Veterans: Be Cautious When Pursuing a Franchise Opportunity
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.