Franchising USA - Veterans Supplement - December 2013

DECEMBER 2013

Veterans in Franchising www.franchisingusamagazine.com

tips for

starting

a franchise

Lobbying

for Business Benefits

Operation

Vetrepreneur Franchising USA

feature

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MAKE YOUR NEXT CAREER MOVE . . .

A BUSINESS OF YOUR OWN!

Maybe it's time to take control of your future.

One way to accomplish that goal is to own a franchise.

Let us help you – we provide a “Free” franchise matching service for Veterans.

To get started, visit our website: VeteranFranchiseCenters.com

No Cost – No Obliga�on

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V eterans in F ranchisin g S upplement DECEMBER 2013 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the JANUARY issue, please contact Jenn Dean, Business Development Manager Phone: 250-590-7116 Email: jenn@cgbpublishing.com

Contents 66 Veteran’s News 68 Tips For Veterans Starting a Franchise Chris Cancialosi, gothamCulture

70 Why Military Veterans Make

Successful Franchisees Tim Courtney, CruiseOne

72 Veterans Business Services Gets

“Front and Center” with President Bush Veterans Business Centers

73 Rowena Snead: Profile Kevin Blanchard, VetFran

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V etera ns i n Fra nch isi ng

what’s new!

This Veteran’s Day CruiseOne® Announced Five Winners of “Operation Vetrepreneur: Become Your Own General” Contest Winners received free franchise and attended training featuring government officials This Veteran’s Day, CruiseOne®, the nation’s largest home-based and military-friendly franchise travel agent network as part of World Travel Holdings, announced the five winners of its second annual nationwide contest “Operation Vetrepreneur: Become Your Own General.” The winners received a free travel franchise valued at $12,700.

The annual contest was open to former members of any of the five branches of the U.S. military (Army, Air Force, Navy, Marine Corps and Coast Guard) who are retired, off active duty and/or honorably discharged prior to the contest start date this past Memorial Day. Candidates participated in a rigorous three-part application process which included creating a business plan and phone interviews. More than 300 applicants from 40 different states submitted applications for “Operation Vetrepreneur.” This year’s winners included Doug Robinson of Hattiesburg, Miss.; Frank Griffith of Lorain, Ohio; Grant Springer of Edgewater, Md.; Tara Fuentes of Canton, Ga.; and Ted Coates of Baltimore.

“Military veterans are vital to our country’s success, both socially and economically,” said Tim Courtney, Vice President of Network Development at CruiseOne. “More than one million veterans will be transitioning out of the armed forces in the next two years and franchising provides them with the perfect opportunity to demonstrate their leadership and military skills in a civilian workplace.”

The winners are attending a weeklong

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Operation Vetrepreneur: Operation Vetrepreneur winners Frank Griffith, Grant Springer, Ted Coates, Tara Fuentes and Doug Robinson. Photo Credit: Robert Auclair

November Training Class: The Operation Vetrepreneur winners (in blue) with other new CruiseOne franchise owners at a weeklong training seminar at CruiseOne’s world headquarters in Fort Lauderdale.

training at CruiseOne’s world headquarters in Fort Lauderdale and were honored with a special ceremony featuring city and state officials.

A member of the International Franchise Association’s (IFA) VetFran initiative, CruiseOne proudly supports military veterans and is consistently recognized by leading industry publications as a militaryfriendly franchise. With military veterans accounting for more than 15 percent of its franchise owners, the company’s accolades include a number one ranking by Forbes in

its “Top 10 Military Friendly Franchise” and inclusion on the “Top 100 Vet-Friendly Franchise” lists by Franchise Business Review and 1851, in addition to being named a “Top Franchise for Veterans”

by Opportunity World. For the past four years, CruiseOne was named to G.I. Jobs magazine’s Military Friendly Franchises® lists, which represents the top 10 percent of the nation’s franchises that are doing the most to support military veterans.

For more information: Website: www.CruiseOneFranchise.com.

