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The franchising industry made history this past November when the International Franchise Association launched Operation Enduring Opportunity, a campaign built on its VetFran strategic initiative to hire and recruit 75,000 veterans and their spouses and 5,000 Wounded Warriors as business owners and team members by 2014. IFA members conducted local events in 10 cities, joining with veterans and federal, state and local officials to generate more than 100 local news stories and convey to the nation our commitment to support those who have served this nation so bravely at their time of need by offering them opportunities in franchising.
Meanwhile, IFA's partnership with the White House Joining Forces Initiative led to joint events and recognition by First Lady Michelle Obama, Veterans Administration Secretary Gen. Eric Shinseki, U.S. Small Business Administrator Karen Mills and other federal and state leaders, garnering more than 200 significant national media hits.
"As tens of thousands of servicemen and women return from deployment in Iraq, Afghanistan and Southwest Asia, expanded opportunities are needed to ensure that veterans and their families are able to transition into the civilian economy. With its rapid training opportunities, defined structure and systems, and need for operational excellence, franchising provides an ideal structure to enable returning veterans to become leaders of and productive participants in the U.S. economy," said IFA President and CEO Steve Caldeira, CFE. "We encourage all franchise businesses, including franchisors and franchisees, to answer the call to offer jobs and career opportunities to veterans, Wounded Warriors and their families. Not only is this critical for the economic and social stability of veterans and their families, but it is an important component of the U.S. economic recovery."
Veterans have a proven track record of success in franchising. According to a recent study based on U.S. Census data, there are more than 66,000 veteran-owned franchise establishments in the United States, providing jobs directly for 815,000 Americans. More than 2,100 veterans have become franchise business owners through IFA's VetFran program, originally established in 1991, and subsequently revamped after 9/11. Responding to veteran unemployment rates of 11.7 percent (22 percent for veterans under 25 years old), IFA launched Operation Enduring Opportunity to offer returning veterans career paths in franchising including employment and ownership on a broader scale.
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"This is exactly what we hoped for when Joining Forces was set into motion by the First Lady and Dr. Biden-private sector companies stepping up for veterans and families," said Captain Brad Cooper, U.S. Navy, and executive director of the White House Joining Forces Initiative. "The franchise industry's commitment represents the largest employment commitment seen to date from the private sector."
Specific hiring and recruitment targets by franchise businesses will be posted at www.VetEran.com.
New Tax Credits to Fuel Franchising's Veteran Initiatives
Franchise leaders Guidant Financial CEO and Co-Founder David Nilssen, Aaron's Sales & Leasing National Director of Franchising Greg Tanner, and IFA President and CEO Steve Caldeira, CFE, joined a White House signing ceremony for the Vow to Hire Heroes Act, instituting tax credits for employers who hire veterans. Hiring a veteran unemployed for over a month yields a credit of $2,400; if the veteran is unemployed for over six months the credit is $5,600 to the employer. The credit can rise as high as $9,600 for hiring a veteran disabled in a combat zone who has been out of work for more than six months.
On Nov. 15, IFA praised Sen. Chris Coons (D-Del.) and Sen. Marco Rubio (R-Fla.) for introducing bipartisan jobs legislation including tax incentives for veterans who purchase franchise businesses. The bill offers a tax credit to veterans equal to 25 percent of franchise fees, up to $100,000, known as the Help Veterans Own Franchises Act (S. 1540/H.R. 2888), legislation initiated by IFA and introduced by Sen. Bob Casey (D-Pa.), and Reps. Aaron Schock (R-Ill.) and Leonard Boswell (D-Iowa).
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IFA also applauded U.S. Rep. Tim Griffin, R-Ark., for introducing the Franchise Education for Veterans Act (H.R. 3351) to allow veterans to use up to $15,000 in GI Bill funds to pay for franchise education and training.
