implementation plan but all the costs are due at some time so funding needs to be in place first before you are awarded a franchise. This is why it is important to have resources such as business mentors, finance specialists, legal support, and franchise experts to assist you with the franchise process. VBS assists Veterans every day with making their business goals feasible and realistic. As franchise brokers we assist every Veteran who comes through the process with current realistic information about the investment, we identify incentives, and we evaluate each Veteran to see if they financially qualify for any opportunity. Nothing can be misleading about a franchise opportunity because franchise organizations have to
provide the same franchise offering to every prospective candidate, including the incentives they offer Veterans and those incentives still have to be consistent in their FDD offering.
Please visit www.veteransbusinessservices.us to learn more about our services.
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
Jim Mingey
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Franchising USA
veteran News
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When a program is built that can withstand nearly a quarter century of political turmoil, several recessions and economic cycles, and countless changes in leadership, you know it has a culture and life of its own. The International Franchise Association’s VetFran program has done just that since its establishment in 1991.
After having served on this committee for nearly seven years, the past two as chairman, it’s easy to see why VetFran has not simply survived, it’s thrived. Today, the program includes more than 640 IFA franchisor members. Nearly
5,200 new veteran franchises have opened since 2011 as part of Operation Enduring Opportunity.
As we work to update and establish a sounder strategic plan, I wanted to share some of the ways we’ve found to help your brand move forward with VetFran in a more strategic fashion.
The most common question I get is: “I want to help and bring VetFran into my system, what should I do?” We certainly want to have every eligible franchise system fly the VetFran banner, but it goes well beyond simply enrolling, though
Moving ForWard strategiCaLLy tHE bESt StRAtEGIC INItIAtIVE IS tO LOOk At tHE VEtERAN COMMUNIty AS AN ExtREMELy StRONG ANd LOyAL CUStOMER bASE.
that’s the first step.
As in any strategic planning session, you must first understand the goal and what you want to see as a result of your investment in time and treasure to achieve your objectives. For new and long-standing participants in VetFran, I suggest these steps to help you identify ways to help veterans, as well as getting your brand aligned strategically with a phenomenal program:
1. Identify current veteran owners, managers, employees and spouses within your system.
2. Measure the performance of these owners to your non-veteran community.
3. Look at ways your brand can help support veteran customers or causes.
4. Build the system to engage and keep an open dialog with veterans and their spouses.
5. Establish long-range goals for system growth and potential business expansion to veteran’s groups.
Let’s look at these key steps in more detail along with a few suggestions for optimizing both the input and the output of this great initiative.
Identifying Your current veteran communityWithin your system’s ranks sounds simple, but most brands we talk to have no idea how many veteran owners they have, nor do they have any metrics on how many have joined under the VetFran umbrella, how much in grants or franchise fee discounts have been given, nor how many spouses or veterans work for their owners.
This is a key first step because knowing this community within your brand’s ranks will help you understand how well you are aligned with recruitment and growth among your veterans. We hear that
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anywhere from 5 percent to 20 percent or more of some brands’ ownership is comprised of veterans with 10 percent being a very common target for many. Given that veterans in the United States are approximately 7 percent of the overall population, this range of ownership is a solid figure. If your brand aligns well with veterans, you have the system in place to introduce and educate them about your brand, including strong unit economics, then the sky is the limit.
what we Measure, we MoveWe’ve all heard this axiom, and with many brands I talk with, they have no idea how well their veterans are doing compared to their average unit volume. In a report in 2013 by Franchise Business Review, the average unit volume among all veterans reporting was similar to those of any civilian-owned unit; however, the vast majority of veterans owned single units relative to the industry, therefore, deeper examination of the data is warranted.
Take the opportunity as you prepare your franchise disclosure document and gather information on average unit sales, gross profit or even net profits of your veteran community, as well as their hiring practices. Again, in this FBR report, veterans are much more likely to hire other veterans (30 percent more likely) and to support veteran’s programs. This is not to say veterans will certainly out-perform non-veterans, but while most entrepreneurs are known for being competitive, that’s very much the case with franchise owners. Veterans are also extremely competitive and want to do better than their benchmark in most cases.
Align Your Brand with veteransThere are many ways to help. We’ve seen and heard many stories from brands that offer a discount to veterans. I’ve personally benefitted from the occasional hotel discount, complimentary meal on Veterans Day or an ongoing discount
from brands that honor our veterans. This means a lot to the veteran community and they are extremely loyal to those who take care of them. If you have locations on or near military bases or around veteran communities, you already know this. But do you know you can go after more business in this channel?
There are some great sites to potentially integrate your brand into, like these (among others):
• Mylitter.com
• Military.com
• Veteransadvantage.com
There are also some fantastic cause-marketing aspects you can support that involve all of your owners and allow them to express their patriotism. For example, Sport Clips supports the VFW each year with donations made by customers, as well as their stores.
Many systems have seasonal or time-sensitive promotions on Memorial Day or Veterans Day that their owners can get behind, but be careful of getting caught in the clutter and consider other days where your brand can potentially stand out. For example, November 10 is the Marine Corps Birthday and means a great deal to Marines (of which I am one). If you own a dry cleaning, baby-sitting or home services (maid, window washing and so on) franchise, you could offer an incentive leading up to or after this great day. This would inspire the Marine community to utilize your business and not get lost in the clutter of the “big” veteran holidays.
