how a franchise accountant can help you get a good start in franchising
TRANSCRIPT
Sound financial foundations
for your franchise
www.FranchiseAccountantsNetwork.com
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“Honey, let’s buy a franchise”
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There’s more to making a well informed decision than
finding a franchise you’re excited about. At some
stage you’ll ask …
“What about the money?”
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“What about the money?”
Can we afford it?
Can we live on the income?
Will we get our money back?
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Understand & manage your risk
“…Entering into a franchise agreement is a serious undertaking.
Franchising is a business and, like any business, the franchise (or
franchisor) could fail during the franchise term.
This could have consequences for the franchisee.”
Mandatory statement – page 1 of Disclosure Document
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Seek appropriate advice
• The Franchising Code of Conduct
– You must be notified to get advice
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Seek appropriate advice
The Franchising Code tells you to get advice about the franchise
agreement or business, from:
an independent legal adviser;
an independent business adviser: or
an independent accountant;
Or sign a statement that you have been given that kind of advice … or decided
not to seek it.
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Seek appropriate advice
Independent legal advice = Lawyer
Independent business advice = Accountant
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Three important questions
1
• How much will it cost to start the business?
2
• What will it cost to operate the business?
3
• What sales are needed to cover the costs?
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You also need to consider:
What income do you need?
And … What income would you like to have?
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SNAKES&
LADDERSWWW.PRESENTATIONMAGAZINE.COM
Role
of the
accountant?
Role of Accountant
1. To identify
– Set-up costs
– Operating costs
– Sales required to make profit
– Business and financial risks
2. Set up business structure
– Sole trader, company, trust etc
3. Accounting & tax advice
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How to choose an Accountant
The big question is
this…
Do they understand
franchising?
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How to choose an Accountant
• What is their focus?
– Tax Accountants
– Business Accountants
– Franchise Accountants
• Qualification and professional memberships
– Chartered, CPA
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A network of independent accountants with
specialist skills in franchising
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Pre-Purchase Review
Helps you answer the questions:
1. How much does it cost?
2. How much does it cost to operate each month?
3. What level of sales are needed to cover costs
4. Tax and reporting
5. Ongoing role and support
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Next Steps
• Sign up for our 3 weekly
articles– How much can I make?
– Preparing a business plan
– How to work with your
accountant
• Visit our stand– Collect article on Family
Financial conversations
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Thank You!
www.FranchiseAccountantsNetwork.com
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