Part 3 of 3
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Veterans in Franchising www.franchisingusamagazine.com
FastSigns Seeks Qualified Veterans
Top 100 Franchises for Veterans
Franchising and the White House Joining Forces
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Take command of your future with ServiceMaster Clean
®
Realize your dreams Combine your knowledge and leadership experience with ServiceMaster Clean and become a part of one of the country’s largest cleaning networks. Our team is dedicated to help you succeed with sales and marketing assistance and one-on-one support from our dedicated staff. After all, we have been franchising for 60 years. Financing is available. Ask about our military discount.
800-230-2360 ownafranchise.com Financing is available through ServiceMaster Acceptance Company, a subsidiary of The ServiceMaster Company, to credit qualified individuals. © 2012 ServiceMaster Clean. All rights reserved.
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V e t e ra n s i n F ra n ch i s i n g S uppl e m e n t P art thr e e of T hr e e
Contents
Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the July issue, please contact Jenn Dean, Senior Sales Executive Phone: 250-590-7116 Email: jenn@cgbpublishing.com
36 The SOPs of Franchising Jon Rucker, VetFran, VetFran, Snap-On Tools
48 Franchising and the White House Joining Forces International Franchise Association
38 Award-Winning Franchise Seeks Qualified Veterans FastSigns
54 Marine Training Pays Off at Tax Time Madelyn Insley, Liberty Tax Service
42 Financing Your Start-Up Business or Franchise Richard Ashe, Veteran Franchise Centers 46 From Camo to Kilt Megan Nemeth, Men in Kilts
56 Today’s Top 100 Franchises for Veterans Franchise Business Review
Veteran Franchise FOCUS 50 Service Brands International
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Veteran Profiles
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V e t erans in Franchising
The SOPs of Franchising “Not only is it “smart business” to reach-out to our veteran community with these amazing franchise opportunities, we feel it’s the “right thing to do” for those who have sacrificed to serve their country.” As military members we participated in and were surrounded by a “franchised business model” every day we wore our uniform; whether we realized it, or not. We may have called that model something like a regulation, instruction, or standard operating procedure (SOP)… a system of rules and guidelines, established for successful mission accomplishment. Believe me, I don’t remember doing ANYTHING in the military without an SOP to tell me what (and how) to do it. To accomplish our missions, we expected the same result (and means to get there), regardless of geography or personnel. The system was in-place and already established. We just needed to follow the SOP. That is a franchise model. A franchise is your OWN business, but the rules on how to successfully run your business have been developed by the Franchisor through a structure of tried and true measures, checks and balances, and a proven system. Regardless of branch of service, or jobs held, almost every one of our military veterans have an intrinsic skill set of self-
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discipline, desire for excellence, integrity, teamwork, and the uncanny ability to follow an SOP to accomplish the mission. This skill-set is the same as our most productive and successful franchisees, so it makes perfect sense why more than 530 franchisors (through the IFA’s VetFran Program) are actively seeking veterans to fill their franchise concepts and ranks. Not only is it “smart business” to reachout to our veteran community with these amazing franchise opportunities, we feel it’s the “right thing to do” for those who have sacrificed to serve their country. One of the most important steps in buying a franchise business is to “do your homework!” Due diligence is imperative. Gather as much good information (from reliable sources), as possible, to ensure the decision to go into a franchise business meets your personal and professional goals. To learn more about franchising, I always recommend starting with the IFA’s VetFran Toolkit: Online franchise help for vets. Launched by the International Franchise Association, the Toolkit includes a Franchising 101 course, fundability app, and workbook to help you evaluate franchise opportunities. A mentor network is also available for users. The service is part of IFA’s Operation Enduring Opportunity efforts to recruit 75,000 veterans and spouses, plus 5,000 wounded warriors, as franchise owners or
Jon Rucker
franchise employees. Once you have found a franchise you are interested in you can contact them through the VetFran Directory. Most franchisors take prospective candidates through a “discovery phase” where the process is laid-out clearly and concisely. Once again, before getting to this point, it’s imperative to do your homework to ensure the decision of franchise business ownership will lead to getting you one step closer to meeting your personal and professional goals. Our VetFran Community is dedicated and willing to help you realize your dream of business ownership. On behalf of that community, we genuinely thank you for your sacrifices and truly appreciate your service. Jon Rucker is Vice Chair of the VetFran Committee, Military Programs Manager for Snap-On Tools and a United States Air Force Veteran. For More Information: Web:
www.vetfran.com
Maurice Welton After graduating from college in 1992, Maurice Welton served in the military from 1997 to 2003. By the end of his time in the Army, he was an E5 Sergeant, after working as a Cook (92G) for the first four years, and a Food Inspector (91R) for the last two years. After leaving the Army in 2003, Welton worked for a large contract food service company for a few years. He opened his first Edible Arrangements location in McAllen, TX in May 2007 after moving to South Texas from New Orleans. He was displaced by Hurricane Katrina and McAllen was where he decided to start over. Welton talks about his experience as a first time franchisee. “The transition was fairly straightforward, as I knew I was ready to do something new after Hurricane Katrina. Becoming a franchisee with Edible Arrangements came really naturally to be. After working in the food
Profile
industry for 17 years of my life, I just knew that it was something I could do, and something that I wanted to try. Now just five years later, Welton owns four Edible Arrangements locations in McAllen and was awarded the President’s Award by Edible Arrangements’ CEO in July, and was recently honored to be names as one of the “Top 5 Business in McAllen” by the City of McAllen.” Welton sees a direct correlation between his time in the Army and the skills and characteristics that make him successful now. “When I was serving, they taught us to always set our sights two ranks higher than the level we were at so that we were always raising the bar for ourselves, and continually raising our standards for what we wanted to achieve. That taught me that forecasting the future is really easy if you’ve got exactly what you want for your future in mind because once you’ve set your sites, you go out and make it happen. You can’t be afraid of failure, you just have to go and do it. That’s how I’ve lived my life and that’s how I’ve been able to be successful with Edible Arrangements.”
