Carbon Group is a single destination for all your core business services, this means we can help you with all elements of setting up and running your franchise business.
Considering buying into a franchise? Some points to consider.
The benefits offered by each franchise group varies from franchise to franchise, and from industry to industry.
- A simple point to start with is their brand name, as a strong brand with an established reputation should make launching your business easier. A brand that is lesser known could take longer to be noticed in your area, and you will need to do additional work to gain customers.
- What internal software does the franchise group provide for running the business? The ideal is to have fresh and new systems that make running the business more efficient, with minimal manual work needed. If the franchise group has multiple systems that don’t talk to one another, you will see a significant amount of manual work and double data entry. An important note is to ensure the system doesn’t require an internal server to run it as this will increase your IT costs.
- How strong is the franchise’s growth? If your goal is to grow your business, one of your first questions should be to ask for historical evidence of the speed of growth of business turnover. Could you run multiple sites as part of your growth phase, and if so what are the costs associated with this? A franchise group that will help you with growth by providing support or fixed costs will be beneficial in the long-run.
When considering the costs of buying into a franchise, people often only consider the initial royalties and set up costs (for example, shop fit-out or equipment purchase). It’s important to know what these fees include, and what you’re expected to pay going forward in addition to this amount.
Once you’re up and running, your focus will shift to the ongoing costs. Check if the franchise fees vary depending on your business performance and revenue, or if it’s a fixed number regardless of sales.
Marketing is often an area that people don’t consider too much when buying into a franchise group as they assume it will be done for them. In most cases, the franchise group has a marketing team that operates at a national level to promote the brand across Australia (or, state-based if it’s not a national franchise). They are usually there to provide marketing support and guidance, but the local promotion of your business is usually down to you and there is a cost involved.
- Do you need finance to purchase initially?
There will be a big initial outlay of funds to buy into the franchise group, and you may or may not have the funds available. If you need finance to support this, it’s wise to check if the franchise group has any current agreements with banks or lenders to assist. If not, this is another thing you will need to consider and organise. A finance broker, such as the team at Carbon Finance, can help guide you through this process.
- Who will do your accounting and bookkeeping?
Some franchises will require you to use an approved service provider while others will allow you to choose your own. In the case of the latter, it can be tricky to find someone you trust and who has the expertise in franchises to help. Our advice is to look for a firm, such as Carbon, who have accountants and bookkeepers under the one roof. This means they can easily talk about your business, reducing the need for you to play middle-man. It’s even better if the firm has other business services at their disposal, such as finance, business insurance, payroll, R&D and grants (plus more!).
- Ensure you meet your tax obligations to avoid penalties and save on tax.
When you have the guidance of qualified tax accountants, like the team at Carbon, you will take comfort in knowing you’re meeting your tax obligations and that your tax planning strategies are tailored to your business. Without tax planning strategies in place, you could be facing large tax bills and you definitely don’t want that!
These are just a few of the things to consider when buying into a franchise group. When you work with Carbon, our experienced tax accountants, bookkeepers and financial people are across all these areas and can provide excellent advice to help you achieve your goal.
Already in business and need help managing your accounting, bookkeeping and other financial services?
Cloud-based software is the solution to the majority of most bookkeeping problems experienced by franchise owners. Whether you wish you had real-time data, or that you could access your system on-the-go, cloud-based software can offer a solution. With the assistance of qualified bookkeepers like the team at Carbon, you’ll be able to reduce the time you’re spending on other bookkeeping tasks, such as Business Activity Statement (BAS) lodgment, data entry, accounts payable / accounts receivable, debt collection and even payroll.
If you’re looking to expand your franchise business by purchasing more sites, or if you need to upgrade the fit-out or equipment at your current site, you may need access to funds. Finance brokers can source the best deal for you, one that is tailored to your specific needs.
As you’ve grown, your insurance needs have changed from when you first purchased your franchise business. Have a chat to an insurance broker about your needs, both now and in the future, and review all elements of your insurance policies to ensure you’re fully covered. You don’t know what you don’t know, so let our insurance brokers shed some light for you!
You don’t want to spend your life working to grow your business, just to wish you had created effective financial strategies to help you achieve your personal goals or save for retirement. Start the conversation with a financial planner early, and you’ll reduce that regret.
Jetts Cannington have been using the services of Carbon Bookkeeping for more than two years. Taking our bookkeeping to the cloud has changed how we operate.
Our financial data is available to view 24/7, from any device, and in real time, allowing us to make more accurate business decisions. The team at Carbon are great to work with, and we can now dedicate our time and focus on our clients and growing our gym.
Sherif Girgis, Owner
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Carbon Group have been an awesome investment to our business. Their staff are super friendly and extremely helpful and their knowledge in cost savings first class.
Carbon have assisted us to become more in touch with our business' progress as it has grown and developed.
Our experience with Carbon has been fantastic. Our bookkeeping costs are the same each week which is great as we were hourly before and the fluctuation was hard to track.
I have confidence in Carbon to complete our work to a high standard and deliver work on time.
Since starting with Carbon Group, not only do I have a much better overall understanding of my business, but more free time to actually carry out the work required.
We have been impressed with Carbon ever since we changed over. We love how there is a seamless integration of the accounting department and the bookkeeping departments.
Carbon is an integral part of our support network for achieving our organisation’s mission. We continually receive knowledgeable, timely and generous assistance from both the bookkeeping team.
Fantastic serves, staff and very friendly. I would 100% recommend to anyone wanting a great accountant.
Carbon Group are an amazing company and they certainly know what they're doing. Great staff, friendly and prompt service. I will recommend them to anyone!
Carbon Group has helped reduced our bookkeeping and accounting costs by 50%