Software
Royalty and marketing fund calculation, per-unit P&L, multi-unit consolidation, franchisor reporting, Item 19 data preparation. For multi-unit franchisees, franchisor corporate, and franchise management companies across QSR, fast-casual, fitness, home services, and retail franchises.
Scope
Software
Franchise accounting is business accounting plus franchisor compliance, plus multi-unit consolidation for operators with more than one location. The franchisor compliance layer is what trips up generic bookkeepers: royalty calculations happen on specific bases (typically gross sales, but some brands use net sales or specific product categories), marketing fund contributions calculated as percentages, and monthly/quarterly reports in brand-specific formats that don't match standard financial statement layouts.
For food-service franchises especially (QSR, fast-casual, pizza, coffee), the single most important operational metric is prime cost: food cost % + labor cost %. Industry targets range 55–65% depending on concept. Multi-unit operators track prime cost by unit weekly. Units running above 65% prime cost lose money; units below 55% usually have quality or staffing issues. Franchise-trained offshore accountants build this reporting into weekly close, broken out by unit and rolled up at the multi-unit level.
Franchise agreements specify royalty calculation methodology precisely. Deviations (royalty paid on wrong base, late payments, incorrect marketing fund contributions) can trigger franchisor audits and, in extreme cases, franchise agreement termination. Offshore accountants trained on franchise operations calculate royalties per franchise agreement specification, reconcile quarterly against franchisor statements, and flag any discrepancies for resolution before they become disputes.
A single-unit franchisee runs a business. A multi-unit franchisee runs a portfolio. Consolidated reporting, shared-service cost allocation (one GM covering 3 units, centralized marketing, shared delivery truck), and performance benchmarking across units are the core needs. Our offshore accountants build unit-level P&Ls that feed consolidated reporting, with benchmarking that reveals which units are dragging portfolio performance.
Related: restaurants (many shared principles for F&B franchises), property management (for real estate-heavy franchises), offshore bookkeeping.
FAQ
Yes. We've worked with QSR, fast-casual, coffee, fitness, home services, and retail franchise brands. Brand-specific reporting requirements, royalty calculation methodology, and marketing fund mechanics handled per franchise agreement.
Yes. Daily POS sales tie-out, tender reconciliation, deposits matching. Integration typically through the POS's native accounting export or via Restaurant365 / Compeat for franchise-specific setups.
Yes. Common scope: franchisees with 5–50 units, sometimes more. Consolidated financials, per-unit benchmarking, shared-service allocation, portfolio-level KPI reporting.
Yes. Unit-level financial data formatted per franchisor specification for FDD Item 19 performance representations. Output reviewed by franchisee before submission.
Weekly or monthly royalty calculations per franchise agreement, marketing fund contribution calculations, payment scheduling, reconciliation against franchisor statements. Any discrepancies flagged for resolution.
Yes. For area developers with development territories covering multiple units, territory-level financial rollups, development fee accounting, and territory performance reporting.
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