your passion and what you actually want to do. Select an industry you’re passionate about. If you were an MP in the Army and you liked it, go into private security. If you were a mechanic and liked it, open a body shop or get into car repair. My passion and my heart are in the food industry so Edible Arrangements was the perfect blend of still being in the food arena, but not having to cook or run a restaurant and it’s really turned out to be a win-win situation.” For More Information: Web:
www.ediblearrangements.com
Welton’s advice for other veterans who are looking into a franchise is simple: “Do something you like. Pick a franchise that caters to
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V e t erans in Franchising
fastsigns ®
Award-Winning Franchise Seeks Qualified Vets! Over one million men and women in the United States serve their country in the armed forces. Concluding their enlistment period, they return home with the goal of obtaining meaningful employment and entering into civilian life. FASTSIGNS® understands and appreciates the valuable contribution of America’s veterans and is dedicated to recruiting them as franchise owners. FASTSIGNS, the worldwide franchisor of more than 540 sign, graphic and visual communications centers, has an awardwinning, nationally recognized veteran program that is adding more and more veterans each year. Currently, veterans make up 10% of the total number of franchisees in the FASTSIGNS system. Veterans possess a number of valuable skills and a wealth of experience essential to a franchise system. They understand the importance of following and executing a plan and using a systematic approach to achieving their goals.
that make them ideal franchisees,” said Mark Jameson, senior vice president of franchise support and development. “They have typically had some degree of responsibility in the military and have acquired numerous skills during their military service which makes them well-suited to our franchise system. FASTSIGNS is committed to providing veterans with the best franchise ownership opportunity available. In addition to offering financial support, we’re there to help them with initial and ongoing training, site selection and marketing.”
“Vets are disciplined, driven, selfmotivated and possess leadership skills
As part of the commitment to veterans, FASTSIGNS is also a proud participant of
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the VetFran program (Veterans Transition Franchise Initiative) which is a program launched through the International Franchise Association. It assists veterans returning from deployment to access franchise opportunities through training, financial assistance and industry support. “We truly appreciate the sacrifices that our servicemen and women have made for our country,” said Catherine Monson, CEO of FASTSIGNS. “We want to make sure our veterans have every opportunity when it comes to securing a career in franchising. For those wanting to go into business for themselves, FASTSIGNS is committed to offering aggressive financial support and
“FASTSIGNS® is committed to providing veterans with the best franchise ownership opportunity available.”
resources that will help them every step of the way. Our experience is that veterans are outstanding franchisees; they have developed strong leadership and execution skills during their service to our country. This is a perfect recipe for success.” Daniel Nichols, who served as a sailor in the U.S. Navy and opened his FASTSIGNS center in 2008, has first-hand experience with the process of entering into a franchise agreement with the company.
looking for franchises, I wanted to go with a company that had a proven business model so I could learn from the mistakes that others already made without repeating them. In the five years since joining FASTSIGNS, I have received immense support and business consulting advice from the main office. There is always someone available to help me whether it’s with setting goals, providing sales courses or training on new technologies.”
“I always wanted to run my own business and after learning about the veterans program and discounts that FASTSIGNS offers, it seemed like the perfect opportunity for me,” said Nichols. “When
Veterans that join the FASTSIGNS U.S. network can take advantage of specific incentives including a reduced franchise fee of $18,250, a savings of 50%, in addition to reduced royalties and
advertising fees for the first year. The average total investment range for a new center is between $171,197- $276,975 and the liquid capital requirement is $75,000$85,000. Additionally, new franchisees are given a very comprehensive training program which consists of site selection to ensure the best location is obtained and four weeks of initial training (one week at a local FASTSIGNS center, two weeks at the Dallas headquarters and one week of onsite training in their new center). Preopening marketing and grand opening support is provided to drive customers immediately to the new location.
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fastsigns ®
Franchisees can expect ongoing support with dedicated business consultants available to assist with business and finance training, sales and marketing, production and staff management advice. In addition, a unique franchisee mentor program is in place to guide and assist new business owners. Continuous support is also available through web-based learning systems for the ever-changing business environment. Differentiating FASTSIGNS from other franchise systems is the transparency and disclosure that is available to potential franchisees. Candidates have access to full disclosure of the earning potential of the franchise based on the earnings and expenses of the current franchise network. Moreover, FASTSIGNS is only one of a few franchise systems approved for the Franchise America Finance program with six million in financing approved for franchise candidates. This program offers veterans assistance with financing their franchise. Along with FASTSIGNS impressive franchise offering, the most prestigious awards and accolades in the franchise
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industry have been bestowed on the company since it began operations in 1985. It has been recognized as a world leader in franchising with centers in eight countries including the US (and Puerto Rico), Canada, England, Brazil, Mexico, the Caribbean, Saudi Arabia and Australia. FASTSIGNS has been awarded #1 sign and graphics franchise in Entrepreneur’s Franchise 500 for three consecutive years (2011, 2012 & 2013). It has been ranked among the top three franchises in the business services category and in the top twelve overall in the Franchise Business Review’s “FRB50” for outstanding franchisee satisfaction for eight consecutive years. The Franchise Business Review is a national market research firm assisting prospective investors through the process of examining franchise systems. The firm performs independent surveys of franchisee satisfaction with hundreds of companies annually. It administers the “FRB50” franchise satisfaction awards ranking the top franchises based on the highest level of satisfaction. “As a franchisor, there is no greater gratification than when our franchisees are
happy, satisfied and receiving the support they need from the corporate team,” said Catherine Monson, CEO of FASTSIGNS. “Our ultimate goal is to help franchisees thrive in their businesses and achieve their personal dreams, and when that happens, everyone is happy.” As businesses are looking for more innovative solutions to compete in the marketplace, signage has never been more important. Advertisers are expanding into new media such as digital signage and mobile websites and FASTSIGNS is positioned to meet the demands of the ever-changing business environment with products and services that expand beyond the traditional printing of the past. As a leader in the industry, potential franchisees are guaranteed to be part of a growing and successful industry and veterans are an integral part of FASTSIGNS plans for future expansion. For more information contact Mark Jameson at: Phone: 214-346-5679 Email: mark.jameson@fastsigns.com Web: www.fastsigns.com
