Your own accountancy business with TaxAssist Accountants 2018 Franchise Prospectus

Transcription

1 Bingley, UK Your own accountancy business with TaxAssist Accountants 2018 Franchise Prospectus

2 Our mission By delivering unrivalled tax, accounting and business advisory services, we aim to become the trusted advisor and first-choice provider for small business. To dedicate ourselves to help our franchisees to build a successful, profitable and future-proof one-stop-shop business. Disclaimer: This prospectus is for information purposes only. We make every effort to ensure that the information is accurate and up-to-date, however all figures, quantities, amounts given as examples are approximate and for demonstration purposes only. The success of the franchise depends on the activity of the franchisee.

3 Step out from the crowd! TaxAssist Accountants has been empowering professionals to achieve their goal of running their own business since TaxAssist Accountants is the largest network of accountants focused on the small business market in the UK. We provide the opportunity for accountancy and finance professionals to develop their own profitable accountancy business and build an asset for their future. Now an international brand, we were founded in 1995 by a group of dedicated professionals based on a concept that was and still is fundamentally simple: to bring first class professional services to small businesses (i.e. sole traders, trusts, partnerships or companies with a turnover of less than 2million). Through innovation and franchising, we knew we could deliver superior services to clients and maximise growth potential for our franchisees. Franchising helps to minimise the risks and pitfalls usually associated with business start-ups by providing specific guidance for franchisees newly into business. In a world of sometimes impersonal online services, and observing how some of the best financial institutions have effectively transitioned from closed inward-looking surroundings to a welcoming customerfocused atmosphere, a large percentage of our global network is now operating successfully from shopfronts. As a consequence, brand awareness is growing, and their traditional fee base is complemented by clients attracted by the friendly, professional and unintimidating environment. As the number of self-employed and small businesses grow, this simple doctrine has proved invaluable. With this in mind we are continuing to attract and recruit high-quality franchisees. With locations across the UK, we continue to build a strong global network of TaxAssist Accountants with successful operations in Ireland and Australia. Our UK network now comprises: 203 franchised areas with over 290 shops and offices Supporting more than 69,000 small businesses and self-employed individuals With annual billings in excess of 45m. UK Growth July 2018 Fee bank 28.4m 31.2m 35.1m 38.9m 42.7m 44.6m 45.7m Clients 43,323 46,952 52,469 58,522 64,836 67,253 69,310 Sales 24.5m 27.2m 29.7m 33.7m 37.3m 39.6m 24.1m 3

4 Our concept We have developed an innovative business model that allows us to focus on a lucrative market of potential clients. Whether you have a business, or a financial background, or are an accountant already, we have opportunities nationwide to purchase new territories and existing businesses coming up for resale. The TaxAssist Accountants model is fundamentally simple; to focus on the supply of professional accounting, taxation, advisory and associated services to small businesses. Our definition of small business is a trading entity with a turnover of up to 2 million. This includes self-employed, sole traders, partnerships and smaller limited companies, as well as individual tax payers. Our shopfront strategy is based on making our services more accessible to the client base and to aid in the development of brand awareness. The small business sector has traditionally been ignored by larger accountants, and poorly serviced by smaller practices. Establishing a unique network that focuses solely on smaller businesses, we are targeting a market that has a need for our services. Operating from shopstyle premises, these locations make us more accessible. We pride ourselves on being at the forefront of technology, implementing innovative software applications to enable us to provide more advisory and value-added services. Our concept, along with the numerous awards that we have received, demonstrates that we are highly regarded as both an accountancy network and as one of the UK s leading franchisors. A franchise owned by its franchisees Our network of over 200 accountancy practices are 100% franchised, either whollyowned by or in partnership with our franchisees. We are also a franchisor that is partly-owned by its franchisees and new franchisees have the opportunity to not only join a successful franchise network, but also to buy a stake in the business. Our shareholders are as follows: franchisees 41.16%, Executive Directors 39.56%, founder family 9.91% and known partners/staff 9.37%. Franchisees are our largest shareholder. Data is correct as of 31 December

5 My own accountancy business with TaxAssist Accountants I was looking to work for myself using skills I had built up over my working career, but wanted the advantage of the support that a franchise offers. The vast reputation and success of TaxAssist gave me all the confidence I needed to join the network. Myself and my wife work together in our practice and I haven t looked back! Kam Sira Watford, Barnet & Borehamwood

6 Our marketplace Every small business needs to have an annual set of accounts prepared in one form or another, for taxation and other purposes. At TaxAssist Accountants, we understand our market. Very few business people have the knowledge or inclination to prepare their own accounts, hence the ever-increasing demand for accountancy services. In addition, there are people who need to complete their own Self-Assessment Tax Return who will usually need some help and will turn to a professional for assistance. With initial and ongoing training and support, you can provide that help and build your own business and financial independence. Small business owners seeking to establish and grow their business require a broad range of business services. Our franchisees provide a core suite of tax, accounting and advisory services. These are supplemented by recommended business partners including HR specialists and financial institutions, to allow small business to access a full range of business services. We were established on the back of the founder, John Westgarth FCA, realising that small businesses were often over charged by the larger accountancy practices and under serviced by the smaller accountancy practices. The proprietors of these businesses were not always proactively supported in looking for ways to reduce their tax liabilities and in helping them develop their businesses. He realised that a franchise network would work perfectly to service this market. Market potential The small business market is enormous in the UK with huge potential for future small business growth. According to the Federation of Small Businesses (FSB): 5.7 million private sector businesses at the start of This is an increase of 197,000 since 2016 and 2.2 million more than % of the private sector businesses are classified as small 3.4 million are sole proprietorships 1.9 million are small Ltd Companies 414,000 are self-employed partnerships 97,000 new businesses started in 2016 The business model of TaxAssist Accountants is to focus solely on this market and avoid clients that require audit. Focusing on small businesses has many advantages. It keeps work relatively simple and there is much more security in operating with small business clients, each with a modest average annual fee in that if some of the clients leave, the risk to the overall business is negligible. 6

