Most franchisors mandate that their franchisees buy critical items like food or beverage from vendors approved by the franchisor – this makes sure that the franchisee is buying the best ingredients at a favorable price.
However, relatively few franchisors are mandating that their franchisees use approved accounting providers. Without consistent financial reports from franchisees, the franchisor does not have visibility into the financial health of the franchise.
By mandating the franchisees to use an approved accounting vendor, the franchisor can impose uniformity in accounting. Therefore, current and accurate financial data from your franchisees are at the franchisor’s fingertips. With this data, a franchisor can:
- Know the real cost of opening a store
- Attract favorable loan rates with robust & compelling financials. Well-established brands like McDonald’s can borrow at 3% + while others are paying in the high single digits
- Detect system-wide patterns quickly
- Have accurate & solid data to provide financial representation in Item 19 of the Franchise Disclosure Document to help attract & sell skeptical prospects in a highly competitive market
Why Choose Indevia Accounting For Your Franchisees?
At Indevia Accounting, Inc., we provide a full suite of accounting services (bookkeeping, bill pay, payroll, and income tax filing) so your franchisees can focus on running their business. We simply deliver the best overall value and service to franchisees based on price, timely financial reporting, accuracy, training, and ease of onboarding.
- Your franchisees do not have to stress about doing their books or searching for a reputable accountant. Once a Preferred Vendor Agreement is in place, your franchisees can concentrate on executing operations and running a profitable business instead of back-office bookkeeping headaches.
- Your franchisees will save money. The price on the Preferred Vendor Agreement is the actual price per store your franchisees will pay – no guessing, no changes, or upcharges.
- We offer impeccable levels of service for our preferred vendor partners, as well as a strong commitment to supporting the franchisee’s and franchisor’s financial goals.
- We have the staff and the financial backing to grow with your company.
Additionally, We Work With You To Help Establish the Following:
- Common chart of accounts
- Common financial statement format
- Fixed reporting date for weekly, monthly, & annual financial statements
- Common software platform
- Common data warehouse
- A fixed set of financial performance indicators
- Authorized vendor list for goods and services, including accounting
Want to learn more about our Preferred Vendor Program? Contact us today!