Robert Lopez Robert Lopez began his military career as an Air Force Mission Capabilities Logistical Technician (MICAP) in September 1993. When he graduated from Rowan University in 1999 with a B.A. in Law and Justice with a Small Business Management minor, he cross-trained into the Judge Advocate General (JAG) Corp where he met his future wife Annette HankinsLopez, who is also an Air Force veteran. After serving for 12 years in the Air Force, Lopez decided not to re-enlist due to their new growing family. While working on his undergraduate degree Lopez had worked for a ServiceMaster Clean franchise in Southern New Jersey as a part-time employee. After separating from the Air Force and re-locating to Port Charlotte Florida to be closer to family, Lopez came to the
Profile
conclusion that he needed to make a career move. “I had always dreamed of becoming and entrepreneur and thought joining ServiceMaster Clean would be the perfect choice. After making a few phone calls, I found out about the available territory in Southwest Florida.” Everything came together, and in short order, Lopez was off to franchise training, and then back to his territory to work on growing the business. Lopez felt confident in purchasing a ServiceMaster franchise because he was familiar with the brand and knew that the franchise model would provide the best opportunity to be successful in the market and territory in which he would be working. Franchising was a natural fit for Lopez. “The Air Force is very much about
systems, programs, personal growth, and many other attributes that line up well with the ServiceMaster Clean core values and overall systems and solutions. In the Air Force, we lived by a few very simple yet effective core values of integrity first, excellence in all you do, and service before self! The ServiceMaster Clean corporate values of honor God in all you do, develop your people, excel with customers, and to grow profitably are a good fit and work well together with the Air Force core values. With ServiceMaster Clean, you’re in business for yourself but never by yourself, as someone is always available to guide you along the way. For More Information: Web:
www.servicemasterclean.com
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Richa rd Ashe, President, Vetera n Fra nchise Center s L LC
F INANCING YO U R STA R T- U P B U SINESS O R F R ANCHISE Every week I talk to hundreds of veterans that want to start their own business. Many have heard rumors or have been told that because of their military service there are federal and/or state grants available for business start up. THERE ARE NO FEDERAL OR STATE GRANTS FOR BUSINESS START UP No matter what you’ve read, seen or heard on the internet, TV, radio, pod cast etc. the government - federal, state or city - do not provide grants for starting a business or franchise, paying off debts - business or personal - or provide monies for operating capital or expenses.
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There are some specialized grants available to small businesses in specific fields or industries identified by the federal or state government as being especially important to the nation or state, such as medical or scientific research and environmental conservation. These grants are specialized research and development (R&D) grant programs; and are the Small Business Innovation Research (SBIR) Program, Small Business Technology Transfer (STTR), Federal and State Technology Partnership (FAST) Program. The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/ Research and Development (R/R&D) that has the potential for commercialization. Small Business Technology Transfer (STTR) The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II. STTR’s most important role is to
Richard Ashe
bridge the gap between performance of basic science and commercialization of resulting innovations. Federal and State Technology Partnership (FAST) Program is a competitive grants program designed to strengthen the technological competitiveness of small businesses. It improves the participation of small technology firms in the innovation and commercialization of new technology, thereby helping keep the United States on the cutting edge of research and development in science and technology. For more information on the guidelines of
these initiatives go to: http://sbir.gov/about/ about-sbir
IF THERE ARE NO GRANTS, WHAT ARE MY OPTIONS? There are three options for financing your business: Your money, angel or venture capital funding, or loans.
YOUR MONEY If you’ve put away some money in savings, 401K, TSP, stocks, bonds, etc. you use these funds to start your business or you can also use these as collateral for a loan. If you have a TSP or 401K you can roll these over into a self directed 401K which allows you to utilize the full potential of your existing retirement accounts, thereby enabling you to eliminate or reduce the need for additional loans. There are very specific guidelines and it is important that you enlist expert services that know how to form your company, know the tax implications, rules, etc. should you want to use your 401K or TSP for funding your business. You can talk to a CPA or there are some excellent companies that make a business of assisting you with your 401K rollover. Some will also help prepare your loan paperwork and even have relationships with multiple lending institutions. One of the companies VFC works with is Benetrends who have been at the forefront of developing 401(k)/IRA business funding and are regarded as the authority in franchise and small business financing.
ANGEL OR VENTURE CAPITAL FUNDING An angel investor is an affluent individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity. If you know
someone in your family or among your friends or in your personal network this is a good place to start. There’s nothing better than having a personal relationship with someone who is financially capable and willing to lend you the money you need. REMEMBER: This is business and you should approach your angel investor (even if it is someone in your family) the same way you would approach a bank; prepared and with a plan. Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. If you have got the idea for the next Google, Netflix, Apple, or other rocket ship company, venture capital may be the way to go.
TRADITIONAL LOAN The Small Business Administration (SBA)
provides three programs for business start-ups. The one program specifically for veterans is the Patriot Express Loan Initiative. The Patriot Express Pilot Loan Initiative allows lenders with Patriot Express authority to make offers similar to lenders with SBAExpress authority, but the business owner is more limited. To be eligible to receive a Patriot Express Loan, the business must be owned and controlled (51 percent or more) by eligible veterans and members of the military community who want to establish or expand a small business. Eligible military community members include: • Veterans • Service-disabled veterans • Active-duty service members eligible for the military’s Transition Assistance Program • Reservists and National Guard members • Current spouses of any of the above, including any service member
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Richa rd Ashe, President, Vetera n Fra nchise Center s L LC
• Widowed spouses of service members or veterans who died during service or of a service-connected disability
“There are three options for financing your business: Your money, angel or venture capital funding, or loans.”
