Franchise Launch Package
The Franchise Launch Package sets up the books for a new franchise owner and sets the year-one targets the monthly reports track. It runs from the day you sign the franchise agreement to 90 days after you open.
The package is one fixed fee, agreed before work starts. It ends with a review meeting at day 90.
What the package includes
The package has four parts. Each one is done by Averan Advisors in QuickBooks, the software we are certified in as an Intuit QuickBooks ProAdvisor.
1. Books setup
We build a QuickBooks file and chart of accounts from your franchise agreement. Royalty, brand fund, technology and local advertising fees each get their own line. Gross sales are recorded the way your agreement defines them, so every royalty charge can be checked. We connect your bank, card, point-of-sale and payroll accounts before the first sale.
2. Opening budget and cash forecast
Your Item 7 estimate becomes the opening budget, and every opening cost is recorded against it as it is paid. We build a 12-month cash forecast that includes the first months of lower sales and the fees that start before revenue does. Each month you see how much cash the forecast leaves you.
3. Year-one targets
We hold one working session with you before opening. Together we set monthly targets for sales, labor as a share of sales, and cash on hand. If your brand publishes an Item 19, the targets start from it. If it does not, they start from your opening budget and your lender's projections.
4. The first three monthly closes
We close the books for each of your first three months of trading. Each close reconciles the bank and card accounts and produces a profit and loss and a balance sheet. Royalty and brand fund charges are reconciled to the franchisor's statement. Each report sets the month's results beside the year-one targets.
Four terms used on this page
- FDD. The Franchise Disclosure Document is the filing every franchisor must give a buyer before the buyer signs.
- Item 7. Item 7 is the table in the FDD that estimates what it costs to open a location.
- Item 19. Item 19 is the section of the FDD where a brand may publish sales or profit figures from its existing locations.
- Royalty. A royalty is a fee the franchisor charges as a percentage of your gross sales.
The timeline
- At signing. You send us the FDD, the franchise agreement and any loan terms. We read them before the first meeting.
- After signing. We set up the books, connect your accounts and turn Item 7 into the opening budget.
- Before opening. We hold the year-one targets session and deliver the 12-month cash forecast. Opening costs are recorded against the budget as they are paid.
- Months 1 to 3. We close each month and send the report by the date agreed at the start.
- Day 90. We meet to compare your first three months with the targets and set the targets for the next quarter.
What you have at day 90
- A QuickBooks file built from your franchise agreement, with each franchise fee on its own line.
- An opening budget that shows what each opening cost came to against the Item 7 estimate.
- A 12-month cash forecast, updated with your first three months of actual results.
- Monthly targets for sales, labor as a share of sales, and cash on hand.
- Three closed months, each with royalty and brand fund charges reconciled to the franchisor's statement.
What we need from you
- Your FDD and your signed franchise agreement.
- The terms of any loan that pays for the opening, including an SBA loan.
- Access to the business bank and card accounts.
- The point-of-sale and payroll systems your brand requires.
- Receipts and invoices for opening costs you have already paid.
- The name of one person who can answer questions about spending.
After day 90
You can move to the Monthly Close, which sends the same monthly reports from month four. Controller adds a cash flow forecast, budget against actual and a monthly review meeting. You can also keep the books yourself, and the QuickBooks file stays yours.
Questions about the package
Do you work with my brand?
Averan Advisors publishes a breakdown of 431 franchise brands built from their FDDs. If your brand is not one of them, we read its FDD before the first meeting.
What does the Franchise Launch Package cost?
The Franchise Launch Package is one fixed fee, set by the number of locations. We quote it after the first call, before any work starts.
I am opening more than one location. Does the package cover them?
Yes. Each location gets its own profit and loss in the same QuickBooks file, built on one chart of accounts so the locations compare.
What happens after day 90?
You can move to the Monthly Close, which sends the same monthly reports from month four. Controller adds a cash flow forecast, budget against actual and a monthly review meeting. You can also keep the books yourself, and the QuickBooks file stays yours.
Where to next
Talk to us about your opening
Book a short call about your brand, your opening date and the package.
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