Message
from the Founder:
Dear Veteran,
Today’s Armed Forces
personnel are not just respected for what they have done and
are doing. They are also rightfully being recognized as the
heroes that they are. They have selflessly given a great deal
to their country and now, thankfully, their country is reciprocating.
It is especially rewarding to see people thanking servicemen
at an airport or on the street. As a former vet myself (details),
I am keenly aware of the challenges that returned veterans
face in finding new careers that can excite, motivate and
inspire them to greater heights.
The franchising industry is no exception to this sense of
appreciation. Franchises4Vets.com
today lists over 250 franchising systems that are making special
concessions to recent veterans in acknowledgement of their
service to their country. These concessions range from often-significant
reductions in the franchise fee to waiving or significantly
reducing royalty payments until the new franchisee is up and
running. Still others offer a credit against the Grand Opening
of a store, special in-house financing of the investment,
a discount on the iinitial order from the franchisor or any
number of creative ways to reward servicemen for their sacrifices.
These front-end inducements can be extremely inviting to the
untrained eye. But it is critical that prospective franchisees
not focus solely on the fact that there might be an initial
short-term savings of $10,000 or $20,000 from investing in
a particular franchise. Instead, it is absolutely essential
that to evaluate each franchisor’s entire program from
every angle, a job that we at Franchises4Vets are happy to
assist you with. Ask yourself questions like
- Is their product/service viable
over the long-term?
- Do they have a competitive advantage?
- Do they provide adequate initial
training?
- Does the franchisor provide superior
on-going support for their franchisees?
- Would existing franchisees make
the same decision to invest today if they had the opportunity?
- Are franchise fees and royalty fees
competitive within the market segment?
and so on. The due diligence process
cannot be short-circuited just because one
franchise is offering a $5,000 discount over a (possibly)
more qualified competitor. What if the long-term prospects
are better with the competitor? This is a time and energy-consuming
process. Take your time and make absolutely certain that you
have fully explored all of the variables that will determine
your long-term success as a franchisee.
The difference between a hasty, gut-felt investigation and
an exhaustive, well-thought out investigation is the difference
between a poorly-conceived, even fraudulent franchise and
an exceptional one. There is a strong correlation between
the efforts you put into the investigative process
and the ultimate degree of success you will enjoy as a franchisee.
The process is to investigate, evaluate and negotiate. Don’t
try to bypass any one of these elements. You only get to make
this life-changing investment once, so make sure you do it
right.
A special thanks to the International Franchise Association
for forming the Veterans Transition Franchise Initiative (VetFran
- www.VetFran.com).
Over the years, the VetFran Program has been responsible for
awarding over 1,500 franchises to veterans. I think everyone
in the industry fully appreciates the lead role that the IFA
has taken to recognize the contributions and talents of our
servicemen and properly rewarding them for their service.
In closing, I’d like to reiterate that you only get
to make this life-changing investment once, so make sure you
do it right the first time.
Good luck and Godspeed.
Robert E. Bond
President, World Franchising Network |
