5.0 out of 5 based on 41 reviews
Franchise Accounting
Standardized books across every location, with clear visibility into unit-level profitability, cash flow, and performance.
★★★★★“Since adding Alex with Stronghold Accounting for our bookkeeping, it has truly been a Godsend for our business. Alex cleaned up a difficult QuickBooks transition and became a game changer for our month-to-month bookkeeping.”Patty LeslieTampa
★★★★★“I like that you're helping me strategize, not just giving me numbers. There were still blind spots that you've been able to uncover for me. I didn't think that was possible.”JoelService-business owner
★★★★★“Alex and his team helped bring the books current and continue to provide monthly support while helping plan for growth.”Dr. MaloneLake Mary
★★★★★“Alex is sharp, detail-oriented, and genuinely passionate about his work. He explains the numbers clearly and helps business owners gain more control over their finances.”Baxter McCoyOrlando
★★★★★“Since adding Alex with Stronghold Accounting for our bookkeeping, it has truly been a Godsend for our business. Alex cleaned up a difficult QuickBooks transition and became a game changer for our month-to-month bookkeeping.”Patty LeslieTampa
★★★★★“I like that you're helping me strategize, not just giving me numbers. There were still blind spots that you've been able to uncover for me. I didn't think that was possible.”JoelService-business owner
★★★★★“Alex and his team helped bring the books current and continue to provide monthly support while helping plan for growth.”Dr. MaloneLake Mary
★★★★★“Alex is sharp, detail-oriented, and genuinely passionate about his work. He explains the numbers clearly and helps business owners gain more control over their finances.”Baxter McCoyOrlando
★★★★★“Since adding Alex with Stronghold Accounting for our bookkeeping, it has truly been a Godsend for our business. Alex cleaned up a difficult QuickBooks transition and became a game changer for our month-to-month bookkeeping.”Patty LeslieTampa
★★★★★“I like that you're helping me strategize, not just giving me numbers. There were still blind spots that you've been able to uncover for me. I didn't think that was possible.”JoelService-business owner
★★★★★“Alex and his team helped bring the books current and continue to provide monthly support while helping plan for growth.”Dr. MaloneLake Mary
★★★★★“Alex is sharp, detail-oriented, and genuinely passionate about his work. He explains the numbers clearly and helps business owners gain more control over their finances.”Baxter McCoyOrlando
What makes franchise accounting different
You do not choose your own chart of accounts. A franchise agreement usually dictates the reporting format, the categories and the deadline, which means franchise accounting is two jobs: producing what the franchisor requires, and producing something the owner can actually run the business from.
Where the money usually isIn our experience the two recoveries worth checking first are the royalty base and the advertising fund treatment. Both are recurring, both are percentage-based, and an error in either compounds every month it goes unnoticed. A single misapplied definition of gross sales can run for years before anyone reads the agreement closely enough to catch it.
The problems that only happen in franchising
01A mandated chart of accounts that hides your economicsThe franchisor’s format is designed for comparison across the system, not for your decisions. Follow it exactly and useful detail disappears into a required category. The answer is a chart of accounts that maps to theirs while keeping sub-accounts underneath.
02Royalty and marketing fees calculated on the wrong baseRoyalties are usually a percentage of gross sales, and the definition of gross sales is in the agreement. Whether discounts, comps, gift card redemptions and third-party delivery are in or out changes the number every month. Overpay quietly for three years and nobody refunds it.
03Reporting deadlines with real consequencesMany agreements require financials within a set window and treat a late submission as a breach. A close that slips is not just an internal annoyance.
04The initial franchise fee expensed on paymentIt is an intangible asset amortised over the term of the agreement, not a cost in month one. Getting it wrong distorts the first year and the balance sheet after it.
05Multi-unit owners with no unit-level P<hree locations consolidated into one set of numbers means a strong unit subsidises a weak one invisibly. Unit-level reporting is the entire point of owning more than one.
