COVER STORY
FRANCHISES THAT FIT
Why home-based franchises are ideal for America’s returning veterans.
E
ven while he was serving in the Army,
Marquis Neal knew he would someday
own his own business. Such aspira-
tions are not uncommon in the military
– who wouldn’t love to be their own
boss after serving in such a regimented
world? For Neal, who enlisted at 25, the rigid
structure of the military only strengthened the de-
sire he’d been nurturing most of his life.
“It intensified the urge to become an entrepre-
neur,” said Neal, an OIF veteran who spent part of
2006 and 2007 coordinating and traveling in truck
convoys in Iraq. “I’ve always had that in me. I’ve al-
ways wanted to work and do my own thing. But the
military intensified that drive to actually do that.”
38 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
NO BUSINESS EXPERIENCE?
NO PROBLEM.
Now 36, Neal owns an i9 Sports
franchise in Baltimore, a franchise
concept that offers a variety of
sports leagues to children ages 3
to 14. The former sergeant didn’t
let his lack of business experience
stop him from realizing his dream
of owning a business. “Even though
I had the want and desire to be an
entrepreneur, I didn’t really have
any business experience,” said
Neal, who had earned a degree in
electronics engineering technology
BY DAN FAZIO
before enlisting the Army. “So I fig-
ured it would be easier to actually
go into a franchise system to gain a
lot of that experience.”
Neal began researching fran-
chise options in 2005 when he
was working for a government
contractor in Virginia, two years
after he separated from the Army.
The long commute from his home
in Baltimore to his job in Virginia
prevented Neal from attending his
children’s after-school sports ac-
tivities. “That’s when I ran across i9
Sports,” said Neal “I’ve always been >
COVER STORY
Marquis Neal
Franchisee
i9 Sports
U.S. Army Reserve (2000)
U.S. Army (2000-2003)
Individual Ready Reserve
MOS: Transportation
Management
Coordinator (88N)
> involved in sports. It’s something that I
love – I have a passion for.”
NOT WORTH MILLIONS?
NO WORRIES.
The start-up cost for an i9 Sports franchise
ranges from $44,900 to $69,900. Neal
put savings from his OIF deployment to-
ward the start-up cost, then financed the
rest with a bank loan. Neal also took ad-
vantage of i9 Sport’s 10-percent discount
off the franchise fee for veterans.
In November 2007, just two months
after returning from his de-
ployment to Iraq, Neal bought
his franchise.
“Since then, I have had
great success, with more than
1,200 kids enrolled,” Neal
said. “My programs have been
received very well by the com-
munity I serve and surround-
Brain Sanders ing areas. When you get to
President and Chief see a kid who is 10 years old,
Operating Officer
i9 Sports
who has never played, and has
scored his fi rst touchdown,
that is the most rewarding feeling.”
WHY VETERANS FIT SO WELL
Franchising may be a career path many
young veterans never considered. After
all, many franchises that often come to
mind — McDonald’s, Panera Bread and
Subway, for example – require an initial
investment of hundreds of thousands,
even millions, of dollars. How many of
40 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
GET
HIRED TM
i9 Sports
www.i9sports.com
HQ: Brandon, Fla.
Founded: 2002, began franchising in 2003
# of Franchises: 135
$ Franchise Fee: $19,900
Territory Fee: $5,000-$20,000
Liquid Capital Required: $50,000-$60,000
Total Initial Investment: $44,900-$69,900,
including franchisee fee, start-up costs,
marketing, supplies, and three months
of working capital.
Military discounts or incentives: 10%
America’s young veterans have access 9 ABOUT I9 SPORTS
Founded in 2003 by Frank V. Fiume,
to that kind of money? With credit still i9 Sports is the world’s first and fastest-
tight, financing such sums of money to growing youth sports franchise,
offering flag football, basketball, soccer,
start a business can be difficult, at best. cheerleading, and other sports for kids ages
i9 Sports is one example of fran- 3 to 14. i9 Sports leagues put an emphasis
chise concepts that are better suited to on having fun and not on winning. Despite
America’s younger veterans who are se- the economic climate, i9 Sports has
rious about owning their own business. maintained huge participation, with more
than 400,000 members in 750 communities
Franchises like i9 Sports don’t require a nationwide. For more information on
fortune to get them off the ground, and i9 Sports, visit www.i9sports.com.
many can be operated from home.
