Questions to Ask Your Accountant When Buying a Franchise

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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.

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