The franchise industry has made it its mission to help military veterans secure funding in order to pursue their small business dreams– but why is it so important that former members of the armed services receive so much help? Aren’t they an obvious choice for financial support?

You would think so– and the loan environment for veterans is significantly better than it was a decade ago– but fiscal support for our nation’s heroes still isn’t where it should be.

Call me old-fashioned, but American businesses and banks should do all within their power and conscience to help former members of the military. After all, they offered up their lives in potential sacrifice for this nation. Can’t we help them settle into civilian life as small business owners?

The International Franchise Association has, through various programs like VetFran, done a great deal to rally support around military veterans. The IFA and various franchises have extolled the benefits of employing veterans, praising veterans’ ability to lead, to take direction and to execute intricate plans.

But banks don’t always see it that way.

When evaluating a loan application, banks look at:

1. Your history. Banks will check your financial status and personal credit history and your previous loan history. Banks believe we’re creatures of habit and that if we’ve demonstrated fiduciary responsibility in the past we’re likely to continue those habits now. But, if you’ve been in the military since your twenties you probably haven’t had time to develop and rich credit history.
2. Your cash flow. Preparing a cash flow statement with future cash flow projections is something banks take seriously. Doing so shows the bank that you’re aware of cash coming in and going out of your business. However, how many military personnel are taught how to prepare these kinds of statements?
3. Your collateral. Most loans are repaid in cash but lenders will want some kind of back up in case your business fails. Collateral– anything of value like a vehicle, real estate, savings, equipment or stocks and bonds– may be used as security for debt repayment. Again, many of those just leaving the military do not own real estate and, if they’ve been on tour for extended periods of time, have not needed a vehicle.

It’s for these reasons that some banks like TD Bank, with urging from the IFA and some franchises, have given some preferential treatment to veterans. As more and more action is taken to help veterans become business owners banks should follow suit. Furthermore, as banks are desperate to lend they’ll consider more and more loans.

As a veteran, do you know your franchise industry ABC’s?

A is for Autonomous — Why did you want to become a franchisee in the first place? More than likely it was because you wanted to be your own boss. Who doesn’t crave more autonomy at work?

B is for Boost a Hero — Finding funding isn’t always as easy as applying for a loan. Sometimes, applying for a loan isn’t easy in itself. Thankfully, Sprigster has created Boost a Hero, a crowd funding platform designed to help military veterans and their spouses raise capital to start their own franchises and businesses.

C is for Crowdfunding — Funding remains a challenge for all entrepreneurs, not just those who are hoping to open a franchise. New legislation is sure to help crowdfunding’s popularity as a way to raise capital for .

D is for Directories — As the franchise industry picks up speed in its recruitment of military veterans and franchisees, directories have become an invaluable resource for both franchises and veterans. Directories, like Veterans Franchise.com, provides potential franchisees with free information on franchises specifically recruiting or offering special incentives to military veterans choosing franchise ownership as their next career move.  Some, like Franchise Clique, Franchise Buy and Veterans Franchise, have begun call-verifying leads as franchise sales and development teams field an increasing number of inquiries.

E is for Entrepreneur — Entrepreneur magazine has long celebrated franchising with its “Franchise 500”, their annual ranking of the industry’s top franchise concepts. The magazine also features a franchising section and often covers topics pertaining to the industry on its website.

F is for Fresh Coat Painters — Fresh Coat Painters is a low-cost, home-based and recession-resistant residential and commercial painting business that’s actively recruiting veterans.

G is for Growth — Growth despite economic challenges and uncertainty has become a hallmark of the franchise industry. Despite the woes experienced by many during the Great Recession, the franchise industry recovered well. The IFA expects the number of franchise establishments to grow by 1.4 percent in 2013!

H is for Helping Veterans Own Franchises Act of 2011 — Franchise small businesses find that veterans make great franchise owners because of the skills and experiences they have acquired through their military service.  This legislation directly supports the mission of VetFran and would allow more veterans to become entrepreneurs through the ownership of a franchise business.

I is for IFA — The International Franchise Association (IFA) is the world’s largest and oldest organization representing franchising worldwide. It acts in the best interest of the franchising industry to promote, protect and enhance the franchise industry through policy, PR, and education.

