Why Franchisees Need a Specialist Accountant for Franchisee (Not a Generalist)

Franchise businesses are fundamentally different from independent SMEs.

Your pricing is often fixed.
Your suppliers are restricted.
Your fees are ongoing.
Your reporting is mandatory.

A general accountant may:

• Treat franchise fees incorrectly for tax
• Ignore the cashflow impact of royalties and levies
• Mis-handle VAT in food or mixed-supply franchises
• Prepare accounts that don’t align with franchisor reports
• Miss margin leakage hidden in fixed cost structures

That leads to:

• Overpaying or underpaying tax
• Cashflow shocks around royalty cycles
• Breaches of franchise reporting requirements
• Reduced profitability
• Stress and distraction for franchise owners

A specialist Franchise Accountant designs your finance function around how franchise businesses actually operate.

Who We Help

We work with franchisees as their specialist accountant for franchisee across the UK, including:

• Food & beverage franchises (restaurants, takeaways, cafés)
• Care and domiciliary care franchises
• Gym, fitness and wellness franchises
• Education and tutoring franchises
• Retail and convenience franchises
• Cleaning, maintenance and service franchises
• Multi-unit and multi-location franchise owners

From first-time franchisees to established operators running multiple sites, we support franchise owners at every stage.

Common Problems We See in Franchise Finance

1. Franchise Fees Treated Incorrectly

Initial fees are often expensed incorrectly instead of being capitalised.

→ We ensure correct accounting and tax treatment.

2. Poor Visibility on True Profitability

Fixed pricing hides margin leakage across wages, waste and royalties.

→ We build clear margin and site-level reporting.

3. VAT Errors in Food & Mixed Supplies

Incorrect VAT treatment leads to HMRC assessments and penalties.

→ We ensure VAT is applied correctly from day one.

4. Cashflow Pressure Around Royalties

Royalties and levies drain cash if not planned for properly.

→ We build cashflow forecasts around payment cycles.

5. Payroll Costs Out of Control

High staff turnover and shift work increase payroll risk.

→ We streamline payroll and cost controls.

6. Franchisor Reporting Not Matching Accounts

Accounts don’t reconcile with franchisor dashboards.

→ We align bookkeeping and reporting formats.

Our Franchise Accounting Services

1. Cloud Accounting & Management Accounts

We build a finance system that works with your franchise model.

What we do:

• Set up and optimise Xero (or your chosen platform)
• Align bookkeeping to franchisor reporting structures
• Track royalties, levies and supplier costs correctly
• Produce monthly or quarterly management accounts
• Provide clear profitability and cashflow reports

Outcome: You understand your real performance, not just your bank balance.

2. Year-End Accounts & Corporation Tax

We prepare statutory accounts with a franchise lens:

• Correct treatment of franchise fees
• Royalty and levy deductions
• Capital allowances on fit-out and equipment
• Corporation tax planning within franchise rules
• CT600 preparation and submission

Outcome: Clean, compliant accounts that make sense to HMRC and your franchisor.

3. VAT for Franchise Businesses

We handle VAT risk areas common to franchises:

• VAT registration and scheme advice
• Food, care and mixed VAT rate calculations
• Flat Rate vs Standard VAT analysis
• VAT on franchise fees and royalties
• HMRC VAT queries and inspections

Outcome: VAT done properly, without margin-killing surprises.

4. Payroll, Pensions & Staff Costs

We manage payroll for franchise teams:

• PAYE and RTI submissions
• Shift-based and variable-hour payroll
• Auto-enrolment pension compliance
• Director payroll and benefits
• Payroll cost analysis

Outcome: Staff paid correctly, payroll compliant and controlled.

5. Franchisee Tax Planning & Profit Extraction

We help you keep more of what you earn:

• Salary vs dividend planning
• Expense optimisation within franchise rules
• Capital allowances claims
• Personal Self Assessment returns
• Long-term tax planning

Outcome: Lower tax, higher take-home pay, no nasty surprises.

6. Buying a Franchise – Financial Due Diligence

We support franchise buyers before signing:

• Review of franchise financial projections
• Break-even and cashflow modelling
• VAT and tax implications
• Business structure advice
• Funding and director loan planning

Outcome: Confidence that the franchise actually stacks up financially.

7. Multi-Unit & Scaling Franchisees

For growing franchise owners, we provide:

• Multi-site management accounts
• Performance comparison across locations
• Group and holding company structures
• Systems for scale
• Exit and resale planning

Outcome: Control, clarity and scalable finance systems.

Our Process – How We Work with Franchisees

Step 1 – Discovery Call

Understand your franchise model, sector and goals.

Step 2 – Diagnostic Review

Review your accounts, systems, tax position and risks.

Step 3 – Proposal & Roadmap

Clear, fixed-fee plan with deliverables and timelines.

Step 4 – Onboarding & Clean-Up

Bring bookkeeping, VAT and reporting up to standard.

Step 5 – Ongoing Support & Advisory

Proactive advice, not once-a-year accounts.

Indicative Packages (Guide Only) – for Franchisee Businesses

Startup Franchise Package

• Bookkeeping
• Annual accounts & CT600
• Payroll setup
• High-level tax advice

Growth Franchise Package

• Bookkeeping
• Monthly management accounts
• VAT returns
• Payroll & pensions
• Cashflow forecasting
• Quarterly strategy calls

Multi-Unit / Scale Package

• Virtual Finance Office
• Multi-site reporting
• Tax planning & structures
• Exit planning
• Board-level support

All packages are tailored, no one-size-fits-all pricing.

Speak to a Specialist Accountant for Franchisee

If you’re a franchisee and want to:

• Protect your margins
• Stay compliant with HMRC and your franchisor
• Get clarity on cashflow and profitability
• Scale with confidence

…then let’s talk.

Book Your Free Franchise Strategy Call

Call: 020 3740 7074
Email:  info@accountaxzone.com
Website: accountaxzone.com

Join Hundreds of Happy SMEs getting services from our expert Accountant in London

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