COMPANY LINKS
TAX SERVICES
CLIENT ACCOUNTING SERVICES
ADVISORY SERVICES
FEATURED INDUSTRIES
CONTACT INFORMATION:
Manhattan Location
225 W35th St, 5th FL New York, NY 10001
Phone:
(212) 736-0055
Stamford Location
350 Bedford St, Ste 303 Stamford, CT 06902
Phone: (203) 356-1061
Long Island Location
487 Jericho Turnpike, Syosset, NY 11791
Phone: (212) 736-0055
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225 W 35th St, 5th FL., NY 10001
Accounting for Franchises
Business solutions for Franchises
Embark on a journey of franchise success with Presti & Naegele. Our specialized accounting and advisory services are tailored to meet the unique needs of franchise businesses, ensuring not only compliance but also strategic growth. Whether you’re an established franchise or a budding one, our team is committed to guiding you through the financial intricacies, optimizing operations and fostering enduring success.
As a franchise owner, managing your finances effectively is crucial for the success of your business. Whether you own a Dunkin Donuts franchise or any other brand, having reliable accounting services ensures accurate financial records, compliance with tax regulations and informed decision-making.
Tax Compliance is critical for franchise success. P&N keeps our franchise owners informed about tax laws, deductions, and reporting requirements.
Explore the difference Presti & Naegele can make in the success of your franchise business.
Services We Offer:
UNDERSTANDING THE INITIAL AND ONE TIME COSTS FOR START-UP FRANCHISES
P&N can guide you through the initial and one-time costs for start-up franchises. Unlike traditional startups that create entirely new concepts, startup franchises leverage an established brand, products, and operational system. The startup franchise owner licenses the rights to operate under the franchise brand with the franchisors providing training, operational guidelines and ongoing support.
When you purchase a franchise, you typically pay an upfront franchise fee. However, this fee is not immediately deductible for tax purposes because it relates to an intangible asset with a useful life extending beyond the current year. Instead, it is amortized over 15 years.
Additionally, costs for inventory, furniture, equipment, and fixtures from the franchisor, as well as up-front training fees, should be considered. Negotiating a favorable allocation of these costs for tax purposes can lead to larger initial tax deductions.
ROYALTY AND ADVERTISING FEES
At P&N, we help our franchise owners navigate royalty and advertising fees. Royalty and advertising fees contribute to the overall success of the franchise system. They allow franchisees to benefit from the established brand while supporting ongoing marketing efforts.
- ROYALTY FEES – Royalty fees are collected by the franchisor monthly. They are based on a percentage of your revenue. Unlike the franchise fee (which is a one-time payment) royalty fees are ongoing. Franchise royalties range from 4% of your revenue up to 12% or more. This fee goes toward supporting your use of the franchisor’s brand, intellectual property, operating systems, ongoing training and support.
- ADVERTISING FEES - Franchisors invest thousands of dollars annually in advertising their brand. As a franchisee, you’re hoping to capitalize on the brand recognition that the franchisor has built. To participate in this marketing effort, franchises pay a monthly marketing fee. The marketing fee is usually based on your monthly revenue. For example, if your average monthly revenue is $25,000 and the franchisor charges a 2% marketing fee, you’ll pay $500 per month (or $6,000 annually).
STATE FRANCHISE TAX
P&N can help you navigate state franchise tax. The laws around state franchise tax vary depending on the state and may differ according to the method of calculation, exemptions and rates. Proper understanding and compliance with state franchise tax regulations are crucial to avoid legal and financial implications.
MAINTAINING ACCURATE RECORDS
P&N bookkeeping services empowers franchise owners to make informed decisions, ensures compliance and contributes to the overall success of the business. Keeping precise records is the bedrock of franchise accounting. Tracking your revenue, expenses and cash flow provides insights into the financial health of the franchise.
FINANCIAL STATEMENTS
Good records are key in preparing accurate financial statements. While monthly financial statements are not mandatory for most franchise owners, some franchisors may request regular financial updates from franchisees. Quarterly or annual financial reporting is more common. It allows franchisors to monitor the financial health of individual franchise units and the overall system. Franchisees should be prepared to provide regular financial updates as specified by the franchisor and outlined in the FDD (Franchise Disclosure Documents)
Ready to Elevate Your Franchise?
Explore the difference Presti & Naegele can make in the success of your franchise business. Schedule a consultation today and let's chart a course to financial prosperity in the world of franchising.
For inquiries or guidance, contact Presti & Naegele Accounting and Advisories. Your success awaits!
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Eager to collaborate with Presti & Naegele?
We welcome the opportunity to understand your financial needs and tailor solutions for success. Join our distinguished clientele who have experienced the excellence of our services. Let's embark on a journey toward financial prosperity together.
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New York (NYC) Location
225 W 35th St, 5th FL New York, NY 10001
Phone: (212) 736-0055
Stamford, CT Location
350 Bedford St, Ste 303 Stamford, CT 06902
Phone: (203) 356-1061
Long Island, NY Location
487 Jericho Trnpk, Syosset, NY 11791
Phone: (212) 736-0055