Accounting services for franchises
Franchises in Australia
Franchise businesses are continually growing in Australia. Research shows that Australian franchise revenue accounted for around $180 billion in 2011/2012.
There are so many different franchises in Australia. Accounting for a franchise business is different to operating your normal business as there are so many other issues to consider.
Getting the proper advice when purchasing or selling a franchise business is very important.
Buying a franchise sounds easy in that the name, brand and concept is already in existence but in fact there are so many things to consider when buying and operating a franchise including:
- Initial capital outlay
- Ongoing franchise fees
- Cash flow projections
- Potential shop fit out and equipment costs
- Financing
- Type of support the franchisor will provide
- Type of industry the franchise operates in and the risks and competition
- Ensuring franchise agreements are reviewed properly
- Talking with current and past franchisees
- Due diligence
The value that one pays for the franchise business needs to be assessed and evaluated to ensure it is profitable and provides a good rate of return on the investment by the owner.