In a relationship with a franchisor, a franchisee has to be able to run their own business. In doing so, they must be able to do their own accounting. The franchisor shouldn’t be able to dictate who does the books at franchises, because it’s overstepping the relationship.
A lot of times, franchisees will get their own bookkeeper. Maybe it’s their CPA or family friend. Usually they don’t understand restaurants. The chart of accounts is very inconsistent.
FIXE has worked closely with several franchise groups since 2021. We’ve gotten to understand all of the nuances of this business relationship, and there’s a much smaller learning curve on both sides. Our restaurant bookkeeping system creates benefits for both the franchisors and franchisees.
- They get consistency.
- They get a plug and play option that’s ready to go.
- They get bookkeeping that’s reliable and restaurant focused.
- Franchisees with 10+ locations usually get preferential pricing.
Franchisors like referring the same bookkeeping option to franchisees, which enables consistency when franchise owners receive financials. Both sides know that everything’s been properly categorized and treated the same way across the board. Working with a franchise group also allows bookkeepers who understand restaurants, like us, to consolidate the tech stack and standardize the accounting process. When everyone’s using the same technology, it’s also easier to access.
Franchisors hold franchisees to different reporting requirements. Some franchisees have to report every single quarter. Other franchisees have to do it monthly. Sometimes the franchisor needs access to see where their different franchises stand financially at any given time.
In general, the bigger and more evolved the group is, the more requirements there are. In addition, some franchisors dictate the technology that the restaurant can use at a high level. Sometimes they only dictate the POS system. Requirements vary, but we can work within any frameworks at FIXE.
We go out of our way to foster relationships with franchise owners. It’s a great avenue for us to grow, and franchises can get better pricing, personalization, and consistency. As we’ve started attending conferences like the Foodservice Technology Conference (FSTEC) and the Restaurant Finance & Development Conference (RFDC), I realized there’s a big need for what we do with franchise groups. We really want to kick these relationships into high gear.
