Franchising can be an attractive way to extend a successful brand - but entrepreneurs should beware high costs and management challenges.

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By Emily Maltby, CNNMoney.com staff writer

FARMINGDALE, N.Y. (CNNMoney.com) — If you’re the owner of a successful business, is now the time to franchise it?

Paul Sperry, CEO of IDP Consulting, posed that question to a group of fellow business owners gathered last month in a conference room in Farmingdale, N.Y. As members of peer advisory group The Alternative Board (TAB), Sperry and his colleagues gather monthly, like dozens of other TAB groups across the country, to confidentially discuss business issues.

IDP, a 47-person IT firm based in Jericho, N.Y., provides technology management services to businesses of less than 300 employees. Sperry founded the company in 1986, and has a personal goal to leave the business in about six years. One of his employees has been talking to him recently about expanding IDP in a franchise model. Sperry is seriously entertaining the idea, but he’s wary about the problems it could bring.

“Franchises work for companies like Geek Squad when they don’t care who they’re selling services to,” Sperry says. “Franchises that saturate the market like that lose quality. I think they lose commitments from staff, and that won’t work for me.”

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