The first Franchisor Briefing Day

It's been an exciting week for FAN as we held our first Franchisor Briefing Day on Thursday. FAN members from all around Australia gathered in Sydney to hear 5 franchisors present details of their business and business model.

The Franchisor Briefing Day came about as a result of hearing from franchisors that accountants sometimes 'torpedo' franchise sales due to not understanding the business model. On the accountant side, FAN members are keen to learn more about franchise systems so they can better help potential and established franchisee clients.

A few weeks ago, Peter and I decided to do something about this. We invited 5 very diverse franchisors to come along and present to members of the FAN.

The aim of the Franchisor Briefing Day was to help FAN accountants and lawyers better understand each franchise system and so work with existing franchisees and prospects more effectively. 

FAN members heard from some of Australia's long established and large franchise networks, Mortgage Choice, Domino's Pizza, and the United Franchise Group (Signarama, Embroidme). Each have been going for 20 years or more. And for Evan Foster from UFG, this was his second visit to a FAN event as he spoke at our very first FAN training day in 2014.

We also heard from the CFO of relative newcomer but well known brand, Anytime Fitness Australia.

Kirk Hardy, the founder of The Drug Detection Agency and his colleague Glenn Dobson kept the FAN members so engaged they gave up their lunch break to hear more about this innovative franchise which originated in New Zealand. We got to know the folks from TDDA at the recent Sydney Franchise Expo. They are in the very important business of helping workplaces be safe by providing workplace drug and alcohol testing, education and risk management based prevention.

The information and understanding that the FAN accountants and lawyers gained will help them with pre-purchase reviews and financial projections, overcoming some of the challenges that franchisors have when prospects prepare unrealistic initial budgets and plans. It will also help them guide franchisees on how to plan for franchise specific matters such as franchise refurbishments, and in situations where business may not be performing as well as they would like.

The Franchise Briefing Day was really well received by FAN members and franchisors, and we'll be running them regularly through the year.

Franchise Accountants Forum Speakers

The Franchise Accountants Forum is being held on Tuesday 16^th June in Sydney (9am to 5pm). It is our flagship event of the year and will be a fantastic way to build your connections and increase your franchising knowledge. This event is specifically designed for the key decision makers and financial people inside franchisors. This includes CFO’s, Finance Directors, Financial Controllers and CEO’s.

We have some fantastic speakers lined up. Here's who they are, and what they will be speaking about.

Update (19th June) - We've added some additional sessions, including discussion time and a couple of hot topics including Financial Distress in franchise systems and how to handle it. You can view the agenda here Agenda FAN Conference 2015.

Cracking the new Franchising Code: What accountants need to know

Speaker: Dr Michael Schaper, Deputy Chair ACCC

ACCC Deputy Chair, Dr Michael Schaper, outlines the main financial aspects of the new Franchising Code of Conduct. Dr Schaper also provides an insight on the pivotal role accountants play in advising franchising clients.

 

Get real boss! Unlocking potential through authentic leadership

Speaker: Mark Bilton, Managing Partner, Thought Patrol

Mark Bilton is a “Change Catalyst” with extensive Managing Director and CEO experience. His previous corporate role was Group Managing Director of Gloria Jean’s Coffees’ global business, leading 40 countries.

Mark has an MBA from Auckland University and is a Fellow of both the Australian Institute of Company Directors and the Australian Institute of Management.

Mark has led transformational change in many sectors and is internationally recognized for excellence in ‘Business Transformation’. In 2011 he was awarded the “Young President’s Organization’s’’ prestigious “Terry Plochman Award” for global “Best of the Best”. Last year he received the Michael Page ‘2014 Australian Retail Executive Award’.

Mark has a passion for helping individuals and companies ‘realize their potential’. Currently he achieves that goal as Managing Partner of leadership advisors; Thought Patrol.

