“The right or license granted to an individual or group to market a company’s goods or services in a particular territory.”
This is the best definition of franchising we have come across. It is from Webster’s Dictionary. Although there is a formal acquisition process unique to each franchise, the franchisee acquires a “license” to operate the business. This process is similar to acquiring a driver’s license. As is the case with each State’s DMV you must follow certain guidelines of the franchisor just as you would obey laws when you are driving your car. We will cover this process in detail as we work with you in pursuit of your business opportunity.
You may have wanted to start a business of your own for some time. There are many positive attributes associated with operating an independent business. This form of entrepreneurship will take longer to get started as you develop your business plan. A franchise will not eliminate all of the stress associated with starting a business, but it can reduce it and save you time and money. As an example, let’s select one business category … automotive service and repair. Which has more value, a Midas franchise or an independent garage? If you opened an independent garage, how many and what type spark plugs would you purchase? A franchisor will not only tell you what your initial inventory should be, it will also provide what your inventory levels should be and provide national suppliers in order to properly service the makes and models of vehicles in your market. Franchisors provide:
- Immediate name recognition
- Proven operating systems
- Operations and training support for you and your employees
- Inventory management of parts and supplies
- Marketing support
- Point-of-sale management systems
- Real estate assistance
- And much more.
How can an independent business owner acquire this knowledge…? trial and error over time.
A franchisor provides the blueprint and tools to develop a business. You provide the hard work. With a franchise, you are in business for yourself but not by yourself. You also have the camaraderie of other franchisees who, like you, have invested in the same business. You share common goals and values.
There are more than 3,000 franchises in America covering nearly every small business category. Franchising is duplicating success. Each franchisor provides a road map for success in the form of the business model and an operations manual. The operations manual is no different from a military operations order or unit SOP. Both delineate how, when, where, what, and when to accomplish a mission. The difference with franchising is the mission is to make money! In an independent business, the owner must create his or her own road map. That process can be further complicated by roadblocks along the way.
Many veterans think operating a franchise will cost a million dollars and is well beyond their reach. There are hundreds of franchise opportunities available under $200,000. Financing with good credit and a quality business plan is achievable.
Acquiring financing starts with developing a business plan. A quality business plan for an independent business can be a lengthy process and end up being a lot of pages. Franchise business plans are easier because a lot of the information in them comes from the franchise company itself, where you have the greatest interest and the experience of other franchisees. A typical franchise business plan is roughly 12 – 14 pages with 2-3 years’ financial projections. An independent business plan can be 30 pages or more.
There are several options for financing your business.
- Loan – Home Equity/Commercial Loan
- Loan – SBA Express Loan
- 401K/IRA/TSP Rollover Funding Solution
Contrary to what you may think banks are loaning money, if you know which banks to approach. The SBA does not loan money. They guarantee a portion of loans at banks and other lending institutions and many of these institutions are veteran friendly. SBA loans are similar to VA homes loans. The SBA Express Loan or Veterans’ Advantage is an excellent program. This loan is up to $350,000. A bank will want a veteran to put roughly a 30% cash infusion into the business so the total maximum investment is roughly under $500,000. The good news is there are hundreds of franchise opportunities well under this amount.
Like you, our counselors are veterans. Each consultant has more than 20 years’ experience in franchising and business development. There are more than 3,000 franchise companies. Our goal is to match makers based on each veteran’s personal goals, aspirations, financial resources, and where they intend to live when they leave military service. In order to identify franchise opportunities specifically for you, we need to learn a lot more about you. We even want to know your hobbies. If we can tie a franchise to an interest you have you are going to work it harder and enjoy it even more. We will provide details on our process once we receive your contact information and email you our questionnaire. If you haven’t already provided your contact information, click here. One of our counselors is ready to guide you through the process of taking control of your future.