A franchise is all about authorization. For entrepreneurs and small business owners, owning a franchise offers them the ability and support to carry out the larger corporation’s core company offerings and commercial activities.

Suppose your restaurant is part of a franchise, or you own a group of individual restaurants that comprise a franchise. There are specific challenges that accompany keeping track of the financial records of this inherently unique business arrangement.

RASI’s complete suite of restaurant accounting services includes tools and resources for franchisees to simplify and streamline their franchise accounting tasks. For instance, RASI’s cutting-edge data consolidation processes — improved by standardized financial metrics and fully realized with our weekly payroll services — offer considerable advantages when keeping track of significant business expenses. That’s just one slice of the entire financial pie!

Let’s review some core principles and applications of franchise accounting basics, franchise accounting system benefits, and other insights surrounding franchise accounting. This process can be daunting for many franchisees, but with RASI’s expertise in your corner, you’ll be amazed at just how seamless franchise accounting can be!


Franchise Accounting Basics

Before digging into franchise accounting basics, it helps to define the two primary roles in a franchise business:

What is a Franchisor?

A franchisor is the “umbrella corporation” in the equation; the franchisor has the final say on company policies, working methods, and establishing the company culture.

What is a Franchisee?

A franchisee is the individual establishment given authority from the franchisor to conduct commerce – on the franchisor’s terms, of course.

In its simplest terms, franchise accounting represents the conventional, day-to-day accounting processes that a stand-alone restaurant (the franchisee) typically accomplishes. It is simply scaled up and customized to fit into a franchisor’s standard accounting practices.

Depending on the particular standards of a franchisor, franchise accounting varies between different organizations; for example, a Chick-Fil-A and a McDonald’s. Each of these franchisors has its own franchise accounting system. But all McDonald’s franchises adhere to the same corporate structure, just like all Chick-Fil-A franchises follow the company’s franchisor guidelines.

Restaurant operator working at POS system

Franchise Accounting System Benefits

Fortunately for franchisees, there are automated & efficient accounting systems in place to meet and exceed franchise accounting standards. Here are just a few franchise accounting examples where an integrated accounting system and service can provide value to a franchisee:

1) Prime cost controls: For franchise accounting, it’s critical to stay on top of prime costs – particularly in the current environment of hyperinflation and wildly fluctuating expenses. RASI’s franchise accounting tools seamlessly integrate with existing franchise POS systems, allowing managers to concentrate on the data provided within financial reporting rather than mundane administrative work – especially when implemented weekly.

2) Weekly financial statements: Weekly financial statements enable operators to adhere to budgets and grow their profitability with a weekly cash flow snapshot. Intuitive reporting has allowed our clients to become proactive rather than reacting to the previous financial period’s results.

3) Time-saving benefits of franchise accounting: One of our clients, a franchisor, saved over 25 hours per week with our franchise accounting resources, which permitted them to stay focused on other critical tasks like guest satisfaction.

Operator looking at tablet in restaurant

Getting Your Franchise Accounting Basics On Track

It’s not only essential to have a franchise accounting service that handles your current needs; with franchises especially, it’s helpful to have a system in place that anticipates growth and expansion. That’s exactly what our franchise accounting platform does – saving you time and money along the way!

Connect with RASI today and discover a different, more efficient way of implementing your franchise accounting practices. Whether you’re a franchisor looking to streamline franchisee efficiency, or a franchisee seeking to eliminate waste and optimize profits, we’re here to help!


Contact us today for practical, proven franchise accounting solutions or request a demo to get up and running in no time.