Franchising: A Systemized Approach to Business
by Chris Loudermilk, CFE, Franchise Consultant at Aire Serv LLC
Article Sponsored by: Estes
Franchising boasts some amazing statistics, such as more than 300 franchises sold every week and one in every 12 businesses in the U.S. is a franchise. Franchises also stimulate America’s economy, as they employ more than 18 million Americans and account for about 50 percent of all retail sales.
If you’re wondering why people invest in a franchise, consider how most studies show that 80 percent of small businesses fail within the first five years of opening. However, only 10 percent of franchises fail within their first five years of business. It is a pretty daunting statistic, but a lot of people who are thinking about opening a small business look into franchising just because they have a much better chance at success.
Franchising is a systemized way of doing business. The franchisor has invested a great deal of money to make sure the systems and procedures they have for their franchisees work. That encompasses everything from marketing and financing to legal counsel and human resources. Another benefit is having a collective pool of intelligence. The veteran franchisees at The Dwyer Group, Inc. enjoy being able to call a neighboring franchisee and asking for help or advice. Buying power and brand recognition are two major factors as well. A franchising company can buy the goods they use for business much cheaper than an independent contractor.
Now that we know why people get into franchising, let’s talk about the VetFran (Veteran Franchise Initiative) program. VetFran was started by the late Don Dwyer of The Dwyer Group at the end of The Gulf War. Since 2003, VetFran has helped more than 1,400 veterans start their own franchises. Dwyer was in the Army for a brief time, and the military was something near and dear to his heart. Bottom line, VetFran gives veterans a substantial discount on buying a franchise. When Dwyer started the program he saw many vets coming home wanting to start a business, but they didn’t have the sufficient funds to do so.
The benefits of participating in VetFran to start a franchise include:
- A percentage off the purchase of the franchise
- Preferred financing with lenders
- Discounts on start-up materials
- Vendor discount programs specifically for veterans
There are many ways to find franchisors that are participating in VetFran, but the easiest is on the IFA website www.franchise.org.
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