MARCH 2014
Veterans in Franchising Aaron’s www.franchisingusamagazine.com
Vets Victorious with
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Supporting the Troops:
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To work independently To your workown independently To set work schedule To work independently To set your own work you schedule To work at something enjoy To set your own work schedule To To work at something you enjoy control your own salary To To work at something you enjoy control your own salary To control your own salary
Want To Be Your Want To Be Your Want Be Your OwnToBoss… Own Boss… Own Boss…
“BUILDING AMERICA WITH AMERICAN HEROES”
www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com “BUILDING AMERICA WITH AMERICAN HEROES”
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Veterans make great franchise Veterans make greattraining franchise owners! Your military has Veterans make great franchise owners! Your military training has taught you many things that transfer owners! Your military training has taught youthe many things that transfer well into world of franchising. taught youthe many things that transfer well into world of franchising. well into the world of franchising.
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You served your country proudly. You served your country proudly. You served your country Now its time to build a future for you andproudly. your family. Now its time to build a future for you and your family.
V eterans in F ranchisin g S u pplement march 2 0 1 4 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the APRIL issue, please contact Jenn Dean, Business Development Manager Phone: 250-590-7116 Email: jenn@cgbpublishing.com
Contents 62 Cover Story: Veterans Victorious with Aaron’s Advantage
70 Ask For Help! Find a Mentor! Jim Mingey, Veterans Business Services
65 Profile: Tom Perez, Meineke
72 An Answer to New Year Resolutions CruiseOne
66 Profile: Jason Bourgeois, Signal 88 Security 68 Profile: Andrea Brown, Midas
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Veterans in Franchising
COV ER STO RY
Vets Victorious
with Aaron’s Advantage Aaron’s is leading the way among franchise businesses in helping military veterans find their way into franchising with ownership and employment opportunities.
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“The high investment level doesn’t necessarily attract veterans getting out of the military, so our primary objective is to hire veterans and provide careers,” says Greg Tanner, National DirectorFranchising at Aaron’s, a member of the International Franchise Association’s VetFran committee, and a leader behindthe IFA’s Operation Enduring Opportunity initiative. “Within the next five years approximately 185,000 vets will be released from service and put on the streets. Instead of trying to find that one
needle in the haystack, one prospect to buy a store, we’re looking to help provide employment to develop careers.”
For veterans who are interested in buying a franchise Aaron’s is a good fit because it runs like a military base. “Veterans
are disciplined, dedicated, and follow instructions well. Aaron’s too, is all about following procedure,” Tanner explains.
“Aaron’s Veterans run top notch stores and have the upmost respect for the industry and what we do. They’re leaders.”
Tanner says, adding that operations and procedure manuals are also available to all franchisees. “We don’t totally rely on the manuals because we implement a program to make sure they learn everything step-by-step. There are no shortcuts to our program and Aaron’s doesn’t have failure rates. We don’t have stores that lose because of the foundation we build our franchisees.” While training can take up to four weeks, those weeks are merely setting the foundation of continuous training for the span of a year. Aaron’s ongoing field support is second to none, and for every 40 franchisees one field support person is assigned to be responsible for the every day support of those stores. This individual works within the stores, ensuring procedures are done correctly and overseeing where weaknesses lay to help continue growth within the business. “This person is basically the Franchising CEO. They aren’t there to train the franchisees, but rather the store managers and supervisors,” Tanner explains. Currently experimenting with franchising in the UK, Aaron’s is opening up 30 locations to use as stepping-stones for the rest of Europe. “Rent-to-own originated
More than 1,000 Aaron’s employees and franchise owners have served in the Armed Forces. With the company’s comprehensive training and support, veterans are put at ease owning and managing their own Aaron’s franchise, or employed in an executive-level position working in an Aaron’s store.
in London, England, and to this day is still a very strong concept there,” Tanner says. Aaron’s is also looking to expand in key markets throughout the Northeast and California. Setting Aaron’s apart from its competition is its 8,000 to 10,000 sq ft stores, impressive inventories, and monthly leasing program. “Unlike our competitors who lease on a weekly basis, we feel like customers prefer knowing they aren’t forced to come in and pay every seven days,” Tanner says. “Our stores are bigger, brighter, and we know why our customers are there so we give them a great selection.” To Veterans interested in joining the franchise industry Tanner encourages you to read his book, Tannerisms, before making any decisions. Filled with wise captions and valuable information, the easy to ready book can be downloaded for free to help you be combat ready before buying a franchise. “The book explains how to avoid being trapped by a predator. There are 4000 different franchise concepts out there and people want to take advantage of vets because they are such hard workers.