Brian Sanders, i9 Sport’s president and
chief operating officer, said the franchise is
a good fit for veterans, which the company
recruits through the International Fran-
chise Association’s VetFran program.
“In addition to the fact that we’re
home-based and we’re a low-investment
franchise, we have what’s called the
Countdown to Game Time,” Sanders
said. “We’ve laid out day by day and step
by step everything they need to do to get
their business up and running. And they
flourish in our business model.”
Veterans make good franchisees be-
cause they know how to follow systems
and procedures, Sanders said. They also
have a drive to excel that gives them an
edge. “Veterans do a great job being able
to follow a formula and they’re serious
about applying themselves,” he said.
STEALTH APPROACH
Former B-2 Stealth pilot Brian O’Rear was
well-prepared to buy a franchise when he
retired from the Air Force in 2009. > >
COVER STORY
> O’Rear, who flew a mission over Af-
ghanistan the first night America struck
back against terrorism in 2001, started
studying franchise concepts years before
he retired. He read franchise magazines,
did research online and attended fran-
chise conferences.
The fledgling home inspection in-
dustry caught his attention. “I realized
AD
that the home inspection industry was
relatively immature, that it’s mostly filled
with single-man operations and mom-
and-pop type companies and that more
professional companies
are the wave of the fu- “I think a
ture in this business,”
O’Rear said.
lot of the
After thoroughly re- military
searching three home background
inspection franchisors,
O’Rear bought a Home-
helped
Team Inspection Service because I
franchise in Louisville, was able to
Ky., in September 2009.
HomeTeam is an-
put together
ot her home-ba sed a nice tight
franchise that requires business
a relatively low initial
plan.”
investment of between
$60,000 and $87,000.
O’Rear used a $50,000 Patriot Express
Loan through the Small Business Admin-
istration to finance most of the $70,000
start-up cost for his business after he re-
tired from the Air Force. He loaned his
company the balance.
“That whole process was really, really
smooth,” O’Rear said. “I think a lot of the
military background helped because I was
able to put together a nice tight busi- >
42 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
Brian O’ Rear
Franchisee
HomeTeam
Inspection Service
U.S. Air Force
(1987-2009)
AFSC: B-2 Bomber
Pilot (11B3B)
GET
HIRED
TM
HomeTeam
Inspection Service
www.hometeaminspection.com
HQ: Cincinnati
Founded: 1996
# of Franchises: 175+
$ Franchise fee: $39,800
License Fee: $9,800
Territory fee: $15,000-$30,000,
depending on size
Liquid Capital Required: $50,000
Total Initial Investment: $60,000-$87,000
Military Discounts or Incentives: 25%
(about $2,500) off license fee
9 ABOUT HOMETEAM INSPECTION SERVICE:
For more than 15 years, HomeTeam
Inspection Service, a 175-plus-unit
home inspection franchise, has
brought exceptional quality, value and
dependability to the home inspection
industry. HomeTeam franchisees work with
homebuyers, home sellers and real estate
professionals to service home inspection
needs. Today, HomeTeam Inspection
Service continues to expand throughout
the United States by offering franchise
opportunities. For more information on
HomeTeam Inspection Service, visit www.
hometeaminspection.com.
COVER STORY
> ness plan. I went and presented
a business plan to the bank – it
was a very easy sell.”
TEAMWORK
While O’Rear appreciated low cost
required to get his business off
the ground, what really sold him
on the franchise was the team
concept embodied in the name.
