Do your franchisees fail to send their year end accounts to you?

As a Franchise Auditor, I come across quiet a few franchisees who yes, mis-declare their franchise returns, but many who fail to send copies of their year end accounts to you, the franchisor. In many cases (and where it is a stipulation of their franchise agreement), they fail to submit copies of their VAT returns too.

Just wondering whether this a common complaint and whether this is a concern for you?

I am thinking about starting a collection service which for a nominal fee ( perhaps £25 per franchisee) we chase and collate this info. This would be is an alternative to the more expensive franchise audit and could involve cross-referencing with MSF/?Royalty Fees submitted to check if there is a potential issue?

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One Response to “Do your franchisees fail to send their year end accounts to you?”

  1. CBCS (@CBCSuk) Says:

    In an ideal world all franchisors would have this in hand, but many don’t and resourcing it along with so many other must haves in such a difficult trading environment is the problem. For a relatively small cost franchisors can get their whole network up to date and maybe even generate enough cash as a result to invest in a decent tailored cloud accounting solution that would help this to be achieved in the future.

    I have seen enough positive responses to this idea ( here and elsewhere) and have launched this now as a service. So briefly £25 per franchisee will result in the collection of outstanding accounting and contractual documents being brought in. For the same charge we can chase and collect outstanding returns. Collection of any fees pays payable as a result then follow our standard collection charges. If you want the franchisees accounting records collated to their declared sales then we can do this to again for a small fee and of course if the whole exercise reveals the potential for a whol raft of undeclared sales then the franchisor can opt for a franchise audit or a franchisee financial business review. All fits together quite nicely, I think…

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