The second SBA program for startups is the Basic 7(a) Loan Program which gives loans to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs. Borrowers must apply through a participating lender institution, i.e. bank or credit union. The third start up friendly program is the Microloan program. All new businesses are eligible and the maximum loan amount is $35,000, but the average loan is approximately $10,000. The pre-condition to getting a Microloan is borrowers have to enroll in technical assistance classes administered by the microlender intermediaries. Which for some entrepreneurs is a very helpful resource that provides cost-effective business training. The SBA is does not directly offer business loans. It sets guidelines for loans and guarantees that they will be repaid to lenders. This can make it easier for applicants to borrow money and obtain the funding they need to start or grow a company particularly when the US Gov’t is guaranteeing 75% to 85% of the loan.
THE FRANCHISE FINANCE OPTION If owning a business is what you want but you don’t want to start from a blank piece of paper, want to mitigate some of the risks of business ownership and like the idea of being in business for yourself but not by yourself, then franchising may be the way to go.
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In a bid to boost franchise ownership, many franchisors are offering financing programs of their own. An estimated 100 franchisors are offering creative financing programs for start-up franchise owners. Programs range from zero-percent financing for a limited-term, lower license fees, reduced royalties and minority stake ownership by franchisors in multi-unit outlets according to the IFA (International Franchise Association). The advantage of franchise ownership is that the franchisor and franchisee have an ongoing relationship, and the franchisor often provides a full range of services, including site selection, training, product supply, marketing plans and even assistance in obtaining financing. Some franchises are SBA approved, making the lending process simpler.
The SBA-approved franchises are select business opportunities whose agreements have been accepted by the SBA. When it comes to securing an SBA-backed loan, those applying for an approved-franchise have it easier and quicker. Applicants for SBA-approved franchises benefit from a streamlined review process that expedites their loan application. Because the particular franchise is pre-approved, the loan review is less complex and focuses on specific aspects of your business plan. If the franchise is not SBA Approved, it’s not a negative thing. There are reasons franchisors do not appear on the list. If
they are not on the list the SBA and commercial lender may need to review the franchise and its financial information more closely, which of course will add more time to process and approve the request.
In the July issue of Franchising USA:
Richard Ashe served in the Marine Corps from 1976 to 1983 in the infantry and then as part of a joint Marine, Navy, and Air Force top secret intelligence project. After serving in the Marines, he worked as an electronics technician for a communications company. Over the next 30 years, he worked his way through the civilian ranks to the position of vice president of global marketing for an international software company and received his degree in marketing.
Part 2- Before You Run Off to the Bank: Things you should know before going to ask for a loan.
During his civilian career, Ashe has worked for and helped companies such as Xerox, Compaq, and Hewlett-
Even if the franchisor is offering financing you still may want to shop the interest rate against other banks or lenders.
Packard expand or start new businesses. He also participated in four software startups and started two businesses on his own – a computer training firm, ComputerTutor, and a network consulting firm, LANDesign. Ashe is a Certified Franchise Consultant and a member of the Texas Veterans Chamber of Commerce. He serves on the VetFran committee. For More Information: Phone: Email: Web:
713-849-9642 rich@VeteranFranchiseCenters .com veteranfranchisecenters.com
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M ega n N emeth, M en in K ilts
“From Camo to Kilt” “Even if it is something as simple as making someone smile, Murphy’s passion for caring for his country and all the people in it, carries on in his work at Men In Kilts.”
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The transition from US Army Specialist as a Military Police Officer, to that of a kilt-wearing window and exterior cleaning technician might seem odd from an outsider’s perspective. But in all reality, it makes perfect sense! Chris Murphy, Operations Manager at Men In Kilts Boston, served in the US Army for just under 11 years and during that time was deployed to Iraq twice. He spent a year in Baghdad where he provided personal security to Tier 1 government officials. After being back in Boston for 6 months, Murphy volunteered to go back and this time he travelled to Fallujah where he worked with Iraqi police on daily operations and helped them to develop procedures and protocols. Murphy’s time serving in the Army was nothing short of rewarding, but he was ready for a change. Deciding to become a part of a franchise was deeply rooted in the support systems that Murphy knows are in place for franchisees. “The brand and operational support that comes from the franchisor is definitely a bonus. From fellow employees, the franchisor, and even other franchisees, there is always someone there to help you. In the Army, it is the same way. There is an endless system of support and everyone works together as a team,” says Murphy. The transition from military to civilian was pretty easy for Murphy. “In the
military, I was used to long days of training and work, and not having a set schedule was pretty standard. Being a part of a franchise is very similar. I could have a job that requires me to work earlier than 8 am or later than 5 pm, and I just have to go with it. So, when I came back to work full-time in the franchising world, it was pretty smooth.” Previous franchise experience came from Murphy’s eight years spent with 1-800Got-Junk? Murphy’s mother, Judy Briggs, owns both the 1-800-Got-Junk? and the Men In Kilts franchise in Boston. “With my mom being an expert franchisee, it all just made sense to me to become a part of this industry as well,” says Murphy. Men In Kilts first caught Murphy’s attention when the company was featured in Entrepreneur Magazine. He said he could not help but smile. “The thought of anyone washing windows while wearing kilts was so cool!” says Murphy. It was not long after when his mother came to him and asked, “Have you ever thought about wearing a kilt?” Murphy did not hesitate. The Men In Kilts mission is to “bring smiles into the world…one kilt at a time!” Just like the Army, Men In Kilts is fighting to make the world a better place. Even if it is something as simple as making someone smile, Murphy’s passion for caring for his country and all the people in it, carries on in his work at Men In Kilts. Murphy recognizes how he has brought smiles to the world by recalling one particular moment. “One Monday morning, we were in the heart of Boston cleaning windows and everyone that walked by couldn’t help but smile. I remember thinking, ‘people are normally miserable first thing on a Monday