Benchmarking Tips and Traps

Speaker: Doug Hutchinson, General Manager Operations, Barry Plant Real Estate

Benchmarking can be extremely helpful for a franchise system, both to stimulate performance improvement and demonstrate the value of the franchise to prospects. But it’s not always plain sailing! If misinterpreted, benchmarks can lead people to draw wrong conclusions and make poor strategic decisions.

Doug Hutchinson was instrumental the implementation of a centralised business intelligence platform for Quest Serviced Apartments. He is now developing information systems for the Barry Plant real estate group.

In his talk, Doug will highlight the tips, traps of benchmarking, and the role an accountant can play in designing and implementing benchmarking in a franchise.

The role of the modern CFO

Speaker: Sean Mura, CFO Anytime Fitness Australia

Sean Mura will explain why the modern CFO is much more than someone who looks after simply accounting and compliance, and what skills are needed to fulfil this role.

The CFO plays a key role in providing information and insights that help a business use resources effectively, make informed decisions, and obtain financing.  In his talk, Sean will also explain how experience beyond accounting, communication and leadership skills are vital for accountants who aspire to leadership roles.

Economic Update

Speaker: Katie Hill, Economist, ANZ Bank

Katie conducts research and analysis in relation to the Australian economy, with a particular focus on the household sector and inflation. Prior to joining ANZ she worked in the Australian Economics and Strategy team at Morgan Stanley. She holds a Bachelor of Laws degree and a Bachelor of Business degree (majoring in Economics) from the Queensland University of Technology.

Franchise Accountants Forum 2015

We're excited to announce Australia's first event specifically for people interested in the financial aspects of franchising: The Franchise Accountants Forum 2015. Recent legal cases, financing challenges, and the new Franchising Code have highlighted the issues relating to the financial side of franchising.

The Franchise Accountants Forum is a one-day event where you’ll have the opportunity to gain new insights, network with your peers, and hear from leaders in franchising and accounting.

The forum is being help on ...

Tuesday 16th June, 9am to 5pm at ANZ Tower, 242 Pitt Street Sydney

Keynote speakers

• Dr Michael Schaper, Deputy Chair ACCC: Keynote address
• Mark Bilton, Former Group MD Gloria Jeans Coffees: "Authentic Leadership"

Other speakers include

• Sean Mura, CFO Anytime Fitness: "The role of the modern CFO in franchising"
• Doug Hutchinson, GM Operations, Barry Plant Real Estate:"Benchmarking:Tips and Traps"
• Peter Knight & Kate Groom: Co-founders, Franchise Accountants Network and Smart Franchise

It will be of particular interest to:

• CFO's and CEO's of franchise groups
• Finance Directors, Financial Controllers and internal accountants
• Accountants in public practice with franchise clients
• Lawyers in practice and in-house counsel

Eligible for 8 CPD/CLE hours

Tickets are now available! (Early bird pricing till 15th April)

Online event registration for Franchise Accountants Forum 2015 powered by Eventbrite

Thanks to the ANZ Bank for hosting this event!

FAN Training Day, Feb 2015

Great news…!  We have secured the Director of Small Business & Industry Codes at the ACCC as a guest speaker for the Franchise Accountants Network (FAN) Training Day on 23rd February 2015. He joins Gerry Gerrard of Bakers Delight and Bruce McFarlane as  keynote presenters.

The Agenda now includes:

• ACCC - Richard Weksler, Director of Small Business & Industry Codes, Australian Competition & Consumer Commission. Richard will speak on the topics of financial disclosure and the critical role of accountants in franchising. Not to be missed..!
• Bakers Delight - Gerry Gerrard, General Manager, to give an insight into their business and how we can work together. Gerry has oversight of franchising, legal, property & leasing and procurement. Come prepared with your questions!
• Hall & Wilcox –  Partner Bruce McFarlane,  to discuss the key elements in franchising a business and the role of accountants. He will also give a legal update about the new Franchising Code.
• Xavier Gene - former NAB senior lending manager regarding franchise funding submissions, including tips and traps for the unwary.

