SEC. 2. AVAILABILITY OF EDUCATION BENEFITS FOR PAY-
MENT 
OF 
TRAINING 
COSTS 
ASSOCIATED 
WITH THE PURCHASE OF CERTAIN FRAN-
CHISE ENTERPRISES. 
(a) 
ESTABLISHMENT
OF
FIVE-YEAR
PILOT 
PROJECT.—The Secretary of Veterans Affairs shall con-
duct a five-year pilot project to test the feasibility and ad-
visability of the use of educational assistance under the 
programs of the Department of Veterans Affairs under the 
following provisions of law to pay for training costs associ-
ated with the purchase of a franchise enterprise: 
(1) Chapter 30 of title 38, United States Code. 
(2) Chapter 32 of such title. 
(3) Chapter 35 of such title. 
(4) Chapter 1606 of title 10, United States 
Code. 
(5) Chapter 1607 of title 10, United States 
Code. 
(b) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Subject to paragraph (3), 
the amount of educational assistance payable under 
the applicable provision of law referred to in sub-
section (a) to an individual entitled to such assist-
ance under such provision of law for the payment of 
training costs associated with the purchase of a 
franchise enterprise is equal to the lesser of 1⁄2 of 
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the franchise fee or 1⁄3 of the remaining amount of 
educational assistance to which the individual is en-
titled under such applicable provision of law, such 
remaining amount determined as of the date of ap-
proval by the Secretary of the individual’s applica-
tion for such assistance for payment of such training 
costs. 
(2) LUMP SUM PAYMENT.—Amounts payable to 
an individual under paragraph (1) shall be made in 
a lump sum. 
(c) REQUIREMENTS FOR PAYMENT.— 
(1) REQUIREMENT
FOR
THE
PROVISION
OF 
TRAINING.—Payment may not be made for training 
costs associated with the purchase of a franchise en-
terprise under the pilot project under this section 
unless— 
(A) appropriate training is required and 
provided with respect to the purchase and oper-
ation of the franchise operation; and 
(B) such training, and the entity or orga-
nization offering the training, are approved by 
the Secretary in accordance with this sub-
section. 
(2) 
GENERAL
REQUIREMENTS
FOR
AP-
PROVAL.—The requirements of approval for such 
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training and organizations or entities offering such 
training shall be in accordance with the applicable 
provisions of chapters 30, 32, 35, and 36 of title 38, 
United States Code, and chapters 1606 and 1607 of 
title 10, United States Code, and with regulations 
prescribed by the Secretary to carry out this section, 
and shall include the following: 
(A) The organization or entity certifies to 
the Secretary that the training offered by the 
organization or entity is generally accepted, in 
accordance with relevant government, business, 
or industry standards, employment policies, or 
hiring practices, as attesting to a level of knowl-
edge or skill required to own and successfully 
operate a franchise operation. 
(B) The organization or entity is licensed, 
chartered, or incorporated in a State and has 
offered such training for a minimum of two 
years before the date on which the organization 
or entity first submits to the Secretary an ap-
plication for approval under this section. 
(C) The organization or entity maintains 
appropriate records with respect to all trainees 
who pursue such training for a period pre-
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scribed by the Secretary, but in no case for a 
period of less than three years. 
(D) The organization or entity promptly 
issues progress reports on the training and no-
tice of the successful completion of such train-
ing to the trainee. 
(E) The organization or entity has in place 
a process to review complaints submitted 
against the organization or entity with respect 
to the training or the process for acquiring a 
franchise enterprise. 
(F) The organization or entity furnishes to 
the Secretary the following information: 
(i) A description of the training of-
fered by the organization or entity, includ-
ing the purpose of the training, the voca-
tional, professional, governmental, and 
other entities that recognize the training, 
and the license or certificate (if any) issued 
upon successful completion of the training. 
(ii) The requirements to undertake 
the training, including the amount of the 
fee charged for the training and any pre-
requisite education, training, skills, or 
other certification. 
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(G) Upon request of the Secretary, the or-
ganization or entity furnishes such information 
to the Secretary that the Secretary determines 
necessary to perform an assessment of— 
(i) the training conducted by the orga-
nization or entity; and 
(ii) the applicability of the training 
over such periods of time as the Secretary 
determines appropriate. 
(3) CONSIDERATION OF PAST PERFORMANCE.— 
In determining whether to make payment under the 
pilot project to an organization or entity offering 
training, the Secretary shall consider the rate of suc-
cess of the organization or entity in the training of 
individuals to own and successfully operate a fran-
chise enterprise. 