7 The accountancy industry There is no escaping the fact that the accounting world is undergoing some of the biggest changes it has seen in decades. TaxAssist Accountants prides itself on being at the forefront of the changes facing the accounting industry, leading the way to ensure our accounting individuals and practices are the first choice for small business services and dedicating ourselves to help our accountants build a successful, profitable and future-proof one stop shop business. With a network of more than 290 highly visible high street shops and offices across the UK, everything is client-driven and our accountants are ideally placed to take advantage of the opportunities that change is bringing. Accounting in the cloud Cloud-based accounting software has revolutionised the way accountants operate and interact with their clients. To stay one step ahead of the competition, and to be at the cutting edge of new technology, you need to be able to offer a service that attracts and retains every kind of small business client. At TaxAssist Accountants, we continually research, evaluate and recommend the best software to suit the needs of our network and its clients. This is an ever-changing arena we monitor closely to ensure we offer first-class training and support to our franchisees and their staff with the advent of each new development. The implementation of leading cloud-based technology has enabled our network to increase efficiencies and develop even stronger relationships with their clients. Making Tax Digital Many software changes are linked to Making Tax Digital for business, a Government project aimed at putting tax information together in one online place. Intended to bring the UK tax system into the 21st Century, by providing businesses with a modern, streamlined service to keep their tax records and provide information to HM Revenue & Customs (HMRC). All the research shows that business owners will need their accountants more than ever before. The Federation of Small Business, The Forum of Private Business and the ACCA all believe that small businesses will not find these changes easy to manage and will rely on their advisors to support them. At TaxAssist Accountants, we ve spent a great deal of time training and developing the right support services to help our accountants support small businesses through this period of change. HMRC will not be offering software to help clients report quarterly, so we have already partnered with Intuit QuickBooks to help make managing accounting records easy. Client advisory services Not surprisingly, the nature of client advisory services is evolving to take technological changes into account. This means our industry needs to be adding new services to their practice portfolio not only to stand out from the crowd, but because clients now expect their accountant to offer an enhanced service, including business support and advice. 7

8 As advisors we need to be more than good accountants. We work alongside our clients, building relationships, helping them to better understand their business and supporting their informed decisions. Advisory is not about selling dashboards, forecasts or apps apps don t provide advice, we do! At TaxAssist Accountants we care about the success of our clients businesses and our current client advisory services include tax advice, bookkeeping and management accounts, additional service providers and supporting our clients to achieve their goals. Our Trustpilot rating reflects this, with feedback received from clients on a daily basis. General Data Protection Regulation General Data Protection Regulation (GDPR) intends to strengthen and unify data protection for all industries, including accounting. It became enforceable on 25th May 2018 and means that Data Protection Authorities will have the power to enforce much more severe penalties for breaches of personal data. The legal and technical changes involved with being GDPR-compliant are huge, and require major changes for all companies at an operational level. All businesses, no matter how small will be affected by this change in data protection law. TaxAssist Accountants has ensured that our Franchise Support Centre and accountants in our network are fully GDPR-compliant. 8

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10 The franchise industry We know that franchising is the most successful way of starting a business, but don t just take our word for it. Franchising is a successful method of business expansion and the industry itself continues to grow in the UK. It is seen as a safer way to start up a new business. The 2015 British Franchise Association/ NatWest Survey which remains the UK s leading survey of the current state and dynamics of franchising highlighted the following: 15.1bn Estimated turnover of the franchise sector. 44,200 Franchised units now operating in the UK. 901 The number of active franchise systems. 49 The average age of a franchisee. 91% of franchisees who rate their relationship with their franchisors as satisfactory. 60% of franchisees operate from a shop or retail premises. 97% of franchisees report profitability. 38% of franchisors also have an overseas operation. Multi-award winning franchise TaxAssist Accountants has an enviable reputation in the franchise industry and we have won many awards for the support we provide to franchisees. We have been Gold, Silver and Bronze winners of the British Franchise Association/HSBC Franchisor of the Year Awards and were Finalists for the 2018 Franchisor of the Year Award. In 2017, 134 TaxAssist Accountants completed a Franchisee Satisfaction Survey conducted by independent research agency Smith & Henderson. Our benchmark satisfaction score was 10% higher than the industry average. As a result, we were awarded 5 star franchisee satisfaction, one of only four franchisors to have received this for five years in a row. Elite Franchise Magazine published their Top 100 rankings in 2017, which celebrates the greatest franchises the UK has to offer, with TaxAssist Accountants coming in at number four. One third of franchisees employ 10 or more staff. 10

11 British Franchise Association (bfa) The bfa s remit is to develop and continuously improve the standards of good practice in franchising and to accredit franchisors who meet these standards. The bfa represents some 346 UK franchise brands each vetted against a strict code of business practice. TaxAssist Accountants is a Full and long-standing member of the bfa and fully endorse their code of ethics and operate in accordance with them. Karl Sandall (Group CEO), David Paulson (Senior Manager, Global Franchise Recruitment), Richard Chatten (International Support Manager) and Nikki Haythorne (UK Franchise Recruitment Manager) are accredited bfa qualified franchise professionals. The Qualified Franchise Professional (QFP) is the formal recognition of professional knowledge and experience in franchising. It demonstrates understanding of the complexities and best practice in franchising and the investing of time to continuously develop understanding. The QFP has been specially developed for people working within the franchising industry who want to demonstrate their experience, understanding and ethical approach to franchising. As a standards-based franchise qualification built upon the ethics of the bfa, this qualification is open only to principals or employees of bfa member organisations. This further strengthens the value of the qualification and underpins the vital importance of best practice and ethics within UK franchising. 11