“Aaron’s Veterans run top notch stores and have the upmost respect for the industry and what we do. They’re leaders.”
Training begins the day the agreement is signed. Assigned a team to assist them throughout the entire process, the new franchisee spends two weeks at Boot Camp in Atlanta, GA, and undergoes field training in operating stores. When their location is ready to open, franchisees are not alone. “The corporate team stays with them until they are comfortable that they can handle running their new business,”
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“Veterans can put something on their resume not a lot of people can, and that is they were willing to take a bullet for their last employer. That’s commitment.” Entrenched in the business, Aaron’s operates as a grassroots type of environment, and the military base is a strong customer base of the company. A strong support of Veterans, Aaron’s is committed to making it possible for them to own or operate a store. “It’s just as important that our franchisees are supportive of the military. They’re ready to hire these men and women when they’re ready to go to work,” Tanner says. “At the end of the day Veterans can put something on their resume not a lot of people can, and that is they were willing to take a bullet for their last employer. That’s commitment.” Aaron’s, Inc. is a national leader in the sales and lease ownership of brand-name furniture, electronics, appliances and computers. With more than 2,200 stores throughout 48 states and Canada, and 21 years experience in franchising, of these locations 900 are franchises. Today over 55 million households across North America know and trust the Aaron’s name. Founded in Atlanta, GA, in 1955 by entrepreneur R. Charles Loudermilk Sr., Aaron’s has been publicly traded since 1982. In 2009, Aaron Rents re-branded to Aaron’s, Inc to bring the company in line with the same name that all stores now operate under. Reaching $3.5 billion in sales, Aaron’s is an industry leader in serving the moderate-income customer, offering affordable payment plans, quality merchandise, and superior service. Aaron’s has been responsible for many of the industry’s most successful and innovative marketing, operational, and manufacturing programs. At Aaron’s customers can count on a low price guarantee on every item and are prequalified as soon as they step foot into a store. The only requirements to
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lease from Aaron’s are a proven source of income, two references, and a home address. Customers can also choose payment terms of either a monthly or semi-monthly basis. “Aaron’s serves an extremely underserviced clientele. Typically, Aaron’s customers’ household income is under $60,000 a year, and a lot of customers have credit restraints and are therefore unable to get the things they need to function,” explains Tanner. “We give people the opportunity to have things in their home they normally wouldn’t be able to own.” On the other hand, Aaron’s franchising opportunities attracts high net worth individuals. “People don’t wake up in the morning and say, ‘I want to buy an Aaron’s.’ We’re more of a stealth franchise in that people don’t recognize, understand, or think about what we do,” Tanner explains. “People with large net worth usually haven’t been to an Aaron’s.” Aaron’s’ franchise owners don’t work in store, but rather manage a large staffing crew and own multiple units. Aaron’s franchisee Charles Smithgall is a Vietnam Veteran and owns 117 locations. The requirement to qualify as an Aaron’s franchise owner is $500,000 in liquid cash. “An Aaron’s franchisee is typically someone who is experienced with managing people, money and cash flow,” Tanner says. “We attract individuals that are familiar with running a business and know how to balance a P&L.” The franchise fee is $50,000. Aaron’s franchising process takes from three months to one year to complete. The process begins when the candidate fills out the application and provides their financial information. Similar to the process of
buying a house, Aaron’s application includes thorough paperwork. “We’re going to guarantee franchisees $450,000 and a line of credit to grow their inventory, so we need to make sure we’re finding the right people,” Tanner explains. After practicing their due diligence, candidates then attend a Discovery Day where they meet the internal staff. “I like to call it a validation day because by this point we’ve had a lot of conversations with the candidate, so it’s their chance to validate that we are who we say we are; a company of substance,” Tanner says. At the end of the Discovery Day candidates are given the FDD. “We put the ball back in their court. Returning the FDD to us is their ticket to get on the bus,” he adds. Candidates who are awarded a franchise next set out to find a location. “We have a complete real estate department and construction department. Aaron’s assists franchisees with selecting the location, negotiating the lease, and hiring staff. The entire process is important and we make decisions the same as we would if we were opening a corporate store,” he adds. For more information: Website: www.franchise.aarons.com/
Tom Perez
Tom Perez dedicated 10 years to the United States Navy serving as a police officer and worked his way up the ranks to supervisor. During his service, Perez completed four tours of Iraq, earned numerous medals of achievement and honor and received a college degree in business. In late 2011, Perez was honorably discharged due to downsizing. Following his departure from the Navy, Perez applied for nearly 100 police and government positions across the country, only to receive rejection after rejection. Finally, Perez chose to take matter into his own hands in order to support himself and his family and took the leap into entrepreneurism. He chose franchising because it offered the ability to own a business with a proven system in place, along with support from a team of experts. Perez conducted research on the hundreds of opportunities available in the franchising industry and decided Meineke Car Care was the right place for him.
