Franchise financial services and consulting

The more accurate the data a Franchisor receives from its Franchisees, the faster and better they can evaluate issues and develop solutions.

Owning a franchise requires budget, planning, day-to-day responsibilities, and proper personal and customer management skills.

Franchises can’t be treated like other businesses, they often have special accounting needs. For example, franchises have revenue reporting requirements. 

They have many built-in advantages but as with all good things, there are often extra risks.

In order to own a franchise, the franchisee must pay the franchisor certain fees. The fees often include the rights to use the business’s brand, services, and products. 

The franchisee must pay an initial fee, like an entry fee, but then pay an ongoing royalty fee or other additional fees.

A franchisor sets guidelines for a franchisee that can include special assessments or discounts granted. These can add or subtract from top-line sales, and affect Gross Sales on the Profit and Loss Statement. All of these details and numbers need to be reported properly, and not just for franchise compliance reasons, but also IRS compliance.

A simple mistake in transaction records could result in the franchisor or franchisee being paid incorrectly.

At Volpe Consulting and Accounting, we help you make the most of the advantages of being a franchise, all while controlling the risks.

We will help you create and implement a strategy for staying on top of cash flow, dealing with debt, nurturing key performance indicators, and managing employees.

Get a free accounting consultation today

certified St. Louis accounting firm