australia master franchise prospectus
Post on 08-Apr-2016
220 Views
Preview:
DESCRIPTION
TRANSCRIPT
2
Executive Summary
Following on from their continuing success in the UK Market and having awarded their first
Master Franchise Rights for Ireland, TaxAssist Direct Ltd (TAD) are offering their Master
Franchise Rights in markets deemed suitable for international expansion.
Rather than attempting to establish, support and administer a network of Sub Franchisees
themselves, TAD has decided to offer for sale their Master Franchise Rights for set
territories. The Master Franchisee will then assume responsibility for establishing a
network of Franchisees replicating the business model and support that TAD provides to
their own network of Franchisees in the UK.
TAD will be committed to providing ongoing training and business consultancy to a
network of Master Franchisees.
©TaxAssist Direct Ltd, Figures and statistics correct as of February 2015.
Please note that this is a Sales Document only and that none of the information for the
Australian market has been verified, formal disclosure document that complies with the
relevant Australian franchise laws and regulations will be made available upon request.
3
TaxAssist Direct Ltd Experience TaxAssist Direct Ltd (TAD) is the Franchisor for the TaxAssist Accountants network. With no accountancy practice of its own or other business concerns, the sole function of TAD is that of a training, marketing and support company servicing a network of franchised accountancy practices. Established in 1995, TAD has developed a strong brand and a robust business model. Each Franchisee provides a comprehensive range of accountancy and taxation services to small businesses (the self-employed, sole traders, partnerships and Limited companies) and personal income tax payers. As of December 2014, the UK network of over 199 franchised areas has a combined fee bank in excess of £34.3 million from over 51,000 clients. TAD was founded with the specific remit to service small businesses (defined as self-employed / sole traders and companies with a turnover of less than £2 million) as this is a lucrative and growing sector that is usually under serviced by the traditional accountancy practices. TAD has gone through a period of change and has revolutionised accountancy practices in the UK by creating a retail experience with customer friendly shop front premises which strip away the mystery and intimidation, something from which traditional practices can suffer. TAD currently has over 80% of their UK network trading from retail (shop front) based locations which, coupled with industry leading marketing strategies and the one-stop-shop services provided in-house along with additional service partners, gives TAD a powerful edge over the competition. All TAD Franchisees are committed to moving into retail based premises within three years of the commencement date on their Franchise Agreement. TAD enjoys full membership status with the British Franchise Association, Irish Franchise Association, Canadian Franchise Association and the Franchise Council of Australia and is proud to support and adhere to their Code of Ethics. TAD is a multi-award winning franchise. 2014 started off well after TAD was awarded ‘Most Innovative Tax Team of the Year’ by Acquisition International. These global awards recognize the outstanding achievements of individuals and companies within the tax industry, and crucially, are nominated by clients, professional relationships and peers. The awards are given solely on merit and are awarded to commend those most deserving for their ingenuity and hard work over the last 12 months distinguishing them from their competitors and proving them worthy of recognition. TAD were ranked first place in the 2010 BFA/HSBC Franchisor of the Year Awards beating eight finalists to the Gold Award which included McDonalds and Domino’s Pizza. This followed on from winning the Silver Award in 2008 and 2009, which is unprecedented. In addition, in 2009 their Franchisee Mark Fordham won Bronze in the Franchisee of the Year award. In 2013 TAD won a number of awards and accolades including ‘Accountancy Firm of the Year’ from AIA (Association of International Accountants) and ‘Best UK firm supporting apprentices’. For the last four years, TAD has participated in ‘The Best Franchise Awards’ based on an independent franchisee benchmark survey. In 2013 for the third year running TAD were awarded first place in the ‘Best Training and Support’ category. In 2014 TAD won the ‘Best Franchise’ award in their category and also a ‘Continuous Improvement’ award designed to recognise franchisors that have improved their Franchise Satisfaction Survey results for at least two years running. They were ‘Best Large Franchisor’ in 2012 and runners up in 2013, again beating fellow finalist McDonalds in both categories. In addition to these awards, TAD were also awarded ‘5 star franchisee satisfaction’ as recognition for receiving better than average feedback in all key areas, joining as the organisers of the award put it “an elite group of the UK’s best franchisors.”
4
In addition to the franchise industry awards, TAD has also won various marketing awards. In 2013 TAD beat the UK’s top ten firms on growth in the national league tables recording a 12.4% growth in the Accountancy Age Top 50 listings, beating the “Big 4” international groups and achieving the fifth highest growth across the whole Top 50. The network was placed 25th in the table on UK fee income in 2014, which rose to £27.21 million, up from 34th place from when they first appeared in the 2010 report. In August 2014 a Management Buyout of TAD and other companies within the TaxAssist Group, including TADI, was completed with a new company TaxAssist Group Ltd acquiring, amongst other shares in other companies in the TaxAssist Group, 100% of the entire issued share capital of TAD and TADI. The Management Buyout was supported by the three Executive Directors of TAD as well as investors with whom TAD has had long working relationships, Franchisees and staff throughout the TaxAssist Group.