Profile
“I chose to franchise with Meineke because it is a military friendly community and I knew I would be able to keep my promise to help employ other military Veterans.” “After completing a franchise application form, I heard back within a few days and the process was underway,” said Perez. “Meineke was able to offer a military veteran discount on the franchising license and help finding the best financing available for a small business. Most importantly, I chose to franchise with Meineke because it is a military friendly community and I knew I would be able to keep my promise to help employ other military Veterans.” In May 2012, Perez took over Meineke of Pensacola, FL. At age 31, within the first six months of operating his franchise location, Perez boosted sales by 60 percent and hired five military Veterans to work at his shop. He continues to use the skills he learned in the military to sustain the success of his Meineke location and hopes to grow into a multi-unit owner within the system. Formerly known as the muffler repair experts, Meineke has evolved its menu of product offerings to meet the demands of the ever-changing marketplace. Today, the
Charlotte-based franchise has emerged as the one-stop shop for tires, brake repairs, tune-ups, alignments, shocks and struts, routine maintenance and more. The average age of cars on the road has climbed from 8.2 years in 2000 to 11.2 years in 2013, and general, non-warranty automotive repairs and maintenance is projected to cost consumers $1.6 billion in 2014. As the consumer demand for trust-worthy automotive repair accelerates, Meineke is setting its sights on an aggressive, strategic growth strategy throughout the U.S. by recruiting qualified single and multi-unit franchise partners. Military Veterans with an honorable discharge qualify for a 25 percent discount on the franchise license fee with the car care company. Since 2003, Meineke has offered nearly two million dollars in military discounts and remains one of the top VetFran companies in the franchising industry. For more information: Website: www.meinekefranchise.com/
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Veterans in Franchising
Jason Bourgeois Jason Bourgeois applies his professional background in the military and successfully started a new franchise with Signal 88 Security.
Many times in the workforce and business world Veterans have their skills and experiences overlooked because it was part of the military, and not typical corporate world experience. Not the case with Signal 88 Security, who looks for Veterans who they know have what it takes to get the job done and they provide discounts and incentives to help them make it happen. Bourgeois is a U.S. Marine who served in Operation Iraqi Freedom as a Military Policeman, and served in the U.S. Air Force as a Security Forces Craftsman, but still did not realize the value of his professional experiences until he was able to connect with Signal 88 Security. Visualizing how he would be a great asset to the organization, Bourgeois then did his due diligence and interviewed other franchisees from Signal 88 Security. Learning of multiple Veterans who had already found a great fit with the franchise,
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this greatly increased his confidence level. Bourgeois’ main objective was to be available to support his family, and owning a franchise gave him the independence to make his own schedule and build his business at a pace in which he could be there for his children while also meeting his professional goals. Currently, Bourgeois’s Signal 88 Security franchise is located in Baton Rouge, LA, and he is already expanding to Houma and Thibodaux, LA. He has currently employed 13 people, all Veterans, and is in the process of adding four more in the coming weeks. He expects to surpass his earnings goals soon and is very optimistic about his new business. His success is credited to the structure, training and support that Signal 88 Security has provided. As Bourgeois continues to build his business development skills, he captures new contracts and can clearly see a path to business success. Signal 88 Security has already made its
mark on the security industry as one of the top contenders. It also boasts the most successful franchise model in the security industry. With over 100 franchises in 30 states, Signal 88 is growing each day and is always looking for potential new franchisees. Many Veterans and former police officers have found that Signal 88 has been the perfect business opportunity for them. Signal 88 Security also gives a discount to military Veterans who choose to open their own franchise. With an ever growing industry, a need for security, and the support of the franchise group, Signal 88 Security provides a great opportunity to own your own business. For more information: Website: www.signal88.com/ franchising/home.aspx?utm_ source=franchisingUSA&utm_ medium=marcharticlelink&utm_ content=franchising&utm_ campaign=franchisingUSAmarch
“With over 100 franchises in 30 states, Signal 88 is growing each day and is always looking for potential new franchisees.”
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Andrea Brown Lincoln Highway in Chicago Heights looks like any other from the outside, but inside, history is being made. Andrea Brown is the first female military Veteran and the first black female to own one of the 2,500 Midas franchises in the United States and Canada. “It is an honor and a tremendous privilege to be the only female Veteran Midas franchisee in the
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country,” she says.