Megan Nemeth
morning, but we just brought smiles to all these faces by doing something as simple as wearing a kilt’. That is pretty powerful!” Murphy’s hard work has made Men In Kilts recognize the amazing fit for veterans in the company, and the opportunities to work with veterans in the future. Men In Kilts prides itself on dedication and a high level of work ethic, which is a great fit for veterans who have the skills and attributes necessary to succeed in a franchise such as Men In Kilts. Megan Nemeth received her BA from SFU’s Communications program and is currently working towards BCIT’s Public Relations Associate Certificate. Currently she does PR and Communications for all Men In Kilts franchises. With an avid interest in writing, this is her first, of hopefully many, published pieces. For More Information: Web: www.meninkilts.com
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V e t erans in Franchising
Franchising and the White House Joining Forces As part of the franchising industry’s support of the White House Joining Forces initiative, IFA President & CEO Steve Caldeira joined President Obama, Vice President Biden, First Lady Michelle Obama and Dr. Jill Biden to mark the hiring of 290,000 veterans and military spouses who have been hired or trained since the launch of the initiative in 2011. The franchising industry, led by IFA and 562 franchised businesses that are part of IFA’s VetFran strategic initiative, were part of the first private sector commitments to the White House Joining Forces initiative on Veterans Day in 2011. IFA and its membership pledged to hire and recruit 80,000 veterans and military spouses by
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2014, including 5,000 wounded warriors as team members and franchise small business owners. In the first year alone, nearly 65,000 veterans have started careers in franchising – including 4,314 as franchise business owners using discounts offered by VetFran member companies. The franchising industry has a longstanding history of supporting veterans. In 1991, IFA launched VetFran, a strategic initiative to help Gulf War veterans access business ownership opportunities in franchising. In 2011, Operation Enduring Opportunity was launched to expand that initiative to include hiring. “With the war in Iraq over and the war in Afghanistan drawing to a close and more than one million service members are projected to leave the military in the next several years, franchise businesses have realized that hiring our veterans, military spouses and wounded warriors is not only the right thing to do, but it makes good business sense,” said IFA President & CEO Steve Caldeira. “With its rapid training opportunities, scalability, and need for operational execution and excellence in following proven systems, franchising provides an ideal structure to enable returning veterans to become leaders of and productive participants in the U.S. economy.” IFA maintains a VetFran Toolkit, available at www.VetFran.com, with tools and solutions for veterans, military spouses and wounded warriors interested in franchise ownership or careers in franchising, including: • A Finance assessment that lets veterans enter their financial details (such as their credit score and how much liquid capital they have) and the general information about the business they want to start to find out about in terms of how fundable they are. The app can also connect them directly to over 2,200 funders through BoeFly. This tool, along with BoeFly’s
“With its rapid training opportunities, scalability, and need for operational execution and excellence in following proven systems, franchising provides an ideal structure to enable returning veterans to become leaders of and productive participants in the U.S. economy.” services, are offered free of charge to veterans by BoeFly. • A franchising basics online course that provides individuals with a comprehensive introduction to franchising. The course describes how franchising works as a business, the questions to ask, the laws and regulations that apply to franchising, and the companies and types of businesses that comprise the franchising field. • VetFran Mentor Network, led by volunteer veteran franchising leaders including Gordon Logan, Founder & CEO of Sport Clips, Inc. and retired US Air Force, Jim Amos, IFA Hall of Famer, Chairman of Tasti D-Lite and 16 times decorated Vietnam veteran, and Mary Kennedy Thompson, Past Chair of the VetFran Committee, President of Mr. Rooter and former USMC Captain. The Mentor Network provides connections and relationship-building with business leaders, including C-level executives of IFA’s leading member companies. • Making the franchise decision, an extensive workbook by Michael Seid, author of Franchising for Dummies, is a tool to evaluate franchise opportunities, written by a well-respected industry leader.
About the International Franchise Association The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of
excellence, education and advocacy, IFA works through its government relations and public policy, media relations and
educational programs to protect, enhance and promote franchising. Through its
media awareness campaign highlighting the theme, Franchising: Building Local
Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise
establishments, which support nearly 18
million jobs and $2.1 trillion of economic
output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories,
individual franchisees and companies that
support the industry in marketing, law and business development.
For More Information: Web:
www.franchise.org
www.vetfran.com
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Service B rands I nt ernational
Giving Back So Others Can Get Ahead At Service Brands International, “a core value for our Molly Maid, Mr. Handyman and ProTect Painters franchise brands is to support our veterans, to make a difference for minorities, and to empower women to own their own businesses,” says Service Brands International CEO, Craig Donaldson. One way we’re doing that is by increasing our franchise fee discounts: VetFran to $6,000, MinorityFran to $5,000, and Women-Owned to $5,000, for all three brands.
