CBCS
Financial & Credit Management
 
   CBCS - FINANCIAL REVIEW            
 

Franchisee Financial Review

Do you have troubled Franchisees?

Do they appear to be struggling financially and has this meant a delay in payment of fees to you?

Cash strapped Franchisees will do anything to preserve their working capital; including hiding their actual results from the Franchisor;  to avoid having to pay all the Management Service Fees due.

If this is your experience, the obvious response would be to be to sanction a Franchise Audit to determine whether your Franchisee is declaring all of their sales. But, these are not always popular with your Franchisees.

As an alternative, have you considered a Franchisee Financial Review? Whilst this can be as exhaustive a process as a standard Franchisee Audit, it implies to the Franchisee that you are supporting them and helping them to find a way forward.

CBCS offers a Franchise Auditing service, with 95% (on average) of our fees recoverable against undeclared revenue. We now also offer a Franchise Financial Review, where we still carry out random sampling and pinpoint areas of non-compliance, but we will also assess the financial standing of the franchisee and crucially make recommendations to the Franchisee to help them take things forward.

Assistance can then be topped up by the Franchisee themselves if they require further assistance to help them achieve their financial aims. This can include cash flow, financial management, credit management, cost management, risk assessment and supporting relationships with bankers.

And whilst your franchisee is happy because you have provided a resource to help them, you will have in your possession, a report providing details of missing revenue; for which you can either collect, offer to assist the franchisee further or make a pertinent business decision in respect of the future of the franchisee.

Would you like to know more?

You can contact us by e-mail: info@cbcservices.org, phone: 01428 743932 or use the Contact Us form...