Vets Find Brand Appeal According to data from the International Franchise Association, one in every seven franchises is owned by a veteran. The quick-serve industry is home to a good portion of those former military personnel, and a recent survey by the Franchise Business Review sheds light on which brands do the most for veterans.

The restaurant industry ranked as the second most popular choice for veterans in the Review’s annual Veterans & Franchising report. “Food, I think, more than any other industry in franchising, is obviously very specific to operations and being a good operator,” says Eric Stites, CEO of the Franchise Business Review. “I think those same skills are very common among veteran franchisees.”

Of the restaurant brands within the top 25 best brands, quick serves like Kona Ice, Auntie Anne’s, and Firehouse Subs outshined full-service brands. “Those companies have great satisfaction with all their franchisees, not just their veteran franchisees,” Stites says.

To measure franchisee satisfaction, the Franchise Business Review’s survey asks respondents to rate the training and support, the operational procedures, innovation, senior management, community, financial opportunity, and more. Stites says that, of all those considerations, community may play the biggest role.

“Veterans are very operationally focused and used to following a plan, but I also

think culture is a huge component of that as well,” he says.

For more information:

Website: www.franchisebusinessreview.

com/content/Top-Franchises-for-Veterans2012

Advocates Lobby for Improved Business Benefits U.S. Rep. Bill Flores took a seat for a veterans’ affairs subcommittee hearing on economic opportunities for veterans at Baylor University. Speakers lobbied for improved educational and business benefits for veterans wishing to become entrepreneurs or enroll in college.

Business leaders and college officials advocated for Congress to boost financial support available to veterans who are pursuing higher education and entrepreneurship in a recent Veterans Affairs subcommittee hearing led by Rep. Bill Flores. The hearing focused on improving economic opportunities for veterans. Panel members who testified included representatives from The Dwyer Group, Texas Veterans Commission,

Texas Workforce Commission, Baylor, McLennan Community College and Texas State Technical College.

Several of the ideas proposed were aimed at making it easier for veterans to become business owners. Mary Kennedy Thompson, president of Mr. Rooter Plumbing and Vice President of International Relations for The Dwyer Group, suggested a 50 percent tax credit on franchise fees, capped at $25,000, to help veterans wanting to start a franchise business.

Army veteran Joseph Kopser lobbied for Congress to create a grant program that would give veterans $1,000 in matching funds for every year of service as seed money to help start their own businesses.

Kopser retired from the Army this year after 20 years of service and started transportation mobile app RideScout, but said he called on military friends to raise the capital to fund the venture.

“We have served for five or 10 or 20 years, serving and protecting the American dream of free enterprise. Now it’s our turn to participate in the system,” Kopser said Flores, a Bryan Republican, chairs the House Veterans Affairs subcommittee on economic opportunity. He said he hopes to incorporate some of the perspectives in crafting legislation that could lower veteran unemployment and boost the economic opportunities and impact service members can have after leaving the military.

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Chris Cancialosi, Ph.D, Managing Partner and Founder at gothamCulture

T ips for V eterans

Starting a Franchise When I deployed to Iraq in 2003, I was aware of how ambiguous a situation I was heading into. The Army had obviously prepared and trained me well, but what you find when you actually hit the ground in a combat zone is anyone’s guess and things can change from moment to moment.

When I returned home in 2005, the confidence and skills I developed while overseas led me to quit the corporate job I had before I left and to strike out as an entrepreneur. While many veterans,

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particularly those who have been in the service for a long time, might be unsure of what civilian life holds for them, they should rest assured that their military training is ideal preparation for the business world. Entrepreneurship specifically requires courage under fire and the ability to forge head-on into the breach. Below are some thoughts and suggestions, drawn from my experiences, which veterans might consider when deciding how to tackle building their business or franchise after they transition into the civilian world:

There’s No Such Thing as a Nontransferable Skill I often hear veterans say, I know I’ve gained invaluable experience and skills in the military, but I’m not exactly sure how that fits into a civilian business context.

