Franchise business to acquire a second location | AccountingWEB

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?







There are 4 comments. Login or register to view them.

I agree with the franchisor -

bernard michael |

What's in it for the franchisor?

Euan MacLennan |
Euan MacLennan's picture

Is first franchise profitable?

DMGbus |
DMGbus's picture

Thanks a lot for the

Towards excellence |