12 My own accountancy business with TaxAssist Accountants Returning to work after maternity leave, I realised it was very difficult juggling home and work life with the pressures of working overtime and monthly deadlines, and I just thought... I need to work for myself to have more flexibility and freedom. I now work closer to home. I open the shop 9-5, I rarely have to work overtime and I don t work weekends. It s so much easier to juggle home and work life. I m having so much more time now with my family. Taking on this franchise has just worked for me. Cheryl Hopkins Nuneaton, Warwickshire & Tamworth

13 Who do we look for? Do you have a strong commercial and/or financial background? If so, the TaxAssist Accountants model may appeal to you... We look for people who are capable of setting themselves up in business, but see the value in the brand, training, support and systems that investing in a franchise with TaxAssist Accountants brings. Most franchisees join us with a recognised accountancy qualification, typically, ACA, ACCA, CTA, AAT, ATT or CIMA and have a mix of industry and practice backgrounds, but you don t have to be an accountant to join us. We are very selective on who we award a franchise to. Franchisees who are not qualified accountants will come from senior management positions within the banking/ financial services sector and will need to show existing financial acumen. Like running your own business, running a franchise requires hard work and commitment. We provide the proven systems, the business model and the experience to run the business well, but the model also relies on you to make it work by introducing your own personality, energy and initiative. All franchisees, if not a UK citizen, will need to provide evidence that they have the right to work in the UK for the duration of the Franchise Agreement, for further information please visit: overview, or contact the Recruitment Department for more clarification. To successfully operate a TaxAssist Accountants franchise, you will need to demonstrate high levels of: Commercial awareness Business acumen Energy Motivation Communication skills Discipline to follow a proven, successful business model 13

14 What can you achieve? By following the business model and taking a proactive approach to marketing in your territory, you should be attracting clients at a considerable rate. Client acquisition will be facilitated by your shop front presence, your marketing and our national activity. Networking activity will also contribute to help you grow your fee bank. The shop provides the business with a professional appearance where clients will walk-in and also gives you the opportunity to encourage referrals. The visibility of the shop combined with your passion for your business, enthusiasm for providing high quality service and hard work to drive the business forward will be the key to your success. After five years, depending on your own ambitions, it is possible to aim for 400+ clients with a turnover of 300k upwards. Full business planning support is provided to help you gain an understanding of what could be achievable for you. Franchisees following the model should be operating on the 1/3 split where 1/3 of the fee income covers your accounts production staff, another 1/3 covers the other business operating costs and the final 1/3 is pre-tax profit. Franchisees embracing efficiencies can increase profitability to 40%. As well as the profits that you should earn whilst you are a franchisee, you are continuing to build an asset for yourself with a strong sales value. The clients you engage belong to you and are yours to sell when the time is right for you to exit TaxAssist Accountants. A well run accountancy practice generally has more buyers than sellers and the TaxAssist Accountants brand is proven to add value the current industry average for accountancy practices is times annual billing whilst our franchisees are achieving multiples of 1.3 times annual billing. We do not pretend that these figures are easily achieved it requires real effort, enthusiasm and the following of our business model but we know that this level of success can be achieved and in some cases, is exceeded. Please note, these figures are for illustration purposes only and are not a guarantee of earnings. Revenue and business growth is dependent on activity. Our business model involves certain activity requirements including marketing, networking and general business development. Month 12 Month 24 Month 36 Fee Bank 68, , ,036 Number of Clients The median performances of the top 25% of franchisees who have joined TaxAssist Accountants in recent years. 14

15 Franchisee case study A featured case study from one of our franchisees. Nadeem Iqbal Walthamstow & Palmers Green Why did you go down the franchise route? And why did you choose TaxAssist Accountants? It had always been my dream to start my own business. I had tried many things to start a business and very soon realised that I couldn t do it alone. I needed a team to help me along, with a well-proven and successful idea, a marketing plan and so on the list was exhaustive and time was short. Then I came across TaxAssist Accountants a solution for all of my concerns. The reason I chose TaxAssist Accountants was their transparency and initial support. The main thing I liked was the freedom of choice given to me on the discovery day. I was presented with all the facts and figures, pros and cons and was left to make my own decision no hard sell. I was given a list of existing franchisees to contact to find out more about their experience and received 100% satisfactory feedback. This was the level of support and the network I was searching for, and I made my mind up in five days after the first click on the TaxAssist Accountants website. What did you do before taking up the franchise? I had no experience of running my own business as I had always worked as an employee. I worked for a bank in Pakistan for four years before moving to the UK. I worked for Dixons Retail Group for six years as a sales person before joining the TaxAssist Network. I got my first Degree in English Literature from Pakistan and my second Degree in Accounting & Finance from Kingston University in After my degree in Accounting, I worked for a couple of other companies as an Accounts Assistant. 15

