A number of franchisors are offering financial concessions to veterans interested in purchasing a franchise. Veterans need to look before they leap.
As returning U.S. veterans continue to face a weak job market the opportunity to purchase and operate a franchise is an attractive option. In order to facilitate this option, numerous franchisors have constructed special programs for veterans. These programs can include a reduced franchise fee, waiving the entire fee or reducing royalty payments for the first year. If you’re a veteran with a desire to invest in a franchise, avoid getting caught up in the hype and take a cautious approach.
If your intent is to purchase a franchise here is some advice:
You’ll be exposed to franchise opportunities at franchise shows and job fairs. Take a conservative approach and don’t jump at the first opportunity.
Learn about franchising by visiting the FTC, AAFD and IFA websites. There is a wealth of information available on the Internet. I offer a digital version of my book The Franchise Buyers Manual to veterans for free. E-mail email@example.com if you’re interested.
Identify your financial resources and don’t risk it all. Although a franchise can minimize the risk compared to a new business start-up, franchisees do fail.
Although you’ll receive financial concessions, don’t let that change how much you’ll invest in a franchise. Just because you may pay a reduced franchise fee, you’ll still need to invest additional capital.
Be sure to follow a franchise process when you start your franchise search. Don’t cut corners and be sure to speak with existing and former franchisees from the franchises you are evaluating.
- Operating a franchise business will be less structured compared to the environment in the military. Be sure to consider the transition.
- Consider working a few days at a franchise you’re interested in so that you can gain a sense of how the business functions. Many franchisors might be willing to provide this concession.
Engage the services of an attorney with franchising experience. You’ll be investing your hard earned money and you’ll want to have professional advice.
If you’re a veteran with an interest in franchising, make sure that you proceed cautiously and follow the advice of a qualified attorney before purchasing a franchise.