Franchise business to acquire a second location
My client is operating a business under a franchise. He has just acquired one location and now his offer has been accepted for a new location. So he would have two 'branches'.
He is running the business under a limited company. My initial advice to him is to keep both businesses under one company and one bank account (also one VAT number): in our accounting system we can track the individual businesses. The franchisor has advised that he should open a new limited company for the new venture, as if one of the ventures were to fail, the other one would not be affected, as it would be under a different company.
Can I have some thoughts please?