5
TaxAssist Direct Ltd has an Experienced Executive Directorate of Three:
Chief Executive - Karl Sandall FCIB, QFP
Karl spent 26 years at a senior level with HSBC before joining TaxAssist
Accountants on 1st January 2000 as Operations Director – taking on the
role of Chief Executive in 2002. A Fellow of the Chartered Institute of
Bankers, a member of the Financial Industry Group and of the Committee
of the IFS School of Finance for the East of England, Karl oversees the
running of the company and the whole network on a day to day basis and
ensures the company continues to expand. Karl has been awarded the
British Franchise Association Qualified Franchise Professional (QFP)
qualification in recognition of his expertise in ethical business format franchising.
Business Development Director – Sarah Robertson MSc, Dip M, Chartered Marketer, MCIM FIDM
Sarah has over 20 years’ experience in the marketing and advertising
industry, working with a broad range of national and regional brands such
as the British Red Cross, Norwich Union, Oracle, Del Monte, the Imperial
Cancer Research Fund and Swinton Insurance along with her own
successful business. She is a Fellow of the Chartered Institute of Marketing
and a Fellow of the Institute of Direct Marketing. Sarah joined the TaxAssist
Accountants’ Board on 1st September 2004. Sarah is responsible for
marketing strategy, brand development, shop fronts, practice management and business
development strategies for Franchisees. Sarah was named the 2007 & 2010 Marketing Person
of the Year by the 2020 Innovation Group and runner up in 2009.
Network Operations & Finance Director - Phil Sullivan BSc (Hons), ACIB
During a 26 year career with HSBC Bank plc Phil achieved Executive
Management status and undertook roles covering a wide range of
disciplines. Prior to leaving HSBC Phil was Area Director for
Leicestershire, a role with responsibility for all aspects of the bank's branch
banking & commercial business in the county and corporate banking
activities in the East Midlands. Phil established his own business in 2006
providing corporate and commercial advisory services to selected
business clients. After working with TaxAssist Direct Ltd for 18 months on a consultancy basis,
Phil joined the Board as a full-time Executive Director with effect from 1 October 2008. His
responsibilities include overall technical competency and compliance of the Network and
Support Centre, internal financial control and operational integrity and training.
6
Non - Executive Director - John Chambers
John has specialised in franchising for over 20 years. He thinks of himself as a business man first and a solicitor second. His "no nonsense, practical, commercial approach" is appreciated by clients as much as is his unrivalled knowledge of the franchising sector.
He read law at University College London and worked in the City of London for Mitsui, a Japanese trading company, and in the Middle
East for Turner & Newall Plc.
John then worked in sales and contract management roles in the oil industry, first in the UK and then abroad before deciding that he could provide more commercially focused and practical advice than he was receiving from lawyers. He re-trained as a solicitor and worked for two leading international law firms prior to setting up Chambers & Co in 1998. After establishing himself as one of the UK’s leading franchise lawyers and acting for 20% of the franchisors in the UK, Ashton KCJ acquired the practice in early 2012.
John is a former member of the now disbanded British Franchise Association Legal Committee, and regularly speaks on franchising law both at home and abroad.
Non – Executive Director – Mark Fordham
Mark’s career has been spent entirely in the Financial Services industry. He spent the early part working for NatWest Bank in Retail, Corporate and Investment Banking including spells in Corporate Lending and the Training department where he taught Financial Analysis (Balance sheets, cashflow forecasts, profit and loss accounts and bookkeeping). He also taught Investment Management including personal tax at degree level for 14 years. The latter part of his banking career was spent qualifying as an auditor and then planning and managing a team of 150 auditors to run audits across the Royal Bank of Scotland Group.
Mark was awarded his TaxAssist Accountants franchise is 2003 and built up a client base in St Albans and Harpenden in Hertfordshire. He won the TaxAssist Fastest Growth Award 3
years in a row as well as Accountant of the Year and the British Franchise Association Bronze award in 2009. In 2012, 9 years after starting his franchise, he sold the business with 900 clients to an incoming franchisee.
Mark joined the board in January 2015.
7
Ireland
In February 2009 TAD awarded its first
Master Franchise Licence to the Republic
of Ireland (ROI). The Master Franchise
Rights were awarded to an established
accountancy practice (principles being
Certified Public Accountants) that was
already successful in its own right but
wanted to grow nationally and saw the
value in the TAD brand, experience and
support.
The Masters in ROI have at the end of 2014 recruited franchisees covering 26 areas, who look
after 5500 clients with a fee bank of €5,034,000. All franchisees are in shop front premises.
TaxAssist Accountants Ireland is managed by a team of two full time Directors who are
supported by personnel from their existing practice.
TAD worked closely with the UK and Irish banks to ensure that, even in times of deep recession
when banks were reluctant to lend, they became supportive of the TAD model. Funding is now
available for Sub-Franchisees.
TAD enjoys close relationships with the banks in the UK and ROI and is able to provide
references to prospective Master Franchisees and the Franchise departments of their banks
which demonstrate the strength of the TAD proposition.
