Buying, selling & expanding
Franchise acquisition and due diligence, before you sign.
Independent financial due diligence on a new or existing franchise, purchase structuring, working capital planning and the numbers behind a second site or an exit.
What does an accountant do when you buy a franchise?
Before you buy, an accountant tests whether the numbers work: total upfront costs including fit-out and working capital, ongoing fees, realistic sales and margins for your site, the seller’s historical results if it’s an existing store, cash flow through the first year and how long it may take to recover your investment. They’ll also advise on the structure to buy through and the tax treatment of the purchase. A franchise lawyer should review the agreement and lease.
Our due diligence review
Five questions every buyer should be able to answer.
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What will it really cost?
Franchise fee, fit-out, equipment, stock, legal, training, deposits and working capital — the full amount you need on day one.
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What will it earn?
Sales, margins, labour and occupancy tested against the disclosure document, network data and comparable sites.
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Is the history reliable?
For an existing store: financial statements, BAS, POS data and payroll records reconciled to each other.
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Can you fund it?
A 12-month cash flow forecast, finance repayments and a buffer for a slower-than-expected start.
New or existing
Different purchases, different risks.
Buying a new (greenfield) site
There are no historical results, so the analysis relies on the franchisor’s information, network benchmarks and your own assumptions. We stress-test those assumptions — especially sales ramp-up, labour and rent — and show what happens if they’re wrong.
Buying an existing store
The history is available, so we test it. Do the profit and loss, BAS lodgements, POS reports and bank statements tell the same story? Are there owner hours or one-off items that flatter the result? Does the lease or refurbishment schedule change the picture?
Adding a site or exiting
For existing operators, we model the effect of a new site on group cash flow and debt, review structure and finance, and help prepare the financial information buyers will ask for when you sell.
Your rights under the Franchising Code
The Franchising Code of Conduct gives prospective franchisees time to review information before committing. The franchisor must give you the disclosure document, the proposed franchise agreement and a copy of the Code at least 14 days before you sign, and you generally have a 14-day cooling-off period after entering a new agreement. A new Code applied from 1 April 2025, with some disclosure requirements starting from 1 November 2025.
Use that time well: the disclosure document includes the costs of establishing and running the franchise and other financial information you should test with your accountant. Source: ACCC — Franchise disclosure document.
Acquisition FAQs
Buying and selling questions
When should I talk to an accountant about buying a franchise?
Before you sign anything or pay a non-refundable deposit — ideally as soon as you receive the disclosure document. That gives you time to ask the franchisor or seller questions.
How much working capital do I need?
Enough to cover the gap between paying wages, rent, suppliers and fees and receiving enough sales to cover them — plus a buffer. The right amount depends on the business and your forecast; we calculate it as part of the review. See working capital for a new franchise.
Can you value a franchise?
We can provide valuation support based on historical and forecast earnings, comparable sales and the remaining term of the agreement and lease. A formal valuation may be needed for finance or legal purposes.
Is buying an existing franchise GST-free?
The sale of an existing franchise business may qualify as a GST-free sale of a going concern if all the conditions are met and both parties agree in writing. Check the contract and get advice before settlement.
Keep exploring
Related reading and services
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.