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.
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.
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.
As experienced franchise accountants, Volpe Consulting & Accounting Services can help your new or existing franchise grow with financial stability. We work with franchises headquartered across the United States, so no matter where your main office or branches are located, Volpe can handle your project.