WASHINGTON, DC— U.S. Senator Bob Casey (D-PA) today introduced the Help Veterans Own Franchises Act (S. 3818), a bill that establishes tax incentives for franchisors who offer qualified veterans a discounted franchise fee and a tax credit to the veteran who purchases a franchise. Congressman Aaron Schock (R-IL) introduced a version of this bill in the House of Representatives.
“Purchasing a franchise offers entrepreneurs a great opportunity to run a small business with direction and additional resources from a parent company,” said Senator Casey. “However, purchasing a franchise can be expensive due to franchise fees. By providing an incentive to reduce franchise fees for veterans, we can both help our nation’s brave men and women in uniform realize the dream of small business ownership after their service is complete and stimulate economic growth by cultivating America’s small businesses.”
“While franchise’s provide emerging entrepreneurs with important risk protections, a ready-made clientele, additional resources and guidance on how to operate a successful business within their community, these benefits are often outside the reach of veterans due to expensive franchise fees,” said Congressman Aaron Schock (R-IL). “By providing an incentive for franchises to discount the franchise fee for veterans, we can grow our nation’s small businesses’ and stimulate economic growth. I’m grateful this important legislation has bipartisan and bicameral support.”
“We applaud Sen. Casey for introducing the Help Veterans Own Franchises Act in the Senate. This is a natural complement to our Veterans Transition Franchise Initiative (VetFran) that helps veterans to seek the dream of business ownership,” said Stephen J. Caldeira, president and CEO of the International Franchise Association. “This bill helps those who have so honorably served our nation to use the skills they acquired during their military service to become franchise business owners and create much needed jobs in communities across the country.”
Specifically, the Help Veterans Own Franchises Act would establish a tax credit for franchise businesses that choose to offer qualified veterans a discounted initial franchise fee. The tax credit would amount to 50% of the total franchise fee discount offered by the franchisor to the franchisee and would be capped at $25,000 per unit. It would also provide a tax credit to the veteran who chooses to purchase a franchise and open a business in their local community, equal to 25% of the remaining franchise fee. Eligibility for both the franchisor and franchisee is capped at franchise fees of $100,000.