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MOLLY MAID, a $200 million business ranked #80 on Entrepreneur magazine’s Franchise 500® and designated a Military Friendly Franchise® for 2013 by Victory Media, Inc., has 250 territories available across the country. America is a Land of Opportunity for prospective franchisees and Molly Maid owners. And each owner has a story to tell. Meet GREG PERKINS, Molly Maid of Charlotte, NC. In 1978, fresh out of high school, Greg wanted to see the world rather than sit in a college classroom. He entered the Navy’s nuclear power program and was stationed on the nuclear sub the USS Lewis and Clark. He served six years as a mechanical operator responsible for maintaining the reactor. After his military service, Greg went to the University of Tennessee and graduated with a mechanical engineering degree. When the company he worked for was bought out, he wanted to take control of his future. “I liked Molly Maid because of the recurring
revenues from repeat customers,” said Greg. “You just don’t get that in many businesses.” Greg opened his Molly Maid franchise in 2006 and won our Rookie of the Year Award. “In the military, living and working on a submarine was the best classroom for learning how to lead and to reward others.” Though not military veterans, DENNY and MICHELLE JENSON are a power couple who run a tight ship as owners of Molly Maid of Reno Sparks, NV. Denny was in banking on the technical side. He wanted to own a franchise with a sound business model where he would have some give in his schedule and at some future time, he would be able to step away from the day to day. When he first heard about Molly Maid, he said, “I have no interest in a cleaning service.” Michelle, who works in banking as a technical project manager and will join Denny in the business, was even more adamant: “We are not doing that.” Now they are believers. When they
reviewed the financial performance of the business, met with everyone at Meet the Team Day, and talked with Molly Maid owners, they were impressed. “This is a business we love,” says Denny. MR. HANDYMAN, a $50 million Military Friendly Franchise, Entrepreneur Franchise 500® business and ranked #10 on the Remodeling 550, has successful owners who credit their military service and smart marketing for their good fortune. Meet JO McCABE, co-owner of Mr. Handyman of Prince William and Southern Fairfax Counties, VA. Jo graduated from the U.S. Naval Academy with an aerospace engineering degree and earned an MBA from Southern New Hampshire University. She served on active duty for six years as an aircraft maintenance officer then joined the Reserves. Jo decided to put her management experience and MBA to use owning her own business. She opened her Mr. Handyman in September 2008. “Right before the economy tanked,” she said. Although 2009 and the economy presented unique challenges, Jo managed to increase revenues by 46 percent in 2010. Today, she has six employees and hundreds of satisfied customers. “Business is like sports,” she says, “teams that master the basics and continue to use them are the ones that make it to the championships. That’s what the Navy prepared me for: Master the basics and follow the system, and you can weather any storm.” DAVID SIPP, Mr. Handyman of Northern St. Joseph and Elkhart, IN, and 2012 President’s Award winner, opened his Mr. Handyman in 2008, too. David earned an Information Systems degree from Davenport University in Kalamazoo, MI, and spent 28 years in the healthcare field in IT for large hospitals. “I was tired of corporate work. I wanted to start my own business,” he said. Mr. Handyman was a
“We have a very supportive and enthusiastic corporate culture. I like helping other owners to be successful. It’s one way I can give back so others can get ahead.” good fit. “I’m a good salesman. I enjoy talking with customers. And, I show my service techs that I appreciate their work.” When the economy hit bottom and most small business owners felt inclined to pull back on marketing, David pushed ahead. As a member of the Marketing Advisory Committee, “I tell owners to be aggressive with their advertising—continue to build awareness and stay top of mind with your customers.” David’s philosophy works. He plans to join our Million Dollar Club this year. PROTECT PAINTERS is the newest Military Friendly Franchise brand in the Service Brands portfolio with 40 units open in the US and another 300 territories available. The brand is well positioned for entrepreneurs and veterans who want a ground-floor, Executive Model business. Meet two owners who know how to mix business with pleasure. Our newest ProTect Painters owner, PAM ESTABROOKE, Protect Painters of Central Gwinnett, GA, is a ball of fire. She worked as a district manager for the original owner for eight years before taking over the franchise this year. “Business is off the chart,” she says. “I have four sub-contracted crews working fulltime.” Ask her why business is so good and she’ll tell you, “We’re hitting our marks with marketing. There’s pentup demand in the area. The economy is feeling better. And, people who are selling their homes are getting them street worthy.” It is a great time to own a ProTect Painters franchise. “I bought because it’s a solid investment. It will help fund our daughter’s college,” says Pam. “It’s also supporting our lifestyle. I work from home, and I have a flexible schedule. I can easily make time for volunteering,
the PTA, our daughter’s lacrosse games, training for half marathons, and spending time at our lake house.” BUDDY RHODES, owner of ProTect Painters of the Roanoke Valley, VA, spent 25 years in the military reserves with tours in Afghanistan and at the Pentagon before joining our franchise family. He’s a logistics expert; he can set up anything, anywhere. He basically ran a small business while working for the Department of Defense—establishing goals, managing projects, coordinating resources, advising people, maintaining morale, and measuring results. “It’s hard at times for veterans to come home and to readapt to civilian life,” says Buddy. “With ProTect Painters, we have a very supportive and enthusiastic corporate culture. I like helping other owners to be successful. It’s one way I can give back so others can get ahead.” Buddy has an optimistic attitude about life and business and signs his emails “Ever Forward.” That says a lot about the type of person he is and why he’s successful as a ProTect Painters owner. If you want to own a business that won’t own you, consider our Molly Maid, Mr. Handyman and ProTect Painters brands. With our increased franchise fee discounts, we’re making it easier for qualified individuals to realize financial security and lifestyle rewards. For more information on Molly Maid, visit: www.MollyMaidFranchise.com Learn more about Mr. Handyman at: www.MrHandymanFranchise.com And, find out more about ProTect Painters at: www.ProTectPaintersFranchise.com
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Franchising USA
Dan &Wendy Remalkus
Profile
Dan and Wendy Remalkus have combined military service years of nearly 50 years between the two of them. Dan joined the Air Force in 1979 in Finance and Budget and served until 2000. Wendy served in the Air Force from 1979 until 2003 in Financial Management. The two met at Hurlburt Air Force Base in Florida in 1995 and will be married for 13 years in July. With their years of military service behind them, Dan and Wendy were looking for an opportunity that, in addition to their day jobs, would help them make sure they could retire comfortably. Wingstop was a good fit for them because the restaurant requires only eight to ten staff members. Managers are in place to handle the day to day operation, and the Wingstop menu focuses on one core product – so there are not a lot of new items or an always changing menu to work with. This allows them the freedom to carry on in their other careers – Dan is a program manager for a defence contractor out of California and Wendy is a consultant for a CPA firm.