16 How did you raise the finance? After looking at my business plan, I realised I required nearly 51,000 to start the franchise. I managed to borrow 30,000 from family and friends, and I borrowed another 25,000 from HSBC. I personally believe, if you are determined, and you have a commitment to achieve your goals, then the resources you need will come to you. What training and support did you receive initially and ongoing? I had a little knowledge of accounts and had worked in a bank, but I had not run a business before. I got six weeks extensive training from TaxAssist Accountants, which equipped me with all the necessary tools and my sales background helped me in closing down a sale. Now I am keeping myself up-to-date with the bi-annual technical updates, TaxTV and some other TaxAssist training days, but I mainly concentrate on my business and personal development. What is a typical day for you as a franchisee? I leave my home at 8am every day for the 30 minute drive to my Walthamstow office. I host a staff meeting at 8:50am and go through our day-schedule and any other matters. I check my s and respond accordingly. Then I do some work on marketing, either on existing plans or making a plan for future campaigns, a bit of social media activities and other internal management work. I also check my assignment system for all team members to see if something urgent is coming up. All of my staff are trained to take client appointments and handle new sign ups, but I also make myself available throughout the day if they have any questions. When I first started the business I was more involved with direct client meetings, but now I just take meetings occasionally and spend more time on business development and self growth. At 5.30pm all of the team meet again for a quick end of the day discussion. What challenges have you faced? Entrepreneurship is full of challenges and excitement. The main challenge I faced initially was managing my business and my staff. I received full support from TaxAssist Accountants not only on the technical side but also on the business development. Has becoming a franchisee changed your life, if so how? Becoming a TaxAssist Franchisee has changed my life in many ways. I am not only financially well off, with a better lifestyle, but also now have a purpose in my life. I am having a more active life and have a real sense of achievement. What marketing/promotional tools do you use to grow your franchise? The main marketing tools include the brand itself, my shopfront, online presence, daily website blogs and monthly newsletters. All of them are built into the TaxAssist model which leaves me very little to do. I simply follow the TaxAssist Marketing toolkit, along with some regular posts to social media. I am planning to run a local blogging website in the near future. What differentiates your franchise from the competition? Personalised and tailored services for clients differentiates my practice from competitors. The key factor is listening to clients. When they come to you, mostly they are confused and come with a problem which they cannot sort out themselves, so listening to them carefully and providing the right solutions for their needs is key for me, to winning and retaining them. I do not compromise on quality 16

17 My own accountancy business with TaxAssist Accountants It had always been my dream to start my own business, but I realised that I couldn t do it alone. I needed a team to help me, along with a well-proven and successful business model. Then I came across TaxAssist a solution for all of my concerns. My business has far exceed my expectations and I now operate from two shops to cope with demand with more expansion planned for the future. Nadeem Iqbal Walthamstow & Palmers Green

18 of service which clients are happy to pay for. Secondly, I am blessed with a strong and passionate team who are dedicated to helping my clients. In your opinion, what makes a successful franchisee? In order to become a successful franchisee, first of all you need to trust the TaxAssist Accountants' business model. The beauty of this model is you do not have to do anything but follow the step by step guidance and the model itself. I would recommend not trying your own ways of doing things, just follow tried and tested rules and you will succeed. What are your plans for the future? After the successful establishment of my first office, I am planning to expand my existing territory and open two more outlets. I am also planning to invest in new territories around the area by opening more shops within three years. Would you do it again? Starting my own venture is the most exciting thing in my life and I would do it again if I needed to. I have now introduced others who have joined and are enjoying being part of the TaxAssist Accountants network. Secondly, you need to develop yourself by investing time and money on your personal growth. Learning self-management is more important than learning business management because as a small firm you are the business. Last but not least is the team. All successful people have not achieved success alone. If you build your team with motivated, self-disciplined and passionate staff then you are well on your way to success. Do not hesitate to invest in staff welfare and training. What advice would you give to someone thinking of buying their first franchise? We are all great dreamers but great assassins at the same time. We kill our dreams and we do it more regularly than we're willing to admit. The house we were going to build or buy but never did. The dream trip we were going to take but never did. The business we were going to start but never started. The entrepreneurial life is meant to be an enabler of dreams. So if you have dreamt of being an entrepreneur, do not think too much, just act now. 18

19 Making a difference Our emphasis is to support small businesses by offering a proactive service that represents real value for money. TaxAssist Accountants is championing a Buy Local campaign aimed at encouraging consumers and local businesses to come together and support each other. We feel strongly about supporting local small businesses who need the right levels of assistance. We are advising businesses to manage their cashflow correctly and giving further recession beating tips. TaxAssist Accountants is also supplying small businesses that have visible premises with window stickers in order to send the message out to the general public. Whilst we are a network of accountants with national coverage, each TaxAssist Accountant is a small local business in their own right. They only trade with local businesses and are very much a part of the community. The small businesses we have spoken to are really pleased to support this campaign by placing the stickers in their shop or office windows. The Buy Local campaign raises the profile of our franchisees in their local area by adding real meaning to the Small Business Champions tag line that we operate. The campaign provides franchisees a great opportunity to meet independent shop owners who are our target market, and gain momentum and support for local press and radio coverage, as there is a serious amount of support for shopping locally. This campaign is not about TaxAssist Accountants, it s about our clients, but in doing this campaign we gain positive profiling of the local accountancy practice and enables us to pick up clients on the back of the goodwill created. With our focus on Buy Local we are in a position to engage with local businesses. Franchisees benefit from combining local relationships with the small business community with our award-winning franchise support. 19