Canada so far
In January 2014 TAD successfully delivered their Master Franchisee training to a Master taking
on the rights for the Greater Toronto area of Ontario in Canada. TAD continues to receive a
high level of interest in the 4 remaining Master Franchise territories in Canada and potential
masters from Alberta and British Columbia visited Norwich in August and November 2014.
Master Franchisee – Rina Mancini, B.A.S., MBA
Prior to becoming the Master Franchisee for TaxAssist in the GTA, Rina Mancini held strategic leadership roles with Manulife Bank of Canada, Equifax Canada, Sears Bank and Rogers Communications. An experienced business executive, leader and strategist, Rina has extensive depth and breadth of experience within the Financial Services, Telecommunications and Information Solutions industries. Her experience spans Consumer Credit Risk Management, Accounts Receivable
Management, Call Centre Management, Operations, Customer Service, Finance, Change Management and Process Improvement. With Rina’s acquisition of the Master Franchisee licence for the Greater Toronto Area, she looks forward to introducing and growing the TaxAssist brand to Canada and to establishing a network of franchisees within the GTA.
8
International Franchising
Having proven that the concept can be replicated in the Republic of Ireland and that ongoing
training and consultancy support can be given to a Master Franchisee, TAD is in a position to
be able to offer its Master Franchise Rights to selected international markets.
Whilst there are many differences between the UK and the target countries, both cultural and
legal, there is one constant – every country has a high number of small businesses and self-
employed individuals that have to pay tax and are in need of a professional accountancy
service.
The TAD branding, marketing, training, support functions & shop front concepts lend
themselves to Master Franchising; being one of the UK’s leading Franchisors, TAD is able to
demonstrate their ability to recruit and support Franchisees and the strength of the business
model.
The TaxAssist Accountants Market
The accountancy market is dominated by four accountancy firms, PriceWaterhouseCoopers,
Deloitte & Touche, KPMG and Ernst & Young – all of which are global organisations. These
firms audit almost all of the top 100 public companies and the majority of the top 350
companies. Beyond the ‘big four’ there are many mid-tier and smaller firms.
For franchisees the market is small business. In Australia, a small business is defined by Fair
Work Australia as those with less than 15 employees and by the Australian Taxation Office as
those with annual revenue of under $2 million.
The Australian Market
According to the ‘Independent Contractors Australia’ website, 17.2% of the Australian
workforce are self-employed which equates to 1.9 million people.
According to the Australian Government Department of Industry small business key statistics
and analysis December 2012, the vast majority at just over 2 million (96%) of Australian
businesses are small businesses.
The target market for TaxAssist Accountants in Australia is significant and it gives us a unique
opportunity through our international branded network to provide services to a largely
untapped market.
9
Target Markets
Based on the principle that a standard single unit territory has a population of up to 75,000,
TAD are offering Master Franchise Rights covering an area with a population of up to 4 million
which will result in 45+ single unit territories for the Master Franchisee to award, support and
administer.
For regions with a larger population, and where the prospective Master Franchisee is able to
demonstrate their ability to manage a larger scale business, TAD can offer larger territories
with an additional fee up to a maximum territory of 12 million.
The anticipated pricing structure is broken down into two elements; a fee for territory licence
and a separate fee for the support provided to the Master Franchisee by TAD.
For a population of up to 4 million the territory licence fee is calculated as £75,000 with a pro
rata increase in the fee for a larger territory. For example, for a territory with a population of 6
million the territory fee will be £75,000 X 1.5 = £112,500.
The support element of the fee will vary dependent on the level of support required and the
costs involved to TAD. The support fee will vary from £75,000 to a maximum of £125,000.
Factors including geographical location, translation requirements and potential re-branding will
affect the support fee and will be discussed with a prospective Master Franchisee.
The Australian Bureau of Statistics states the total population of Australia is 23,130.9 (June
2013) split mainly across six states and two major territories.
The viable states / territories suitable for TAD are demonstrated as:
Queensland
Victoria & Tasmania
South Australia, Western Australia and Northern Territory
New South Wales & Australian Capital
With a population of 23,127,800 million these states would yield up to 4 Master Franchises
and approximately 200 single units.
The proposed minimum Franchise Fee for a Single Unit is the equivalent of £34,950 plus GST.
10
The role of the Master Franchisee
The key roles of the Master Franchisee will be:
Establishing a pilot operation
Recruiting Franchisees within their territory
Training – both initial and ongoing
Technical support
Marketing & business development support
Brand protection
Network administration
Master Franchise Package
TAD will deliver full training split into two programmes.
The first element will cover running a TaxAssist Accountants practice and includes training on
software, practice management, sales and marketing.
The second programme will train the Master Franchisee on how to recruit, develop and support
a network of Sub-Franchisees. Course content will include:
Recruiting Franchisees
Setting up Franchisees
Initial training for Franchisees
Managing Franchisees
Ongoing development for Franchisees and continual professional development
Network administration
Strengthening the network
Brand development
Strategic partners
TAD has a support centre of dedicated professionals all focused on supporting the UK network
of single/multi-unit Franchisees. As the international side of TAD’s business grows the
Directors are committed to, where necessary, recruiting specialists in international franchising
to ensure that the UK business does not suffer.
