Franchise Business Review at the end of the financial year
Start the New Financial Year by Reviewing Your Margins, Turnover and Profit
The start of a new financial year is the ideal time for a franchise business review. As a business owner, it’s time to stop, review the numbers and ask an important question: is the business actually becoming more profitable, or is it simply getting busier? For many franchise operators, the day-to-day pressure of running the business can make it difficult to step back. Staff, rosters, rent, stock, suppliers, franchise fees, marketing levies, customers and compliance can quickly take over. But being busy does not always mean the business is performing well.
As we move into the new year, the 2026–2027 financial year, franchise and small business operators should take the opportunity to review turnover, margins, cash flow and overall profitability. Take time to refresh your strategy, review and continue to build
Did Your Franchise Turnover Grow?
One of the first questions to ask is whether turnover increased compared with the previous year. If sales grew, that is positive. But turnover on its own does not tell the full story. A franchise business can increase sales and still make less profit if wages, food costs, stock, rent, delivery costs, interest, franchise fees, or supplier costs have increased faster than sales.
A proper franchise business review should look beyond sales. The real question is not just whether turnover grew. The real question is whether the business became stronger, more profitable and more sustainable. Also, take the opportunity to reach out to other franchisees and see how they have travelled.
Review Your Gross Margins
Gross margin is one of the most important measures in any franchise business. If your margins have fallen, it may mean costs are not being passed on, pricing has not been reviewed, wastage is too high, discounts are reducing profit, or supplier costs have increased without proper control. For food, hospitality, retail, and service-based franchises, even a small change in margin can have a major impact on year-end profit. A margin review should consider whether your pricing is still right, whether your cost of goods has increased, whether wages are aligned with turnover, and whether the business is leaking profit through waste, discounts or poor systems.
Is Your Franchise Actually Making Money?
Many franchise owners work long hours and carry significant business risk, but do not always receive a fair commercial return. After paying wages, rent, suppliers, franchise fees, marketing levies, loan repayments, tax and superannuation, what is actually left for the owner? If the owner is not being properly paid, or if the business relies heavily on unpaid owner labour, then the financial model needs to be reviewed. A franchise should not just create turnover. It should create cash flow, profit and a return for the person taking the risk. Let’s review what’s helping you and trim the fat if you can.
Cash Flow Still Matters
Profit and cash flow are not the same thing. A franchise business may show a profit on paper but still struggle to pay the ATO, superannuation, wages, rent or suppliers on time. This can happen when tax has not been planned properly, drawings are too high, debt repayments are increasing, or working capital is under pressure.
The start of the 2026–2027 financial year is a good time to review your cash flow, ATO position, BAS obligations, superannuation payments and debt commitments. Getting on top of cash flow early in the year gives you more time to make changes before pressure builds.
Set Clear Targets for 2026–2027
Every franchise operator should start the new financial year with clear targets. These may include a turnover target, gross margin target, wage percentage target, cash flow target, debt reduction plan, tax payment plan and owner’s income target. Without these numbers, it is easy to drift through another year hoping the business improves. A practical franchise business plan for 2026–2027 should answer:
- Did turnover grow last year?
- Did margins improve or decline?
- Are wages under control?
What needs to change in the next 12 months? While franchises normally follow a model, profit leakage can still occur in the area of wages and rostering
Why a Franchise Business Review Matters
A franchise business review is especially important if you are considering expanding, refinancing, selling the business, restructuring debt or simply trying to improve profitability.
Banks, buyers and advisors will want to understand the business trend. Will want to know whether turnover is growing, whether margins are stable, whether profit is sustainable, and whether there are risks hidden in the numbers. The earlier you review the business, the more time you have to make changes. Use industry resources to identify trends and opportunities!
A small improvement in pricing, rostering, purchasing, wage control, stock management or cash flow planning early in the financial year can make a significant difference by 30 June.
Talk to Geoff at Gartly Advisory
At Gartly Advisory, Geoff Gartly works with franchise operators and small business owners to review their numbers, understand margins, improve cash flow and set practical targets for the year ahead. Whether you operate a food, retail, or service franchise, or a small business, a proper financial review can help you understand where the money is going and what needs to change. As we move into 2026–2027, now is the time to ask: Do you have a clear plan for the year ahead?
If you are a franchise operator or small business owner and want to review your turnover, margins, cash flow and profitability, visit Geoff at Gartly Advisory and book a franchise business review for 2026–2027. A fresh financial year is a good time to reset the numbers, refocus the plan and make sure your franchise business is heading in the right direction.
Book a Franchise Business Review with Geoff.
