The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
How important is it to get an accountant to check the financial information provided by a franchisor before I invest?
Alan Wilkinson writes:
When considering if a particular franchise is right for you, a key factor is understanding the financials of the business.
As part of the due diligence process, the franchisor should make available to you turnover and profit figures for the business and explain these to you in a way that allows you to understand how turnover is generated, how the cash flow of the business works and what costs you’re likely to incur.
You should understand what impact discounting may have on the profitability of the business, where the break-even point is and any critical pinch points, such as when a second van is required or new member of staff is needed.
It’s also important to understand the basis upon which the figures presented to you are calculated. Are you being shown an average for the network or the figures for the top performing franchisee?
In my opinion, you should seek professional advice before taking on any business venture. A good accountant may well spot something you have missed and be able to advise on the most efficient way to structure your company. It is, however, perhaps more important to understand the basis upon which the figures presented to you by the franchisor have been prepared.
Alan Wilkinson is head of franchise development at The Franchising Centre and has been in franchising for over 24 years.
You might also be interested in
Does a franchisor sell its products exclusively through its franchisee network or is it able to make them available elsewhere?
Answered by John Pratt
John Pratt writes: There’s no standard answer to this question because, for instance, a number of well... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: We first need to look at what we refer to as five-star franchising. Is your... read more
Will a franchisor ensure I operate my business within the required health and safety guidelines of the sector I operate in?
Answered by Shelley Nadler
Shelley Nadler writes: The franchisor should provide health and safety guidelines appropriate to the sector the franchise... read more
Answered by Louise Harris
Louise Harris writes: The initial investment in a franchise varies greatly across the industry, but it’s one... read more
Exciting Franchise Opportunities
Companies to Consider
Laser Clinics United Kingdom
14-18% net profit
£50,000 – £100,000 profit
Third party sources
Yes, from third party
Potential ROI within 18 months with an average net profit of 21%
Right at Home UK
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added one day ago | 2 min read
Added 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news