11
TAD is focused on not just awarding Master Franchise Rights but working with the Master
Franchisee to secure long term success.
Whilst not providing technical support directly, TAD will provide comprehensive ongoing
consultancy advice to the Master in establishing systems for:
Ongoing training programmes
Establishing helpline facilities
Support website
Support personnel visits
Regular communication
Marketing initiatives
Franchisee recruitment
Business coaching
Details of the set up, training and support packages will be available in the Master Franchise
Information Memorandum.
To further support the Master TAD will:
Appoint a dedicated support person who is highly experienced in franchising to be
responsible for International Development
Provide visits to the Master Franchisee during the crucial set up and initial trading
period
The Master Franchise fees are proposed as:
Territory fee £75,000
Support fee £75,000 to £125,000
MSF on Sub Franchise fees 10%
MSF on own MSF received from Sub-Franchisees 25%
All other fees detailed in the Franchise Agreement 25%
12
What follows is part of the UK Single Unit franchise prospectus and has been used
to illustrate what TAD delivers to their franchisees in the UK.
Where possible TAD will expect the Master Franchisee, with their assistance, to
source suitable suppliers for the services detailed that the Master Franchisee
doesn't provide directly and will work with the Master Franchisee to create their own
Single Unit Master Franchise Prospectus for the relevant Australian Markets. Please
note that not all services may be available in Australia.
13
The Franchise Package
The TaxAssist Accountants Franchise Package includes:
LICENCE FEE
The licence fee grants the right to trade under the corporate identity of TaxAssist Accountants
for the duration of the Franchise Contract.
IT EQUIPMENT AND MAINTENANCE PACKAGE
We specify high spec laptops which are suitable to run all applications.
TRAINING FEES
A six week intensive induction training course (including one weeks’ home study) covers all
aspects of the TaxAssist Accountants business model and prepares new franchisees for
trading as a TaxAssist Accountant. This training covers a wide range of accountancy, tax,
software, sales and marketing topics. It is designed and delivered by our in-house team of
qualified accountants and trainers in conjunction with specialist training partners. Through this
partnership we are able to ensure that materials are up to date, directly relevant for our network
and of the highest quality.
We pay for all meals and accommodation during the course and ensure you have the
opportunity to meet all staff in the Support Centre. During the initial six month period further
shorter training modules are delivered covering limited company issues, corporation tax,
payroll, guidance on completing your own accounts, planning tools, human resources and staff
recruitment and further software training. We have also introduced the TaxAssist Training
Academy which allows us to provide new training modules covering a wide range of technical
and general management skill topics.
The TaxAssist Accountants Training Academy provides bespoke training courses to
Franchisees and staff in Norwich and at regional centres around the UK. The Training
Academy fee of £50 pcm per territory covers ongoing training resources, additional courses
are charged at nominal rates.
MARKETING
To kick start your business we provide you with an initial marketing campaign and 25 free
leads from our lead generation activities (Don't worry these won't all be delivered in your
first month!) and, up to the value of £500, pay for your first year subscription to a networking
group of your choice.
14
BUSINESS ACCELERATION AND NURTURE PROGRAMME
This is a holistic induction and monitoring package that is designed to help you set up parts of
your operation prior to the training course. The programme also monitors your business
development through the first six months and comprises further training at months two, three
and six.
The follow up training is a mix of technical, general management and business plan review to
track the progress of your business.
EMPLOYMENTOR’ – HR AND EMPLOYMENT PACKAGE
We are pleased to offer all franchisees subscription to ‘Employmentor’. This service provides
you with comprehensive HR support for all your employment needs and much more.
SUBSIDY FOR SUPPORT AND HELPLINE
The franchise fee gives you access to all services provided by the Support Centre from day
one.
OPERATIONS MANUALS
The detailed Manuals form the basis of your training reference material and are explained fully
during the training programme. All the manuals are available online, on our support website,
once the course has been completed.
SUPPORT SITE
A wealth of useful information is contained in our easy to use intranet. The Support Site forms
the Blueprint for managing and developing a successful TaxAssist Accountants practice. It
offers advice and guidance, allows you to order stationery, and adverts, and book into training
sessions to name but a few features.
ADDITIONAL INITIAL SUPPORT
In addition to dedicated internet support, the franchise fee covers the first year’s payroll
software, 12 months use of the online learning facility, 3 month’s usage of CCH, first years
Federation of Taxation Advisers student Membership if required and launch assistance.
15
FREE SET UP ON DIRECT DEBIT SYSTEM
It is a key part of the TaxAssist business model that your clients should pay you by regular
monthly payments. This makes a very significant difference to your cash flow and also
enhances client loyalty.
TELEPHONE ANSWERING SERVICE
In the first year of your franchise you may be working on your own, or have few staff members.