J is for J Dog Junk Removal— This exciting franchise opportunity is only open to veteran, active duty and reserve personnel.

K is for King — Joel Libava, aka “The Franchise King”, writes a phenomenal blog on all aspects of the franchising industry. His posts range from evaluations of franchising concepts, helping potential franchisees and issues the industry faces.

L is for Little Caesars — Little Caesars is outpacing other pizza franchises when it comes to recruiting veterans. The franchise program provides qualified, honorably discharged veterans with the chance to become a Little Caesars franchisee when transitioning to civilian life.

M is for Military Franchises — Military veterans have been welcomed profusely to franchising by franchisors and the IFA alike. The push to hire military veterans has been facilitated by websites like Veterans Franchise.com, VetFran and crowd funding platforms like Boost a Hero.

N is for Nation’s Restaurant News — This magazine delivers breaking news about the $600 billion food industry, including franchises. Since 1967, NRN has been covering trends, operators, suppliers and major figures in all areas of the food service industry.

O is for Operations — As a franchisee, a large part of your day deals with the day-to-day operations that make a franchise unit run smoothly. Luckily, those with varying degrees of business experience can count on their franchisor counterparts to lead the way. After all, one of the best parts about franchising is the proven track record and support provided to each franchisee by its franchisor.

P is for Patriot Pilot Loan Initiative — Through the Patriot Express Pilot Loan Initiative the SBA has approved more than $500 million in low-interest small-business loans for veterans, reservists and their spouses since its creation in 2007.

Q is for Quick-Casual — If you didn’t catch our recent post on food costs and the franchising industry, you missed out on a short and sweet explanation of how food franchises continue to grow despite rising food, oil and transportation costs. The real winner in the food franchise category? Quick-casual restaurants, which are predicted to grow 1.7 percent in 2013, the third largest growth percentage according to the IFA. Also, quick-casual restaurant franchises make up two-thirds of all food related franchise establishments.

R is for Restaurants — When you think of franchising, golden arches and drive-thrus probably spring to mind first. It’s no wonder, considering food franchise establishments comprise 33 percent of all franchise establishments.

S is for Steve Caldeira — Stephen J. Caldeira is the President & CEO of the International Franchise Association. As the President and CEO, Caldeira works with the IFA’s board to set the course for the organization’s strategic priorities: policy, research, education, PR, and various development programs. Mr. Caldeira has 30 years of government relations, political communications, fundraising and professional development experience. Prior to his current position, Caldeira served as the Executive Vice President of Global Communications & Chief Public Affairs Officer for Dunkin’ Brands, Inc.

T is for Trillion — Yes, that’s trillion with a “T”! The franchise community represents $2.1 trillion of economic output just for the U.S. economy.

U is for U.S. Lawns —  U.S. Lawns is aggressively recruiting former military personnel to become part of their franchise, which is part of a $50 billion industry.

V is for VetFran — The International Franchise Association’s VetFran initiative aims to help returning military service members access franchise opportunities through training, financial assistance, and industry support.

W is for Work — Despite the autonomy inherent in becoming a franchisee, there’s also a lot of hard work. Ask any small business owner and they’ll tell you how much they wish there were more than 24 hours in a day. As a veteran, you know all about hard work (can you say boot camp?) which is why you’re at the top of every franchise’s recruitment list.

X is for Xenophile — As far as we’re concerned, one of the very best things about the franchise industry is its acceptance of other cultures. Whether it’s a franchisee expanding outside of the U.S. or the birth of a new food franchise celebrating a cuisine that’s not quite mainstream yet, the franchise industry makes a point to bring “new” and “different” to the masses.

Y is for Yogurt — How many frozen yogurt places can you count driving through your city or town? The frozen yogurt craze, which hasn’t cooled yet, has been going strong for years. Though it’s not the oldest type of franchise concept in the industry, it’s certainly one that’s made other consider franchising as a viable means of making a living.

Z is for Zeal — It takes more than just energy and determination to be a successful franchisee. It takes passion and a zeal for each of the many components that make a business run successfully.

It’s no secret that food franchises are often the most searched for and requested on franchise directories and portals. It’s what we all think of when someone says “franchising.” Despite the popularity of food franchises– the how is that sector of the industry doing?

