SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Franchise Education for Veterans 
Act''.

SEC. 2. USE OF EDUCATIONAL ASSISTANCE FOR FRANCHISE TRAINING.

    (a) GI Bill.--
            (1) Program of education.--Subparagraph (C) of section 
        3002(3) of title 38, United States Code, is amended to read as 
        follows:
            ``(C) in the case of an individual who is not serving on 
        active duty, includes--
                    ``(i) a full-time program of apprenticeship or of 
                other on-job training approved as provided in paragraph 
                (1) or (2), as appropriate, of section 3687(a) of this 
                title;
                    ``(ii) a cooperative program (as defined in section 
                3482(a)(2) of this title); and
                    ``(iii) a training program at a training 
                establishment described in section 3452(e)(2) of this 
                title that--
                            ``(I) is approved for purposes of chapter 
                        32 or 34 of this title; and
                            ``(II) is for a franchise (as defined in 
                        section 436.1 of title 16, Code of Federal 
                        Regulations).''.
            (2) Limitations.--Section 3032 of such title is amended by 
        adding at the end the following:
    ``(h)(1) Subject to paragraphs (3) and (4), the amount of 
educational assistance payable under this chapter for a program of 
education consisting of a training program at a training establishment 
described in section 3452(e)(2) of this title shall be, with respect to 
any 12-month period in which such training is pursued, the lesser of 
the following:
            ``(A) The sum of--
                    ``(i) the fees assessed by the training 
                establishment concerned for the training;
                    ``(ii) a monthly housing stipend for each month (or 
                pro rata amount for each partial month) of training 
                pursued equal to the monthly amount of the basic 
                allowance for housing payable under section 403 of 
                title 37 for a member with dependents in pay grade E-5 
                residing in the military housing area that encompasses 
                all or the majority portion of the ZIP code area in 
                which is located the training establishment; and
                    ``(iii) a monthly stipend in an amount equal to $83 
                for each month (or pro rata amount for each partial 
                month) of training pursued for books supplies, 
                equipment, and other educational costs.
            ``(B) $15,000.
    ``(2) The number of months of entitlement charged in the case of 
any individual for a training program described in paragraph (1) is 
equal to the number (including any fraction) determined by dividing the 
total amount of educational assistance paid such individual for such 
program by the full-time monthly institutional rate of educational 
assistance such individual would otherwise be paid under subsection 
(a)(1), (b)(1), (d), or (e)(1) of section 3015 of this title, as the 
case may be.
    ``(3)(A) In no event shall payment of educational assistance under 
this subsection for training described in paragraph (1) exceed the 
amount of the individual's available entitlement under this chapter.
    ``(B) With respect to an individual entitled to educational 
assistance under this subsection who is not described in subsection 
(a)(1) or (c)(1) of section 3015 of this title, the Secretary shall 
adjust the amount payable under paragraph (1) by an amount determined 
by the Secretary to reflect the difference in the rate of educational 
assistance such individual would be paid under such section as compared 
to the rate an individual described in subsection (a)(1) or (c)(1) of 
such section would be paid under such section.
    ``(4) A veteran may not receive--
            ``(A) more than 12 months of educational assistance under 
        this subsection; and
            ``(B) a total amount of educational assistance under this 
        subsection that is more than $15,000.''.
    (b) Post-9/11 GI Bill.--
            (1) Approved programs.--Section 3313(b) of such title is 
        amended by striking the period at the end and inserting ``, 
        including a training program described in section 
        3002(3)(C)(iii) of this title.''.
            (2) Franchise training.--Section 3313(g)(3) of such title 
        is amended by adding at the end the following new subparagraph:
                    ``(E) Subject to clauses (ii) and (iii), in the 
                case of an individual pursuing a program of education 
                consisting of a training program at a training 
                establishment described in section 3452(e)(2) of this 
                title, amounts, with respect to any 12-month period in 
                which such training is pursued, as follows:
                            ``(i) An amount equal to the lesser of--
                                    ``(I) the sum of--
                                            ``(aa) the fees assessed by 
                                        the training establishment 
                                        concerned for the training;
                                            ``(bb) a monthly housing 
                                        stipend for each month (or pro 
                                        rata amount for each partial 
                                        month) of training pursued 
                                        equal to the monthly amount of 
                                        the basic allowance for housing 
                                        payable under section 403 of 
                                        title 37 for a member with 
                                        dependents in pay grade E-5 
                                        residing in the military 
                                        housing area that encompasses 
                                        all or the majority portion of 
                                        the ZIP code area in which is 
                                        located the training 
                                        establishment; and
                                            ``(cc) a monthly stipend in 
                                        an amount equal to $83 for each 
                                        month (or pro rata amount for 
                                        each partial month) of training 
                                        pursued for books supplies, 
                                        equipment, and other 
                                        educational costs; or
                                    ``(II) $15,000.
                            ``(ii) In the case of an individual 
                        entitled to educational assistance by reason of 
                        paragraphs (3) through (8) of sections 3311(b), 
                        the amounts payable pursuant to clause (i) 
                        shall be the amounts otherwise determined 
                        pursuant to such clause multiplied by the same 
                        percentage applicable to the monthly amounts 
                        payable to the individual under paragraphs (2) 
                        through (7) of subsection (c).
                            ``(iii) A veteran may not receive--
                                    ``(I) more than 12 months of 
                                educational assistance under this 
                                subsection; and
                                    ``(II) a total amount of 
                                educational assistance under this 
                                subsection that is more than 
                                $15,000.''.
            (3) Payments.--Section 3313(g)(4)(C) of such title is 
        amended by adding at the end the following:
                            ``(iii) Payment for the amount payable 
                        under paragraph (3)(E) for pursuit of a program 
                        of education consisting of a training program 
                        at a training establishment described in 
                        section 3452(e)(2) of this title shall be paid 
                        to the individual upon the Secretary receiving 
                        a certification of enrollment with respect to 
                        the individual made by such establishment.''.
Franchise Education for Veterans Act - Allows eligible individuals to use Department of Veterans Affairs (VA) veterans' educational assistance benefits for franchise training. Provides training assistance limits for each 12-month period, prohibiting an individual from receiving more than 12 months and more than $15,000 of such assistance.

Authorizes such training assistance under the post-9/11 veterans' educational assistance program, with the same assistance limits.
To amend title 38, United States Code, to allow certain veterans to use educational assistance provided by the Department of Veterans Affairs for franchise training.