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Veteran makes franchising history

Military veteran Alan Martinez symbolizes the success of the Veterans Transition Franchise Initiative, also known as VetFran.

Honorably discharged veterans such as Martinez receive incentives — usually discounts on up-front fees — through VetFran, a project of the International Franchise Association.

Martinez piloted helicopters in the Marine Corps for about 8½ years and the Coast Guard for about 11½ years, retiring as a lieutenant commander.

Now he’s VetFran’s 700th franchisee.

Martinez resides in Fredricksburg, Va., where he’s executive pastor of Grace Church and a partner in a Virginia Barbeque franchise along with his wife, Kim. They chose to open a franchise because of their past experience as franchisees in an ice-cream business.

“A lot of things — the processes and the procedures — are already in place,” Alan said. “We just tied in to that whole network and process.”

Virginia Barbeque founder Rick Ivey gave the couple a $5,000 discount off the initial franchise fee through VetFran. The initial franchise fee costs new non-veterans $20,000

Virginia Barbeque is headquartered in Fredricksburg, with seven restaurants operating and three more scheduled to be open by June, including one in Newport News, Va., where retired Army 1st Sgt. Gregory Cassius is also opening a location using a VetFran discount.

New Virginia Barbeque franchisees pay the initial franchise fee, plus royalties amounting to 6 percent of gross sales.

Kim runs the new Fredricksburg restaurant while her husband works at the church.

Business is mostly carryout, though there’s a small dining room in the restaurant. Virginia Barbeque is inside a renovated house situated between two commuter parking lots at 4901 Plank Road, about an hour from Washington, D.C.

“The business has exceeded our expectations,” Alan Martinez said April 6, less than a month after opening.

Secretary of Veterans Affairs Jim Nicholson recognized Martinez as the 700th VetFran franchisee during the recent International Franchise Expo in Washington, D.C.

Nicholson said the Department of Veterans Affairs encourages business ownership.

“Our expansion of this government-business agreement gives an extra boost to those who have devoted part of their lives to their country and want to enter, or re-enter, the economic mainstream,” Nicholson said.

Did you know?

A low-cost franchise fee is less than $20,000, according to the International Franchise Association. Seventy percent of franchisors charge an initial fee of $40,000 or less, and the average franchise investment, including property, is between $350,000 and $400,000.

Meet the franchisors

Companies that offer VetFran discounts are members of the International Franchise Association. Meet VetFran companies at one of the following franchise expos:

• West Coast Franchise Expo

Oct. 19-21, 2007

Los Angeles Convention Center

View the list of exhibitors on the expo’s Web site. Look for companies with the VetFran logo.

• Franchise Expo South

Jan. 11-13, 2008

Miami Beach Convention Center, Hall C

View the list of exhibitors on the expo’s Web site. Look for companies with the VetFran logo.

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