Accounting For A Franchise
We’ve found some really interesting things out over MNE’s history on how working for clients in similar industries or in similar geographic areas creates efficiency improvements for us, our clients’ accounting team because of a better-expanded knowledge base.
One connection which is reasonably obvious is clients who operate under the same brand, as franchisees. As it happens, the similarities are not necessarily as obvious as one might think – for example, their personal goals for being in business or the cash they’re able to inject into the business.
The benefits for our franchisee clients tend to be less clear than us being able to replicate how we work with our clients – which is not as easy as it might sound! Things like the reporting requirements to be provided to franchisors become second nature to our team – reducing the number of queries raised, but also keeping both sides of the franchising deal happy.
One of the main benefits is that when we’re working with our franchisees on their results, having the knowledge of how other companies in the same region, industry and importantly, brand, are performing, is priceless to us and our clients. Not that we’re able to discuss who we work for or specific figures, but to know about the industry and geographical averages and benchmarks is really useful to all of our franchise clients.
Our main area of franchising is in the property industry, where we look after four franchised brands. Our clients are able to use our knowledge, confirming that the ratio of their management income compared to their one-off introduction fees is about right, or that their staff costs aren’t creeping past the point their turnover can manage, compared with other companies similar to theirs.
As an accountant, sharing detail on clients is a no-go area. We are pretty passionate about this – which is why, as a client of MNE, you will benefit from our excellent – and improving every day – experience, whilst maintaining some rock-solid secrets that your fellow franchises will never know!
We’re appearing at The Franchise Show UK on Friday and Saturday (19th & 20th Feb) at the ExCel London, come and say hi and discuss how we can help your franchises grow.