Brown also said she knows her background in the medical field makes her an unlikely candidate to run a machineoriented business, but she had a different view when applying for the franchise. “This is my catch phrase: I’ve studied all of the systems for the body. I’m now ready to study the systems for the vehicle,” she adds. Born and raised in Vicksburg, MS., Brown earned a Bachelor of Science degree in biology/pre-med from Texas Southern
University, and a Bachelor’s degree in Nursing from Eastern Illinois University. But she faced some challenges while pursuing her degrees over more than a decade ago. When her efforts to continue her education were stalled by a lack of finances in 1997, Brown decided to join the Army. Brown said her father, a Vietnam Veteran, was “dead set against it,” and offered to pay her way through school. But her independence kicked in. “I really need to do this on my own,” she told her father.
“I’ve studied all of the systems for the body. I’m now ready to study the systems for the vehicle.”
Brown was introduced to Midas’ franchise opportunities through Stacy Everett, a friend with whom she had been speaking about a business partnership. Everett had been with the “Midas family” for about 15 years, so when Brown saw Midas listed on a government website as one of the Fortune 500 companies partnering with the government to give franchise opportunities to Veterans, “a light bulb went on.” As an E-4 specialist in the Army, Brown served as a pharmacy specialist at Brooke Army Medical Center at Fort Sam Houston in Texas from 1997 to
2001. After her discharge in 2001, Brown continued her schooling while working and eventually earned her nursing degree from EIU in 2007. Brown explains that while an internship and subsequent job at the Hines VA Medical Center was rewarding, she also wanted to create additional income by becoming an entrepreneur.
When Brown eventually became the owner of a Midas franchise, she used Everett’s skills to operate her business. “He has the [automotive] experience I needed,” Brown says. Brown’s “strong suit” in management came from her experience in managing nurses and medical personnel during her days in the medical field. She says that this has helped her run a successful business since opening in August 2012. When asked about her experience with Midas, Brown says: “It’s been fantastic. It’s great to have the freedom of owning your
own business…but it’s also hard work. You can’t clock in and clock out. Your time is 24 hours because there’s always something to manage, always something to do.” But she isn’t afraid of hard work. “One of my goals is to have at least two more Midas shops along with other businesses as well,” she says, adding that she hopes to own other automotive-related businesses such as car washes or body shops. Brown is currently in the process of trying to buy the empty lot adjacent to her current business. Aware that she is in a “predominantly male field,” Brown believes she has the formula necessary for anyone to become a successful business owner. “When you’re starting your own business, you have to have tenacity and endurance,” she says. “You’re going to have several different roadblocks along the way. It’s going to take that tenacity and endurance to keep going once somebody tells you ‘no.’” For more information: Website: www.midasfranchise.com/
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Veterans in Franchising
Jim Mingey, Veterans Business Services
With Limited Experience in Franchise Acquisitions, How Can Veterans Improve Chances of Success?
Ask for help! Find a Mentor! Identifying yourself as a Veteran lately can sometimes help open doors. The initial reception most times is cordial, and of course in franchising it typically gets a Veteran a discount. Not a bad start, but at that point you’re still at the same starting gate as any entrepreneur examining and then trying to
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perfect an opportunitiy. One great way a Veteran can get an edge is to find an advisor who can help with their due diligence, give unbiased suggestions for examining a franchsie idea, or maybe even act as a strategic advisor to help leverage additional support for their business ideas. This type of advice can come through a mentor, and if the relationship is approached properly, it can offer terrific advantages to any business idea. In business, your market is your market, there is no getting around that! Whether
you start an independent business, acquire a franchise, or even build a nonprofit business, it’s all about knowing your market and then executing a product/ service delivery process to get and satisfy customers. Mentoring programs can help you accomplish both. During the next several years the number of Veterans transitioning into civilian life is expected to exceed 250,000 per year. Realizing that a smooth transiton to employment or self-employment is essential, a few forward thinkers at the Department of Defense, the SBA, and VA developed what is known as the Boots
