Franchise Accounting
The specialty that franchisors ask for directly.
Franchise accounting is not generic bookkeeping with different numbers. It is specialized: royalty reconciliation against agreements, location-level reporting, multi-unit consolidation with inter-company eliminations, and compliance with what the franchisor specifies.
PMG is the official accounting partner for several major franchise brands across North America. Franchisees are sent to PMG directly. That is the proof point.
Franchisee Accounting
Your books must answer franchisor audits.
As a franchisee, your financial statements serve two masters: the CRA on one side, and your franchisor on the other. The franchisor's spec is not optional. PMG builds your books to answer both.
Multi-Unit Operators
Consolidated numbers hide location problems.
Many multi-unit operators track a consolidated P&L that shows system profit but masks which location is failing. One location can quietly carry the system while another bleeds; averaged together, both look fine. A single consolidated statement hides exactly the gap an operator most needs to see.
PMG builds location-level accounting inside the franchisor's chart of accounts, so the consolidated statement rolls from true location detail. You see the whole picture and the problem unit at the same time. That is the difference between "my system made money" and "I know which location to fix."
Consolidated statements are the business overview. Location P&Ls are the management tool.
Franchisor Operations
Your franchisees' books feed your reporting.
A franchisor network is only as strong as the accounting discipline across all franchisees. PMG is the official partner for several major brands. We build standardized accounting for franchisee networks so reporting is uniform and timely.
The Franchise Flywheel
Franchise accounting feeds the business at every stage.
The franchise cycle runs like this. A business becomes a franchisor and needs CPA statements to prove the concept to lenders and franchisees. PMG builds those statements. As the franchisee network grows, franchisees need reliable accounting, so the franchisor directs them to PMG. As franchisees scale and need financing, they come with strong books PMG has built, so underwriting is straightforward. After funding, franchisees need accounting for the expansion. PMG delivers that too.
One accounting partner across all three: franchisor growth, franchisee financing, and franchisee operations.
Questions, answered
What owners ask us about franchise accounting.
My franchisor requires CPA statements. Can you provide them?
Yes. Some major franchisors require annual CPA-prepared financial statements, and some require audits. PMG handles both. The requirement is determined by the franchise agreement and the franchisor's policies. If you have a requirement, bring the franchise agreement and we will build the accounting architecture to satisfy it.
Do you know my brand's chart of accounts?
If we are the official partner for your brand, we already run the system. If not, we map your books to your franchisor's reporting requirements. Most franchisors specify a chart of accounts or at least the reporting structure they need. The design conversation happens first; we build the books to match.
What does royalty reconciliation actually catch?
Royalty reconciliation compares your remittances to PMG's calculation of what is owed based on the franchise agreement's definition of gross sales. The most common gaps are undisclosed sales, misclassified expenses, or inter-company transactions that should not be in gross sales. Reconciliation ensures accuracy and flags problems before the franchisor's audit.
Can you take over mid-year if my current accountant is not working out?
Yes, but it requires a cleanup period. We audit the prior books and make sure they are right before the franchisor sees them. Franchise accounting has specific requirements; prior accountants sometimes miss them. A mid-year switch usually adds 4-6 weeks of work to get the foundation right.
If I own multiple locations, how do you track them?
Each location gets its own books and its own P&L, but all locations sit inside one consolidated accounting system. You see the location detail and the system total at the same time. The franchisor gets the consolidated view on schedule, and you can see which location is the problem immediately.
What is the difference between franchisee and franchisor accounting?
Franchisee accounting focuses on compliance with the franchisor's spec and royalty accuracy. Franchisor accounting manages revenue from franchisees (royalties, initial fees, area development fees), network-wide reporting, and franchisee support. PMG handles both sides.
Franchise accounting requirements vary by franchisor, jurisdiction, and brand. Requirements are specified in the franchise agreement and franchisor policies.
Get accounting built for franchise complexity.
One conversation about your franchise structure, franchisor requirements, and growth plans. Accounting that passes audits and gives you the numbers you actually need.
Fee-for-service accounting. No transaction fees, no hidden costs.