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Veterans in Franchising august 2019
www.franchisingusamagazine.com
VetCor
Puts Helping Veterans First
How Much Money Can I Make? Franchising USA
Leadership. Teamwork. Executing SOPs. Connecting veterans with education, resources and opportunities at vetfran.org
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V e t e r a n s i n F r a n c h i s i n g S u ppl e m e n t august 2019 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com
Contents On the Cover
Veterans Profile
52 VetCor Puts Helping Veterans First
58 PuroClean
56 How Much Money Can I Make?
Veterans Snapshot
Veteran News
60 VetFran
50 The UPS Store, Inc. Launches Mission: Veteran Entrepreneurship Offering Franchise Incentives Up to $300,000
Veteran Expert Advice
51 Staffing Industry Leader NEXTAFF Opens First Location in Oregon
Founder, Franchise Specialists
56 How Much Money Can I Make? Wayne Maillet, Franchise Management Consultant and
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veteran news
The UPS Store, Inc. Launches Mission: Veteran Entrepreneurship Offering Franchise Incentives Up to $300,000 Franchise fee to be waived for 10 eligible U.S. veterans
The UPS Store, Inc. has announced its recently launched, Mission: Veteran Entrepreneurship, a program offering significant financial incentives – valued at nearly $300,000 – for a select group of qualified U.S. military veterans to help open their own The UPS Store® franchise location. The UPS Store, Inc. is proud to support America’s U.S. armed forces as they pursue starting their own business and as a part of this effort the company will waive the franchise license fees for 10 first-time veteran franchisees. The first 10 eligible veterans to submit a complete buyer’s application packet and initial application fee will be awarded $29,950 in waived franchise fees. The UPS Store, Inc. is accepting franchise application packets through Monday, Nov. 11, 2019 (Veterans Day). Veterans are often some of the most qualified and successful prospective franchise owners, as franchising offers a unique business opportunity incumbent on strong leadership skills. According to the Veterans Transition Franchise Initiative
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(VetFran), at least 97 percent of franchisors believe that veterans would make excellent franchisees, with 70 percent hiring a veteran franchisee or employee in the last year alone. “The UPS Store, Inc. is deeply committed to helping veterans transition back into civilian life and achieve their dreams of owning a business,” said Tim Davis, president of The UPS Store, Inc. and U.S. Marine Corps veteran. “We are thrilled to launch Mission: Veteran Entrepreneurship and offer this financial incentive to those who have given and sacrificed so much for our country.” The pledge, announced at the 2019 International Franchise Association (IFA) Convention, builds on The UPS Store, Inc.’s ongoing participation in the Veterans Transition Franchise Initiative (VetFran) to provide discounts in franchise fees for qualified veterans, active military and their spouses. Of the over 4,800 The UPS Store locations in the U.S., more than 400 are owned by veterans and that number continues to climb. Isaac Gonzalez, a franchise owner and U.S.
Marine Corps veteran, benefited from The UPS Store, Inc.’s financial incentives for veterans in 2011. The support helped him launch and sustain his own The UPS Store location near a military base in Ruther Glen, Virginia. “As a veteran, you hold lots of pride, something you get to carry out in your business as a franchisee,” said Gonzalez. “To be able to take that strong sense of responsibility and apply it to your business is really important.” The UPS Store is an industry leader being ranked as the No. 1 franchise in the retail shipping category by Entrepreneur magazine for 2019 and named consistently on the Military Times’ list of best franchises for veterans. The UPS Store continues to receive recognition as a brand helping those who dream of owning a business through franchising. For additional information on The UPS Store, including information on franchise opportunities for U.S. veterans, visit www.theupsstorefranchise.com/veteran.
