Between 2007 and 2015, Forbes reported that the number of Baby Boomer-led franchises grew by 6%. In fact, 29% of all franchisees reportedly fall squarely into the “Boomer” demographic. More seasoned professionals and serial entrepreneurs alike are considering opportunities associated with these “turnkey” operations, especially as the workforce continues to plug away well into what has traditionally been considered the “retirement” years. The word “audit” hangs over the heads of many independent business owners like a foreboding cloud; however, newly minted franchisees may not realize is that the franchisor can order an audit at any time. The importance of a professional auditing service provider in Rancho Cucamonga, like Whyte & Associates, cannot be overstated.
Our seasoned accountants and tax professionals, which include Enrolled Agents specially designated by the Internal Revenue Service, ensure that you follow both state and federal laws. Such compliance-oriented services put you in a favorable position to avoid an IRS audit, or to put forth the complete and correct information that satisfies the government’s needs in the unlikely event of an audit. However, our comprehensive collection, tracking, organization, monitoring, reporting, and review services also extend to the special requirements that are associated with franchise systems’ audits.
Generally, a franchise system would be nothing if not for its ability to retain consistency and uniform standards across its footprint. Each store should look, feel, smell, and exude other consistent characteristics regardless of if it is in California or Connecticut. The audit evaluates each franchisee’s compliance with those system-specific standards. Franchisors may also identify deficiencies and areas for improvement. Considering that your nest egg and contract may be riding on their findings, we want to ensure your store is in compliance with system standards, just like we ensure your business is in compliance with governmental agency tax law and obligations.
Partly, we can help you to get the detailed records in order. So, you are always prepared for the franchisor audit. A few of the items that may be requested include:
Do not risk being found in default of a franchise agreement. Contact us to schedule an appointment and stay ahead of audit requirements, whether you own a franchise or operate independently.