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21 The franchise package We breakdown what our franchise package includes, such as licence, support, marketing, IT and more... We are with you throughout your journey offering comprehensive in-house and bespoke training, and full technical, marketing and business development support for you and your practice. Licence The licence grants the right to trade under the identity of TaxAssist Accountants for the duration of the Franchise Agreement. Support The benefits of franchising are that you are a self-employed individual benefiting from an established support infrastructure and a committed brand development strategy. The extent of the support you will receive from TaxAssist Accountants we believe is second to none. This is comprehensive and comprises of training, marketing and technical helpdesk for accounting, tax, software and human resources. In addition to this, you will benefit from field visits from our Franchise Development Managers, Directors and our Technical and Training Teams, as well as ongoing training to accommodate Continuing Professional Development requirements from the accounting institutes. The concept of network development and best practice is very important to us and we have a number of arenas where the focus is on the franchisor/franchisee relationship. These include Innovation Groups, Master Classes, Regional Meetings, Franchisee Forums and an Annual Conference. These activities allow franchisees to express themselves and make operational recommendations, and they provide us opportunities to further build relationships with the network. All of the Support Centre staff are committed to supporting the franchise network and their clients with no other business interests to take their focus away from the importance of assisting the network. Look at our competitors offerings closely to our own, both on an initial basis and ongoing, because we feel we have a fully comprehensive offering and the best on offer in the UK. Training We provide 43 days training starting off with a six-week intensive induction training course (including one week s home study). This covers all aspects of the TaxAssist Accountants business model and prepares new franchisees for trading as a TaxAssist accountant with a wide range of accountancy, tax, software, sales and marketing topics. It is designed and delivered by our in-house team of qualified accountants and trainers in conjunction with specialist training partners. Through this partnership, we are able to ensure that materials are up to date, directly relevant for our network and of the highest quality. We pay for all meals and accommodation during the course and ensure you have the opportunity to meet and really get to know all 21

22 staff in the Support Centre. These staff members are your staff. During the initial sixmonth period, further shorter training modules are delivered covering Limited Company issues, corporation tax, payroll, guidance on completing your own accounts, planning tools, human resources and staff recruitment and further software training. We are also proud to have our own TaxAssist Training Academy, which allows us to provide new training modules covering a wide range of technical and general management skill topics. The TaxAssist Accountants Training Academy provides bespoke training courses to Franchisees and staff all over the UK. The Training Academy fee of 60 pcm per territory covers all your ongoing training requirements. Additional courses are charged at nominal rates. The detailed Manuals form the basis of your training reference material and are explained fully during the training programme. All the manuals are available on our support website. Marketing With TaxAssist Accountants, your business will have the marketing power of a global brand. Our proven lead generation service delivers the right prospects to grow your fee bank, while your own responsive website and Google Ads campaigns increase your visibility locally. We ve made significant investment in our online presence to cater for mobile and tablet device visitors, including fully responsive websites provided by us and a mobile app with various calculators and content. We have successfully undertaken our first TV advertising campaign for the network in 2018 (stills pictured right), which has significantly boosted all marketing activities. To kick-start your business we provide you with an initial marketing campaign and 25 free leads from our lead generation activities (don t worry these won t all be delivered 22

23 in your first month!), and we also pay up to the value of 500 for your first year subscription to a networking group of your choice. The TaxAssist website attracts thousands of unique visitors every month, over 500,000 visitors in the last year alone. Whilst we are proud of our website exposure it would be vanity to use this measurement solely to determine the strength of our website presence and effectiveness in generating business for our franchisees. Our key metric in determining the success of our marketing activity is to measure how many qualified leads the website generates and in turn how many of these qualified leads turn into business for our network. We speak to every potential client and qualify whether there is an opportunity of business before passing that lead to a franchisee, thus sifting out at the beginning those enquiries that will never progress. Without a qualification process, our franchisees would be inundated with lead enquiries wasting time that we believe would be better spent on producing fee charging work. Other franchisors claim high levels of sales leads from their marketing activity but only convert 1 in 20 of these leads into business. We don t want franchisees having to follow up 100 s of leads only to convert 5 into fee paying business. Our unique lead generation minimises the franchisee involvement and our franchisees currently report a high 1 in 2 conversion rate and this delivers significant business each and every year to our network. For every qualified lead provided to a franchisee there is a 55 contribution to the Brand Awareness & Client Acquisition fund (BACA), although the first 25 leads are free as part of the franchise package. These leads are delivered year in year out through our unique marketing strategy. The lead charge is recycled into the BACA budget to provide further marketing benefits for the whole franchise network. The purchasing of leads is fairly common in the accountancy industry, but generally attracts a much higher charge per lead, and do not come close to converting at the same levels as our system making it a costeffective way for franchisees to gain new business. We re-invest the contributions to deliver more leads. From our monitoring, we have calculated that the average annual client fee for the basic accounts and tax return work is approximately 700 (plus VAT), so the service should pay for itself many times over. Also, remember that once you have built up a substantial client base many of your new clients will come from referrals and recommendations from existing ones. Clients stay with us on average for eight years. Our unique marketing strategy has been carefully crafted over many years and has won several industry awards. Effectiveness is shown by the network recording that 2 of the top 3 sources of new business come directly from this blended mix of activity. Technical support and helpline TaxAssist Accountants is a successful business that has a real understanding of the tax, accountancy and bookkeeping services needed by small businesses in the UK. The technical support we offer our franchisees is extensive. We offer a technical helpdesk which is staffed by many qualified accountants and experienced support staff covering bookkeeping, accounts, tax, VAT, payroll, National Insurance and tax investigation and software. In the early days of operation this back-up will be invaluable, and the continuing help and advice will benefit your practice as you take on staff who are also entitled to use their help. 23