HomeTeam uses several specialists
to inspect homes and commercial
buildings, a concept that appealed
to O’Rear as a former B-2 squad-
ron commander during OIF. The
team concept al-
lows HomeTeam to
conduct inspections
quickly and thor-
oughly.
“It’s
tremendously
beneficial for
them to get
into as a low-
cost business.
You have
relatively low
overheads.”
Jarid Kossen
Vice President of Franchise Development
HomeTeam Inspection Service
“That resonated with my mili-
tary background,” he said. “I
understand teams, I understand
leadership. I understand the power
of a team. That was a pretty easy sell
for me.”
O’Rear is one of 14 veterans
who own a HomeTeam franchise.
Their success as franchisees has
been impressive, and the company
is looking for more veterans to re-
cruit, said Jarid Kossen, vice presi-
dent of franchise development. “It’s
tremendously beneficial for them
to get into as a low-cost business,”
he said. “You have relatively low >
44 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
RANGER TRAINED
Former Army Ranger finds a franchise that fits. BY DAN FAZIO
THE FRANCHISEE
Michael Starck
Age: 30
Residence: Naperville, Ill.
Military Service: U.S. Army
(2000-2004)
Highest Rank Held:
Specialist (E-4)
MOS: Army Ranger
(11B1V)
M
ike Starck is a veteran on a mission. An
assistant manager at a “big box” fitness
club for two years, the former Army GET
Ranger grew tired of the high-pressure
sales tactics often found in such environments.
So in January, Starck became an Anytime Fitness
HIRED TM
franchisee and opened his own key club in
Naperville, Ill., a club where his members can work
Anytime Fitness
out at their own pace whenever it fits their schedule.
“Anytime Fitness and I share the same vision:
www.anytimefitness.com/en-us
Improve the self-esteem of the world,” Starck said.
“I wanted to give the community a different
HQ: Hastings, Minn.
Founded: 2002
place to exercise, free from all the sales pitches
and high pressure.”
# of Franchises: 1,650
2010 Revenue: $22 million
For Starck, 30, who served with the 1st Ranger
Battalion in Operation Enduring Freedom in 2002,
$ Franchise Fee: $19,999 for veterans
($25,000 for all others)
the progression from an elite warrior to the world of
fitness was a natural one. He worked as a certified
Liquid Capital Required: $20,000
Total Initial Investment: $49,000-$300,000
personal trainer for a large fitness club for six years
Minimum Net Worth Required: None
– including two years as assistant manager – after
Military Discounts or Incentives:
separating from the Army, saving his cash for the
$5,000 off franchise fee
day when he could be his own boss. When he was
ready, his plunked down the $40,000 in cash he
needed to get his franchise off the ground. Then he
called on his military training to do the rest.
9 ABOUT ANYTIME FITNESS
What do people really want from a health
club? That’s the key question Anytime
“Military training taught me discipline, respect
Fitness co-founders Jeff Klinger and Chuck
and the will to never give up,” Starck said. “A
franchise gives veterans the opportunity to use the
Runyon asked themselves seven years
ago. The answer was relatively simple.
skilled learned in the military and implement them
When you boil it all down, people want a
in a business environment. By using the skill learned
convenient and affordable place to go–with
in the military, their business will be set apart from
quality exercise equipment and a friendly
the competition.”
atmosphere.
Starck is one of 105 veteran franchisees who
collectively own 220 Anytime Fitness clubs.
Thus was born the Anytime Fitness
franchise–an alternative to over-sized
“We have found that military veterans typically
and over-priced health clubs–providing
have the physical fitness background, the work
a viable business model for independent
ethic, the discipline and the commitment to
franchisees and affordable fitness options
excellence to become very successful club owners
for hundreds of thousands of members
and operators,” said Jeff Thames, chief operating
officer and vice president of franchise sales for
nationwide.
