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
- 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.Contact usto learn how we can help you
Why you need a good accounting system
Having a good accounting system ensures the smooth running of your franchise business. Some franchises are required to provide sales figures to the franchisor. Having the correct systems in place means spending as little time as possible on your bookkeeping, accounting and paperwork.
Should you franchise your business?
Whether or not to franchise your business is a common question. Taking a stand-alone business to creating a national or international franchise business is a big decision. The proper systems and structures need to be in place and up to date financials ensure the franchise model of your business is successful.
How Rucker Financial can help you
Many general accountants don’t have the depth of experience in dealing with both franchisors and franchisees that Ruckers Financial has. We understand many of the franchise models and systems.
We will ensure that you have the correct business structures in place when you buy and operate a franchise. This includes setting up easy to use cloud accounting software for you, and help you set up systems to improve your profitability and develop the business.
We also have access to many resources and industry experts to assist you in your franchise business. If you are a franchisee or are considering buying a franchise, call us on 03 9874 7255 to arrange an obligation free assessment.