Franchising has grown significantly across the country in the past few years.

"It’s probably the fastest way of getting in the business and starting to make some money," says Craig D. Peden, president of Fort Myers-based Rib City Group Inc., whose franchisees have helped pave the company’s expansion outside of Florida.

Rib City opened its first franchise in 2005, joining 900 companies—new and existing—that began franchising in the United States between 2003 and 2005, according to the International Franchise Association. More than 760,000 franchised establishments in the country generate in excess of $1.5 trillion in economic activity, according to the IFA.

Landscaping, public relations, packaging and shipping, and, of course, restaurants are among the myriad of new franchise businesses in Southwest Florida. Real estate is one of the main reasons they’re booming, says Eric Stites, founder and president of Franchise Business Review, a Maine-based company that provides market research for the industry. Not only has the real estate downturn caused struggling agents to seek other employment opportunities—such as franchises—but more commercial space is available here compared with other areas of the country.

Training and Track Records
The No. 1 benefit for franchisees is working with a proven model of success, Stites says. "Franchising is a great opportunity for people that want to own and operate their own business without having to jump through all the hoops of actually creating a business from scratch," he says.

Naples resident Mark Messina brought UFood Grill, a restaurant he had enjoyed in his hometown of Watertown, Mass., to his adopted city. The benefits were numerous: He and his staff received training from the company, menus and marketing materials existed, and relationships with vendors resulted in good deals on pricing. "They were going to do everything it takes to get a successful restaurant up and running," Messina says.

In general, costs to purchase a franchise range from $10,000 to more than $1 million. After that, most franchise systems charge a 4 percent to 6 percent royalty fee, on average, Stites says. Additional expenses sometimes include advertising fees of 1-2 percent.

Francisco Baserva used a Small Business Administration loan to purchase a franchise in the bar and restaurant industry. He chose Bevinco, a beverage- inventory control and revenue consultation service that helps establishments prevent profit loss due to theft, overpouring and free drinks.
Being affiliated with an international company gave him credibility, from testimonials to collateral materials, he says. "Even though Bevinco is new in Southwest Florida, it’s a company that has been around for 20 years, all over the U.S. and the world as well."

Competition and Control
The biggest drawback of franchising is that the stores have to follow operating procedures set by the parent company: no changing recipes or even the look of the store, in most cases.

"If you go in there and really futz with it and try to do it your own way, chances are you will struggle," Stites says.

Within four months of purchasing the PRstore franchise in February, Vince Modarelli made the Southwest Florida franchise the fifth-most profitable of the company’s 33 stores. He plans to open a second location in Sarasota this year.

Rib City has found the strategy offers a gateway to other states. After the $40,000 fee for a single location, franchisees pay the corporation 4 percent of monthly gross sales. A franchisee opened the company’s first store outside of the Sunshine State—in Littleton, Colo.—in January 2005.

Now, 12 locations are franchised, in Colorado, Utah, Ohio, Washington and Michigan, and three more are scheduled to open early this year.

Franchisee Logue bought into Bark Busters for $68,000 (his territory stretches from Sarasota to Marco Island) about six weeks after he first learned about the company. He had already exceeded his goal of training 200 dogs before his first year ended.

"It was one of these chocolate-and-peanut butter experiences," he says.