Buying a franchise – we are here to help you make the right decision
Buying a franchise can be one of the most exciting steps into business ownership — but also one of the riskiest if you don’t fully understand the numbers behind the brand.
Let us help you in you when you are buying a franchise
Gartly Advisory are accountants who know the franchise sector and can help you on your journey to buying a franchise.
Here are the five key ways we help franchise buyers make confident, informed decisions.
1. Do you understand the brand that you are joining
The franchisor’s marketing materials often focus on big brand names, glossy photos, and optimistic projections. but those aren’t the numbers you should rely on.
We dig into:
• Actual startup costs (including hidden or optional extras)
• Equipment, fit out, working capital, and licensing fees
• The real total investment required
Look at how a current or new franchise business stacks up. Is it all hype, or are revenue projections on the mark? You need to know whether the numbers you’ve been given are realistic for your situation, taking into account your chosen franchise location and factors specific to your business and structure.
2. Let’s analyse the Break-Even Points – know what it takes to break even and beyond
As part of your Pre-Purchase Review when buying a franchise , you need to assess:
• Royalties (typically 4–8% of sales)
• Marketing levies (2–4%)
• Rent, utilities, and staffing
• Finance and loan repayments
Then we can assist you in calculating the break-even point — the sales you must achieve every week to cover costs and pay yourself a sustainable income. This is one of the most powerful insights you’ll receive before committing.
3. Do the revenue projects look realistic
When buying a franchise, Franchisors may provide revenue estimates, but actual performance varies by territory, customer demographics, competition, and operator skill. We help you:
• Compare projections with industry benchmarks
• Analyse the performance of similar franchisees
• Identify whether assumptions are realistic or risky
This stops you from relying on overly optimistic forecasts that could place your investment at risk.
4. What are the Financial Risks when buying a franchise — and How to Mitigate Them
Every franchise business has risk. Our job is to make sure you understand these before you sign up.
Common risks we explain include:
• High debt relative to expected cash flow
• Low margins
• Slow ramp-up periods
• Territory saturation
• Heavy reliance on franchisor marketing
We then provide practical strategies to reduce these risks, backed by experience from hundreds of franchise reviews.
5. Our Pre-Purchase Review outlines the answers to the questions that you need to consider:
• Will it provide the income you need?
- How long until you break even?
- What support will you get ?
- What are your reporting obligations
- How will you fund it?
- Staff costs etc
- How can you sell your franchise and what fees are incured
- What extra questions should you ask the franchisor or current franchisees?
What risks should you plan for?
Case Study: How a Pre-Purchase Review Saved a Client $180,000
Names changed for privacy.
Sarah was considering buying a franchise and approached us excited about purchasing a well-known food franchise in a busy shopping centre. The franchisor provided glowing projections suggesting strong profitability within 12 months.
Our review found a different story:
• The rent was 22% of projected sales — far above industry benchmarks
• Wage costs were understated by around $45,000
• Break-even required weekly sales that were historically unrealistic for that site
• The equipment finance terms offered by the franchisor’s partner lender were significantly above market rates
• Royalties were payable even during the ramp-up period
By analysing all inputs, we showed Sarah that she would likely face cashflow deficits of $180,000 in the first two years.
She walked away — and later purchased a different, more viable franchise with significantly lower risk. “Your review saved me from a huge mistake. I would have been trapped in a business that couldn’t pay me a wage.” — Sarah
If you’re thinking of buying a franchise — especially before the holiday rush — now is the perfect time to get the clarity you need. Reach out and together we can help you make the right franchise decision.