Anytime Fitness. •
COVER STORY
GET
HIRED TM
House Doctors
www.housedoctors.com
HQ: Milford, Ohio
Founded: 1995
# of Franchises: 90+
$ Franchise Fee: $39,800
License Fee: $9,800
Liquid Capital Required: $35,000
Total Initial Investment: $86,000-$112,500
Military Discounts or Incentives: 25% off
of $9,800 license fee
9 ABOUT HOUSE DOCTORS:
House Doctors is a professional handyman
service for commercial property owners
and homeowners. Every House Doctors
handyman location is independently
owned and operated. Today, House Doctors
continues to expand throughout the United
States by offering franchise opportunities.
For more information on House Doctors,
visit www.housedoctors.com.
AD
46 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
>
> overheads. This can be started from GETTING STARTED IS A SNAP
home, and most people do. The other great While many young veterans are attracted
aspect for a younger veteran is that most to home-based businesses, Greg Welch
of these individuals are very driven – they prefers his franchise on wheels. The for-
have a lot of enthusiasm, and that’s what mer Army mechanic is one of 4,100 Snap-
you need to make this business successful on franchisees who operate 4,575 vans
as well.” – tool stores on wheels – worldwide.
House Doctors, a sister company that “I always strive to be better,” said
focuses on handyman/home improve- Welch, who operates in Painesville, Ohio.
ments, is another home-based concept “I’m used to having a
ideal for veterans, Kossen said. schedule and being on “I’m used
point. I’d recommend
Snap-on to anyone with to having
military experience.” a schedule
Welch, 26, joined
the military after high and being
school and spent four
years at Fort Sill, Okla., on point. I’d
before deploying to Iraq
as a vehicle mechanic
recommend
and recovery operator. Snap-on to
He was recovering a
anyone with
Humvee when an IED
exploded. Welch spent
months recovering from
military
his wounds at a hospital experience.”
in Frankfurt, Germany.
“I just had to push through it,” Welch
said. “It was my unit, my ‘battle buddies’
that kept me going. I knew they were out
there, and I wanted to get back to them”
A NEW START
Welch did return to his unit to finish his
tour. In June 2007, he separated from the
Army and went to work as a mechanic
in the trucking industry before deciding
to investigate a franchising opportunity
with Snap-on. >
 COVER STORY
> “I rode along with some franchise owners
and took some time to make my decision,” he
said. “It’s a change from being a mechanic to
selling tools. I’m excited about the tools and
excited to show customers all the new things
we offer.”
While the initial investment required for
a Snap-on franchise ranges from $150,614 to
$289,080, the company does offer financing,
as well as a $20,000 discount for veterans on
AD
the initial inventory purchase. Snap-on is one
of more than 400 franchisors that actively re-
cruit veterans through VetFran.
“Snap-on offers an opportunity with a
proven system to run your business,” said Jon
Rucker of Snap-on’s Military Veteran Program.
$ Franchise Fee: $15,000 initially (then $102.00
“Those of us who have lived and worked in a
military environment are used to ‘following a
system,’ so I see a lot of veterans vectoring in
this direction. A franchise business is a good
fit for long-term, military veteran success.”
WHAT’S THE FORECAST?
Franchise businesses are poised for stronger
growth in 2011, according to a report prepared
for the International Franchise Association
(IFA) Educational Foundation by PwC. As
the economy recovers from the “Great Reces-
sion,” the 2011 Franchise Business Economic
Outlook forecasts a rebound in the number of
establishments, jobs and economic output in
9 ABOUT SNAP-ON
the franchise industry.
The report estimates that the number of
franchise establishments will grow 2.5 percent
in 2011 from an estimated 765,723 – an increase
of 19,079 new establishments. This growth will
create an estimated 194,000 new jobs.
“The forecast of stronger growth in
2011 for franchise businesses is good news
for our country,” said IFA President and
CEO Stephen J. Caldeira. “When franchise
businesses are stronger, so is our economy as
48
a whole.”
G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM
Greg Welch
Franchisee
Snap-on
U.S. Army (2003-2007)
MOS: Track Vehicle
Repairer (63H)
GET
HIRED
TM
Snap-on
www.snapon.com
HQ: Kenosha, Wisc.
