One of the ultimate goals of any business is to become successful enough for expansion – and one of the best ways to expand is to franchise. Franchising is the licencing of your trademarks, operating practices and trade secrets to third parties. In exchange, the franchiser receives a one-time franchise fee, and then royalties on a periodic basis. The benefit for the franchisee is that many of the start-up costs associated with a new business – particularly marketing and infrastructure – are removed.
We offer franchisers the accounting services which will allow them to create strategies based on solid, firm financial data as opposed to budgeting, chasing trends, and speculation. We also allow franchisers to focus on sales, marketing and distribution – both on behalf of the locations they may continue to run personally, as well as those franchisees who are dependent on the strong leadership skills at the head of the organization. Leave the work of the accounting and financial services to us, so that you can cater to your own strengths.
Are You Considering Franchising?
Franchising is a major step for any firm. Take a look at our checklist to make sure you’re ready to take that next step:
Is your firm already successful? Does the “brand” associated with it have a positive reputation? Can the “brand” be duplicated in multiple locations, so that customers can expect the same result wherever they go?
Can you provide operations procedures which are unique to your organization that makes you stand out from the competition and which you would expect franchisees to follow?
Are there potential franchisees already in the picture? If not, do you know where you could go to find them? Are the economic circumstances ripe for expansion into new, untested markets?
Running a franchising organization is different from running a single location. Do you have the leadership skills necessary to lead a group of franchisees who have their own vested interests which may not always coincide with your own? Franchisees are, after all, your customers, and it is important to keep them happy, but at the same time they must keep to your vision.
The standard fees paid by franchisees to franchisers are typically based on a percentage of the gross revenues earned by each franchisee. Therefore, it is in the best interest of the franchiser to maximize the gross revenues of their franchisees. However, the work of calculating the franchise fees, and ensuring that these accurately reflect the actual gross revenues of each franchisee, is not the work of a salesperson or marketer, but the work of an accountant. Take advantage of our services today to make sure that the right amounts are recorded, paid, and collected, and that all the benefits of franchising are made available to you, the franchiser.
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