24 Initial software We provide a suite of software products as part of the franchise package designed for a modern and efficient accountancy practice. This includes practice management, accounts, bookkeeping and tax compliance, as well as planning software. Being part of the TaxAssist Accountants network means that you benefit from our global group discounts which we have agreed with all of our specialist providers. Full training, support, installation and updates are provided on an ongoing basis. The franchise fee covers the first year s payroll software, 12 months use of the online learning facility, 3 month s usage of the TaxCalc, Practice Ignition and Receipt Bank. Business acceleration and nurture programme This is a holistic induction and monitoring package that is designed to help you set up parts of your operation prior to the training course. The programme also monitors your business development through the first six months and comprises further training at months two, three and six. The follow-up training is a mix of technical, general management and business plan review to track the progress of your business. IT equipment and maintenance package We have a single ISO27001/9001 certified IT partner who supply a wide range of services and products including hosted desktop and hardware solutions which are tailored to franchisee needs. As part of the franchise package, a business-quality laptop and peripherals, as well as six months of the remote hosted desktop and Office 365 E3 are included. This solution has been created to ensure a minimal amount of your time is used on IT, everything is compatible and just works out of the box. Support Site A wealth of useful information is contained on our easy to use internal support website. The Support Site forms the blueprint for managing and developing a successful TaxAssist Accountants practice. It offers advice and guidance, allows you to order stationery, adverts, and book into training sessions to name but a few features. This website has won three business awards for the way we support our franchisees 24/7. Competitor analysis report Some thorough research into your competitors, their services and more importantly, how they look after their customers, will provide you with valuable information that will help your business become successful. A Competitor Analysis Report will highlight your competitors strengths and weaknesses. It will also tell you how to use the information to win more customers and keep the ones you ve got. 24

25 Website and address All new franchisees are set up with and their own website for you to personalise with information about you and your local contact details. We administer and maintain this for you. Business stationery A starter pack of stationery is provided, including letterheads, envelopes and business cards, fully personalised with your details. A comprehensive initial starter pack will be provided, including personalised corporate brochures, marketing leaflets, etc. HR and employment package Employmentor We provide all franchisees subscription to Employmentor. This service provides you with comprehensive HR support for all your employment needs and more, and is paid by us for you. Free set-up on Direct Debit system It is a key part of the TaxAssist business model that your clients should pay you by regular monthly payments. This makes a very significant difference to your cash flow and also enhances client loyalty. Telephone answering service In the first year of your franchise you may be working on your own or have few staff members. In order to ensure a professional and corporate response to clients and prospective clients, we are pleased to provide the services of a personal answering service for either a full year s service or 200 messages whichever comes first. Each TaxAssist franchisee will be given the names of two or three PAs who will work for them and answer their calls and forward their messages either by , SMS or Fax. Anti-money laundering compliance As part of the franchise fee, you are provided with your first year s membership fee to AMLCC Ltd, who provide online Client Verification and The Complete Anti-Money Laundering Guide for Professionals. The Guide steers you through the process of client due diligence including electronic verification and automatically classifies the client s risk level. TaxAssist telecoms system To get you up and running from day one, we have included a single license for the TaxAssist Telecoms system for a 12-month period. Included in this you will receive a local telephone number (from a choice of 10), an IP phone with power adapter and the required software pre-installed on your laptop. This service works seamlessly with the telephone answering service and can easily be expanded to include additional licenses and phones and the software can be upgraded for features such as conference calling. Out of the box voic -to- is enabled, the TaxAssist on hold music is loaded and all calls to local, national and mobiles are free. This service enables you to take your number with you as you move into a shop with a minimum of fuss and is easy to expand as you grow your TaxAssist franchise, even between multiple locations. 25

26 Franchise package summary What you receive for your initial investment for a new territory or franchise resale. New Territory Resale Licence to operate a TaxAssist Accountants franchise business Exclusive territory Technical helpline for you and your staff, providing support on accounts, tax, VAT and payroll Starter pack of personalised business stationery including letterheads, envelopes, business cards and a pull-up stand Starter pack of promotional material including personalised corporate brochures and marketing materials Competitor Analysis report Your own personalised TaxAssist Accountants website and address Support in finding suitable premises and branding premises Ongoing support and advice covering all areas of the franchise Business accelerator and nurture programme Training Package including an initial 6-week intensive training course (43 days training in the first year) and follow up training at months 2, 3 and 6 Employmentor service providing you with HR advice Operations manuals 5-year Franchise Agreement with the right to renew Highly informative Support Site access Direct Debit system set-up Award-winning support and training for you and your staff Access to a network of preferred suppliers Selection of relevant course materials and books First year s attendance at the Annual Conference 26

27 New Territory Resale Whillans Tax Table All accommodation and meals for your initial training course and follow-up training at months 2, 3 and 6 Lasting Power of Attorney IT equipment including laptop (with 3-year next day warranty), docking station, monitor, secure USB drive, keyboard and mouse. Office 365 E3 and Hosted Desktop with automated backup and remote support for 6 months Initial Marketing Campaign including 25 free leads Payroll software for the first year Optional - additional cost 3 months free usage of TaxCalc, Practice Ignition and Receipt Bank First year s Membership to AMLCC (Anti- Money Laundering Compliance service) First years Membership to a networking group of your choice Telephone answering service for the first year First year free for the TaxAssist Training Academy 12m single license for TaxAssist Accountants Telecoms system 12m free fee protection (to assist your clients during HMRC investigations) 27