Staffing Industry Leader NEXTAFF Opens First Location in Oregon Military veteran plans to utilize operations and IT experience as he brings national recruiting firm into Pacific Northwest market NEXTAFF, an industry leader in identifying quality talent for businesses, opened a staffing agency location today in Beaverton, Oregon, which is the first location in the state. Owned and operated by Alvin Montances, the office will serve Beaverton, Portland and the surrounding Washington County area and offer staffing solutions to businesses in the information technology industry. Montances is a U.S. military veteran with 20 years of IT experience, including time spent as a senior network engineer providing engineering, sustainment and integration solutions to various Department of Defense entities. “I’ve been on both sides of an interview, and I understand how important it is to identify the right talent for a position,” Montances said. “The beauty of the NEXTAFF system is that it offers a unique advantage to both the candidate and the company seeking to fill a position because our methodology ensures the best possible fit for all involved. Staffing firms are a dime a dozen, but NEXTAFF has a proven track record of finding the best talent possible.” NEXTAFF offers a proprietary recruiting method called X-FACTOR™, which combines hiring methodologies that are statistically proven to outperform what typical staffing agency competitors and HR departments traditionally do. This methodology, combined with a robust backoffice support structure, allows a staffing franchise office many distinct advantages over someone looking to start their own staffing agency. “Alvin has a long history with the IT field, which gives him a deeper appreciation and understanding of what’s happening in the industry,” said Cary Daniel, co-founder and director at NEXTAFF.
U.S. Military Veteran Alvin Montances (center) has opened a NEXTAFF location in Beaverton, Oregon. Also pictured are NEXTAFF co-founder and Director Cary Daniel (left) and co-founder and Director of Operations James Windmiller.
“His experience, combined with the NEXTAFF methodology, offers a powerful combination for meeting the staffing needs of the Beaverton area.” The office will be located at 4800 SW Griffith Drive, Suite 102, in Beaverton. More information can be found at www. nextaff.com/locations/beaverton-or/. “Over the last two decades, I’ve had some great experiences in IT,” Montances said. “I’ve also had some experiences that were absolute nightmares. All of these moments made me who I am today, though, and I’m going to use them to help each and every person that walks in the door. Working with NEXTAFF is giving me the opportunity to change lives, and I can’t wait to get started.” About NEXTAFF NEXTAFF helps companies identify, evaluate and acquire quality talent through
our proprietary X-FACTOR™ model. Our comprehensive approach is designed to outperform a typical temp agency supplier model by up to 100 percent. Each temporary staffing office is locally owned and operated, which allows our clients to work directly with owners in hiring quality talent. As the franchise division of Malone Workforce Solutions, NEXTAFF offers a variety of custom solutions to industrial, administrative, professional, information technology and healthcare industries. NEXTAFF’s goal is to enable clients to concentrate on their core business activities while we identify, evaluate and acquire quality talent. For more information about NEXTAFF’s services, visit https://www.nextaff.com or visit www.nextaff-franchise.com for information on franchise opportunities.
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cover story: VetCor
Restoration Franchise Puts Helping Veterans First
One Florida franchise is restoring homes and businesses while it helps veterans build livelihoods after their military careers. VetCor is a Tampa-based restoration company that deals with water damage, mold and other related services in commercial and residential properties and, as the name implies, they primarily deploy veterans as technicians. “Our policy is that we hire veterans and those who share similar values,� CEO and president Paul Huszar explained during a recent interview with Franchising USA. Along with their headquarters in Tampa, the company has offices in Fort Myers and Davie in Florida. They’ve just started franchising to veterans and their family members and, in fact, held their first discovery day recently.
Getting Started VetCor was formed in 2013 and started operations in 2014. Huszar bought the restoration company in October of 2014 and has been running it since then. It was founded by David Howard, an army officer of five years who had a distinguished career in the insurance industry.
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Howard had been hired to run a forensic engineering company which performed investigations for insurance companies to protect those firms against fraudulent sinkhole claims.
“Our franchise fee is lower than the other restoration companies in the industry, even with a veteran’s discount.” - Paul Huszar
However, state legislation was passed in Florida that helped combat these fraudulent claims, so that company’s revenue started waning. They hired Howard to take over as CEO in October of 2013 and his experience with that position led to him creating VetCor. Howard found that about 60 percent of homeowners’ insurance claims are water related and he saw an opportunity to create a company that would help home and business owners while also doing something for veterans. Huszar was brought on board because he is a professional licenced engineer who had just retired from the army after 23 years. A graduate of the prestigious United States Military Academy West Point, Huszar holds a Bachelor of Science in Civil Engineering and a Masters of Civil Engineering from the University of Washington. Howard received Huszar’s resume and called him up. “I thought I was interviewing for the forensics engineering company and he offered me the opportunity to be the president and first employee and to start VetCor,” Huszar recalled.