In order to ensure a professional and corporate response to clients and prospective clients,
we are pleased to offer the services of a personal answering service for either a full year's
service or 120 messages whichever comes first. Each TaxAssist Franchisee will be given the
names of two or three PAs who will work for them and answer their calls and forward their
messages either by Email, SMS or Fax.
BUSINESS STATIONERY
A starter pack of stationery is provided, including letterheads, envelopes and business cards,
fully personalised with your details.
PROMOTIONAL MATERIAL
A comprehensive initial starter pack will be provided, including personalised corporate
brochures, marketing leaflets etc.
COMPETITOR ANALYSIS REPORT
Some thorough research into your competitors, their products and more importantly, how they
look after their customers, will provide you with valuable information that will help your business
become successful. A Competitor Analysis Report will highlight your competitors’ strengths
and weaknesses. It will also tell you how to use the information to win more customers and
keep the ones you’ve got.
WEBSITE & EMAIL ADDRESS
All new franchisees are set up with email and their own website for you to personalise with information about you and your local contact details. We administer and maintain this for you.
16
ANTI MONEY LAUNDERING COMPLIANCE
We are pleased to provide as part of the franchise fee your first year’s membership fee to
AMLCC Ltd, who provide online Client Verification and The Complete anti-Money Laundering
Guide for Professionals. The Guide steers you through the process of client due diligence
including electronic verification and automatically classifies the client’s risk level.
SUPPORT
The benefits of franchising are that you are a self-employed individual benefiting from an
established support infrastructure and a committed brand development strategy. The extent
of the support you will receive from TaxAssist Accountants is comprehensive and comprises
training, marketing and technical helpdesks for accounting, tax, software and Human
Resources. In addition to this, you will benefit from field visits from our Franchisee
Development Managers, Directors and our Technical and Training Teams, as well as ongoing
training to accommodate Continuing Professional Development requirements from the
accounting institutes.
We have been established since 1995 and recruited our first franchisee in 1996. Since that
time the network has grown to over 190 and our franchisees have gained substantial
experience that you can benefit from. You will find that the network will have experienced
nearly every aspect of setting up and trading as a TaxAssist Accountant.
The concept of network development and best practice is very important to us and we have a
number of arenas where the focus is on the franchisor/franchisee relationship. These include
‘Innovation Groups’, Regional Meetings and an Annual Conference. These activities allow
franchisees to express themselves and make operational recommendations, and the
franchisor has opportunities to cement relationships with the network.
Unlike some of our competitors, we have no other business interests or our own accountancy
practice to support – meaning we can concentrate 100% of our time on you our franchisee and
your growth. Compare our competitors’ offerings closely to our own, both on an initial basis
and ongoing, because we feel we have a fully comprehensive offering.
17
Finances
A GUIDE TO ESTIMATED START-UP COSTS, AND ONGOING FEES:
Franchise Fee
Standard 5 year Agreement £34,950
Management Service Fees
First £140,000 turnover 9%
Next £140,000 turnover 6%
Over £280,000 3%
Above £420,000 1%
Brand Awareness & Client Acquisition fund:- £1,800 pa
(calculated and payable on a monthly basis increasing by £60 per year)
Our Management Service Fee is set so that as your turnover increases
the rate payable to us decreases
Commercial Premises Costs
Commercial office lease (per calendar month) £250- £650
Shop front lease (per calendar month) £1,000 pcm
Shop front re-fit (depending on premises) £20,000
(Prices would vary between regions)
Equipment
Black & white laser printer £200
Office furniture & photocopier/scanner £2,000
Mobile phone (per calendar month) £40
Fax £120
Telephone System (per calendar month) £1,760 + £60
18
Software
CCH Central (first three months free) £131 pcm
Moneysoft Payroll (first year’s subscription) Inc. in package
Microsoft Office 365 (first two years’ subscription inc. in package) £118 pa
Training
The TaxAssist Accountants Training Academy provides
bespoke training courses to Franchisees and staff in Norwich
and at regional centres around the UK
£50 pcm per territory
Other start–up costs
Legal fees (optional) £400 - £600
Professional Indemnity Insurance £200 approx
First 12 months general marketing (networking, advertising etc)
Initial working capital (to be considered) will vary on an
individual basis.
£5,000
Leads
Inbound qualified leads £50 per lead
Employment & HR package
Employmentor (value £495 per year) Inc. in package
(Please note that all fees are subject to VAT at the applicable rate)
19
Property & Working Capital
The Franchise Agreement states that you will operate from shop-style premises within 36
months of joining TaxAssist Accountants. You may wish to start trading from such premises
from day 1, and we have strategic relationships with certain suppliers that can facilitate this.
SHOP REFURBISHMENT
We have a Preferred Supplier for shop fitting and they have been fully briefed on our minimum
requirements in terms of fittings and office equipment. The cost of a refurbishment or shop
fitting is dependent on the size and condition of the premises. The cost of refurbishment at
our flagship office in Norwich was £26,500 including IT hardware. Other shop-style offices
across the country have been refurbished at nominal costs, so it is prudent to research this
thoroughly.
