Financial reporting for franchises
Compare every location on the same basis, then roll them up.
Quick answer
Franchise reporting has two jobs: comparing locations on the same KPIs, and consolidating results for the franchisor or a multi-site franchisee. That works best when every location uses a consistent chart of accounts. Tools such as Joiin pull each location's accounts together for side-by-side comparison and consolidation; Spotlight Multi is another option built for networks.
The franchise reporting challenge
Franchise networks often have dozens of locations, each a separate company or Xero organisation, sometimes on different ledgers in different countries. Comparing like with like needs consistent account mapping.
What to report
| Metric | Why it matters |
|---|---|
| Revenue per location | Spot under- and over-performers |
| Gross margin | Pricing and cost control |
| Labour as % of revenue | Usually the biggest controllable cost |
| Royalties and marketing fund | Franchisor income |
| Cash and debtor days | Early warning of trouble |
How to set it up
- Issue a standard chart of accounts to every location.
- Connect each location to a reporting tool.
- Map any non-standard accounts once.
- Publish a monthly league table and a consolidated pack.
Joiin has published a guide to franchise reporting.
Frequently asked questions
What software do franchises use for reporting?
Common choices include Joiin for consolidation and location comparison, and Spotlight Multi for network benchmarking.