More than 650 franchise brands offer veterans a discount. Most buyers don’t know what it actually covers — or what else they should be asking for. Here’s the full picture.

The VetFran discount is one of the most talked-about benefits in veteran franchise ownership. It’s also one of the most misunderstood.

Every week I talk to veterans who’ve been told they can get a discount on a franchise because they served. And almost none of them know exactly what that discount applies to, what it doesn’t cover, or what else a franchisor might be willing to offer if you simply ask.

I was on the committee that helped shape this program. Let me tell you how it actually works.

What VetFran is

The VetFran program — formally the Veterans Transition Franchise Initiative — was created to help honorably discharged military veterans enter franchise ownership through financial incentives and support. It’s administered by the International Franchise Association, and participation is voluntary. Brands opt in. They set their own discount levels. There’s no universal standard.

As of 2026, more than 650 brands participate. That number has grown every year since the program was re-initiated in 2003, when fewer than 200 brands were involved. The growth reflects something real: franchisors have seen what veteran franchisees produce, and they want more of them.

But “VetFran discount” is not a single thing. It’s a category. What’s inside that category varies significantly from brand to brand.

What the discount actually covers

Here’s the part most veteran buyers miss.

The VetFran discount applies to the initial franchise fee. That’s it.

The initial franchise fee is one line item in your total investment. Depending on the brand, it might represent 10% to 30% of your total startup cost. The rest — equipment, real estate, working capital, grand opening marketing, technology, training travel — is unaffected by the VetFran discount.

So when a brand says “we offer a 20% VetFran discount,” that means 20% off the franchise fee — not 20% off your total investment.

To put numbers on it: if a franchise has a $50,000 franchise fee and a total investment range of $250,000 to $350,000, a 20% VetFran discount saves you $10,000. That’s meaningful. But it’s $10,000 off a $250,000 minimum investment, not $50,000 off.

Understand what you’re getting before you factor it into your financial plan.

How much of a discount should you expect?

Most VetFran brands offer reductions in the 10% to 25% range on the initial franchise fee. Some go higher.

Some brands offer flat dollar reductions — “veterans save $5,000 on the franchise fee.” Others offer percentage reductions. A handful of brands — particularly those with strong veteran community ties — go significantly further. Dream Vacations, for example, has built a network where roughly 35% of its system is veteran or military-affiliated, with deep fee reductions and additional support structures.

The amount matters less than the total picture. A 10% discount on a well-run, transparent franchise with strong unit economics is worth more than a 50% discount on a system you haven’t properly vetted.

What the discount doesn’t tell you

Here’s what I’ve watched veteran buyers miss by focusing too heavily on the discount.

A VetFran discount is not a quality signal. Any brand can participate in VetFran and offer a discount. The program doesn’t screen for franchisor financial health, Item 19 transparency, franchisee satisfaction scores, or unit-level profitability. Those things matter far more to your success than the size of the fee reduction.

A higher discount doesn’t mean a better franchise. Some of the strongest veteran franchise opportunities offer modest discounts because they don’t need to compete on price — their track record speaks for itself. Some brands with aggressive discounts are offering them because they need to move units.

The discount is a starting point for a conversation, not a reason to choose a brand.

What else to ask for

This is where veteran buyers leave money and support on the table.

The franchise fee discount is the published number. But franchisors have latitude to offer additional support to veterans, and many will — if you ask. Here’s what to put on the table in your conversations with franchise development teams:

Extended territory rights. Some franchisors will offer veterans a slightly larger protected territory than the standard package. This isn’t always possible depending on market density, but it’s worth asking.

Waived or reduced royalties in the first year. Some brands — particularly those actively building out their veteran franchisee base — will negotiate reduced royalty rates for the first six to twelve months of operation. This can be worth far more than the upfront fee discount.

Additional training support. Ask whether the brand offers any veteran-specific onboarding, extended training, or peer mentorship programs connecting you with existing veteran franchisees in the system.

Flexible financing terms. If the franchisor offers in-house financing or has preferred lender relationships, ask whether veteran buyers receive any favorable terms — interest rate reductions, lower down payment requirements, or deferred payment periods.

Fee waivers on transfer. Ask about transfer fee treatment if you eventually want to add units or sell. This matters at exit, and it’s rarely discussed upfront.

None of these are guaranteed. But the worst a franchisor can say is no. Most development reps are accustomed to the standard script; a veteran who asks specific, informed questions stands out — and tends to get better terms.

How to verify the discount

Don’t take the discount at face value in a sales conversation. Verify it in the FDD.

The initial franchise fee is disclosed in Item 5 of the FDD. If the franchisor offers a veteran discount, it should be referenced there or in the franchise agreement. If you’re told about a discount that isn’t documented in writing, it doesn’t exist for legal purposes.

Ask your franchise attorney — you should have one reviewing the documents before you sign anything — to confirm that the veteran discount is reflected accurately in the franchise agreement, not just verbally represented during the sales process.

What to do if a brand isn’t in VetFran

Some strong franchise brands are not VetFran participants. Non-participation doesn’t mean they’re unfriendly to veterans — it means they haven’t opted into the IFA program, for whatever reason.

If a brand you’re evaluating isn’t in VetFran, ask them directly: do you have any veteran incentives or discounts for the franchise fee? Many brands have internal veteran programs that aren’t officially IFA-affiliated. Others may be willing to negotiate even without a formal program in place.

You don’t need the VetFran label to get a veteran-friendly deal. You need to ask.

The bottom line

The VetFran discount is a real benefit and you should capture it when it’s available. It reduces your upfront cost. That matters.

But it’s one piece of a much larger evaluation. The brand’s financial health, franchisee satisfaction, Item 19 transparency, training quality, and territory structure all have more impact on your long-term success than the size of the initial fee reduction.

Capture the discount. Do the full due diligence anyway. And ask — politely, specifically, and in writing — for everything else a veteran deserves.

The brands in this directory participate because they want veteran owners. Use that leverage.

Lonnie Helgerson, CFE, is the Editor-in-Chief of VeteranOpportunity.com, where he writes about veteran entrepreneurship, franchising, small business ownership, and leadership. A U.S. Army veteran and author, he has founded six franchise systems, served as Chairman of the IFA VetFran Committee, and spent more than 35 years helping businesses grow. He is the author of Five Pennies and Buying a Franchise: Is It Right for Me? He also advises franchise brands through Helgerson Franchise Group.