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29 Franchisee case study A featured case study from one of our franchisees. Ali Redwood Portishead and Clifton, Bristol Since joining TaxAssist Accountants in 2010, Ali Redwood has successfully grown her practice from an office in Portishead and, in summer 2016, a shop in Clifton in Bristol, where she and her team of five staff look after over 250 clients. Here, she shares her experiences of running her business. Having started my working career in a bank, I then progressed into various managerial roles culminating in running my family business alongside my husband, explained Ali. We had a construction firm which, over a period of 12 years, we developed from a small business turning over 80,000 to a medium-sized company with annual sales over 5million and employing 80 people. This experience equipped me with sound knowledge of accounting and finance skills required for small businesses, especially those that wanted to grow. It also gave me real passion and joy in running my own business and this stayed with me when I moved on to my next position as a Finance Manager covering internal investment. As I grew tired of corporate life, I started looking at options to start my own business again. Owning a TaxAssist Accountants franchise appealed to me, as I valued the ongoing support and readymade systems which would fast track my business. I didn t want to be 'just an accountant'. After attending a TaxAssist Discovery Day, it was great to realise that I was actually expected to run the business, employing accountants to do the operational side. This was exactly what I wanted and what I was looking for. For my research, I did a lot of reading up on the franchise and spoke to many franchisees to hear how their businesses were going. I also completed marketing and financial business plans. I was lucky in that I had a decent personal pension and was able to utilise some of this for start-up finance. I also found my bank, who understood the benefits of franchising, were very supportive and able to offer me a 29

30 competitive loan for the balance of the funding I needed. A typical day for me is a mix of meeting with new and existing clients, managing my staff, supervising work and networking. I joined several networking groups, some mixed and some women only. Having moved to Bristol to start my business, I knew no-one and the support offered by networking was invaluable. I no longer network as much, but maintain regular contact with female friends I met via networking. The support from the franchisor and fellow franchisees has been amazing and helped me set up the business. We are not in competition with each other, due to our exclusive territories and it gives us a real opportunity to work together and support each other. You tend to find that you have your own business but you are not on your own. My staff get great training from the courses provided and I get the benefit of on-going great marketing and operational support. that the franchise you are looking at works for you in this way. By speaking to other female franchisees, you can understand if this will work for you. The business is doing well and growing at a good pace. The main areas where I invest most of my time are business and team development and improving the customer experience. It took some time to establish, but I now have an exceptionally good team in place, who are now taking on responsibilities with managing clients. This frees up my time to develop the business. I hope to open a third premise within the next three years. I feel that I am now building an asset for a comfortable retirement, which I would not be in a position to do, had I remained in employment. If you asked me if I would do it all again the answer is definitely yes! TaxAssist provides a comprehensive initial six -week training course, followed up by further training days at months 2, 3 and 6. This is complemented by onsite visits and of course the Support Team are available to chat to on the technical and marketing helplines. If you are thinking of buying a TaxAssist franchise, I would advise you to remember that it is a marathon and not a sprint. It takes time and hard work to grow, but I now have a solid business. Listen to the advice and training given to you by your franchisor. I feel it is vital to use the tools, systems and support available to you to ensure you achieve your goals. The main advice I would give to anyone looking to invest in a franchise more generally, is to make sure you have a great franchise. They need to have a solid track record and allow you to contact as many of their franchisees as you can when researching your chosen area. If you are looking to build a franchise business around your family, it s vital 30

31 Investment required A breakdown of the estimated start-up costs and ongoing fees when joining as a franchisee. Franchise Fee (new territory) Initial sum (excluding VAT) 36,950 Additional set-up costs In addition to the Franchise Fee you will also need to consider the total investment. This very much depends on your geographical location, whether starting in a shop or an office, initial staff requirements etc. You also need to include your personal drawings to be able to still pay your home bills including mortgage, rent, food shopping, etc. The total investment is the sum displayed as a simple formula: Franchise Fee + Business Expenses + Your Drawings = Total Investment* TaxAssist is AAA rated with the banks we work with and they know our franchise model well. Banks will typically lend up to 70% of the total investment amount. Your total investment amount will be apparent after you have attended a Discovery Day and completed a Business Plan (both carry no obligation and are free of charge). *For a Resale, the formula will differ Mandatory Ongoing Costs Management Service Fees Ongoing fees payable monthly for the continuing guidance, marketing and technical help from the Support Centre. Fees are charged as outlined below and based on income received by you. Band Rate First 145,000 9% Second 145,000 6% Third 145,000 3% All Further Sales Our Management Service Fee is set so as your sales income increases the rate payable to us decreases. 1% 31

32 Brand Awareness & Client Acquisition Fund (BACA) Calculated and payable on a monthly basis, increasing by 60 per year 1,920 pa Leads Inbound qualified leads (first 25 leads included in franchise fee) 55 per lead Training The TaxAssist Accountants Training Academy provides bespoke training courses to franchisees and staff in Norwich and at regional centres around the UK, your first 12 months are included in your package 60pcm per territory Software TaxCalc Software (first three months free) ( 160 is the monthly fee for up to 5 employees) Practice Ignition (first three months free) Receipt Bank (first three months free) BrightPay Payroll (first year s subscription inc. in package) Hosted Desktop, inc. Remote Support and Office 365 (first six months inc. in package) 160pcm 15pcm per 100 clients up to max. 150 per month 125pcm per 100 clients up to max. 350 per month 229 pa (approx.) 60 per user pm Other example costs to consider Commercial premises costs Commercial office lease (per calendar month) Shop front lease (per calendar month) 1,000-2,000 Shop front re-fit (depending on premises) 17,500-20,000 (Prices would vary between regions) 32

