Added for You - Franchisor Pro Forma Statements: Marketing - Mendacity - or Malfeasance

In theory, the franchise relationship is a symbiotic relationship, such as a marriage, or a partnership. However, as often happens, there is a significant gap between theory and practice. What should be well understood is that the goal of the franchisor is the same as any other business entity: maximize profits. Moreover, we live in an era of immediate gratification; therefore, in many business entities long-term planning is limited to managing earnings per share (EPS) for the current reporting period. Thus, many franchisors will maximize profits in the short-term whether of not this has a deleterious effect on the franchisee. I owned and operated a ‘family restaurant’ franchise; therefore, this discussion will tend to focus on this type of franchise.

Clearly, the franchise relationship mimics a marriage in that there is a strong tendency for disputes to become more frequent and bitter as the business relationship evolves from the honeymoon stage to an actual business relationship, a partnership where one partner controls the other. Often, the franchisor is soon viewed as a greedy control freak by the franchisee as the realization dawns that the franchisor is not be the savior that he made himself out to be during the courting period. In fact, it soon becomes evident that the franchisor may have been somewhat less than candid during the sale of the franchise.

Pro Forma Statements

Pro forma financial statements is the term applied to financial statements that would result if certain projections for costs and revenues had occurred during the financial year of the pro forma statements. Clearly, they are ‘what if’ statements based upon assumptions made by those generating the statements. The validity of the pro forma statements is directly related to the validity of the underlying assumptions. To be sure, pro forma statements are a valid accounting tool; they are used frequently for planning purposes. For example, they are part of the annual budgeting process for most organizations. What the pro forma financial statements depict for management is what the financial statements will look like if the planned activities for the budgeted year actually come to pass as forecasted during the budgeting process.

In summary, the key for anyone working with pro forma statements is to determine precisely what the underlying assumptions are, and the validity of those assumptions. Hence, it is not surprising that most theorists and advisors believe that the client should to seek professional accounting help when considering the purchase of a franchise.

The Role of the Accountant

Invariably, theorists and advisors suggest that the franchisee’s accounting advisor should, amongst other things, assist in:

Clearly, the franchise relationship mimics a marriage in that there is a strong tendency for disputes to become more frequent and bitter as the business relationship evolves from the honeymoon stage to an actual business relationship, a partnership where one partner controls the other. Often, the franchisor is soon viewed as a greedy control freak by the franchisee as the realization dawns that the franchisor is not be the savior that he made himself out to be during the courting period. In fact, it soon becomes evident that the franchisor may have been somewhat less than candid during the sale of the franchise.

Pro Forma Statements

Pro forma financial statements is the term applied to financial statements that would result if certain projections for costs and revenues had occurred during the financial year of the pro forma statements. Clearly, they are ‘what if’ statements based upon assumptions made by those generating the statements. The validity of the pro forma statements is directly related to the validity of the underlying assumptions. To be sure, pro forma statements are a valid accounting tool; they are used frequently for planning purposes. For example, they are part of the annual budgeting process for most organizations. What the pro forma financial statements depict for management is what the financial statements will look like if the planned activities for the budgeted year actually come to pass as forecasted during the budgeting process.

In summary, the key for anyone working with pro forma statements is to determine precisely what the underlying assumptions are, and the validity of those assumptions. Hence, it is not surprising that most theorists and advisors believe that the client should to seek professional accounting help when considering the purchase of a franchise.

The Role of the Accountant

Invariably, theorists and advisors suggest that the franchisee’s accounting advisor should, amongst other things, assist in: Tap Into The Power of Saavy Address Labels
There are few clerical products as time saving as address labels. For any project, these little marvels add professionalism without sacrificing efficiency. Address labels are by far one of the most effective supplies when it comes to the office.When you arrive at the office supply store you may become overwhelmed at the options available when it comes to address labels. While it would seem there would only be one or two choices, the fact is typically at least one aisle, if not two, are full of various styles and design. Likewise, if before you go to the office supply store you look through the label options in your word processor, you will be amazed at the number of options available. So the first step is deciding which label to choose.The first decision to make is which size label to utilize. There are tiny labels for return addresses, large labels for addressing that includes space at the top for your return address, or a smaller label for addressing only.The next determination is the style or design you wish to use. There are various colors and textures available. For example, for a more elegant look, you may want to use a clear label. On the other hand, for everyday use, perhaps plain white is more appropriate.The final choice is to decide which brand offers the best characteristics for your needs. Foe example, some brands may not have a particular color you wish to use. In this decision, price is also a determining factor. Some prefer to use name brands although they are more expensive. On the other hand, store brands provide a more cost effective option.With theed as a greedy control freak by the franchisee as the realization dawns that the franchisor is not be the savior that he made himself out to be during the courting period. In fact, it soon becomes evident that the franchisor may have been somewhat less than candid during the sale of the franchise.

Pro Forma Statements

Pro forma financial statements is the term applied to financial statements that would result if certain projections for costs and revenues had occurred during the financial year of the pro forma statements. Clearly, they are ‘what if’ statements based upon assumptions made by those generating the statements. The validity of the pro forma statements is directly related to the validity of the underlying assumptions. To be sure, pro forma statements are a valid accounting tool; they are used frequently for planning purposes. For example, they are part of the annual budgeting process for most organizations. What the pro forma financial statements depict for management is what the financial statements will look like if the planned activities for the budgeted year actually come to pass as forecasted during the budgeting process.

