The Modern Accountant's Franchise
11. How much does your franchise cost, what does this price include and what capital costs will be incurred in addition to this price? And what for?
The cost is £30,000 plus capital. This is all worked out when we build a specific business plan with you.
12. How much working capital do I need?
We are unable to answer this, as every person’s circumstances are different. We strongly advise you to seek assistance from your accountant when we ask you to produce your Business Plan. We will only do that should you be approved as a Franchisee.
13. What will be the gross profit margin and what costs will I incur in arriving at a net profit? (Do these figures take my salary and depreciation into account?)
Our prospectus includes a Financial Illustration which is provided as guidance. The Illustration does not show Net Profit as we do not know, at this stage, how much they would want to draw from the business and what your specific tax position will be. We therefore show the ‘bottom line’ as being a Surplus – before drawings, taxation, bank charges and depreciation.
14. May I see actual accounts which confirm or fail to confirm your projections?
Yes you may.
15. Did you run your own pilot schemes before franchising?
16. If not, why not?
We want to prove that this is replicable by the right accountant with the right attitude and approach.
17. Whether you did or not, what is the extent of your own cash investment in the business?
The business generates both profit and retained cash and this grows every year. The surplus funds are used to drive business growth and improve operations. In terms of Franchising, we have invested over £30,000 developing this business. On top of that, we also make a contribution towards the overall Advertising / PR Fund that you will be contributing into. We also have a permanent management structure for this business, which will expand as the business grows.
18. What financing arrangements can you make and what terms for repayment will there be? What rate of interest will be required - and will the finance company want security?
There are no financial arrangements. We would suggest that you talk to the Franchise Divisions of HSBC, Lloyds TSB and NatWest. We can supply you with their contact details.