Services for franchises

Franchising is a popular form of business and for good reason. It can be a really useful business model, particularly if you’ve never been in business before. The main reason is that a good franchise will provide training, guidance and support to get you going (sort of like training wheels when you were learning to ride a bike).

If you own a franchise, we can assist you build and develop your business so it is generating a healthy income for you as the owner and is increasing in value as a business.

You would be aware that there are a number of specific features which make a franchise different to an independent business. To help your prospects with these, we provide these specialist franchise advice services:

  • Pre Purchase Review - a review of the financial aspects of the franchise, an important part of your prospects due diligence.

  • Business Plans - once you’re ready to set your plans to grow and develop your business.

  • Business Structure - get the right structure for your situation, this has big implications for tax and asset protection.

  • Cash Flow Forecast - see how the money works on a day to day basis, provides an estimate of your working capital needs.

We also provide Bookkeeping and Tax assistance to make sure you’re on top of your Tax and the financial position. We can also assist with the regular bookkeeping, BAS and tax lodgements, as well as provide business management reports.

 

Pre-Purchase Review

If you’re looking to buy a franchise, make sure you have the numbers checked out to be sure the business will give you the financial return you are after. You need to be working with an experienced franchise accountant to work through the numbers to assess if the opportunity is right for you.

Our Pre-purchase Review follows a structured process to assess the financial aspects of the franchise.

  • Will this franchise give you the income you want?

  • Will it give you a decent return on your investment?

  • How much will it cost up front and ongoing?

  • How will you pay for it? How much do you need to borrow? Can you get the money?

These are some of the important questions you need answered to make an informed decision. Contact us to discuss further.

Business Plan

A business plan is the road map for your business. It set out the steps you need to take to achieve your goals. For many people, this comes down to providing the income they need, and building value in the business.We can help you complete your business plan, based on our experience in working with hundreds of franchise owners. The key elements of a business plan answers these three key questions:

  • What is your current situation? (where are we now?)

  • Where do you want to get to? (where are we going?)

  • What are the steps needed to get there? (how will we get there?)

Your business plan essentially needs to answer these three key questions, and provide the supporting detail to justify your plans. We’d be happy to assist, so contact us to discuss the business planning process in more detail.

Trading Structure

This is the structure you will be operating your business through. For instance, it could be a company, trust, partnership or sole trader. The structure you use has significant consequences for dealing with how you manage risk and exposure, and how best to manage your tax. The structure you operate through also has significant implications for asset protection. It is so important to protect those assets you have worked hard for and built up over time.

  • Sole trader has high level of personal liability and risk, but low set up costs,

  • Partnerships are popular but bring with it risk and exposure for your partners actions,

  • Company is a separate legal entity and provides a corporate structure and a level of protection,

  • Trusts are more complex and can provide significant asset protection and significant tax advantages.

The business trading structure you operate through has major implications for your exposure and level of risk. It needs to be carefully considered and thought through. We have significant experience in this area, so contact us to discuss the most appropriate structure for your situation.

Cash Flow Forecast

As you develop your business further, it is wise to prepare a cashflow forecast for your business. You may need this at the very start, or as your business progresses so you can manage your working capital more effectively. The Cashflow Forecast is a plan for how money will flow into your business and out again. It lets you see when you have surplus, or deficit. If you can see a deficit ahead, you have time to put plans in place. You can also see how much you can afford to take as wages.

  • A cashflow forecast is an estimate of the cashflow into and out of your business,

  • This will determine the level of short term funding you will require (working capital),

  • The better you can manage the ebbs and flow of cash, the lower your funding costs will be,

  • This forecast puts you in a stronger position to manage your business more effectively.

If you are approaching a bank for finance they will definitely want to see the Business Plan and the Cash Flow Forecast. We have prepared hundreds of these, so get in contact with us to discuss the putting cashflow forecast together.