Veterans should be very careful.
Oscar P. Hoot on Blue MauMau spells out why returning service people should just say no: During the credit crunch, franchising needs veterans.
A top leader in the franchise industry… has told me that the recent push by franchisors to reach veterans is less about patriotism and more about going after a market that has available money during the deepest credit crunch and recession since the Great Depression.
Lenders are favoring veterans to finance because of their access to financial programs that favor them. The rest of America is having a much harder time getting financing to start a business. And franchisors know that.
Want to gamble with your life savings?
Vets: Franchising wants your money. It needs your money. But be forewarned, trusting in authority is not a virtue in buying a business. And not having a background in buying and running a businesses makes you an easier mark in selecting a bad business in an industry that the buyer is not acquainted with. The consequences of being easily persuaded to buy bad businesses is that veterans can lose their house, surrender their possessions, and put tremendous financial tension on their marriage.
That would be a very poor welcome home for a soldier. Of course, one might get lucky.
Many veterans find their pensions being used to prop up abusive franchise relationships.