(4) AUTHORITY FOR THE USE OF STATE AP-
PROVING
AGENCIES
FOR
APPROVAL
OF
TRAINING 
AND ORGANIZATIONS OR ENTITIES.—To the extent 
that the Secretary determines practicable, State ap-
proving agencies may, in lieu of the Secretary, ap-
prove training, and organizations and entities offer-
ing such training, under this section. 
(d) ENTITLEMENT CHARGES.— 
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(1) CHAPTER 30.—The number of months of 
entitlement charged an individual under chapter 30 
of title 38, United States Code, for educational as-
sistance for the payment of training costs under sub-
section (b)(1) is equal to the number (including any 
fraction) determined by dividing the total amount of 
educational assistance paid such individual for such 
training costs by the full-time monthly institutional 
rate of educational assistance which, except for sub-
section (b)(1), such individual would otherwise be 
paid under such chapter. 
(2) CHAPTER 32.—The number of months of 
entitlement charged an individual under chapter 32 
of title 38, United States Code, for educational as-
sistance for the payment of training costs under sub-
section (b)(1) is equal to the number (including any 
fraction) determined by dividing the total amount of 
educational assistance paid such individual for such 
training costs by the full-time monthly institutional 
rate of educational assistance which, except for sub-
section (b)(1), such individual would otherwise be 
paid under such chapter. 
(3) CHAPTER 35.—The number of months of 
entitlement charged an individual under chapter 35 
of title 38, United States Code, for educational as-
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sistance for the payment of training costs under sub-
section (b)(1) is equal to the number (including any 
fraction) determined by dividing the total amount of 
educational assistance paid such individual for such 
training costs by the full-time monthly institutional 
rate of educational assistance which, except for sub-
section (b)(1), such individual would otherwise be 
paid under such chapter. 
(4) CHAPTER 1606.—The number of months of 
entitlement charged an individual under chapter 
1606 of title 10, United States Code, for educational 
assistance for the payment of training costs under 
subsection (b)(1) is equal to the number (including 
any fraction) determined by dividing the total 
amount of educational assistance paid such indi-
vidual for such training costs by the full-time 
monthly institutional rate of educational assistance 
which, except for subsection (b)(1), such individual 
would otherwise be paid under such chapter. 
(5) CHAPTER 1607.—The number of months of 
entitlement charged an individual under chapter 
1607 of title 10, United States Code, for educational 
assistance for the payment of training costs under 
subsection (b)(1) is equal to the number (including 
any fraction) determined by dividing the total 
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amount of educational assistance paid such indi-
vidual for such training costs by the full-time 
monthly institutional rate of educational assistance 
which, except for subsection (b)(1), such individual 
would otherwise be paid under such chapter. 
(e) ADMINISTRATION.—Except as otherwise specifi-
cally provided in this section or chapter 30, 32, 35, or 
36 of title 38, United States Code, or chapters 1606 or 
1607 of title 10, United States Code, in implementing this 
section and making payment under the applicable provi-
sion of law referred to in subsection (a) of training costs 
associated with the purchase of a franchise enterprise, the 
training is deemed to be a ‘‘course’’ and the organization 
or entity that offers such training is deemed to be an ‘‘in-
stitution’’ or ‘‘educational institution’’, respectively, as 
those terms are applied under and for purposes of sections 
3671, 3673, 3674, 3678, 3679, 3680(a), 3680A, 3681, 
3682, 3683, 3685, 3690, 3691, and 3696 of title 38, 
United States Code. 
(f) RULE OF CONSTRUCTION.—Payments under this 
section shall not be construed as payment for on-job train-
ing benefits under title 38, United States Code. 
(g) IMPLEMENTATION.—The Secretary shall imple-
ment the pilot project under this section as soon as prac-
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ticable, but in no case later than the date that is 18 
months after the date of the enactment of this Act. 
(h) GAO EVALUATION AND REPORT.— 
(1) EVALUATION.—The Comptroller General of 
the United States shall conduct periodic evaluations 
of the pilot project. 
(2) REPORT.—Not later than the date that is 
the end of the third year of the pilot project, the 
Comptroller General shall submit to Congress a re-
port on the evaluations conducted under paragraph 
(1). The report shall include the following informa-
tion: 
(A) The number of individuals who partici-
pated in the pilot project. 
(B) The number of franchise enterprises 
operated by such individuals by reason of such 
participation. 
(C) The aggregate payments made by the 
Secretary of Veterans Affairs under the pilot 
project. 
(D) Recommendations for the continuation 
of the pilot project. 
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(E) Recommendations for such other ad-
ministrative action or legislation as the Comp-
troller General determines to be appropriate. 
Æ 
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