How the VetFran Discount Program Works

If you are a veteran looking at franchising, you have probably seen brands advertise a “VetFran discount.” It is a real thing, but it is not one number and it is not a government benefit. VetFran is a program run by the franchising industry’s trade association, and the actual discount is set by each franchisor, one brand at a time.

This guide explains how the program itself works: who runs it, what a brand agrees to when it joins, what the star ratings mean, and what VetFran deliberately does not do. It stays at the program level. For specific brand-by-brand offers in the food and coffee space, see our companion guide to veteran food-franchise discounts.

What is the VetFran program?

VetFran is the veterans program of the International Franchise Association and the IFA Foundation. According to the IFA, it connects U.S. military veterans and military-connected families with opportunities in franchising through education and connections to participating veteran-friendly brands. It is a private-sector initiative of the franchisors who are IFA members, not a government agency, and it does not itself sell or fund any franchise.

The program dates to 1991, when, per IFA and Neighborly (formerly The Dwyer Group) accounts, it was founded by Don Dwyer Sr., a U.S. Air Force veteran, to help Gulf War-era service members move into the civilian economy. The IFA has reported that veterans make up roughly 14 percent of franchisees compared with about 7 percent of the general population, and that hundreds of franchise brands participate, though published counts vary. Treat these as IFA-reported figures and confirm the current numbers on the live IFA directory rather than relying on any single total.

One housekeeping note for 2026: the old standalone vetfran.org address now redirects to the VetFran section of franchise.org, so verify current program details, tiers, and statistics there.

How a franchisor joins VetFran

A franchisor chooses to join VetFran through the IFA, and the join requirement is specific. To participate, per the IFA’s VetFran-for-companies materials, a franchisor must offer a discount on its initial franchise fee to honorably discharged veterans. Franchisors are also encouraged to add other incentives beyond the fee discount, such as financing terms, training support, or mentorship.

The key point for a veteran buyer is that the amount is set by each franchisor. There is no universal VetFran percentage or dollar figure, and this guide does not state one, because the number genuinely varies from brand to brand and changes over time. The specific incentive, and exactly who qualifies for it, is set by the individual franchisor and should appear in that brand’s Franchise Disclosure Document, typically in Item 5 where initial fees are disclosed. When you narrow to a brand, confirm the current offer with the franchisor and review the FDD with an attorney.

What do the VetFran 1, 3, and 5 stars mean?

VetFran assigns participating companies a star designation of 1, 3, or 5 stars, and it is easy to misread what they signal. Per the IFA, the stars indicate that a company has met the minimum criteria for a membership tier and reflect its experience, transparency, and level of commitment to veteran franchisees.

The stars are not a quality ranking of the brands. A 5-star designation does not mean the franchise is a better business or a better fit for you than a 1-star brand; it speaks to the company’s commitment and transparency within the program, not to unit economics or how good the opportunity is. Judge the actual opportunity the same way you would any franchise, through the FDD, conversations with current and former franchisees, and professional advisors, rather than by the star count.

What VetFran does not do

Knowing the program’s boundaries keeps expectations realistic. VetFran shares educational resources and helps connect veterans with participating brands, but the IFA is explicit that the program does not fund purchases, does not match a veteran to a brand, and does not recommend one opportunity over another.

That means the buying decision and any negotiation happen directly between you and the individual franchisor. VetFran can point you to a directory of participating brands and to educational content, but it will not tell you which franchise to buy or advance you money to buy it. Treat the program as a starting point for research and a source of a possible fee discount, not as an advisor.

VetFran, SBA, and VA: who does what

Veterans often blur three different things together. They are separate, and they can all be used at once.

Resource	What it is	What it provides
VetFran (IFA)	A private franchisor incentive program	A franchise-fee discount and educational connections, set by each brand
SBA	The federal Small Business Administration	Training (Boots to Business), counseling through Veterans Business Outreach Centers, and loan programs
VA	The Department of Veterans Affairs	Veterans’ benefits and services (separate from franchising incentives)

The VetFran discount is a franchisor incentive, not a government benefit, so do not assume the VA or SBA pays or guarantees it. On the financing side, SBA’s Boots to Business program and Veterans Business Outreach Centers offer training and mentorship, and SBA loan programs cover financing; a July 18, 2025 IFA announcement described integrating franchising content into the Boots to Business curriculum. For how that financing actually works, see SBA loan options for franchise buyers, and to size the whole purchase, how much money you need to start a franchise. If you are early in the process, it is worth working through a first-time franchise buyer checklist before you start contacting franchisors.

Questions to ask before you use a VetFran incentive

A VetFran discount is a reason to look, not a reason to buy. Bring these questions to the franchisor and your advisors.

• Does this brand currently offer a VetFran incentive, what form does it take, and exactly who qualifies, including proof of honorable discharge and whether spouses or transitioning service members are included?
• Is the incentive documented in the FDD or franchise agreement, and is it binding? Get any answer in writing.
• Can the incentive be combined with other promotions or financing terms, and does it apply to multi-unit or renewal deals?
• Will a franchise attorney review the entire FDD and franchise agreement with you, including how the veteran incentive is documented, before you sign or pay anything?
• Would a Veterans Business Outreach Center advisor or an SBA-affiliated lender confirm which financing options actually fit your situation, rather than assuming a veteran-specific loan discount exists?