He saw this as a golden opportunity. The last job Huszar had in the army was
However, because that accreditation is done at the state level, it was not possible.
the Dean of the Army’s Engineering
Running VetCor gave him a kind of workaround for that.
to find a way for army engineers -- who are
Now, as president of VetCor, he could help veterans get jobs in restoration because restoration credentials are simpler to procure and consist of a nationwide
School. In that position, Huszar was trying primarily involved in building trades like plumbing, electrical and carpentry -- to
get civilian credentials in their given trade.
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cover story: VetCor
certification rather than a state license. “I was passionate about this opportunity to create more opportunities for veterans,” Huszar said.
Post Disaster Relief The need for a service like VetCor is an obvious one in Florida where the state is subject to monumental amounts of rain during the hurricane season. But, outside of major storms, there are still many instances of water damage in homes and businesses from things like dishwashers, air conditioners, washing machines and other water reliant appliances breaking or malfunctioning and causing water damage, which can quickly lead to mold damage if not handled correctly. Apart from water related damage, VetCor also handles fire and tornado damage among other restoration services. Insurance companies say their biggest challenge is hiring contractors who are able to respond quickly after natural disasters.
“Our policy is that we hire veterans and those who share similar values.” - Paul Huszar
VetCor can do that, Huszar pointed out, because everyone involved has military training and nobody enters a disaster zone and executes an operation plan better than the military. That is also what makes veterans ideal franchisees. “The essence of franchising is really training, standardizing and replicating,” Huszar noted, “and nobody does that better than the US military.”
Training & Support Ideal franchisees for VetCor are veterans who still hold military values close to heart and who are looking to get into a second career after they’ve served, especially if they have business experience and are keen to start their own business. Franchisees can expect full training and support. Huszar said COO Scott Walden, who was a sergeant major in the army, has developed both the internal training and franchisee training. Initial training for franchisees will take place at the VetCor training academy in Tampa and will consist of how to run a VetCor franchise. Eventually, Huszar wants the academy to
be a certification center for the Institute of Inspection, Cleaning and Restoration Certification, which is the governing body for the restoration industry.
Targeting Florida Initially, VetCor will target Florida, as the company is a preferred vendor for over 40 insurance companies in that state. But, Huszar added, they are ready, willing and able to accept franchisees right across the country. Veterans make ideal franchisees, he noted, because they are familiar with following a standard operating procedure and then refining it and making it better. Although VetCor doesn’t have a veteran discount for their franchise fee, the president noted that the fee is kept low to act as a constant veteran discount. “Our franchise fee is lower than the other restoration companies in the industry, even with a veteran’s discount,” he noted. While they are just getting started with franchising now, VetCor is well on its way to establishing itself as a premier restoration company and a destination for business-minded veterans who want to use their training and experience in their civilian lives. www.vetcorfranchising.com
Awards 2019 Recognized as Fast 50 company by the Tampa Bay Business Journal 2018 Top 50 Companies to Watch by Grow Florida 2018 USAA Mission Award Winner 2018 Patriots in Business Award for Small Business, sponsored by Chief Executive Group and Thayer Leader Development Group 2017 Greater Tampa Chambers of Commerce Startup of the Year Award 2016 Brighthouse Regional Business Award for Startup of the Year in Tampa Bay
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ALL ROADS LEAD TO
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expert advice: Wayne Maillet | Franchise Management Consultant and Founder | Franchise Specialists
How Much Money Can I Make?