The beauty of building your own business is that you can make it whatever you want, and you don’t really have to know at the

onset how your skills directly relate. My advice is to dream big – take what you believe is important to contribute to the world and how you plan to make that contribution on your own terms, and know that whatever challenge comes your way you’ve already been trained for it. When my business partner and I first started out, our resources were so limited we held meetings in coffee shops and basically were the end-all-be-all of our business. We rolled up our sleeves and did everything from finding our first clients, to developing internal processes for billing, to navigating a competitive market, to taking out the trash. I learned how to do some of these things in school and in the business world, but I learned how to do them well in the military as well. That is where veterans have a huge advantage over most potential competitors. We aren’t afraid to take care of business and we aren’t above the dirty jobs.

“Regardless of the path you chart to entrepreneurship, don’t let a fear of the unknown stop you from making the leap.”

Remember Your Packing Protocol A member of my team recently told me a funny story. She and a friend, an Army Captain, were headed into an office building. To gain entry they needed their respective electronic key cards to pass through security. As she scrambled in her bag for nearly five minutes to locate hers, the Army Captain was well on his way into the office. He later commented that it was strange she didn’t have a system for where she keeps her important items.

That is true army training – being so well prepared that you know where to find the resources you need at any moment.

It’s a trivial example – knowing where your key is – but it can apply to starting your business. If you don’t identify possible flaws in your business model, your customers or, what’s worse, your competitors will point them out to you.

Knowing where your available resources are and how to access them at the right moment is a crucial part of starting your own business.

Your Colleagues Are Like Your Military Family In the armed forces, we have a deep understanding that all we do is in service of others and that is of particular value to us. Not only do we serve the citizens of the United States, but the unit and the people next to us in the foxhole. This spirit of service and humility in leadership translates well to leading in business, so apply it as you staff up your new venture.

Remember that a leader is not a leader without followers; so don’t undervalue your team. At gothamCulture, we’ve created a culture where trust is at the core of all we do, much the same way it was with my unit in Iraq. My employees trust me, and I trust them; every new employee

comes into an environment where he is valued and trusted from day one. Be sure not to selfishly use your team to accomplish your own goals. You won’t last long as an entrepreneur.

Make Your Standards Mirror Those You Lived By in the Military The military sets explicit, nonnegotiable standards. In the extreme, the expectation is that you accomplish your mission, no matter what. There is no “almost.” You commit to your goals and have to be a perfectionist in your execution. Maniacal pursuit of excellence is one of the core values at our company, and it has made us highly effective and competitive. Any moment we don’t uphold our standards is an opportunity for competitors to get a step closer. Everyone in the company knows this and plays their part. This is where considering a franchise may come into play. Franchises have mastered the systems and processes to deliver a consistently, high-quality experience to their customers. There are clear standards to follow and the recipe to success is well defined. These types of opportunities really beg for veteran entrepreneurs to dive right in and execute.

Your Team’s Makeup is Even More Important Than It Was In the Service In the military, you counted on people to perform in their various roles and responsibilities for the group to be effective. In the civilian world, many leaders can get too caught up in being liked rather than respected, but this is no way to lead. Use what you learned in uniform and be decisive in order to build effective teams. The success of your business depends on finding the right

Chris Cancialosi

people to help you and work for you. It may not be pleasant, absent strict military protocol, to identify underperformers and consider letting them go, but it’s crucial to success. Like in the military, you should always try work with underperformers to help improve their performance. But in the end, you have to call on your courage to let them go if they are unable or unwilling to deliver on the mission. Many leaders take too long to make these critical decisions, leading to lagging performance, increased threat from competitors, declined engagement and increased resentment the members of your team who are helping you really drive the business.

Regardless of the path you chart to entrepreneurship, don’t let a fear of the unknown stop you from making the leap.

There are many great support services out there for veterans who seek to make their mark as entrepreneurs in the civilian world and your skills and experience are unmatched. Our country needs you to continue your service and put your skills and experience to work.