“If the Veteran and the mentor establish concrete goals and develop a plan of action with deadlines, respect can evolve quickly for the overall mentor relationship.” to Business Program for those Veterans seeking entrepreneurism as a way forward. The program is free to transitioning Veterans and offers a staged introduction to entrepreneurship with the last stage, offering specialized mentoring for any business plan, including a franchise acquisition. The program is relatively new but is expected to be in fully implemented by nationally 2015. Use it! Many Universites now offer Veterans entreperneiral bootcamps to help jump start their business ideas. Some of these bootcamps were spearheaded by the Whitman School of Business at Syracuse University, and now comprise a branded network of Universities using “EBV,” which stands for Entrepreneural Bootcamp for Veterans with Disabliities. Others like Oklahoma State are independent modela. All of these are essentially specialized mentoring programs but have limitations. Although they’re without cost, you must apply and enrollments are limited and not always in sync with required timing. If you have a disability, apply and use them to build a mentoring network! The granddaddy of all small business mentoring operations is SCORE, which used to stand for Service Corps of Retired Executives. It been around for over 50 years and is partially funded by the SBA. But make no mistake, the new SCORE brand and services are not your father’s mentoring program. It’s a sophisticated network of over 350 Chapters that covers all of the United States. Mentors can now be active younger entrepreneurs with many mentors still participating in business by themselves or as part of social entreprises they construct for public good, including
Veteran mentorship. Over 15 percent of SCORE mentors are Veterans and they know how to connect other small business resources with Veteran priorites. Around 80 percent of SCORE mentors have direct experience in sales and marketing, which can directly relate to a prospective franchisee’s need to examine his market and compare and contrast others as well. Where else can you find free due diligence assistance and someone to help challenge your franchise business assumptions? Interesting, the best Score Chapters are judged by their rate of return of initial mentees. As the Veteran entrepreneur refines his/her franchise acquisition plan the SCORE mentor can bring in a number of free collateral resources like Veteran Business Outreach Centers and unique financing sources to assist. Ideally SCORE mentors and mentees spend considerable time getting to know one another but don’t inflate your expectations, as 80 to 90 percent of SCORE mentors are primarily interested in one-on-one business conversations. Be patient and learn how to reach out to the other 10 to 20 percent at SCORE who will help network an develop comprehensive strategy plans that involve different resources. No one at SCORE will tell you that you can’t have more than one mentor. Veterans should try to set realistic expectations and definitively share responsibility for the mentor relationship. If the Veteran and the mentor establish concrete goals and develop a plan of action with deadlines, respect can evolve quickly for the overall mentor relationship. The best advice for Veterans is to explore all of the above and also evaluate
Jim Mingey
participating in mentoring networks like American Corporate Partners for both career and small business knowledge and support. And of course VetFran now offers a direct franchise mentoring program. If you can’t the right fit or connection, give VBS a call. To accomplish its mission VBS requires a steady hand who relates well to Veterans. VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the Veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment (VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for Veterans in franchising. For more information: E: jimingey@VeteransBusinessServices.us Phone: 202-349-0860
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Cr uise O ne
“Strong leadership, discipline, and trainability are several of the skills military Veterans bring to business ownership, and these are also among the reasons they are some of the most successful franchise owners.”
CruiseOne
An Answer to New Years Resolutions With the New Year comes resolutions, and CruiseOne has resolved that in 2014 military Veterans and active-duty military spouses will make up at least 25 percent of its franchise network by the end of the year, an increase of nearly 10 percent. “At CruiseOne we salute military Veterans and their spouses and we acknowledge that military service experience translates well into small business ownership,” says Tim Courtney, Vice President of Franchise Development and Ambassador of Veteran Affairs for CruiseOne. “We find that strong leadership, discipline, and trainability are several of the skills military Veterans bring to business ownership, and these are also among the reasons they are some of the most successful franchise owners.”
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CruiseOne offers many military Veteran incentive programs. Those who served in the U.S. armed forces receive a 20 percent discount off the franchise fee. To further increase support in this area, in 2014 CruiseOne is launching a new Veteran employment program offering discounts for franchise owners who hire former members of the U.S. military or active-duty military spouses as associates. The first associate fee of $495 will be waived; any additional associates hired who are Veterans or active-duty military spouses will be offered at half-price, a value of $248. In addition, for the past two years the company has hosted its annual “Operation Vetrepreneur: Become Your Own General” contest, which awards five deserving military Veterans with a free CruiseOne franchise. Each year, the contest starts on Memorial Day and concludes in the fall, with a special ceremony featuring city and state government officials. “I am so honored to have won a CruiseOne travel franchise and I appreciate the commitment that CruiseOne makes to military Veterans,” says Grant Springer, CruiseOne franchise owner, 2013 Operation Vetrepreneur winner and
Tim Courtney
Army Veteran. “As I continue to grow my business, I look forward to hiring other former members of the U.S. military as associates so they can experience the beneficial veteran employment opportunities that CruiseOne offers.” As a VetFran member, CruiseOne proudly supports former members of the U.S. military and is a military-friendly franchise for its dedication to Veteran employment. For more information: W: www.franchise.org/CruiseOne_ franchise.aspx.