PROPERTY SOURCING
Our support team have been specifically tasked to look after all aspects of sourcing and
operating from office and shop-style premises. With many years’ experience, the support team
are highly experienced in the TaxAssist Accountants franchise concept. We are in a position
to offer advice and guidance on sourcing rented offices or shop fronts.
WORKING CAPITAL
If you are joining us without an established client base, you will not have an initial regular
income. This calls for the provision of Working Capital and we have bespoke finance packages
provided by HSBC, Lloyds TSB and NatWest. The level of capital you will need is dependent
on several factors – regional variations in property and staff costs, personal expense
requirements and trading status (office or shop front).
20
Operating from a rented office can prove less capital-intensive and it also gives you an
opportunity to develop your business before moving to a shop front operation. The quality and
location of commercial offices are very important. Under these operating conditions Working
Capital requirements will still be governed by local market trends, and you will still need to
budget for rent, marketing and living costs until your revenue stream is established.
Funding for your franchise can be arranged by means of a loan and overdraft combination,
thus allowing for flexibility in terms of monthly expenditure.
RAISING FINANCE: THE BANKS
TaxAssist Accountants has built some excellent relationships with the major banks in the UK.
This means that we are nationally recognised by the banks that will support potential
franchisees with their initial franchise fee subject to their normal lending criteria.
Below are the contact details for the franchise sections of the banks we have made good
relations with:
Mark Scott
Franchise Development
Director, RBS and NatWest
Franchise Section
Tel: 0800 0929117
franchise.retailbanking@
natwest.com
Richard Holden
National Franchise Manager,
Lloyds TSB Bank plc
Tel: 0800 6816078
franchising@lloydstsb.co.uk
Lorna Smith
Senior Franchise Manager,
HSBC Bank plc
Tel: 0121 4553438
franchiseunit@hsbc.com
David Williams QFP
Director, Franchise Business
Development
RBS Corporate Banking Tel: 020 7615 4657
Dave.Williams@rbs.co.uk
In certain situations some franchisees may benefit from the ‘Enterprise Finance Guarantee’
scheme – formerly the ‘Small Firms Loan Guarantee’ scheme run by the Department for
Business Innovation & Skills (BIS) - formerly the DTI and BERR.
21
The EFG is a loan guarantee scheme to facilitate lending to viable businesses where there may be a lack of security available. Guarantees are taken from the individuals for 100% of the facility provided and whilst the government provides a guarantee to the lender for 75% of the loan, the borrower is liable for the full amount. There is no requirement for supporting security behind the guarantee.
The EFG is a more expensive route as there is a 2% annual premium on the outstanding loan
amount which the Government charges for providing the security but if all other aspects of the
application stacks up and the only issue is the lack of security then the EFG is an attractive
route which many franchisees have benefited from.
Revenue Projections
By adhering to the Business Model and taking a proactive approach to marketing in your
territory, you should be attracting clients at a considerable rate. Client acquisition will be
facilitated by your shop front presence, and your marketing and networking activity will
seriously help the build-up of your fee-bank. Further client development will also come from
referrals.
It is not helpful to talk about average levels of achievement because each franchisee
approaches the business with their own aims, objectives and approach, under the guidance
and support of the franchisor. It is more practical to consider what can be achieved in reality.
For the franchisees that have opened in the last 3 years, the top 20% at the end of their first
year have an average of 116 clients and £75,000 of fees. We do not pretend that these are
easily achieved – it required real effort and enthusiastic following of our business model – but
that level of success is being achieved and, of course, bettered.
Gary Jacks joined our network in April 2006 and went straight into a shop front in Ellesmere
Port in Cheshire. He states "I found that after my April launch I was soon securing clients - I've
already (at month 5) secured 59, and the annual fees from these currently stands at £46,000.
By following TaxAssist Accountants business model, the speed with which I've grown my client
base has far outweighed my expectation".
As at October 2014 Gary looks after 651 clients and has a fee bank of £369,000 across his
three shop fronts in Queensferry, Chester and Ellesmere Port.
Please note the above figures are for illustration purposes only and are not a guarantee of
earnings. Revenue and business growth is dependent on activity. Our business model
involves certain activity requirements including marketing, networking and general business
development.
22
10 Reasons Why You Should Join TaxAssist Accountants
1. Our Brand Name:
We are the leading franchised accountancy organisation looking after small businesses,
with over 20 years’ experience of operating a substantial national network of branded
offices that is well recognised and respected.
2. Our Training:
We are confident that we are providing the best initial and ongoing training for you and
your staff. As well as providing a comprehensive initial six week training course which
includes food and accommodation, we also offer ongoing update days as well as bespoke
training if needed in Norwich and regionally, as well as CPD facilities.
The tax and accounts training is provided by our own staff and specialist training partners,
and we provide a nurture programme which lasts for six months after the initial course
focusing on business development, HR, staff recruitment and client acquisition. We also
provide courses on pricing and fee raising as well as social media training to keep our
network abreast of business relevant developments.
