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The Basics Of Franchise Accounting

You own a franchise. You have decided to be your own boss without the risk of starting a brand new company. You are on your own, but you have a safety net of a franchise. Like in a “regular” business, you have to take on responsibilities, you run day-to-day operations. You also have to do some basic accounting. Though franchise accounting is similar to accounting for other types of businesses, it includes a few extra steps.
To own a franchise, the franchisee (you) will pay the franchisor certain fees. By paying the fess, you get the benefits of the established business’s brand, products, and services. The franchisee usually pays an initial fee, which is like an admission charge to the franchise. To keep the franchise, the franchisee pays an ongoing royalty fee. Sometimes, the franchisee pays additional fees like marketing fees.

What Our Clients Are Saying

“Accounting & Business Partners team are more than just accountants. The team is a partner in our business. It’s really awesome to have someone who takes a vested interest in our business. They really spent countless hours getting to know our business…the team really truly does act like our in-house Controller.”
-LJ Shaw, Tampa Contractor Group

Accounting For Franchises: Tips To Keep Your Books In Order


Cash flow is important for every business, no matter if you are a small start-up or a large corporation. When you are starting a business it might be hard to make payments or pay bills. Because your cash is always flowing rapidly into and out of your bank account it might be hard to keep your cash flow in check. The best way to manage your business’s cash flow is to make a chart or calendar of all your reoccurring debts and payments. If you are unable to help manage your franchise’s cash flow for too long, you need to talk to an accountant that specializes in helping franchisees like you!


Debt can be overwhelming when starting a business. Franchises have a lot of upfront costs that make it difficult to get on your feet quickly. While many and most businesses carry debt, and sometimes that is a good debt, it is important that you are actively trying to keep your debt to income ratio low. There are options out there to help you keep your business finances in place, everything from apps to your bank account online resources. Sometimes you need a little extra help. That is where people like us come in! We can make it easy for you to focus on making a profit without having to worry about the accounting things.


Unless you plan on running your business alone, which we would never recommend, you will have to consider the time and money that is costs to get them trained, schedule their time, and to make sure that they get paid. All of this takes resources that you might not have as you open your doors. If your franchise does not offer you valuable help, you can always turn to online payment systems, payroll software, and scheduling apps. These services, and accounting services like ours, are here to help you manage all the little inconveniences starting a new business can cause.


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10730 102nd Avenue North, Seminole, FL 33778

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