(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. (http://monthlycoupons.com).
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.
Source:
Entreprenuer.com. Are You
Ready to Franchise? December 2005.
<http://www.entrepreneur.com/franchises/franchisingyourbusinesscolumnistmarksiebert/article82112.html>