Dan and Wendy now have to locations open and have just signed on to open a third. While the couple does not work together in the restaurants on a regular basis, they are involved in the books and payroll, and are on hand to make sure the stores are doing well and the guests and staff are happy. With their extensive military background, Wendy feels confident that she and Dan are well equipped for franchising success. “The structure that you have in the military is very similar to the rules you have to follow in franchising. You have rules to follow and if you do what the books tell you too, you’ll do well. But you have to pay attention and work hard which is what we learned from the military. While looking for the right franchise to suit their needs, Dan and Wendy found out that there were two existing Wingstop stores in the area, and the owner was trying to sell. Dan explains how things
progressed from there: “We visited several times and loved the food and the atmosphere. We knew the cleanliness and quality were really outstanding so we looked into it further and worked with a broker to purchase the stores. We’ve been going strong ever since.” Dan and Wendy are in the process of looking for a space for their third store, and plan to open the doors by December of this year. They are also considering opening additional stores after that. Although neither of Dan and Wendy’s Wingstop locations in Gaithersburg, Maryland are in close proximity to a military base, they do offer a 10 percent discount for active military personnel. They are well-known by veterans and active military in the area and see a lot of their regular guests at least once a week. For More Information: Web: www.wingstop.com
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V e t erans in Franchising
M adel y n I nsley, Creative Director, L ib er t y Ta x Ser vice
Marine Training
Pays Off At Tax Time Since he was young, Patrick Gomez wanted to be different from everyone else. In his Junior High School, all of the other students wanted to go to Kennedy High School. Patrick had done his research and learned that Norman Thomas High School had a strong marketing curriculum. So he enrolled and committed to take the train into Manhattan every day to attend a different high school than all his friends. As if high school isn’t hard enough, Patrick fell in with the wrong crowd. As he tells it, “We weren’t bad, but I was not paying attention to my academics.” On a whim, Patrick talked with a recruiter for the Marine Corps, who was regularly at the school. After a few conversations, Patrick knew that was the route for him. The Marine Corps enticed him simply because it was what he always wanted, to be – The Few. The Proud. “The whole aspect of being elite really appealed to me,” explained Patrick. “I’ve always been apart from the rest of the crowd, always doing something better than
“I was taught to be a warrior whether in the Marines or the business world. I was trained to overcome any challenge as long as I was breathing.”
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the next. So the Marine Corps was a good fit. Besides I didn’t think too much about it – I just did it – because if you think too much it’s never going to get done,” reflects Patrick. Unfortunately, once he got back from boot camp, Patrick’s life was forever changed. His father, who had been ill, passed away, leaving Patrick’s mother alone and in desperate need of her youngest son. At nineteen, Patrick returned home to support his mother, who had taken a job watching neighborhood children to help the two of them make ends meet. Patrick took on several additional jobs in addition to being a Marine. He was an E3 when he left the Marines. “If you were a child going into Marine boot camp, you were a man coming out. It gave me a whole new perspective on things, on how to cope with situations better. I was thankful I had been through boot camp – not knowing what I was about to encounter when I came out. “In the Marines, they teach you that when you hit a wall, you find a way to get over it,” explains Patrick. “The Marines taught me that you never give up,” states Patrick. One morning, over coffee in their New Jersey home, Patrick told his wife, Marisol, that he was going to do some research on tax schools he had seen advertised. With her full support, he got in his car and drove to the Bronx. He didn’t know why he drove by the Jackson Hewitt and the H&R Block locations that had signs regarding tax school. He’s not sure to this day why he drove to the Bronx – 40 minutes out of his way – to look for tax courses. Finally, in Castle Hill, he stopped in front of a Liberty Tax office with a sign in the window advertising “Free Tax Courses.” Patrick explains that it wasn’t the “free” that made up his mind that this was the place to take his courses. “I would have paid,” he explains. He called the provided course number several times to register for the course. “I was determined to take courses with Liberty Tax at the Castle Hill Liberty location. But I had no idea why – at the
time. I now know,” grins Patrick. He is referring to the twist of fate that connected him to Bablu Shahabuddin, Liberty Tax Service’s #1 ranking franchise owner. “I am sure that it was meant for me to learn from Bablu. I got a call back from the school that classes were going to start at 10:00 a.m. and I was registered. Erica Blair was great, a fantastic instructor. From there I was introduced to Bablu.” Patrick states that he was interested in owning a franchise but had not yet decided whether to go with a tax business or a popular sandwich chain. After many conversations with Bablu, Patrick started working for him. “I wanted to study under someone so knowledgeable of the Liberty system and get experience for the future.” While in the back of his mind, he remembered what Bablu has casually mentioned to him during one of the many conversations, “Hey, you can own your own Liberty.” “It was tough, but it was exciting. I would get up at 5:00 a.m. to beat bridge traffic to open the office,” Patrick laughs at the craziness of it all. “I knew, in the long run, I was involved in something big.” After the end of tax season, Patrick wasn’t making enough money to support his family by working part time. “I did what any other family man would do – I went to work full time, but for another company. My wife is a facilities maintenance site supervisor and I became an area manager at her firm,” Patrick shakes his head, as if he disagreed with the job. “I stayed in contact with my Liberty friends through Facebook. One of them invited me to the convention. So after talking it over with my wife, we went to the convention and two or three weeks later I left my area manager job.” “I had done taxes before but never the Liberty way – the Liberty Waver, the unique marketing techniques, handing out flyers. I thought [other tax franchises] were boring and overcharged for their services. You can be yourself with Liberty.”