A common question asked by prospective franchisees that are reviewing a franchise opportunity is, “How much money can I make?” In response, the franchise salesperson avoids the question and assures you that you will have an opportunity to review the disclosure document and speak with franchisees. When you subsequently get the disclosure document you go to the earnings section and are faced with a statement that reads similar to the following: “The Franchisor does not give or authorize its agents to make any oral or written representations or estimates concerning the actual or potential sales, costs, income or profit of a franchise.” You then call the franchisees. Although they
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“Put together two cash flow projections: a best case scenario and a worst-case scenario. Plan for the best but be prepared for the worst. This will allow you to sleep at night.” are willing to answer most questions, they become uncomfortable when you directly ask, “How much money are you making?” How can you be expected to make a business decision and invest in the business when you are not provided with potential returns? This issue comes further to the forefront when you go to the bank and they ask you for a business plan with projections as part of approving your loan. They are looking for the evidence of the business being able to pay off the loan. Without this they are reluctant to lend you money. Franchisors can make earning claims provided they can be verified and substantiated. Many franchisors today provide average gross sales figures of their franchisees and some may have
clear earning claims in their disclosure, but several do not. Most franchisors find that the variance in earnings is so great that making any kind of a claim creates undue liability. Some franchisees are more creative than others in posting expenses, making it difficult for the franchisor to compare statements. With new franchisors, there is simply not enough of a track record to go on. Other factors influencing earnings include the franchisee’s management ability, operating efficiencies, competition, the economy and other local factors. As a result, it is almost impossible for franchisors to provide a reliable earnings claim. All of this makes it difficult for you to make a fully informed business decision. The good news is that this forces you to do
“Take the time to develop your own spreadsheets. . . . You will end up being more informed and making a better decision than if you just blindly believed whatever the disclosure or franchisor representative tells you.”
your homework. Take the time to develop your own spreadsheets. Put together a 36-month spreadsheet that captures all the income and expenses related to the business. Then start to fill in the blanks. You will end up being more informed and making a better decision than if you just blindly believed whatever the disclosure or franchisor representative tells you. The cash flow projections that you put together will become an invaluable management tool once the business is opened, allowing you to quickly see when you are on track and providing benchmarks that require seeking answers and making changes so that your profitability is achieved. Finally, you will have a better sense of your working capital needs during the startup phase of the business. Expenses will vary from market to market. Find out what the labor salaries being paid in your community are. What are the rents? Your local chamber of commerce or economic development department may be able to assist. An accountant can also provide valuable insight. Speak with franchisees and ask them for their input. Show them your list of expenses and see if they see any expenses that you may have forgotten. What are their monthly expenses? Were there any expenses that were a surprise to them after they opened? What expense have they found to be the most difficult to manage?
Then there is the issue of sales. Asking a franchisee,” How much money do you make?” will often not provide you with the information you are looking for. Alternative questions that you can ask that will often generate the answers needed are as follows: • What is your monthly inventory turnover? (retail) • What is your markup or margin? • What is your average check and customer count per day? (restaurant) • What are your billable hours, and what is your average hourly rate? (service) • What is the seasonality of the business? • How slow does it get during the offseason? • How do you adjust your expenses during the slow months? • How long did it take to get your business to break-even and then profitability? After you have prepared the cash flow projections, forward them to a few of the franchisees to get their input. Forward a copy to the franchisor. The franchisor will be careful not to state if they are right or wrong but can review and see if there
are any errors or major expenses that are missing. They have a desire to ensure that you are coming into the franchise with realistic expectations. Put together two cash flow projectionsa best case scenario and a worst-case scenario. Plan for the best but be prepared for the worst. This will allow you to sleep at night. No matter how detailed your projections, there will be no guarantees. The economy could change. New technology could deem the business obsolete. A new competitor could come into the market. Review your projections regularly and be prepared to make changes as circumstances change. Wayne Maillet is a franchise management consultant and founder of the consulting company Franchise Specialists. Respected within franchise circles, he brings a realistic, practical understanding of business and franchising. This article is based on excerpts from his book, Franchising Demystified. The book can be ordered through most book retailers or directly from the publisher at: www.franchisingdemystified.com
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profile: PuroClean
Largest-Ever Signing of U.S. Military Statement of Support Takes Place at PuroClean International Convention “We are honored to be recognized by the ESGR for the work we do to promote and support PuroClean franchise owners and team members who serve or have served their country.” - Steve White
From left to right: Bruce Townshend, Chief, Employer Outreach, ESGR; Chris Sanford, Franchise Owner, Warwick, RI; Christopher Bajakian, Lead Technician, Warwick, RI; Mark W. Davis, PuroClean Chairman and CEO; Frank Torre, PuroClean Vice Chairman; and Steve White, PuroClean President and COO.