Chris Cancialosi, Ph.D, is managing partner and founder at gothamCulture.

The team at gothamCulture focuses on identifying the underlying causes of organizational obstacles and assisting leaders in developing and executing breakthrough strategies to elevate performance.

For more information: Website: www.gothamculture.com

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Tim Courtney, Vice President of Franchise Development at CruiseOneÂŽ

Why M Veteran Successful Fran Franchising is a popular career choice for military veterans because historically they have been very successful in this career path.

Since 2011, more than 150,000 veterans, spouses and wounded warriors have

started careers in franchising according

to the International Franchise Association (IFA), and there are more than 5,000

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new veteran franchise business owners.

What’s more, a recent study by the IFA’s Educational Foundation found that one out of every seven franchise opportunities is owned and operated by military veterans.

owned businesses, and have owned their businesses for more than five to 10 years.

The secret to this success is that military skills translate well with operating a franchise, regardless of the industry.

Job creation, sales numbers and stability all indicate that military veterans are among the most successful business owners, especially when it comes to franchising. Recent studies conducted for the IFA demonstrate that military veterans in franchising are more inclined to recruit other veterans, earn five times as many gross receipts as veteran-

Leadership Veterans learn the true meaning of teamwork and what it takes to be a strong leader during their time in the military.

They learn how to make difficult decisions in tough situations, delegate tasks and act in a support role, when needed. Being a leader is not always making the easy decision, but making the right one.

“The secret to this success is that military skills translate well with operating a franchise, regardless of the industry.”

Military ns Make nchisees Operations Military veterans are used to following procedures with precision. Franchises operate very systematically with set procedures in place to ensure consistency across the board. When dealing with a franchise, you know what to expect regardless of location and owner. That is because of the processes and guidelines set in place by the franchisor.

Training In the military, veterans learn very specific skills to perform certain tasks

and the learning process never stops. The training system provided by franchise organizations makes it possible for military veterans who have no previous industry experience to perform well.

Military veterans are successful because they are used to learning new skills and implementing them in a timely, efficient and productive manner.

Chamber of Commerce and others.

Support

With more than one million military

Military and franchising organizations have a familial support system. Whether on the battlefield or in your franchise system, you are never alone. Franchising provides owners with a support system of other owners from whom to ask advice, as well as a corporate office providing back-end support, leadership and training.

There is a popular adage when it comes to franchising that states “you are in business for yourself, not by yourself.”

Tim Courtney

veterans transitioning out of the military

by 2015, franchising provides them with an opportunity to support the U.S. economy and apply their military skills in the

civilian workplace. More than 15 percent of our franchise network is comprised of

military veterans and they are among our

most dedicated, persevering and successful owners. If you have not already doing so, I recommend joining VetFran and begin

actively recruiting military veterans to join

There are more than 4,000 different franchising opportunities in multiple industries, and the most popular for military veterans include automotive, general services, food, residential/home services and business. At CruiseOne®, one of the nation’s leading home-based travel franchises as part of World Travel Holdings, our military veteran franchise owners make up 17 percent of our network. They have often traveled the world and are successful because of their first-hand knowledge of foreign countries and interacting with different cultures.

your franchise. As you can see, military

The IFA’s VetFran initiative also provides resources for military veterans to ensure their success in franchising such as financial incentives, training and mentor programs. More than 580 companies participate in this recruitment program, which has partnerships with the White House Joining Forces Initiative, VFW, the U.S. Department of Veterans Affairs, the Small Business Administration, the U.S.

major cruise line and many tour

veterans are successful franchisees and a valuable asset to your network.

A resident of Boca Raton, FL, Tim Courtney is Vice President of Franchise Development at CruiseOne®, the nation’s leading home-based travel agent franchise. As part of World Travel Holdings, one of the nation’s top travel retail networks, CruiseOne offers consumers the lowest possible pricing on cruise and land vacations through its relationships with every operators. In operation since 1992, CruiseOne is a member of VetFran and proudly supports military veterans. It is consistently recognized by leading industry publications as a militaryfriendly franchise.