In summary, the key for anyone working with pro forma statements is to determine precisely what the underlying assumptions are, and the validity of those assumptions. Hence, it is not surprising that most theorists and advisors believe that the client should to seek professional accounting help when considering the purchase of a franchise.

The Role of the Accountant

Invariably, theorists and advisors suggest that the franchisee’s accounting advisor should, amongst other things, assist in: Turning a Difficult Customer into a Customer that Comes Back
I really hate it when things don’t go as they should and you have to spend time and effort sorting it out. I have hanging onto a phone line being told that “my call is important”, when I have far better things to do. Many companies are turning away possible loyal customers, because they do not know how to turn a complaining customer into a thankful customer who will come back to buy from you again. Here’s our suggestion. Firstly, I think that you have to put yourself in your customer’s shoes – why do they consider it necessary to come into the store to complain? Then ask yourself, what will resolve your customer’s problems? If someone is angry or upset, it is because they feels injured or cheated in some way. Your job is to let the customer vent and to listen attentively in order to understand the source of that frustration. When you do that, you send the message that you care about then and their problems. If you treat the customer politely, understand what their problem is and give some kind of resolution to their woes – then you will have a happy customer again. Realistically though there are always some people who just like to complain or are complaining in order to gain something. Firstly the No No’s Don’t lecture or talk down to your customer. I was once turned from annoyed to absolutely furious when instead of a refund for a fault on their side – I received a lecture on what I should have done instead. Don’t promise things that you cannot produce – this will only escalate the problem. Dwhat if’ statements based upon assumptions made by those generating the statements. The validity of the pro forma statements is directly related to the validity of the underlying assumptions. To be sure, pro forma statements are a valid accounting tool; they are used frequently for planning purposes. For example, they are part of the annual budgeting process for most organizations. What the pro forma financial statements depict for management is what the financial statements will look like if the planned activities for the budgeted year actually come to pass as forecasted during the budgeting process.

In summary, the key for anyone working with pro forma statements is to determine precisely what the underlying assumptions are, and the validity of those assumptions. Hence, it is not surprising that most theorists and advisors believe that the client should to seek professional accounting help when considering the purchase of a franchise.

The Role of the Accountant

Invariably, theorists and advisors suggest that the franchisee’s accounting advisor should, amongst other things, assist in: Can You Get Paid Referrals And Free Pizes
Finding good referrals has never been an easy task. In fact, it's the reason most people give up on their goals. I'm guilty of giving up myself. There are thousands of ebooks that claim to teach you how to grab hundreds of referrals, if you have read any of these then you already know that, it's just not as easy as they claim it be. The one thing i do know for a fact, without referrals, you can't make the good money.Referrals are what completes the circle of life in the internet world. So if you want to make money, you must get referrals. There are so many different ways to get them, and it's not such a piece of cake, right? I know the easiest way to get them. Did you know you can get paid to get referrals and get free merchandise from the internet everyday. There litterally are people waiting to be a referral. No need for you to feel the regret of searching for hours without a reward for doing so. I'm sure you will be amazed at how easy getting referrals is. You will be wondering, why in the world didn't i think of that. It's so simple, i was just floored with this idea. It's the greatest one i have found yet.I know new things that people say to get you to be their referral makes it hard for you to believe in what i'm telling you. The truth is, I can show you how to get them, and get paid twice. I can help you with what you need to know. as forecasted during the budgeting process.

In summary, the key for anyone working with pro forma statements is to determine precisely what the underlying assumptions are, and the validity of those assumptions. Hence, it is not surprising that most theorists and advisors believe that the client should to seek professional accounting help when considering the purchase of a franchise.

The Role of the Accountant

Invariably, theorists and advisors suggest that the franchisee’s accounting advisor should, amongst other things, assist in:

• Assessing capital requirements;
• Reviewing pro forma financial statements;
• Examining the accounting information and reporting system;
• Determining the reserves necessary to finance the losses associated with a ‘start-up’ due to promotion, staff training, and possible economic downturns;
• Investigating the financial strength of the franchisor through credit checks or the review financial data, if the franchisor is a public company or has filed information in a jurisdiction where such disclosures are required by law;
• Planning personal and corporate taxes; and
• Evaluating the real value, if any, of the franchise itself.

Normally the franchisor provides pro forma statements and the accountant merely performs a typical financial analysis on the statements. Recall that the pro forma statements can be useful if, and only if, the assumptions underlying the statements are valid. Sadly, without a great deal of industry expertise, most accountants have difficulty in determining whether or not some of the underlying assumptions are valid, especially some of the more detail oriented assumptions such as what percentage of a sales dollar should be allocated for wait staff, kitchen staff, bar staff, or management. In my case, the cost to replace lost, stolen, and damaged eating utensils amounted to several thousand dollars per year. It should be noted here that many pro forma statements are general in nature and such expenses are overlooked or, if included, are not clearly detailed or outlined.

I acted as my own accountant because I am, in fact, an accountant by training. And, in the process of doing my ‘due diligence’ I spent well over a week doing computer modeling in an attempt to determine the validity of the most important number: sales! Sales are important because high revenues can provide some slack to offset any errors or omissions. My model was based on a number of factors, for example, population demographics, disposable income, and expected population growth patterns for the future. In addition, I performed an analysis of ‘dining out’ out statistics, for example, I examined the amount expended per capita, consumption patterns, and average distances traveled. With re

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