Buying a franchise gives you a system, a brand and a head office that expects reports in its format. It does not give you an accountant who understands royalties, marketing levies, territory agreements and what the business is worth at resale. We work with franchisees across Brisbane and Queensland, including mobile and multi-unit operators.
A franchisee's profit and loss has lines a normal small business does not: the initial fee, ongoing royalties, a marketing levy, mandatory software or supply costs, and sometimes a share of national campaigns.
02Franchisees sit under two sets of rules: the ATO's and the franchisor's.
03The agreement will usually specify who can hold the franchise, but there is normally room to choose between a company, a trust or a combination.
04Franchise margins are typically known and thin.
A franchisee's profit and loss has lines a normal small business does not: the initial fee, ongoing royalties, a marketing levy, mandatory software or supply costs, and sometimes a share of national campaigns. Each one has a tax treatment, and the initial fee in particular needs to be handled carefully because it is generally capital rather than a straightforward deduction.
Then there is the reporting. Head office wants figures in its template, often monthly, and benchmarks you against other territories. That data is useful, but it is not your tax position and it is not your cash flow. We reconcile the two so you can satisfy the franchisor and still know what you actually earned.
John and Maeghan from Snap On Tools said: "Lauren & Greg have provided an end to end service which goes above and beyond what we were expecting." End to end is the point. Franchise owners have enough systems to feed without their accountant being another one.
Franchisees sit under two sets of rules: the ATO's and the franchisor's. The Franchising Code of Conduct governs disclosure, cooling-off and renewal, and your agreement will set out audit rights, reporting obligations and restrictions on transfer. These contract terms have financial consequences, and they need to be understood before signing, not when a dispute arrives.
On the tax side, GST on royalties and levies, the treatment of the initial franchise fee and any renewal fees, stock on hand, fit-out depreciation and vehicle deductions for mobile operators all need care. Payroll in retail and food franchises involves awards with penalty rates and junior rates, and the ATO's Single Touch Payroll reporting applies from the first employee.
We handle the compliance on Xero with the integrations your system requires, and we check that the figures going to head office match the figures going to the ATO.
The agreement will usually specify who can hold the franchise, but there is normally room to choose between a company, a trust or a combination. The choice affects asset protection, tax outcomes, how family members can be involved and how easy the business is to sell later. We help new franchisees get this right at the start, when it is cheap to do.
Multi-unit operators have a bigger question. Each territory or site might sit in its own entity under a holding company, or everything might run through one. Separate entities protect each site from the others and make partial sales easier, but add compliance cost. We design groups that fit the owner's growth plans and the franchisor's rules.
Greg Blackaby's experience in structuring multi-entity groups and business acquisitions is a good match for franchisees who are building a portfolio rather than running a single store.
Franchise margins are typically known and thin. The franchisor's model assumes a certain cost of goods, labour percentage and rent ratio, and if yours are off, the business leaks money quietly. We set up reporting that tracks those key ratios monthly, compares them with the model and with your own history, and flags drift early.
Cash flow has its own rhythm: royalties leave on a schedule, stock orders are set by the system, equipment leases are fixed. A rolling cash flow forecast built around those commitments tells you what is genuinely available to pay yourself, set aside for tax and invest in a second territory. Our virtual CFO service provides this on an ongoing basis for owners who want a second set of eyes on the numbers.
Franchise resales are common, and the franchisor usually controls the process to some degree. Buyers need to understand what they are getting: the agreement's remaining term, renewal conditions, the real trading history rather than the brochure, and whether the price makes sense against the profit after a fair owner's wage.
We provide due diligence for buyers and valuations and sale preparation for sellers. We also advise on how a sale should be structured, because selling the shares of the entity and selling the business assets can have different tax and practical outcomes under the ATO's current rules. If you are buying your first territory or exiting your fifth, the process should be deliberate.
“Working with Acquire Strategic Accounting has been a game-changer for our business.”
Generally not as an immediate deduction. Under the ATO's current rules, the upfront fee for the right to operate a franchise is usually treated as capital, which affects how it is dealt with when the business is sold or the agreement ends. Ongoing royalties and marketing levies are typically deductible as business expenses. We confirm the treatment for your agreement.
Yes. We set up Xero so the figures the franchisor needs can be produced in its format on time, while the tax accounts stay accurate and consistent with them. If head office mandates a particular point-of-sale or inventory system, we integrate it. The aim is one set of numbers that satisfies everyone.
Usually it is based on sustainable profit after a fair wage for the owner, adjusted for the remaining term of the agreement, renewal conditions, the site or territory quality and the franchisor's resale rules. Brand strength helps but does not replace actual trading results. We prepare valuations and help sellers tidy the accounts so a buyer pays full value.
It depends on your situation and the franchisor's requirements. Many franchisees trade through a company, sometimes with a family trust holding the shares, for asset protection and flexibility. Multi-unit operators often use a holding structure with separate entities per site. We review the agreement and your circumstances before recommending anything.
Yes. Mobile franchises have their own issues: vehicle finance and deductions, stock carried on the van, territory boundaries and often a mix of cash and account customers. Snap On Tools franchisees are among our clients. We handle the bookkeeping, tax and structure for mobile operators and help them plan for a second van or territory.