A regular dialogue and discussion with your veteran community including spouses and employees not only helps you keep a finger on what their issues or individual challenges may be (health care, tax credits, financial incentives and others), but it will also help you understand how to better support and communicate to them. With TSS Photography for example, we conduct a breakfast meeting during our convention and occasional conference calls. We try
to mentor new veterans with existing veterans and support causes they feel are important to them or their territory.
Don’t end Your Support of vetFran with the Initial Franchise Fee DiscountEngage your vendors or suppliers, make sure you have some interaction with veterans on your social media presence and most importantly, create a conduit for discussing issues as they arise. For example, honoring local veterans as they come home from deployment (think of the National Guard or Reserve units that could also use help while on deployment) can be very beneficial to men and women who balance a civilian and military career. These are very real opportunities to align your brand with a cause and customer base that will appreciate you and help you grow your business.
Perhaps the best strategic initiative is to look at the veteran community as an extremely strong and loyal customer base. Whether it’s owners of your franchise, employees or spouses and children of veterans, having your senior leadership team engaged in this initiative and active with VetFran (www.vetfran.com) is the right thing to do, for our veterans, your brand and your bottom line.
Joe Lindenmayer is president and chief operating officer of TSS Photography.He serves as IFA VetFran Committee chairman. Find him at fransocial.franchise.org.
“we certainly want to have every eligible franchise system fly the vetFran banner.”
Joe Linenmayer
Franchising USA
Precis ion Auto care
what started as a small tune up garage in 1976 in Beaumont, texas has evolved into an international brand with more than 250 U.S. locations and another 80 centers operating in seven countries. Over the years, the Precision Tune Auto Care brand has been an appealing brand for our men and women transitioning out of the military and as noted, the PTAC
system is home to many franchisees who are veterans.
One of the most successful of those franchisees is Chris Cartisano, owner of Center 75-18 in Shelton, Connecticut. Military service has been a tradition in Chris’ family. Following in the footsteps of his father, uncle, cousin and grandfather, Chris served our country as a Marine from 1979 – 1985. When he first arrived at Paris Island as a young recruit, waking up every morning at 4 AM, he said that “Many mornings, I wondered what had I gotten myself into. But through perseverance, pride in my country and respect for the men and women who came before me, I survived.”
When Chris went into the Marines, he was not thinking about owning his own business when he got out. However, going through Basic Training and serving in the Marines, taught him that he could do much more than he ever realized or even considered. The confidence he gained while serving prepared him to do anything!
As Chris said, “After leaving the Marine Corp, I didn’t immediately jump into running my own business. I first entered drafting school while I was serving out my reserve duty. Later, I went back to school and pursued my engineering degree. However, it became clear to me that jobs like the ones I would be pursuing
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FroM Marine to FranChisee
Chris Cartisano Profile
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FroM Marine to FranChisee as an Engineer were being outsourced. I remember thinking to myself - if I’m not going to be outsourced, what industry should I get involved in?”
The short answer was “Cars.” Chris always had an interest in cars and figured that Americans would be driving cars for as long as he would be working and would need to have those cars maintained and repaired. Chris decided that if he was going to start his own business, exploring franchising would be a good start. He felt that anyone starting a new business should seek a proven and established franchise with the tools to help someone get a business up and running and help minimize costly mistakes.
This decision to get into the automotive aftermarket led him to Precision Tune Auto Care. Chris was only looking for franchises that had a strong historical track record and were not new to market brands. Precision Tune Auto Care had been in business since the late 70’s and seemed like the right fit. “While the reduced franchise fee for Veterans played a role in getting me to explore Precision Tune Auto Care, I quickly found out that with Precision as my franchise partner, I was going to be in business for myself but not by myself. I knew that I would have a team, the franchise, behind me to help support me or answer any of my questions when they come up. That type of team work is priceless to a small business in America today. “
When asked what the best part of owning his own business as a franchisee was, Chris replied, “Being my own boss and knowing that I’m responsible for how successful my company is going to be each and every day.” Chris knew that running his own business would not be easy. Even today, after nearly a decade in business, it is still challenging to make
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the time to study the numbers and make sure that cost of goods, payroll and other expenses are being managed so that he can meet his financial goals. Chris says “It’s my business. If I don’t look after it, who will?”
Chris told us you must persevere to succeed in business. “When things were bad in 2009 and 2010 I wanted to sell. I called the corporate office and asked them to buy me out, as I saw shops closing all round me. People were not spending money. The economy had really turned south. For a brief moment, I had forgotten how to persevere like they trained us to do in the military. It was not until I read an article in one of the PTAC communications written by the CEO about his boxing experience that rekindled the inspiration to persevere once again, you know the “never say die attitude.”
Chris knew he was in the proper industry and that he had the right ingredients for success and the right team behind him. He contacted the Precision Tune Auto Care corporate office for help. With assistance
from corporate, within a short time the business was back on track and once again a leader for automotive maintenance and repair in Shelton, Connecticut. Not only that, Chris is a leader in the PTAC system. His store has been in the Top Ten for sales for the past six years and the future has never looked brighter.
We asked Chris why he thought Precision Tune Auto Care has 26 percent Veteran ownership. Chris said “Commitment to helping veterans is ground zero. A commitment to help veterans coming out of the armed sources is the main attraction. Support them and help them succeed.”
Precision Tune Auto Care is committed to helping all their franchisees not just Veterans. Chris Cartisano is a just one example. There are many others. Precision Tune Auto Care has not forgotten those who served.
If you would like to find out more about the Precision Tune Auto Care system visit our website, www.PrecisionTune.com or call 703-777-9095 for more information.
“chris decided that if he was going to start his own business, exploring franchising would be a
good start.”