06Advertising fund contributions treated as marketing spendA required contribution to a system-wide fund is a fee, not discretionary marketing. Recorded together, the owner cannot tell what their own marketing actually achieved.
07Transfer and renewal costsBuying an existing unit, renewing a term or selling to another franchisee all have accounting treatments most owners meet once and get wrong.
What we handle for franchisees
The problem
What we do
Chart of accounts
A chart of accounts mapped to your franchisor’s required format, with the detail you need kept underneath it
Royalty reconciliation
Royalty and marketing fee reconciliation against the definition in your agreement
Franchisor reporting
Franchisor reporting produced on their deadline, in their format
Unit-level P&L
Unit-level profit and loss for multi-unit owners, alongside the consolidated view
Franchise fee
Initial franchise fee amortised across the agreement term
Advertising fund
Advertising fund contributions separated from your own marketing spend
Unit benchmarking
Benchmarking across your own units, which is the comparison that actually helps
Payroll
Payroll, typically the largest controllable cost in a franchise unit
Monthly close
CPA analysis of the monthly close
What we monitor for franchisees
Royalty loadCombined royalty and marketing fee load as a percentage of gross sales
Labor costLabor cost as a percentage of sales by category
Unit gapThe typical variance between a multi-unit owner’s best and worst unit
Software we work in
QuickBooks Online for the general ledger, with class or location tracking for unit-level reporting and operating-system data mapped into the books.
How it works
STEP 1Pull the requirements out of your agreement. The reporting format, the royalty base and the submission deadline are all set there, and they determine how everything else is built.
STEP 2Chart of accounts mapped to the franchisor’s requirements with your detail underneath.
STEP 3Foundation Buildout, particularly around the franchise fee and royalty base. The typical timeline is 2-4 weeks.
STEP 4Monthly close on the franchisor’s deadline, with unit-level reporting where relevant.
Proof
$784KAccounting misstatements identified and corrected, multi-location healthcare business
4 weeksTo reliable financial statements, after rebuilding nearly two years of activity
What it costsFranchise accounting is priced by unit count rather than by revenue, since each unit is a separate reporting obligation.
Pricing is custom and flat-rate. The quote reflects company size, industry, headcount, bank and credit-card accounts, locations, entity count, transaction volume, and any cleanup required.
See pricing →Pricing is custom and flat-rate. The quote reflects company size, industry, headcount, bank and credit-card accounts, locations, entity count, transaction volume, and any cleanup required.
For a multi-location healthcare business, Stronghold identified and corrected more than $784,000 in accounting misstatements, rebuilt nearly two years of activity, and delivered reliable financial statements in about four weeks.Multi-location healthcare business
Services franchisees usually need
See more services for franchisees
Common questions
Franchise questions
Can you report in our franchisor’s format?
Yes. We map the chart of accounts to their required categories and keep the detail you need in sub-accounts underneath, so one close produces both views.
Are we paying the right royalty?
It depends on how your agreement defines gross sales and whether discounts, comps, gift cards and delivery platforms are included. Checking the base against the agreement is one of the first things we do, and it is not unusual to find a discrepancy.
How should the initial franchise fee be recorded?
As an intangible asset amortised over the term of the franchise agreement, not as an expense when paid.
I own four units. Can I see them separately?
Yes, that is the main reason multi-unit owners come to us. You get unit-level P&Ls and a consolidated view.
Can you meet our franchisor’s reporting deadline?
Yes, and the deadline sets our close calendar rather than the other way round. Late submission is a contractual issue in most agreements.
Do you work with franchisors as well as franchisees?
This page is written for franchisees. Franchisor engagements are evaluated separately based on reporting, unit, and system requirements.
Do you prepare our tax return?
Stronghold handles proactive tax planning and works with an integrated tax-preparation partner for filing. We coordinate the year-end handoff so the books, planning, and return preparation stay connected.
Satisfy the franchisor and still see your numbers
Book a free discovery call.
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