A successful franchisee obviously wants to open more stores and make more money and yet sometimes they are along a state border, and thus, they end up opening a franchise in another state nearby. Sometimes a franchisee located right between many states and has multiple franchised operation outlets in several states. This can cause quite a dilemma because there are different state laws in each state and different states have different amount of sales tax, not to mention all the rules and regulations which are dissimilar.
It can be even more difficult if the franchise is let's is a mini-mart or a gas station that sells cigarettes and various alcohol products because in some states these are not allowed, or there are extra sin taxes on these items and a franchisee that's not doing their homework can get into quite a bit of trouble especially when they are bulk ordering from one supplier in one state and then end up stocking their own shelves with those products in another.
Another big problem comes if the outlets are close together near a border and when you have one employee, which lives in one state working at an outlet in another state that has different payroll taxes or covering a shift for an employee in a third state.
Some states allow the employees to be assigned to a different state and that's a different amount of withholding depending on the percentage that they work in one state or another. But suffice it to say you need to work out all these logistical and accounting issues prior to opening outlets in many states. Please consider this.