Franchise business to acquire a second location

Hello

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?

Thanks.

SA

 

 

 

 

Comments
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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 |