You are not alone if you are a veteran considering purchasing a franchise. Veterans own thousands of franchises, and the U.S. Department of Veterans Affairs supports franchise ownership as an option for former military service members and officers interested in starting their own businesses.
The VetFran Program of the International Franchise Association (IFA)
Participating franchisors in the IFA's VetFran program provide discounts and other financial incentives to veterans who have been honorably discharged from the United States military services.
The VetFran program now has over 600 franchisors participating. The IFA assigns up to five stars to participating franchisors, with higher ratings reflecting the IFA's assessment of the franchisor's dedication to VetFran values.
Of course, in addition to studying these evaluations, veterans interested in VetFran franchise possibilities should conduct their own complete research.
Small Business Administration (SBA) Veteran Funding
This loan is a common way to finance a franchise. The SBA Loan was designed to lower the risk for the lenders via a guarantee on the principal. The SBA Loan was a program of the U.S. government to assist with risk. If there is real estate involved, a part of the loan is directly funded by the government.
Patriot Express Loans
The SBA recently began offering Patriot Express loans to military families who want to start or grow a small business. If you are a veteran, an active-duty servicemember under the Transition Assistance Program, a service-disabled veteran, a reservist, a National Guard member, or the spouse of those listed above, you can apply for the Patriot Express Loan.
Additional funding options
- Conventional Loans
- Franchisor Leasing
- Retirement Plans
- Direct Franchisor Financing
If you have questions about buying a franchise or would like more information about veteran benefit programs in franchising, please schedule a quick call with me.