Franchise Fee Discounts for Veterans

To honor their military service to this nation, veterans are privy to a host of discounts, whether bank loans, tuition breaks, travel deals and more. One increasingly popular discount is a reduced investment fee offered by franchisors, a boost for those veterans who want to become business owners.

Port Washington resident Carolyn Weber, the executive vice president of Garden City-based RE/MAX of New York, a provider of comprehensive real estate services, is extending a 25 percent discount on its standard franchise investment fee to any real estate broker who is a U.S military veteran and interested in joining the RE/MAX system in New York state.  This discount will be in effect for the next year and may be extended. 

"There are opportunities in Manhasset, Port Washington, and Roslyn," Weber noted, when asked about available territories in and around the peninsula. 

RE/MAX of New York has joined the ranks of other franchisors offering fee discounts to veterans. According to the International Franchise Association, a trade group in Washington, nearly 400 member-companies provide financial assistance to honorably discharged veterans to assist them in transitioning to civilian life. Participating franchisors include Massage Envy, which has a location on Main Street, and The UPS Store, which has a location on Shore Road. Other participants include Red Mango, a popular smoothie concept with a location coming to Manhasset, and Zommin Groomin, a pet grooming concept, a growing sector. Learn more about other franchisors offering discounts to veterans. 

"Discounts for vets has become widespread in the franchise industry," said Tom Scarda, a FranChoice consultant in Wantagh, who helps match would-be franchisees with franchisors. "It's good for PR and it's an easy play to increase sales. With lack of jobs, many returning vets have to look to business ownership as a career path. Additionally, military personnel make great franchisees. They are typically leaders and are great at following systems." 

The discounts can be a boon for veterans that want to get into franchising."Most vets don't have the capital to purchase expensive franchises," said franchise attorney Harold Kestenbaum. [Editor's note: In full disclosure, the author of this article wrote the book "So You Want to Franchise Your Business" with Kestenbaum.]

Veterans looking for business guidance can work with the Small Business Development Center, which runs an office at Farmingdale State College and also at C.W. Post Campus of Long Island University in Brookville, which is closer to Port Washington. "I will meet with any veteran who needs small business assistance at a place convenient to the veteran," noted John Narciso, the New York State program coordinator of the SBDC's Veterans Business Outreach Center.

At some point, franchise fee discounts may become more widespread. In June 2009, The Help Veterans Own a Franchise Act legislation H.R. 2672, was introduced in the House of Representatives.  This revision to the Internal Revenue Service code is intended to provide tax rebates to U.S. military veterans who purchase a franchise and to the franchisor that provides a discount.  The legislation is currently pending in Congress.

But some franchisors aren't waiting for Washington. "We know that in any economy it takes a tremendous amount of effort and hard work to run a successful business," said Henry F. Weber, president and regional director of RE/MAX of New York. "This discount will make owning a business a little easier for U.S. military veterans."