There's a lot involved with running a successful franchise, and even more at play when considering growth or expansion. Each quarter, our franchise experts provide the latest insights as well as ideas, resources and tips. We hope it helps you stay up-to-date with our franchise-focused content and understand the issues, challenges and opportunities facing this sector. Let us know what you think of this e-news! 

How to Establish Strong Internal Controls Within a Franchise

As a franchise owner, establishing and maintaining strong internal controls is key to mitigating financial and operational risk and maintaining profitably.

There are several ways to establish strong internal controls within a franchise, with most being fairly easy to implement. Paper checks are one great example. For most franchises, the employee in charge of accounts payable can easily write themselves a check. And if that same employee is also responsible for reconciling monthly bank statements, the theft may never be discovered…or discovered only after it’s too late. Eliminating paper checks from your accounting process is an easy way to avoid this threat altogether.

To help franchise owners take stock of their internal controls, we’ll highlight two key areas — inventory and deposit reconciliation — and explore ways to strengthen your franchise’s financial oversight.

"Having a cash flow forecast or projection can help franchise owners make more informed operating and capital spending decisions. RKL Virtual can help you develop the appropriate models and get a better handle on your cash flow — let's talk."

- Ryan Coccagna, Client Advisory and CFO Services Practice Leader  

Is Your Franchise Ready to Raise Expansion Capital?

An expansion is an exciting time for a franchise. There are new opportunities to discover, new markets to penetrate and new people to meet. Paying for the expansion? Considerably less exciting. Especially when it comes to raising money for the effort.

Taking on new debt or investors to raise capital for your franchise comes with a host of secondary factors that can impact your business for years to come. To even consider obtaining new capital, you must first have a firm grasp on your franchise’s financial performance and whether you can realistically satisfy the requirements of the new loan from your lender or investor.

We highlight four questions whose answers will help you determine your current readiness to seek new capital and identify any financial or operational elements you may need to shore up before moving forward. 

As a bonus, going through this exercise should provide some great insight into the overall financial health of your franchise and help you better understand its performance and ability to reach growth goals.

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