Small Business Expansion: Franchising a Business Nationwide

By: James Walker - Staff Writer for Red Hot Franchises.com

 

(Syndicated News) While many aspiring entrepreneurs view purchasing a franchise as the ideal way to start a business, there are just as many business owners who want to franchise their growing businesses on a nationwide basis. But, franchising a business can be an expensive, time-consuming endeavor that requires careful consideration and planning.

            Before considering franchising, Entrepreneur Magazine recommends that entrepreneurs first consider the climate of the marketplace, whether or not they have the funds to expand their businesses on a nationwide basis, the time it takes to start a franchise, and their personal goals.

            "In essence, starting a franchise is starting an entirely new business. It takes considerable time and commitment, and potential franchisors must understand the level of work involved. Franchisees also need and expect training and ongoing support." says Michael Gonzales, founder of Monthly Coupons Franchising, Inc.

            Franchising also requires entrepreneurs to adhere to federal and state laws, which could differ significantly. In fact, 24 states have separate rules for franchisors and require franchisors to register with them.

            Gonzales also recommends testing expansion before offering franchises nationwide. "Start by expanding in your state then in surrounding states to get an idea of the work involved, whether or not you're prepared to run a nationwide franchise and whether you have a formula for running a business that can be successfully duplicated," he says.

            That's exactly what Gonzales did when he opened Monthly Coupons, in Rialto, Calif., in 2001. Only three years later he had his first franchisee. Now, Monthly Coupons, which recently unveiled its new Web site offering free grocery coupons to consumers, is slated to offer nationwide franchises in the next few weeks.    

"If done right, starting a franchise can be extremely rewarding, both professionally and financially," Gonzales says.