With N.Y.’s approval, eBay drop-off store QuikDrop can sell in 39 states

The rapid spread of eBay drop stores continues. QuikDrop has obtained authorization to begin franchising its stores in New York State, its 39th state, and has approvals pending in Maryland, Virginia and Illinois, and expects to have more than 200 stores open in the U.S. this year and another 75 overseas, the company said today.

"To be conservative, New York will probably have 80 stores over the next three years," co-founder and CEO Murray Mead tells Internet Retailer. "We’re growing as fast as we can. My franchising department is 100 calls behind in responding to people inquiring about franchises."

QuikDrop, based in Costa Mesa, CA, is one of some 20 companies that have sprouted recently to develop stores that let consumers drop off goods to be listed for sale on eBay.com. QuikDrop charges a one-time fee of $50,000 to open a franchise, including the franchising fee and special software for placing product listings on eBay.

But unlike other franchisers, it charges a flat annual royalty fee instead of annual percentage of revenue. "That eliminates the home office from ever being suspicious of a franchise reporting accurate gross revenues, and it eliminates having the franchisee hating the franchiser for taking more and more of their money," says Murray, who says he has been involved in operating franchising companies for 40 years.

Murray says he expects to open stores in Australia soon and is in discussions to open stores in Germany and the U.K. Murray`s past franchising operations include Quick Internet, which offers Internet access service and support through a chain of stores in the U.S.and 13 other countries.