Making the Transition from Veteran to Franchisee

On July 24, 2011, after five years in the military, Kevin McClenahan, a former Staff Sergeant in the 3rd Special Forces Group, opened the doors to his franchise in Fayetteville, North Carolina.

Last spring, Joy Bolluyt purchased a franchise. After 20 years in the military, during which she was often separated from her family, Bolluyt now runs her virtual assistant business from her home in Lorton, Virginia.

Both McClenahan and Bolluyt are joining the ranks of a growing number of vets turned franchisees. According to a recent study conducted by PwC for the International Franchise Association -- the first-ever study of veteran ownership in the franchising industry -- one out of every seven franchise businesses are owned and operated by veterans of the U.S. military.

The force driving these numbers can be partly linked to the IFA’s VetFran program. More than 400 IFA franchisor member companies participate in VetFran, offering financial incentives, training and mentoring to veterans wishing to buy franchises. Since the program’s inception, more than 2,000 vets have become franchisees One VetFran participant, , reports 11 percent of its new franchise starts last year were former military personnel and expects this trend to continue this year. 

While these numbers illustrate the success of the VetFran program, there is another reason franchising appeals to military veterans: the simple fact that franchise ownership can make the transition back to civilian life smoother.

We spoke with McClenahan and Bolluyt as well as Laurie E. Pollock, a senior franchise consultant with FranChoice and the host of a free, monthly webinar, Veterans Exploring Franchise Ownership, about what making the transition to civilian life entails and how franchising can help.

Franchising offers an appealing alternative to the job market. When McClenahan left the military, his top priority was to secure a financial future for his wife and two children; however, upon assessing the North Carolina economic climate, he soon found that “jobs were very tough to find,” so he turned to franchising and is now his own boss.

Vets come back with strong leadership skills and a thorough understanding of teams. “Army life as an officer is about leading people, improving processes, and accomplishing the mission,” says Bolluyt. “The leadership skills I gained in the military serve me well in building on the strengths of the team. I truly understand the power of a team versus the individual. The mission is not accomplished by the individual; rather, the mission is accomplished by the team. I knew that to build my business meant building the team and the systems and processes to support the team. Throughout my Army career I had opportunities to build, grow, and lead teams. For several years I worked in acquisition and learned how to interview and hire government civilians. I directly applied these skills to the process of building my description of need, interviewing candidates, selecting team members, and acclimating them to the team.”

Franchises run on systems, just like the military. “The transition from the military to [being] a franchisee could not have been better,” says McClenahan. “Just like the military, a franchisee is given systems and best practices to follow in order to maximize success. Implementing systems is a key responsibility in the military, and that aspect translates to the franchise world. Having the experience of the military under my belt has given me all of the tools I needed to transfer into the role of entrepreneur and business owner.”

Franchises provide training. “Veterans are trained and taught very specific skills to be used to carry out very specific tasks, and these skills and tasks do not always transfer into the civilian workplace,” says Pollock. “Veterans may find that they need to pay for additional training, education, or certification in order to compete for civilian jobs. Franchises have comprehensive training and support built into their opportunities, which enables them to claim, ‘No previous industry experience required.’ This means a veteran can enter into a completely new field; follow the franchisor’s proven business model; and receive the training, guidance, and support a new business owner needs to succeed.”

Franchises offer support. “Joining a franchise, a once ‘separated’ veteran can feel connected again, surrounded by a support structure and part of a franchise ‘family’ – a culture many franchisors work to cultivate among their franchisees,” says Pollock.

Vets and entrepreneurship often go hand in hand. “The SBA recently reported that veterans have a 50 percent higher likelihood of being entrepreneurial than their civilian counterparts – even higher if they wore the rank of an officer,” says Pollock. “That’s because entrepreneurs and veterans share similar traits. Entrepreneurs are self-motivated, they tend to pursue a path different than most, and the enjoy taking on risk. These are the very qualities veterans exhibit the moment they decide to join the military.”

Making the Transition From Vet to Franchisee

Are you a vet turned franchisee or a vet who’s thinking of buying a franchise? Follow these tips for a smoother transition:

• “Seek out other veterans in the franchise you’re joining,” advises Pollack. “Call those owners and create a support network for yourself. Veterans will always share a common bond. The mutual respect, emotional support, and encouragement veterans offer each other can make their franchise ownership experience that much richer.”

  
  

  
  

• Prioritize what’s important to you. Bolluyt’s criteria included being able to be home-based, work with the small business community, be part of a young franchise system where she could make a contribution, and build the lifestyle she desired for her family. Once she knew what was important to her, she had a better idea of what she was looking for in a franchise. McClenahan was looking for flexibility, a financially secure future, and an affordable business with low capital requirements. “The most challenging aspect of the transition was analyzing all of the various businesses and what was going to be the right fit for my family,” he says. “Once I found Doc Popcorn, I knew my search was over.”

  
  

  
  

• “Before you buy a franchise, do your homework to be sure that the franchise is a viable business and that you will be able to work well within that franchise's organization,” advises McClenahan. “Speaking to franchisees is an important step because it will tell you a great deal about the franchise's operations and the franchisor - franchisee relationship.”

For a list of franchises that participate in the VetFran program, visit the VetFran website.