3. Support Centre:
All of the Support Centre staff are 100% committed to supporting the Franchise network
and have no other business interests to take their focus away from the importance of
assisting the network.
The three executive directors have a breadth of business experience which they bring to
the franchise. Karl Sandall had 26 years working for a major clearing bank, and is an ex
bank manager, Sarah Robertson is a Chartered Marketer who previously operated her
own Marketing and PR company and Phil Sullivan spent 26 years with HSBC achieving
Executive Management status before leaving to establish his own business in 2006
providing corporate and commercial advisory services.
4. Shop Front Concept:
We have a highly visible presence with over 170 shop fronts and growing around the
country. The shop front brand is supplemented by the many branded cars driving around
the country, national advertising, internet presence and marketing collateral. We
constantly look to be at the forefront in terms of brand awareness, technical training and
support for business growth. The shop front will allow you to build up a team of staff who
you can delegate to, allowing you the free time to work on the business not in it.
23
5. An Exclusive Territory: You gain the rights to operate and receive leads in an exclusive territory of postcode
districts based on a population of up to 75,000 people. Once established, there is the
possibility of taking on an area and a half or two franchise territories.
6. Lead Generation & Business Development Strategies:
You will receive a number of free leads as part of your initial franchise package. These
will be generated from a marketing campaign in your area and our ongoing ‘inbound lead’
service. The Support Centre provides a social media presence, PR, national advertising,
telemarketing and an unparalleled internet presence. These and other initiatives will
generate inbound leads (business opportunities) for you.
7. Access to Specialist Advice/In-field Back-up:
We work closely with all franchisees on maximising their profit and working towards their
own exit strategies. We see this as an invaluable contribution to our franchisees’ business
life. This type of consultancy work does not come cheap and we are pleased to provide
this as part of our service. We utilise a range of bespoke business tools for our network
in respect of their own business planning, fee charging and profitability analysis. We also
have an association with the 2020 Group who provide specialist marketing and technical
advice to accountants.
8. Resale Value:
The business model makes financial sense, with the potential for taking a good salary
whilst creating a real asset for your long term future. Fee banks are very saleable (there
are more buyers than sellers) and with the TaxAssist Accountants brand name, this could
add a premium to the value of the business when you decide to sell.
9. Additional Service Providers:
So that your business can be the ‘one stop shop’ for small businesses, we have a range
of branded partners including: Asset Finance, Independent Financial Services, Debt
Recovery, Company Formations, Employment Advice and Will Writers, amongst other
services. Many of these suppliers pay a commission to you, which can form a substantial
part of your revenue. These services are not only available to you, but for your clients to
offer their clients too.
Employmentor is available at a much reduced cost via TaxAssist Accountants, and offers
businesses a complete administrative tool for handling the recruitment and management
of their staff, whilst ensuring that they comply with all their legal requirements. They offer
an on-line service which allows access to all of the legal resources you (and any employer
clients you may have) will need. The website provides subscribers with an array of
templates, precedents, model letters and general procedural guidance on each stage of
the employment process, and is backed up by a telephone and email helpline staffed by
qualified lawyers who, unlike many call centre type competitors, benefit from their day to
day experiences as active employment lawyers.
24
It is a key part of the TaxAssist business model that your clients should pay you by regular
monthly payments. This makes a very significant difference to your cash flow and also
enhances client loyalty. It is not normally possible for small businesses to originate direct
debits. The Banks restrict this facility to larger companies and often impose stringent
security and financial requirements. Our supplier of the Direct Debit Scheme, CMS
Limited (a wholly owned subsidiary of London and Zurich plc), acts as an intermediary,
amalgamating the requests from a range of smaller users so that it becomes a large
originator and meets the exacting requirements of the Banks to originate direct debits.
Using CMS software you can arrange for the collection of direct debits from your clients
on a regular basis in addition to occasional irregular payments. CMS Limited collects the
monies due into a holding account and the proceeds are remitted to you on the day after
collection.
When you join TaxAssist Accountants you are joining a network with a visible, credible
brand. We have a bank contact scheme whereby we keep banks updated with all
franchisees, sending out your business card and introduction letter. We also keep in
regular contact with the Associations of Self Employed who can provide access to their
many trade members and potential clients.
10. Helpdesks:
All of the Support Centre staff are on hand if you need to talk through any issues or
queries. One of the main support functions that is available to you as part of the franchise
package is the technical helpdesk. This is manned from Monday to Friday 8.30am –
5.30pm, by individuals with a range of accountancy and tax qualifications and is available
to you and your staff. There is also a marketing helpline if you wish to discuss an idea,
advert, proposal or campaign.
As technology progresses the reliance placed on your IT increases which is why we have
researched a panel of recommended national IT support partners across the UK for you
to choose from. Should you prefer to use a local IT company you are free to do so. A
laptop and CCH software is provided as part of your franchise fee and CCH themselves
will be responsible for the installation and updates of their software, at no charge to you.
All in all a complete practice management system.