Founded: 1920
# of Franchises: Approximately 4,100
franchisees operate a total of 4,575
vans worldwide
2010 Revenue: $2.6 billion
a month ongoing)
Out-Of-Pocket Start-Up Expenses: Range from
$38,778 to $80,071 when using Snap-on
franchise financing (includes $8,974 to
$13,940 working/liquid capital)
Total Initial Investment: $150,614 to $289,080
Minimum net worth: $30,000
Gateway Franchise Investment: $17,925-
$30,672 out of pocket; $17,925-$83,941
total investment
Military Discounts or Incentives: Snap-on
participates in the International Franchise
Association’s VetFran program and offers
honorably discharged veterans a $20,000
discount on the initial inventory purchase
for their franchise business.
Snap-on Incorporated is a leading global
innovator, manufacturer and marketer of
tools, diagnostics, equipment, software
and service solutions for professional
users. Products and services include
hand and power tools, tool storage,
diagnostics software, information and
management systems, shop equipment
and other solutions for vehicle dealerships
and repair centers, as well as customers
in industry, government, agriculture,
aviation and natural resources. Products
and services are sold through the
company’s franchisee, company-direct,
distributor and Internet channels.
COVER STORY

GETTING STARTED
Advice from veterans who did.
Marq is Neal
Marquis
Franchisee
i9 Sports
U.S. Army Reserve (2000)
U.S. Army (2000-2003)
MOS: Transportation Management
Coordinator (88N)
1) Write a business plan.
2) Make sure your home finances are in
order so you do not put your family at risk.
3) Make sure you are doing something
you like because you will not be so likely
to quit when things get tough. Things will
get tough and not go according to plan.
Michael Starck
Franchisee
Anytime Fitness
U.S. Army (2000-2004)
MOS: Army Ranger (11B1V)
1) Learn how to manage cash flow.
2) Get with your local SBA rep and learn how business works.
3) Get a good accountant and attorney.
Greg Welch Brian O’ Rear,
Rear
Franchisee Franchisee
Snap-on HomeTeam Inspection Service
U.S. Army (2003-2007) U.S. Air Force (1987-2009)
MOS: Track Vehicle AFSC: B-2 Bomber Pilot (11B3B)
Repairer (63H) 1) Thoroughly research the parent com-
1) Use the training and it will pany and the industry; pay particular at-
come naturally. tention to the relationship between the
2) Stay organized. franchisor and the franchisees and make
3) Represent yourself professionally sure the relationship is truly symbiotic and
and you will rock. supportive.
2) A franchisor will recommend you contact
a handful of franchisees to get a feel for
the business. These are the shining stars
and will be very upbeat and positive about
business. Make sure you also call a ran-
dom sampling of the others to give you a
glimpse of friction points.
3) Build a three- or four-year budget based
on income and expense information from
current franchisees. While not a guarantee,
it will give you a very good idea of poten-
tial profitability and may help tip the scales
one way the other.

4) It takes a couple of years for any business

to establish, so make sure you are prepared
financially for those lean years as the busi-
ness builds. Military retirees have a huge
advantage over civilian counterparts in
this regard since our pension allows us to
reinvest much of the profit back in to the
business and grow it more quickly.

5) Take your time. I very nearly bought a

AD
franchise after a four-month study. Ulti-
mately I decided it didn’t fit our family’s
plans, and I have often reflected on that
decision not to buy as one of the best of
my life.

6) Weigh the benefits of a franchise against

going it alone. Franchises are more expen-
sive up front, but they launch much more
quickly and tend to produce positive cash
flow (and successful owners) at a much
higher success rate than those who begin
“alone and unafraid”. Your military back-
ground prepares you very well for the deci-
sion-making and organizational skills, but
in many industries the inside view is only
attainable through time and experience –
your own or that of your franchisor.

50 G.I. JOBS MAGAZINE / JUNE 2011 / WWW.GIJOBS.COM