One of the biggest misconceptions surrounding a veteran’s transition out of the military is that one will be happy in an environment where so many strive for mediocrity. I have found franchises to be one of the best transitional experiences for veterans because they re-establish what we are taught in the military: to go above and beyond and to always work for something better.

I became a franchise consultant because I wanted to purchase a franchise and found that veterans have limited access to the information that we need to do this. I found that the cards are stacked against us. Therefore, I have put together some FAQs that might help you while considering pursuing a career in franchises.

What are the advantages of purchasing a franchise over starting a business from scratch?

A franchise already has a successful and optimized system in place to train you. Start-ups, on the other hand, take more time and money because the optimal system needs to be refined over time. Working to grow a brand name will help you establish yourself better than start-ups in most cases. Franchises allow you to be in business for yourself but not by yourself, giving you the advantage of support from other franchise owners and the coaches from the headquarters.

Other advantages include:

• Reduced Risk – Proof of success is in place. There are many other franchisees with their ‘feet on the street’ so you can simply emulate the best.
• Structured Operating System – A successful formula has already been established for you, so you don’t have to re-create the wheel. There are training systems in place, operating manuals, legal letters, contracts, agreements, and other documentation already prepared.
• Advice & support - The franchisor is already in a position of experience and can help you easily find sales and marketing strategies, and continually adjust, change and improve systems to find the best and worst practices.
• Development costs are shared resources
• You will be privy to purchasing power

Is there a certain personality type you see best suited to franchising?

Some say that a dominant personality type is best for all industries while other experts in franchising believe that certain industries cater heavily to different personality types. The fact remains that the top earners in each industry come from all walks of life and have different backgrounds and personality types, no matter which personality test you go by. They all have a couple things in common though – motivation, pain, determination and perseverance.

What is the typical application/acceptance process like?

It starts with finding a model of doing business that fits your criteria to make you happy and comfortable with joining a franchise team. Notice I did not say brand. You may like to eat pizza but you may not like spending 80+ hours a week for a few years running the operations. You may like to golf but owning a golf shop where you spend all your time talking about it instead of playing it may make you lose passion for the game. I am emphasizing this beginning stage because this is where most get frustrated and lose hope. There are thousands of franchises out there and information is limited until you get to the later steps. It is a catch-22 and that is why franchise consultants like myself exist.

Since the process of finding a franchise on your own can look like gobbledygook, here is a simplified process I take people through.

1. Application and information stage
2. Presentation of franchise concepts that are available and fit the candidate
3. Introduction to selected franchise and franchise disclosure signing
4. Due-diligence period (no shorter than 2 weeks): This is the research period where you have access to the franchise data for evaluation
5. Discovery day: A trip to meet your future team and see a day in the life of the franchise (worth every moment)
6. Signing your agreement

If you’re going it alone, knowing how much you have to comfortably invest is the first step. Then read the FDDs for red flags and accuracy. Make sure to conduct all business research necessary on industry, location, competition etc. Good luck!

What are the average startup costs involved? Is financing available?

Costs for franchises range from 10k – millions depending on the brand and industry. Some offer third party financing to make things quick and easy. It is also easier for first timers to get financing because they are already successful systems and your agreement and franchise disclosure document is literally the template for your business plan.

I personally believe in home-based businesses. Low cost, low overhead and a better return once it is scaled up. They are great for first time business owners. 401K rollovers seem to be the most popular because of the tax advantages associated with them. It also allows you to pay yourself a salary while the business gets on its feet with those same tax advantages applied.

The SBA backed loans can take time to get approved but are great ways to secure a loan and defer some risk. Some franchises are SBA pre approved to cut down on approval time so long as you have the 25% liquid and a good credit score.

What are a few things those new to the industry should know? Are there certain things that come as a surprise?

People naturally hone in on fast food because when people say franchise, the burger joint or pizza place sticks out. Many don’t know that some of the highest earning and growing franchises in the world are in other industries. Maintenance, healthcare, cleaning and business services are often put off as un-sexy but they fit a majority of what people looking for a strong and secure business model.

When you are starting a business, there is a period where every dollar coming in goes back into the business. This is called the break-even period. Self start-up businesses can take years, but franchises have already done this a time or two. Be prepared to support yourself while the business cannot, as financing your living expenses can be a finicky subject with lenders. They expect that you put skin in the game.

Are there special franchising opportunities available exclusively to vets and military families?

There are businesses out there that give a great deal to veterans who come into their systems because veterans have the one characteristic all franchises search for in a candidate: the ability to follow a system. Many franchises give incentives worth tens of thousands of dollars to get veterans in.

There are very few franchises that are exclusive to veterans; the best franchises for vets are the ones that are willing to give extra effort to veterans. These franchises are practical in cost and can assist with translating skills from the military. They also re-introduce the veteran into a team and leadership role, giving a sense of belonging and a mission-orientated drive again.

Military personnel are often loyal to their units until the very end - thinking little of life outside the military until the day comes when they must leave. My blunt message to my brothers and sisters still in: ownership can make you happier than you can imagine but it takes time to plan and time to prepare with effort and drive. If you want to be the boss, make every effort available to you to prepare. Start a few years out, create forms of revenue because you need to establish the financial connection with the civilian world before you ever set foot in it. Hooah!

Additional Resources

www.stonefran.com - free consultants and franchise experts who provide you with every resource you require to make an educated decision

www.startupveterans.org - puts you in touch with veteran mentors to become part of a community

SBA.gov - gives insight into SBA backed loans and veteran programs

SCORE - offers free mentors (make sure to get one that has owned a franchise)

Your local Small Business Development Center can also go over some things with you concerning your business plan

Airborne!