Accounting services for franchises

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.

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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.

Interested in hearing more about how we can help build or grow your franchise?

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