This isn’t intended to be complete treatise on the subject. I have simply jotted down a few thoughts in preparation for a magazine interview. If my contributions appear online I will provide a link in due course. The journalist seems to be undertaking extensive research so it should be a good piece – but probably won’t be published before the summer.
By way of background: There seem to be more accountancy franchise options and opportunities around today than ever before. Some rely on online marketing of a brand name, some provide exclusive areas and some are better known than others. You don’t need to be a start-up practice to join a franchise as many of them will allow you to migrate an existing practice into the franchise.
Here are 8 tips if you are considering an accountancy franchise.
1 – What is your objective? Many accountants will find it easier to focus on building a successful practice as a franchisee than to do so alone. Different skills are required to build a business then to be a good accountant. Can you do both? Do you want to do both? A good franchisor will probably enable you to build a successful practice faster than if you were to try to do so alone.
2 – Be realistic: Taking a franchise will rarely absolve you of the need to generate clients and, especially, to close the sale with prospective clients. If you need training in how to do this, where will you get it? Or would you be better off with a franchise that generates clients through focused and proven online marketing and conversion? Is marketing support available and do existing franchisees share what works and what doesn’t, perhaps through an online forum, at regular conferences, meetings or elsewhere? You will especially want to check whether the franchisor has a record of meeting it’s promises re lead generation?
3 - Funding: Some franchises have arrangements with banks to fund the upfront fees – and this may enable you to build your practice more effectively than if you go it alone. Do be careful though to assess the validity of the new business projections and how often these have been fulfilled by other franchisees. And research how financially stable is the franchisor business itself.
4 – Compare and contrast: The various accountancy franchises may have some similarities but they are all different. Different in terms of how they promote the business name, the freedom they give franchisees, the level of fees payable, the length of the franchisee agreement, the level of handholding and support, ownership of clients and so on. Identify the issues that seem important to you and balance up the differences before deciding on your preferred approach. Do you need a big National support operation or would you be comfortable with something more personal?
5 - Legal advice: You may be tempted to sign up without taking independent legal advice. Don’t, unless you are the sort of person who would buy a house without having it professionally surveyed. How balanced is the contract? How watertight is it? How easy is it to get out if the franchisor doesn’t deliver; not just within the first few months but a couple of years down the line?
6- The founder(s): How involved and committed are they? Are they your sort of people and can they deliver on their promises? Is what they offer more than just a catchy franchise name?
7 – Testimonials: Talk to YOUR choice of a selection of existing franchisees. Find out what has gone well for them, what hasn’t been as good as they had hoped and whether they would have joined up originally knowing then what they know now. You will especially want to know how many franchisees have opened up and how many have closed or left the franchise? And over what period?
8 – Goals: Will joining an established franchise enable you to achieve your goals re building an accountancy practice? Do you want to build something independent and to be your own boss? Will the franchise allow you to do this, help you to do this or restrict your ability to do this?
What other tips do you think would be helpful?
Like this post? You can now obtain my ebook containing insights, short-cuts, tips and advice for accountants who have already or are about to startup a new practice. You can buy the book or download a summary for free here>>>
Latest posts by Mark Lee (see all)
- Are you quoting myths or facts to support your advice? - January 28, 2015
- Pricing for profit – who’s charging what? - January 21, 2015
- What are your top skills and expertise? - January 15, 2015