Embarking on the journey of buying a franchise is a significant financial undertaking, and having a seasoned accountant by your side is crucial for navigating the complexities of this venture. In this guide, we’ve compiled a comprehensive list of essential questions to ask your accountant when considering a franchise purchase. From understanding the optimal business structure for tax efficiency to unravelling specific tax implications, financial due diligence, and strategic planning for start-up costs, this resource aims to empower you with the knowledge needed to make informed decisions and ensure a sound financial foundation for your franchise investment.
1. Business Structure:
– What is the most suitable business structure for the franchise purchase in terms of tax efficiency and liability protection?
2. Tax Implications:
– What are the specific tax implications of buying and operating this franchise? Are there any potential tax benefits or risks?
3. Financial Due Diligence:
– Can you assist in conducting financial due diligence on the franchise to ensure the financial information provided is accurate and reliable?
4. Start-up Costs and Financing:
– What are the anticipated start-up costs, and how can we structure the financing in the most tax-efficient way?
5. GST (Goods and Services Tax):
– How does GST apply to the franchise purchase? Are there any GST implications, and how can we ensure compliance?
6. Budgeting and Cash Flow:
– Can you help create a realistic budget and cash flow forecast for the franchise, taking into account operating expenses, revenue projections, and potential contingencies?
7. Employment Costs:
– What are the expected employment costs, including payroll taxes and superannuation contributions? Are there any specific regulations related to employee wages in the franchise industry?
8. Franchise Fees and Royalties:
– How are franchise fees and royalties treated for tax purposes? Are there any strategies to optimise the tax impact of these payments?
9. Depreciation and Amortisation:
– How can we optimise depreciation and amortisation schedules for the franchise assets to minimise tax liabilities?
10. Tax Planning:
– Can you provide ongoing tax planning services to help maximise deductions and minimise tax liabilities as the business grows?
11. Exit Strategy:
– What are the tax implications of selling the franchise in the future? How can we plan for a tax-efficient exit strategy? What are the fees to the franchisor?
Any questions about this reach out to our team.