Veterans who are looking to make their dream of running their own business a reality would do well to take a closer looking at what’s available in the way of franchises. Why? Veterans have been singled out by many franchise chains as potential ideal franchisees and therefore offer all kinds of great veteran franchise deals. Estimates put the number of veteran-owned franchises at well over 66,000, which works out to 1 out of every 7, which is a ratio that reflects the percentage of veterans in the general population.
Franchise Fee Discounts
The most basic of all veteran franchise deals comes in the form of a discount on the initial franchise fee. The average discount has been rising in recent years and currently stands at just over 18%, which reduce a franchise fee of $50K down to $41K. But it’s important to note that this is an average, which means there are going to plenty of outliers that offer much steeper discounts. Take signage and branding chain FASTSIGNS as an example – it’s current veteran program offers an impressive 50% off the initial franchise fee, reducing the normal fee of $44,500 down to $22,250. Subway is another chain that offers a 50% discount to veterans, and its franchise fee is only $15K to begin with. Then again, with nearly 27,000 restaurants through the nation, finding the perfect location might be a challenge. But if you can work out placing one on a military or government location, the franchise fee is eliminated altogether! Other brands willing to waive their franchise fees for veterans include Midas International (auto repair and maintenance), Budget Blinds (window coverings, window film, rugs, accessories). Franchise fee deals aren’t always presented as a percentage. Lots of chains choose to offer a fixed dollar discount of various amounts.
Reduced Franchise Royalties
Much less common are discounted ongoing royalty fees. While they may be rare, it does happen from time to time. On top of its big 50% discount on the initial franchise fee, FASTSIGNS also offers veterans a 50% reduction in both advertising and ongoing royalty fees during your first 12 months. Meineke (auto repair and maintenance) offers veterans 50% off its royalty fees for the first six months. Del Taco (Mexican/American food) is another chain that not only offers a 50% discount to veterans on its franchise fee, but also reduced royalty fees for two years.
Some brands put together significant veteran franchise deals that cover a variety of franchisee benefits. Papa John’s pizza is a good example of this approach. It’s willing to waive its franchise fee of $25K altogether, reduce royalties for four years, and even give a free set of ovens and a $3,000 food-purchase credit. You won’t find very many opportunities that put together package deals as extensive as that.
Please note that although I’ve mentioned a number of specific franchises here, these should not be viewed as an endorsement or recommendation for that franchise. While veteran franchise deals are great, there is a lot more that goes into figuring out which franchise is right for you – and that is where our expertise at VFC comes into play. Contact us today to find out how we can help you find the franchise that best suits you!