Restaurant Developers Corporation Joins Veterans Franchise Program To Promote Small Business Ownership

Restaurant Developers Corporation, the franchising company behind Mr. Hero and Arabica, today announced it has joined the growing list of participants in the Veterans Transition Franchise Initiative (VetFran), a program designed to aid veterans in becoming small business owners and ease their entry into the rapidly growing sector.

Founded in 1973, Restaurant Developers Corporation was one of the first companies to successfully franchise and develop specialty coffee houses and hot submarine sandwiches in addition to utilizing non-traditional locations, such as college campuses, arenas, stadiums, and hospitals for its franchised operations. Moreover, Restaurant Developers Corporation’s success is evidenced by the rapid expansion of Mr. Hero operations as well as the popular appeal of Cleveland-based Arabica gourmet coffee houses.

The International Franchise Association, (IFA), the trade group that represents the franchise community, has enlisted more than 60 franchise companies that have agreed to lower their franchise fees. As an example, a veteran acquiring a franchise with a total initial investment of $125,000 might obtain an SBA loan for up to 85 percent or $106,200. The franchiser would contribute a portion of the franchise fee (in this case $6,300�25% of 25,000) as equity so the veteran could acquire the franchise with a down payment of $12,500 or 10 percent.

IFA has gained the support of the U.S. Department of Veterans Affairs, the U.S. Small Business Administration and several veterans’ organizations for VetFran. Earlier this year, Veterans Affairs Deputy Secretary Leo S. Mackay signed a Memorandum of Understanding with the association to promote franchise ownership among former military personnel.

Veterans will also get special attention during IFA’s 2003 International Franchise Expo April 11-13 in Washington, D.C., where a new seminar, “Franchising 101 for Veterans,” will be offered to specifically address the information needs of veterans at no charge.

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