25
Achievements 2014
Smith & Henderson Awarded the 5* Franchisee
Satisfaction Recognition Award
2014
Smith & Henderson Continuous Improvement Award
2014
Smith & Henderson Best Franchise Award
2014 British Franchise Association
2014 Most Innovative Tax Team
of the Year ‘Winner’
2013 Best UK Accountancy Firm
Supporting Apprentices
2013
Smith & Henderson Best Franchise Award
‘Best Training & Support’
2013
Smith & Henderson Best Franchise Award
‘Best Overall Franchise’
2013
Smith & Henderson Awarded the 5* Franchisee
Satisfaction Recognition Award
2013 British Franchise Association, Franchisee of the Year Award
Finalist
2013 Association of International
Accountants ‘Winner’
2013 Unbiased.co.uk’s
Media Adviser Awards ‘Professional Adviser
of the Year’ Awarded to Jo Nockels,
Communications & Training Manager
26
2012 Smith & Henderson
Best Franchise Award ‘Best Large Franchisor’
2012 Smith & Henderson
Best Franchise Award ‘Best Training & Support’
2012 British Franchise Association,
Franchisor of the Year Award:
Selected Finalist
2011 Eastern Daily Press
Business Development Award Winner
2011 Best Franchise Award Best
Training & Support
2010 British Franchise Association
Franchisor of the Year
27
In 2010 TaxAssist Accountants were the British Franchise Association Franchisor of the Year GOLD WINNERS
TaxAssist Accountants faced tough competition from the seven other shortlisted finalists including household names such as Dominos and McDonalds. This award win followed two Silver place wins for the small business accountancy specialists. Winning an award for a third consecutive year at this prestigious event confirms that TaxAssist Accountants continues to be one of the major players in the Franchise world.
Karl Sandall, Chief Executive of TaxAssist Accountants, collected the award on behalf of the company from Brian Smart, Director General of the bfa at a gala ceremony held in Nottingham. Karl is justifiably proud of their success and comments “Being named as 2010 bfa HSBC Franchisor of the Year is extremely exciting and is recognition of how we've adapted our business and shaped our future plans for the benefit of all 180 of our franchisees. We provide them with the support they need, whatever and whenever it may be, to make their business as successful as possible."
"Judging the finalists was tremendously difficult as so many franchisors have shown innovative
ways in which to survive and prosper despite the economic downturn. TaxAssist clearly
demonstrated unique and exciting business success and is a deserving winner of the bfa
HSBC Franchisor of the Year Award.”
Cathryn Hayes, Head of Franchising, HSBC
"The affect of the recent economic conditions has been a constant threat for franchisors and
franchisees alike. However, it has been a delight to recognise and award some truly
outstanding franchisors for their strategic direction and support for their franchisees.
"By being named as one of the winners, the franchisors have been recognised as being the
best in industry for customers, suppliers and potential franchisees. It can also help further
motivate their own franchisees by recognising their hard work and dedication. “
Brian Smart, Director General of the bfa
28
“Being named as 2010 bfa HSBC Franchisor of the Year is extremely exciting and is
recognition of how we've adapted our business and shaped our future plans for the benefit of
all 180 of our franchisees. We provide them with the support they need, whatever and
whenever it may be, to make their business as successful as possible."
Karl Sandall, Chief Executive TaxAssist Accountants
“Just a quick email to say congratulations to everyone at TaxAssist for winning the Gold award.
I have spoken to current clients, potential clients and people I am networking with about this
achievement and they are all very impressed. I am so pleased that I chose to become a
TaxAssist accountant rather than try to start up on my own from scratch. Winning awards like
this confirms I made the right decision and it has certainly given me even more of a boost to
reach my targets. Very well done once again’.”
Ron Mansfield TaxAssist Accountants, Romford
“Many congratulations on the great achievement of the Gold Award. It is something that we in
the field have known for a long time that as a Franchisor you are Number One.
Best wishes to all at Norwich.”
Jonathan Berks TaxAssist Accountants, Royston
End of extract from UK Single Unit franchise prospectus
29
Next Steps
If you would like to take your interest further, you will need to contact David Paulson on 01603
447402 or david.paulson@taxassist.co.uk and if appropriate you would need to arrange to visit
us in the UK. The UK visit will involve Discovery Day presentations, covering the business
model, shadowing support centre personnel and meetings with the Directors to discuss the
opportunity in greater detail.
The visit may also include a tour of UK Franchisees and a visit to Ireland to meet with our
Master Franchisee to see firsthand how we have assisted them in setting up their operations.
Your only obligation is getting yourself to the UK, once here we will arrange your airport
transfers and accommodation whilst you are with us.
The discovery day and subsequent meetings are not a hard sell and there is no obligation to
join us after visiting. The sessions are a two way process to establish if we can work together.
Once you have visited with us we will invite you to conduct your own research on the potential
business within your territory whilst we both complete due diligence on each other.
We welcome questions on any issue connected with our Franchise as we want you to be
completely satisfied with our concept so you can feel confident and fully committed to our
business relationship. Feel free to contact us for any information you require. We look forward
to hearing from you.
top related