PuroClean, a leading restoration and remediation franchise that prides itself on its dedication to military veterans, recently conducted the largestever signing of the Statement of Support Program during its 24th annual convention at the Detroit Marriott at the Renaissance Center in Detroit, Michigan. Led by Chris Sanford, a Rhode Islandbased Navy reservist who opened his PuroClean franchise in October 2007,
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the ceremony included more than 140 members of the PuroClean team. In addition to the signing, several awards were presented that reflect PuroClean’s philosophy of servant leadership. The Statement of Support Program is the cornerstone of the Employer Support of The Guard & Reserves (ESGR)®. The intent of the program is to increase employer support by encouraging employers to act as advocates for employee participation in the military. Currently, around 15 percent of franchise owners and team members have a background in military service, including Steve White, PuroClean President & COO, who is a veteran U.S. Army Captain. “It is an absolute honor to be part of this special milestone, joining members of the PuroClean family to show our support for the United States military – many of whom have themselves served or continue to serve,” said Mark W. Davis, Chairman and
CEO of PuroClean. “As an organization, we are deeply passionate about supporting military veterans. We remain steadfast in our commitment to offering innovative opportunities to this very deserving community, and we are hopeful this symbolic gesture helps raise awareness and support in new ways.” As part of the presentation, Sanford awarded Christopher Bajakian, a wellrespected lead technician from his office, with the Patriot Award to commemorate his efforts during Sanford’s 18-month deployment to Uganda in 2011. The Patriot Award reflects the efforts made to support citizen warriors through a wide range of benefits, including flexible schedules, time off prior to and after deployment, caring for families, and leaves of absence, if needed. Bajakian was nominated for this award for his help holding the business together, providing extra support, and ensuring the community received excellent service. Due to Bajakian’s commitment to Sanford and his PuroClean franchise, the office was able to remain open during his absence. To date, Bajakian remains with the
business and has grown into one of the office’s most seasoned and successful lead technicians. PuroClean and partner company, Signal Restoration Services, were also honored during the session with the Seven Seals Award, presented by Bruce Townshend, Chief, Employer Outreach at the ESGR. The Seven Seals Award is presented in recognition of significant individual or organizational achievement, initiative or support that promotes and strengthens the ESGR mission. The award was accepted by Steve White, Mark W. Davis, and Frank Torre, PuroClean’s Vice Chairman, on behalf of both companies. “We are honored to be recognized by the ESGR for the work we do to promote and support PuroClean franchise owners and team members who serve or have served their country,” said White. “As a veteran myself, I see first-hand the value that a military career can bring to a restoration franchise, including unparalleled leadership skills, team-oriented values, and a commitment to serving others.”
As a company that is dedicated to supporting military veterans, PuroClean offers numerous levels of assistance and unique programs. In May, the company announced the launch of its second annual PuroVet free franchise giveaway for veterans seeking a jump-start to their entrepreneurial career. One winner will have his or her $50,000 initial franchise fee covered, opening the door to new opportunities for a financially secure future in a business that ideally suits his or her skills. Military veterans — including all active duty, reserve, honorably discharged, and retired personnel — can apply or be nominated by members of the public at BeAPuroVet.com until early October.
as well as from MatchU Franchising, who reduces their commission by 25 percent for all veterans the company matches with PuroClean.
PuroClean also offers veterans a discounted rate of 25 percent off the initial franchise fee — a savings of $12,500 — and has secured additional savings from national vendors for products and services,
For more information about PuroClean, contact 800-775-7876 or visit www.puroclean.com; for franchise information, visit www.puroclean.com/ franchise.
PuroClean franchise owners also benefit from high-quality training at the company’s $1.5 million state-of-theart training facility, some of the largest territories in the industry, and several financing options. The company has become one of the leading restoration franchise companies in the nation, performing thousands of jobs throughout the United States and Canada and providing restoration services from common household mishaps to large-scale disasters.
“As an organization, we are deeply passionate about supporting military veterans. We remain steadfast in our commitment to offering innovative opportunities to this very deserving community, and we are hopeful this symbolic gesture helps raise awareness and support in new ways.” - Mark W. Davis
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snapshot: VetFran
How Do You Envision VetFran in the Program’s 30th Anniversary Year in 2021? For the past three months, the VetFran team has been asking ourselves and our stakeholders this question almost every day. It’s a question that sparks us to think big, but also one that prompts us to define exactly what we need to do in the near future. Frankly, it’s an exciting question that makes each of us binge dream about the future. For the past thirty years, VetFran has been the leading nonprofit in the veterans entrepreneur space. VetFran has worked to reduce the costs of entry for veterans who wish to open a franchise, specifically encouraging our member companies to give up to a 100% discount on their franchise fee to qualified service members. In total, VetFran has helped create over $1,000,000 in discounts in the franchising space for veterans.
