Just like any small business owner or sole proprietor, franchise business owners are entrepreneurial in nature. They may not own the business name, but in all other aspects, they are business owners who are trying to grow a business just like any other business owner.
So, you might ask, how is a franchise business owner’s operations different than that of a sole proprietor? Cash flow, earnings, accounts receivable, debt matters, and making payroll are the same for a franchise business owner just like a sole proprietor. However, there are some unique reporting requirements for a franchise owner that sole proprietors tend not to have. McKonly & Asbury specializes in serving franchise owners and their unique reporting structure and requirements. Our team supports business owners that own a franchise or are in a franchise partnership. Here are a few areas:
Whether you are either a franchise owner or small business owner, you still have required state and federal filing requirements such as business setup with the department of state or sales tax licensing requirements with your respective state. However, franchise owners typically have a component of business setup with the franchisor. This setup could vary from financial statement and reporting to overall business operation reporting. We can assist with this and have experience with various specific company franchise reporting models.
Data Analysis and Transmission of Data
Most franchisors require monthly reporting of financial results. This is usually done through a portal or link to a franchisor’s operating system. We can take the unknown out of this for any franchise owner and establish the correct reporting structure and communication for the franchisee and perform this uploaded information for them in order to allow the franchise owner to focus on their business.
Usually, each franchisor has a monthly fee that it charges to the franchisee. It is usually a percentage of revenue (could be as a low as 3% or as high as 20%, we have seen this vary by franchise type). The franchisor does this to cover costs and administration and obtain some profit for the use of the franchise name. We can again establish the correct and accurate calculation of these fees and communication of these fees for the franchise owner in order to stay within the terms of the franchise agreement.
Interface with Franchisor Operations
Most franchises have operating databases in which operating data is uploaded monthly. We can assist with this as we have worked inside of numerous franchise databases and can ensure that all required information is provided to the franchisor.
Other Business and Accounting Support
Just as we support our individual small business owners and entrepreneurs, we can provide the same support for franchise owners with back office accounting, bookkeeping, payroll assistance, and other accounting matters.
You can learn more about our franchise service model and program by watching the video below. To learn more about how we can assist and support your business, please click here.
If you have any questions, please contact David Blain, CPA, CVA, Partner-in-Charge of McKonly & Asbury’s Entrepreneurial Services Group (ESG) practice at email@example.com.