Independent advice is vital if you intend to buy franchise. That’s because buying a franchise is a big financial commitment. Therefore it’s important to have a good idea of what you’re getting into before you commit.
Independent advice on the financial and legal aspects of owning a franchise will help you make an informed decision and be fully aware of the commitments you are taking on.
The best person to advise you on the financial aspects of your purchase is an accountant who has specialised knowledge of franchising.
You see, in your excitement to get into your new business, you might overlook some important financial considerations. An independent accountant is experienced in looking at numbers, and is not emotionally involved in this purchase. They are in the best position to help you assess the financial viability of the franchise you’re looking at.
An accountant can help in a number of very important ways as you work through the process of buying a franchise.
Review the financial aspects of the franchise before you buy
Recommend and set up your business trading structure
Organise your business registrations, such as GST, PAYG, BAS, Income Tax and ASIC
Set up your accounting software, bank feeds, key creditors and your initial payments
Establish systems for your record keeping and admin back end
So, how do you choose an accountant to help you buy a franchise? Here are three things to bear in mind.
Are they easy to communicate with and can you relate to them?
Do they have experience in working with franchises?
Do they have an affordable Pre-purchase Review?
Many people have told us how important it is to deal with advisers who are experienced in working with franchises. That’s because franchising has special characteristics that need to be taken into account. These include the unique franchisor/franchisee relationship, fixed franchise terms and restrictions on who you can buy products from.
Even if you already have an accountant who does your personal tax return, it’s best to get specialist advice when you’re buying a franchise. Look for an accountant who is independent, understands franchising and can assist with your due diligence.
We’re a firm who specialises with franchise businesses and would be happy to help.
Feel free to get in contact to discuss your particular situation and the franchise you are considering.
Peter Knight and Kate Groom