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“As we prepare to celebrate our 30th anniversary, our mission is as relevant as ever. There is no better time for VetFran to assert its considerable strengths, and to take our organization to the next level.” Yet, the urgency of our 30th anniversary compels us to think bigger. In the franchising space, few organizations are so well positioned to continue to serve the veteran community. Today, we’d love to take the time to share what we see as the future of VetFran, new initiatives we’ve recently launched, and other parts of our program that we’re especially excited about.
New Website/Resources If you haven’t visited vetfran.org in the last six months, you’ll be in for a big surprise. We’ve completely redefined our digital presence by focusing on making our resources the most accessible possible. For veterans, finding the next steps to actually purchasing their own franchise is as easy
as going to the tab “For Veterans” and selecting either our opportunities portal or our resources page. On our resources page, we’ve made finding the next steps in the process of purchasing a franchise easy. Our critically acclaimed guide to franchising, published by the International Franchise Association Foundation, helps anyone - veterans and nonveterans alike – understand the basics of the franchise industry. We’ve also pinpointed capital specifically available for veterans interested in entrepreneurship as well as specific government programs that can help veterans get a headstart in franchising. At the bottom of our resources page, we’ve also aggregated events for veterans interested in franchising - a perfect introduction or reintroduction into
“If you haven’t visited vetfran.org in the last six months, you’ll be in for a big surprise. We’ve completely redefined our digital presence by focusing on making our resources the most accessible possible.”
the franchising industry for veterans with any level of experience. On our Opportunities Portal, veterans have the chance to browse careers at over 500 of our member companies. What’s fantastic for veterans specifically is that our Opportunities Portal can be sorted by star membership. Five Star Members have been vetted for peak profitability and offer 20% or more off of the initial franchise fee for veterans. Similarly, three star members offer a 1 5-20% discount, whereas one star members offer a 1 0-20% discount. With most franchise fees around $50,000, simply browsing VetFran’s opportunities portal can save veterans over $10,000.
Using Veteran Franchisees to Amplify Our Message Last year, after we completed our website overall, when we reviewed our program, we recognized that while VetFran had created a vast network of resources for veterans, we could do more to amplify our message nationwide. It wasn’t enough that we were working with companies to reduce their franchising fees for veterans, we needed to put these discounts front-incenter of veterans themselves.
This led us to realize that the best communicator of our message wasn’t our member companies or even ourselves, but rather veteran franchisees who had previously taken advantage of the opportunities VetFran had worked to aggregate. Working with national partners ranging from private sector financial firms to government offices, we forged a new identity for VetFran. Today, VetFran 2.0 has taken shape in multiple ways. For starters, we completely updated our website resources. We’ve also been working with veteran franchisees to host panels on then benefits of franchising at local VBOC offices of the SBA ,and we’ve begun coordinating a national op-ed campaign written by veteran franchisees on why franchising is the perfect fit for veterans.
Caretakers Initiative Finally, VetFran has recently taken steps to expand our mission from not only veterans, but also to their families as well. Our new Caretakers Initiative is set to redefine the home care franchise space. VetFran is working with twenty of the largest home care providers who represent over 4,000 franchise locations to open
a new opportunities portal for military family caregivers. We’re working to create a pipeline for employment, connecting current military caregivers individuals who already have extensive experience in the home care industry - with franchising and employment opportunities in the home care space. VetFran has long had a commitment to military veterans, and we’re excited to expand that mission to military families as well.
Conclusion VetFran is working on these initiatives and so much more, but for the sake of clarity, you can find more about VetFran’s missions and goals on our website at VetFran.org. As we prepare to celebrate our 30th anniversary, our mission is as relevant as ever. There is no better time for VetFran to assert its considerable strengths, and to take our organization to the next level. We look forward to another year of high impact, veteran franchisee community building programming, and we especially look forward to celebrating our 30th anniversary in 2021. Author: Zach Stahl www.VetFran.org
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