Why do I ask? Well, maybe you heard of this little thing called “The Great Recession” and, in its wake, the tightening of our collective belts. How have food franchises fared? Has development for food franchises slowed? If not, how is that possible when food costs have risen and disposable income has decreased for most families?

Fast-Casual Food Franchises Are On the Rise

Research suggests that fast-casual franchise restaurants, which are a subset of quick-service restaurants, rank as one of the five best franchises to open due to high demand. Presumably as a result of the Great Recession, consumers are concerned with maximizing their time and money when it comes to eating out. Eating establishments that are less expensive but still allow consumers the ability to escape the kitchen and feel as though they’re treating themselves.

The number of quick-service restaurants are expected to grow 1.7% in 2013, the third largest growth percentage according to the International Franchise Association.

Franchising is On the Rise— How? Why?

A recent study by the IFA shows that the number of franchise establishments increased by 1.5% last year.

Why? How? Simply, the economy is why and how.

Unemployment and underemployment (taking lower pay and lower-level jobs) are still unfortunate realities for the U.S.’ economy. As such, more Americans are mindful of their spending. Dinners at high end dining establishments have become increasingly rare. In addition, many individuals and families are working multiple jobs or longer hours resulting in a need for fast, inexpensive meal options– especially if you’re traveling between places of employment. This increased demand for quick-casual and quick-service establishments (think Panera and McDonald’s respectively) has permitted the franchise industry a growth coveted by many other economic sectors.

Exiled corporate executives and those who lost a substantial portion of their savings due to the Great Recession face the unfortunate reality of a shortened or no retirement at all. In order to earn a living, many entrepreneurs have chosen franchises as a means of business because of each concept’s proven track record.

What’s Behind Rising Food Costs?

Despite a reputation for quick and inexpensive meals, franchises are facing rising food costs because of four important reasons: increased fuel and transportation costs, reduction of food availability, and a continuation of economic circumstances that created 2011’s food price inflation.

• The U.S. government’s subsidization of corn for bio-fuels has removed substantial amounts of the grain from the food supply, increasing overall prices.
• The World Trade Organization limits the amount of stockpiling the U.S. and the European Union may do of corn and wheat in case of extenuating weather circumstances. As such, the price of corn and wheat remains volatile. (Note: wheat prices in 2011 more than doubled.)
• As more of the global population becomes affluent, the demand for meat increases. In accordance with this demand, the need for animal feed– primarily grains– increases driving up the cost of both items.
• The increase in oil prices means high food prices, as much of our food isn’t grown locally but shipped across oceans and nations.

The franchise industry has a bad reputation as an industry that force feeds processed foods to the masses and cons its franchisees into paying high franchise fees. Owning a franchise and saving the world don’t normally belong in the same sentence– until now, of course.

Truth be told, there’s more to franchising than just French fries and lawsuits. Concepts do exist that make a difference in the lives of customers, communities and franchisees. Some concepts help people change their lives for the better through charitable giving, others offer healthy alternatives to junk food and then there are those that are encouraging positive social change in the business world. Some franchises are determined to provide veterans with jobs above all others. Here is our list of favorite franchises that are making a difference:

Healthy Vending Machine Concepts

It’s not our three main meals of the day that are our unhealthiest, it’s our snacks. Healthy vending machines remind me of the saying, “Don’t hate the player, hate the game.” By stocking conveniently located vending machines with better, more nutritious options, these vending machine franchises are reinventing our definition of convenience foods.

• Health You Vending
• Fresh Healthy Vending

 Personal Fitness Franchises

 Just watch one episode of “The Biggest Loser” and you’ll understand America’s fascination–and need– for businesses that empower others to get in shape, lose weight and be healthy. These fitness franchises give their customers and franchisees the power to change lives for the better.

• Anytime Fitness
• Brickhouse Cardio Club
• CKO Kickboxing
• Complete Nutrition
• i9 Sports
• Welcyon Fitness After 50

Socially and Environmentally Conscious

Almost 70 percent of adults are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally-friendly way. A full 83 percent of consumers want more products, services and retailers to benefit worthy causes. Over 40 percent of Americans say they’ve purchased an item solely because of its association with a social or environmental cause. If you think being a socially and/or environmentally conscientious business isn’t important, think again. These franchises have their minds set right.

• Elevation Burger
• Chipotle
• Freshii
• Apex Fun Run