Peter Knight and Kate Groom will also be giving presentations:

• Update of the significant Franchise Accountant Network activity over the last few months, including our new initiatives.
• Review of resources which FAN members have access to, and how to use them to build your client base and grow your practice.

We’ll also have an update on what FAN members have been up to, including new business clients and new resources.

The FAN training day will be held on on 23rd February 2015 at Cliftons Melbourne, from 9.00am – 5.00pm.

Accountants in public practice and who work in the franchise sector are very welcome to attend, as are franchise lawyers.

We look forward to seeing you there.

Franchise Business Readiness Webinar

How can we help prospective franchisees be well prepared for the marathon journey of business? It's a question we've asked ourselves quite a lot recently. One of the things we've noticed from the workshops we run is that new franchisees often don't have a strong practical grasp of the financial side of business ownership.  We've heard similar thoughts in conversations with bankers, lawyers and the folks at OFMA. They all tell us this can often lead to difficulties once the franchise is established.

We know that it takes time and experience to become confident and skilled in the practical side of business and financial management. But we've come to realise that the 'pre-franchise' stage is a great time to lay some foundations. This is a time when prospective franchisees can do some learning and thinking - and apply it in a practical way, as they research the financial aspects of a franchise, create a budget and cash flow, and have family money conversations.

About the Franchise Business Readiness Initiative

A couple of months ago, Peter and I were kicking around some ideas with Nick Hughes (he's the founder of Franchise Voices Podcast).  As a result, we decided to collaborate on something we're very keen on: helping people make better informed decisions about business; in this case, decisions about getting into a franchise.

The Franchise Business Readiness Initiative was born.

The Franchise Business Readiness Initiative is designed to help people think through questions of money, lifestyle and business skills as they relate to starting off in a franchise business.

In a series of live online events, we'll cover topics that will help people ...

• Consider what it takes to become a successful business owner
• See whether the numbers stack up
• Set goals that will help you succeed in business
• Get the right professional advice

As a result, we hope more people will feel they have a grasp of the business and money side of getting into a franchise, in addition to placing reliance on their advisers.

Find out more

To find out you can register for our free online seminar at 2pm on Thursday 25th September, 2014.

To participate, you'll need a computer, iPad or tablet, or mobile device with an internet connection. (It's not complicated - and we'll send you full details when you register, or you can learn more here)

Why choose a franchise accountant?

The Franchising Code of Conduct states prospective franchisees must be advised to obtain independent accounting and business advice. But is it really necessary? Who should you get advice from, and what should you ask? Let’s take a look… As a franchisee, your income will depend on the financial results of the business, you’ll be investing your own money and probably taking on debt. Therefore, it’s wise to carefully consider the financial implications.

Franchise Disclosure Documents contain important financial information that (when used and understood properly) can help you make an informed decision. However, it’s not always easy to make sense of – especially for people who are unfamiliar with franchising and financial matters. That’s why it makes sense to consult an accountant who understands franchising.

The right accountant can be a great help in your franchise journey. They can help prepare financial forecasts, identify risks and bring an independent perspective. But when it comes to franchising matters, all accountants are not the same!

It’s important to understand there are different types of accountant. Some focus on personal income tax - you might have used one to do your own tax return. Others mainly work with established businesses. A few specialise in franchising; they understand the special features of a franchise that don’t apply in other businesses.

Once you’ve found an accountant, what advice are you looking for? An important part of their role is to help you understand the financial aspects of the business. They should be able to help you answer these three questions:

1. How much will it cost to start the business?
2. What will it cost to run the business day-to-day?
3. What sales are needed to cover the costs?

Your franchise accountant should also highlight the main financial risks relevant to your circumstances.

The financial side of buying a franchise is really important and needs to have your attention. That’s why the Franchising Code recommends you get advice on this aspect, and it’s best to choose an accountant who understands franchising issues.

This article was first published on www.franchiseaccounantsnetwork.com