FAQs
Questions franchise owners ask us.
Short, honest answers about franchise accounting, tax, multi-site reporting and buying a franchise. General information only — every business is different, so talk to us before you act.
FAQs
Choosing an accountant
Do I need a specialist franchise accountant?
You don’t legally need one, but a franchise has features a general accountant may not deal with every day: royalties and marketing levies calculated on sales, reporting obligations under your franchise agreement, a capital franchise fee, fit-out and refurbishment cycles, and benchmarks set by the network. An accountant who works with franchise businesses will usually spot problems — like royalties calculated on the wrong sales figure, or labour costs drifting above the network norm — sooner. How to choose a franchise accountant.
What does a franchise accountant do that a general accountant doesn’t?
The core compliance is the same. The difference is context: a franchise accountant reconciles royalties and levies to sales, understands the reporting your franchisor requires, benchmarks your results against the network and knows the questions to ask about fit-out, renewal and transfer costs. Our franchise accounting services.
How much does a franchise accountant cost?
It depends on what you need. Annual tax compliance for a single store costs less than monthly bookkeeping, payroll and site-by-site reporting for a group. We scope the work first and agree a fixed fee for the engagement so you know the cost before we start. Ask us for a quote based on your number of locations, entities and the services you want.
Can I keep my current bookkeeper?
Yes. We can work alongside your bookkeeper, review their work at month end and focus our time on reporting, tax and advice. We’ll suggest changes to the chart of accounts or processes if they would make your reporting more useful.
FAQs
Running a franchise
Are franchise royalties tax deductible?
Ongoing royalties and marketing levies paid to a franchisor are generally deductible business expenses, and you can usually claim the GST included in them if you are registered for GST. The initial franchise fee is different: the ATO treats establishment and transfer fees as part of the cost base of the franchise, so they are not immediately deductible. The treatment of renewal fees depends on the agreement. Franchise royalties and levies explained.
What financial reports should a franchise owner review each month?
At minimum: a profit and loss statement compared with budget and last year, a cash position and short cash forecast, labour cost as a percentage of sales, gross margin (cost of goods) and a royalty and levy reconciliation. Multi-site operators should see these for each location as well as for the group.
How often should I review cash flow?
Weekly for the bank balance and upcoming commitments such as payroll, super, rent and royalties; monthly against a rolling 13-week or 12-month forecast. Review more often before large known costs like a refurbishment, an annual insurance premium or a tax payment.
What changed with Payday Super?
From 1 July 2026, employers must pay superannuation guarantee contributions each payday, and contributions generally need to reach the employee’s fund within 7 business days after payday (20 business days for a new employee’s first contribution). Franchise operators with weekly or fortnightly payroll now pay super far more often than quarterly. Payroll and Payday Super support.
FAQs
Multi-site
Can a franchise accountant manage multiple stores?
Yes. The key is setting up the accounts so each location is tracked separately — usually with tracking categories or separate entities — and then producing site-level and consolidated reports on a consistent basis every month.
How do I compare profitability between franchise locations?
Compare each site on the same basis: sales ex GST, gross margin, labour as a percentage of sales, occupancy costs, royalties and levies, and site contribution before head office costs. Allocate shared costs separately so they don’t distort the comparison. A method for comparing locations.
Should each site be in a separate company?
It depends on your risk, lending, tax and exit plans. Separate entities can ring-fence liabilities and make a single site easier to sell, but they add compliance cost. We work through the options with you and your lawyer before you open or buy the next site.
FAQs
Buying a franchise
What should I check before buying a franchise?
Financially: the total upfront cost (including fit-out, working capital and fees), the ongoing fees and how they’re calculated, the realistic sales and margins for a site like yours, the business’s historical results if it’s an existing store, and how long it would take to recover your investment. The disclosure document must be provided at least 14 days before you sign. Our due diligence checklist.
Is the franchise fee tax deductible?
Generally no. The ATO treats the initial franchise fee and transfer fees as capital — part of the cost base of your franchise. Ongoing fees such as royalties are generally deductible.
Do I still need a lawyer if I use an accountant?
Yes. An accountant reviews the financial side; a franchise lawyer should review the franchise agreement, the disclosure document’s legal terms and the lease.
FAQs
Franchisors
What accounting records does a franchisor need?
Beyond normal business records, a franchisor needs reliable records of franchise fees and royalties received, marketing fund contributions and spending, and the financial information that must go into the disclosure document. If there is a marketing fund, the franchisor must prepare an annual marketing fund financial statement for franchisees, which must be audited unless franchisees agree otherwise. Support for franchisors.
Next step
Let’s make your numbers work harder.
Tell us where you’re at — first store, next store or a whole network — and we’ll start with the right conversation.