For more information: Website: www.CruiseOneFranchise.com

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V etera ns Busi n ess Services

Veterans Business Services

Gets “ F ront & C enter ” W ith P resident B ush Veterans Business Services (VBS), a social enterprise for Veterans in Franchising, is a unique Veteran Service Disabled franchise consulting firm.

A graduate company of the Entrepreneurial Bootcamp for Veterans with Disabilities (EBV) at Purdue University, VBS had the good fortune to get to meet President Bush at the new George W Bush Presidential Institute.

President Bush, always a strong Veteran supporter, made a surprise visit to honor EBV companies participating in the recent EBV national conference in Dallas.

The Founder of VBS, Jim Mingey, is one

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of only a few Vietnam Veterans admitted to the EBV program. He was accepted in EBV in part because his business plan not only provides great service and value to veterans seeking to enter the franchise industry, but also funds a social enterprise mission which promotes opportunities for service disabled veterans and their families.

VBS is now featured on the Veterans Administration Entrepreneurial Portal.

VBS’s “Franchise Accelerator”™ tool was developed in part with funds provided by the VA. This new VBS tool has provided a national platform for service disabled Veterans who want to enter many aspects of the Franchise Industry, including single and multiple unit

ownership, franchise concept development or a custom developed, hands on franchise industry educational experience.

For more information: Website: www.veteransbusinessservices. us/

Rowena Snead

Profile

“Deciding to take a chance, she borrowed her mother’s car, scraped together the startup costs, and began operating her Coverall franchise in January 2009.” one more tour required for advancement, her last duty station assignment would be overseas in Okinawa. When faced with the fact she would have to wait several years for base housing to bring her young daughter along, she decided to forego her advancement and walk away from the stability she had all those years.

Rowena Snead spent 18 years in the Navy as a career counselor and “cryptologic technician” before using the VetFran discount to start her Coverall Health-Based Cleaning System franchise business.

During Snead’s time in the Navy, she was married, had a daughter, served several tours overseas and got divorced. With just

From here Snead went on to have a successful career as a facilities and construction manager in California. Then, in 2008, on a trip home to Kalamazoo, it became clear that her elderly mother needed daily assistance. Despite Snead’s comfortable life and great job, she again decided to “walk away” to go home and play the caregiver role for her family.

Suddenly Snead, who had always been employed and possessed an “awesome resume” (she knew this after years as a career counselor), couldn’t find work. The construction industry was decimated by the economic downturn and she found herself, at 48-years-old, living at home with her mother – with no money or even a car.

Familiar with Coverall Health-Based Cleaning System, a national commercial cleaning franchise, Snead soon learned of a local Coverall office. Deciding to take a chance, she borrowed her mother’s car, scraped together the startup costs, and began operating her Coverall franchise in January 2009. While the Coverall system provided training, business leads, and back office support which allowed Snead to focus on serving her customer, Snead’s personal experience as a customer of cleaning businesses helped her understand what was expected from her franchise.

Today, Snead has 13 employees and provides commercial cleaning for 22 customers, ranging from the manufacturing to medical industries.

While she still serves clients herself, what she loves most is mentoring and coaching her employees. Snead’s spirit, enthusiasm, and optimism continues to be a great inspiration for others veterans!

For more information: Website: www.coverall.com Email: kblanchard@franchise.org

Kevin Blanchard Kevin Blanchard served in Marines as a Combat Engineer, deployed to Iraq in 2005. On June 30, 2005, a roadside bomb in northwest Iraq hit him. This resulted in a left leg amputation, and 13 months in Walter Reed hospital. Since then, Blanchard has studied International

Business at the George Washington University, and an MBA at Catholic University. Today he works for the International Franchise Association’s VetFran Program. He is a strong supporter Veterans starting their own small business in the franchise industry.

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