Patrick explains that his first tax season had many hurdles. “With the whole tax season delayed and some technology changes, I reverted back to my training from the Marines – never give up. All this was not going to stop me. I was not going to give up and quit. I was taught to be a warrior whether in the Marines or the business world. I was trained to overcome any challenge as long as I was breathing. And I was still breathing. Of all the years to have my first tax season! The delays and changes were not going to deny me – I was going to finish successfully.” And that’s just what he did. In the end, Patrick found a way to stand out from the crowd even in business. Patrick credits his success to the support of his wife and going “above and beyond” every day. Taking time with each customer and educating them on what he did with each return and why, paid off with happy customers. “I don’t want them thinking I’m a hero because their refund was higher than last year’s return. I explained to them what I did so they understood where the money came from. I wouldn’t want them to get conned because someone got them more money than they should have. It’s double checking the credits and deductions, not miraculously coming up with a higher refund,” commented Patrick. If they had an issue or concern, he would sit on a conference call with them to the State of New York or the IRS. “I showed them there was nothing to fear.” Now that he has his first tax season behind him, Patrick is spending more time with his family. When asked what his plans were for the future, Patrick replied with a broad smile, “Well Bablu is known as the King of Manhattan, so I want to be known as King of Westchester/Rockland County.” Madelyn Insley is the Creative Director for Liberty Tax Service. For More Information: Web:
www.libertytax.com
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V e t erans in Franchising
Fra nchise C onsulta nt, T he D w yer G roup
Today’s Top 100 Franchises
Rated by Veteran Business Owners Excerpts from a Special Report by Franchise Business Review Much has been written about the natural fit between military experience and franchise ownership. Franchising, like the military, is centered around clearly defined systems, a set structure, discipline, and teamwork. Because of this, people who’ve had successful military careers may excel in the world of franchising. Many franchise companies offer special incentives for franchisees from the Armed Forces. These incentives may come in the form of discounted franchise fees, financing assistance, or ongoing support specifically designed for veteran franchisees. Some brands, like ActionCOACH, have even offered free franchises to veterans as part of their recruitment efforts. With all of the special offerings and opportunities available to a vet, the search for a franchise may seem overwhelming. This report is designed to help make that process easier. Franchise Business Review is the only researcher to look at which franchise opportunities are the most veteran-friendly based on franchisee satisfaction and performance—perhaps the most telling data of all. Veterans & Franchising is the true story behind what franchise brands say they will do for veterans and what they actually do. The data for this report was compiled
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“Veterans & Franchising is the true story behind what franchise brands say they will do for veterans and what they actually do.” as part of Franchise Business Review’s Veterans & Franchising 2012 study, which recognizes the top vet-friendly brands based on overall veteran franchisee satisfaction. To compile the data for this report, we surveyed nearly 3,500 military-trained franchisees, representing 265 brands. We also interviewed senior executives and franchisees at several brands for their first-hand perspective. From this data, we identify our list of Top 100 Franchises for Veterans, which includes companies with above average satisfaction among the veteran franchisees we surveyed. In our recent survey of close to 3,500 military trained franchisees, we found ten brands that especially stand out when it comes to franchisee satisfaction: Heaven’s Best Carpet Cleaning, CertaPro Painters, Sotheby’s International Realty, American Poolplayers Association, Cruise Planners, Home Instead Senior Care, FASTSIGNS, TeamLogic IT, Miracle Method Surface Refinishing, and Jan-Pro. Not surprisingly, many of these names are the same brands that top our annual list of Top Franchises for all of franchising. It makes sense that brands focused on overall franchisee satisfaction would also have high satisfaction among franchisees who are veterans.
Hundreds of franchise brands offer special discounts and incentives to prospective franchisees with military experience, making it an excellent time for veterans to consider a franchise opportunity. Franchise brands recognize the significant strengths and related skills that veterans can bring to a business—especially a franchising business, which is built around systems, teamwork, and following a step-by-step protocol. Franchisees with military experience aren’t necessarily guaranteed success, but they may have more characteristics for success than non-veterans. From the perspective of a potential franchisee, veteran or not, it’s always important to carefully research a particular brand before investing. Even though a number of franchise brands offer special incentives to franchisees with military experience, these brands should still be thoroughly vetted to ensure a good fit. Prospective franchisees (especially those stationed abroad) should ask franchisors for online company materials and financials, franchisee satisfaction reports, webinars, and anything else you need to make the research process easier from afar. Perhaps most importantly, you should contact existing franchisees who are veterans to get the true picture of how well the system supports vets.
Top 100 Franchises for VETERANS
Food & Beverage
Services
Auntie Anne’s
1-800 Water Damage
Advertising & Sales
Checkers & Rally’s
Boulder Designs
Charley’s Grilled Subs
Proforma
Culver’s
Automotive
Ground Round
Auto Appraisal Network
Christian Brothers Automotive Color Glo International LINE-X
Snap-on Tools Tint World
Business Services ActionCOACH
FASTSIGNS International FocalPoint Coaching Sandler Training Child Services
The Goddard School
Firehouse Subs Happy and Healthy Products Jack in the Box
McAlister’s Deli Papa Murphy’s Penn Station
Quaker Steak & Lube Simple Simon’s Pizza Uno Chicago Grill Yogurtland
Health & Beauty European Wax Center Sport Clips
Mathnasium
Home Services
Cleaning & Maintenance
Budget Blinds
AdvantaClean
Aire-Master of America
Anago Cleaning Systems (Master Franchisors) Buildingstars
DKI (Disaster Kleenup International) Heaven’s Best Carpet Cleaning Jan-Pro (Master Franchisors) MaidPro
ASP - America’s Swimming Pool Co. CertaPro Painters
Five Star Painting HouseMaster
Miracle Method Surface Refinishing Pillar To Post
Caring Transitions
Fish Window Cleaning Services GoWaiter.com Molly Maid
Mosquito Squad
Paul Davis Emergency Services Paul Davis Restoration Pestmaster PostNet
Precision Concrete Cutting Precision Door Service Ram Jack
Signal 88 Security
Truly Nolen of America Two Men and a Truck Unishippers Weed Man
Window Genie
Specialty Retail Aaron’s
Big Frog Custom T-Shirts
Interstate All Battery Center Wild Birds Unlimited
Surface Specialists Systems
Sports & Recreation
Pet Services
Kampgrounds of America/ KOA
Martinizing Dry Cleaning
Sit Means Sit
Oxi Fresh Carpet Cleaning
Real Estate
Office Pride
1-800-GOT-JUNK?
The Maids
PropertyGuys.com
Finance & Tax
United Country Real Estate
Sotheby’s International Realty
American Poolplayers Association
Technology Computer Troubleshooters TeamLogic IT
Travel
Value Place
Cruise Planners
Murphy Business & Financial
Senior Care
Expedia Cruise Ship Centers
Tax Centers of America
FirstLight HomeCare
Fitness
Homewatch CareGivers
Cash Plus
Liberty Tax Service
Padgett Business Services
Brickhouse Cardio Club Koko FitClub
BrightStar
Home Instead Senior Care Right at Home
Visiting Angels
CruiseOne
For More Information: Web: www.franchisebusinessreview.com Full Report: http://franchisebusinessreview.com/ content/files/FBR_Top_Franchises_ Veterans_2012.pdf
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Military Veterans Impress Us! We Want More!
Now offering
50% Franchise Fee Discount for any retired or former veteran with an honorable discharge!
the
GROUT Doctor
速
Since 1992
Find out more about this Home Based Business at
www.GroutDoctorFranchise.com or call 877-476-8800 ext. 722
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Leading National Franchise For Grout Repair