Franchise Bookkeeping Support

Running a franchise means dealing with franchise-specific costs that regular businesses don't have. You've got initial franchise fees, ongoing royalties, marketing fund contributions, and all the standard business expenses too. Most franchises hit the VAT registration threshold quickly because they're using an established business model, and you need to track franchise fees separately from regular expenses for tax purposes. Getting your bookkeeping wrong means overpaying tax or missing allowable deductions.

The problem is most franchisees try to handle bookkeeping the same way as regular businesses, but franchises have extra complexity—franchise fees, royalties, marketing fund contributions, and the need to track these separately from regular expenses. Plus, if you're running a franchise, you're probably focused on operations, not bookkeeping, which means stuff gets missed.

We handle bookkeeping specifically for franchisees: franchise fee tracking, royalty payments, marketing fund contributions, standard business expense tracking, and VAT compliance. Whether you're a franchisee in Medway running a food franchise, a franchise owner in Maidstone operating a service franchise, or a franchise business in Canterbury, we'll track your franchise-specific costs properly and make sure your tax reporting is accurate. No missed deductions, no compliance issues—just proper bookkeeping that saves you time and tax.

What this helps you do (fast)

• Track franchise-specific costs — Franchise fees, ongoing royalties, marketing fund contributions tracked separately from regular business expenses. See exactly what your franchise is costing you.
• Maximize allowable deductions — Franchise fees, royalties, and marketing contributions are usually deductible. We'll make sure you're claiming everything you're entitled to reduce your tax bill.
• Handle VAT compliance — Most franchises are VAT registered. We'll handle quarterly VAT returns, track VAT on sales and expenses, and keep you compliant.
• Separate franchise costs from operating costs — See what you're paying the franchisor versus what you're spending on operations. Better financial visibility for decision-making.
• Stay compliant with HMRC deadlines — Your records are always current, so filing Self Assessment (or Corporation Tax if you're a limited company) is straightforward. No last-minute panic.
• Get accurate financial reports — See your actual profit after franchise costs, track which expenses are franchise-related versus operational, understand your cash flow properly.

How it works

Step-by-step process for franchise bookkeeping:

1. Discovery call — We chat about your franchise: what franchise you're running, whether you're operating as a sole trader or limited company, what franchise fees and royalties you pay, if there's a marketing fund contribution, your typical monthly turnover, and what your current bookkeeping setup looks like.
2. Franchise cost structure review — We review your franchise agreement to identify all franchise-specific costs:
   • Initial franchise fee — One-time fee paid when you started the franchise
   • Ongoing royalties — Monthly or weekly percentage of turnover paid to franchisor
   • Marketing fund contributions — Regular payments to franchisor's marketing fund
   • Training fees — Ongoing training costs if applicable
   • Other franchise fees — Any other costs specified in your franchise agreement
3. Bookkeeping system setup — We set up a bookkeeping system that tracks:
   • Franchise costs — Separate categories for franchise fees, royalties, marketing contributions
   • Operating expenses — Standard business expenses (rent, utilities, wages, supplies, etc.)
   • Income — Sales/turnover from franchise operations
   • VAT — If you're VAT registered, track VAT on sales and expenses
4. Monthly bookkeeping — We track:
   • Franchise payments — Royalties, marketing contributions, any other franchise fees paid during the month
   • Operating expenses — All standard business expenses (with receipts where needed)
   • Income — Sales/turnover from franchise operations
   • VAT — If VAT registered, track VAT on sales and input VAT on expenses
   • Bank reconciliation — Match all transactions with bank statements
5. Franchise cost allocation — We ensure franchise costs are properly allocated:
   • Initial franchise fee — Usually amortized over the life of the franchise agreement (tax deduction spread over years)
   • Ongoing royalties — Deducted in full as paid (revenue expense)
   • Marketing contributions — Deducted in full as paid (usually revenue expense)
   This matters because how you treat these costs affects your tax liability.
6. VAT handling — If you're VAT registered:
   • Track VAT on sales (output VAT)
   • Track VAT on expenses (input VAT, including franchise fees if franchisor is VAT registered)
   • Prepare quarterly VAT returns
   • File VAT returns with HMRC by deadline
7. Monthly reports — You get monthly reports showing:
   • Total sales/turnover
   • Franchise costs (royalties, marketing, fees)
   • Operating expenses
   • Gross profit (sales minus cost of goods sold if applicable)
   • Net profit (after all expenses including franchise costs)
   • Cash flow (money in vs money out)

We work with whatever system suits you: cloud accounting (Xero, QuickBooks) for automation, simple spreadsheets if you prefer, or even starting from scratch if you've been winging it. The key is tracking franchise costs separately—that's what makes franchise bookkeeping different from regular business bookkeeping.

Costs & timelines

Pricing factors:

• Franchise structure complexity — Simple franchise (fixed royalties, no marketing fund) costs less than complex franchise (tiered royalties, marketing fund, multiple fees)
• Transaction volume — More transactions mean more bookkeeping work
• VAT registration — VAT-registered franchises cost more because we're handling quarterly VAT returns
• Business structure — Sole trader franchises typically cost less than limited company franchises (due to simpler tax requirements)

Commonly reported ranges by local providers:

• Monthly bookkeeping for franchises: £150–£400/month depending on transaction volume, VAT status, and franchise complexity
• Setup (one-off): £250–£450 (includes franchise cost structure review, bookkeeping system setup, initial month's work)
• VAT return preparation: £100–£200 per return (if you're VAT registered, quarterly)

Why franchise bookkeeping costs slightly more than standard bookkeeping:

• Franchise-specific costs need separate tracking and categorization
• Initial franchise fee amortization requires careful treatment
• Most franchises are VAT registered (adds VAT return work)
• Franchise cost structure review adds setup complexity

Timeline: Setup usually takes about 1–2 weeks (longer if we're reviewing franchise agreements in detail). Once we're set up, monthly bookkeeping typically takes 2–3 days from when we receive your records. If you're VAT registered, VAT returns are prepared monthly and filed quarterly.

No hidden fees. All prices exclude VAT. We offer monthly payment plans and can adjust if your transaction volume or franchise structure changes significantly.

Kent (UK) focus

We work with franchisees across Kent: food franchise owners in Medway, service franchise operators in Maidstone, retail franchise businesses in Canterbury, and franchise operations throughout the region.

Kent franchisees face the same HMRC deadlines as everyone else—31 January for Self Assessment (or Corporation Tax deadlines if limited company), quarterly VAT returns if VAT registered. The difference is when your franchise bookkeeping is organized and current, these deadlines aren't stressful. You know exactly what franchise costs you've incurred, what operating expenses you have, and what your tax liability is going to be.

Common Kent franchise scenarios:

• Food franchises — Restaurants, cafes, fast food outlets, dealing with high turnover, VAT registration, franchise royalties
• Service franchises — Cleaning services, home services, professional services, dealing with service-based turnover and franchise fees
• Retail franchises — Shops, stores, retail outlets, dealing with inventory, sales, franchise costs
• Business format franchises — Various franchise models with different fee structures and requirements

Kent franchise market context:

• Kent has lots of franchise operations (food, service, retail franchises common across Medway, Maidstone, Canterbury)
• Franchises often perform better than independent startups (established business model, brand recognition)
• Most franchises are VAT registered from the start (exceed £90,000 threshold quickly)

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent franchisees are dealing with. Franchise fees, royalties, marketing contributions, VAT compliance—we've helped loads of Kent franchisees get sorted, and we know how to make franchise bookkeeping simple.

FAQs