33 Furniture & equipment Office furniture Black and white laser printer Mobile phone (per calendar month) Fax Shop telephone system (approx. cost depending on requirements) Office telephone system (per calendar month) (approx. costs depending on requirements) 1,800 (approx.) 400 (approx.) 40 (approx.) 120 (approx.) 79 (set up charge + 65 pm 25 (set up charge) + 17 pcm per staff member Other start-up costs Legal fees (optional) Professional indemnity insurance 600 (approx.) First 12 months general marketing (networking, advertising, etc.) 5,000 Individual working capital (to be considered) will vary on an individual basis Employment & HR package Employmentor (value 495 per year) Inc. in package Please note that all fees are subject to VAT at the applicable rate. 33

34 Raising the finance We have excellent relationships with funding providers that can help you become a TaxAssist Accountants franchisee. The total investment figure will be dependant on location, working capital and level of personal drawings required, and we will work closely with you throughout the business planning process to establish the right level of investment for you. TaxAssist Accountants has built some excellent relationships with the major banks in the UK. This means that we are nationally-recognised by the banks that will support potential franchisees with their initial franchise fee, shop fit-out and working capital subject to their normal lending criteria. We are more than happy to put you in touch with our contacts at the banks, who will be happy to answer any of your questions. Banks typically lend TaxAssist franchisees a maximum of 70% of the investment required. You, as the franchisee, will need to provide evidence to the bank that you can cover the other 30% once your Business Plan has been approved. Enterprise Finance Guarantee In certain situations, some franchisees may benefit from the Enterprise Finance Guarantee scheme formerly the Small Firms Loan Guarantee scheme run by the Department for Business Innovation & Skills (BIS) formerly the DTI and BERR. The EFG is a loan guarantee scheme to facilitate lending to viable businesses where there may be a lack of security available. Guarantees are taken from the individuals for 100% of the facility provided and whilst the government provides a guarantee to the lender for 75% of the loan, the borrower is liable for the full amount. There is no requirement for supporting security behind the guarantee. The EFG is a more expensive route, as there is a 2% annual premium on the outstanding loan amount which the Government charges for providing the security. If all other aspects of the application stack up and the only issue is the lack of security, then the EFG is an attractive route, which many franchisees have benefited from. Please contact us for more information. 34

35 Securing shop front premises At TaxAssist Accountants, it s all about visibility, accessibility and affordability. Our Support Team will be able to assist you when considering location, and they can help you source suitable premises within your territory. What do we mean by a shop front? When we created the first shop front in Norwich our main intentions were to create a modern, welcoming, branded office with the aim of departing from the look and characteristics of traditional accountancy practices. We now have over 200 shop front offices open all around the UK. Property sourcing With many years experience, the Support Team are highly experienced in the TaxAssist Accountants franchise concept. We are in a position to offer advice and guidance on sourcing rented offices or shop fronts. Operating from a rented office can prove less capital-intensive and it also gives you an opportunity to develop your business before moving to a shop front operation. The quality and location of commercial offices are very important. Under these operating conditions, working capital requirements will still be governed by local market trends, and you will still need to budget for rent, marketing and living costs until your revenue stream is established. 35

36 Funding for your franchise can be arranged by means of a loan and overdraft combination, thus allowing for flexibility in terms of monthly expenditure. Shop refurbishment We have preferred suppliers for your shop fitting requirements and they have been fully briefed on our specific requirements in terms of fittings and office equipment. The cost of a refurbishment or shop fitting is dependent on the size and condition of the premises. Staff & HR Clearly you will not want to run a shop-style operation on your own, so you will need to consider the resourcing required. Further guidance on who to look for, and where to find them, will be provided in the practice management section on the support website and on the initial training course. You need to think about planning ahead and taking on staff to allow you the free time to build up your client base. You also need to take on the right staff and you will need assurances that you have engaged them in accordance with employment law. That s why we have forged relationships with organisations that are specialists in their fields, and we work with you to make this happen. Servicing clients whilst building the business You cannot be in two places at the same time completing an existing client s accounts and attending fact-finding meetings with prospective clients. However, in the early days you may not feel comfortable appointing a qualified accountant on a realistic salary. We have direct links with a supplier of professional bookkeeping and accounting services that can cover the service provision at a manageable cost, leaving you with operating profit and the time to develop your business. This provider can support you in the early days, and even constitute a part of your own development strategy whereby you choose to use them for a proportion of all of your accounting work. Their costs are worked out as a percentage of your fee to your client, so the expense is highly visible and very affordable. 36

37 Franchisee case study A featured case study from one of our franchisees. Lloyd Evans Kingswinsford, Halesowen & Wolverhampton What made you decide to join TaxAssist Accountants? I qualified as a Chartered Accountant with Ernst & Young in 1990, working primarily within their small business team. As well as gaining valuable experience in practice postqualification, I subsequently spent more than 20 years in industry working in a number of small businesses across a variety of industry sectors. One of these sectors was franchising with ChipsAway, where I joined as Finance Director in I became Chief Executive in 2007 leading them through the acquisition of IPR, from the American originator, and the subsequent sale to a PLC. I was involved in a later buyout which saw the business (along with other franchise brands) being bought into private hands. In 2012, I moved on following a wish to build a business of my own where I had the majority stake. I was looking for something where I could use my skills and experience gained over many years. I knew the benefits of being involved with a quality franchise, so I turned to that sector for my inspiration. I looked at a variety of businesses within franchising but none of them gave me that spark until I looked at TaxAssist Accountants. I felt I could use my experience gained from working within a professional accountancy practice, and I very much enjoyed the buzz associated with helping small businesses. Additionally, I felt I could provide added value to my clients through my experience of being involved with, and running small businesses. In addition, I knew of the high reputation of the management team, the strength of the brand and business model. This was supported by many awards, gained from both within and outside the franchise industry. I carried out a high level of initial research before committing to a Discovery Day. After meeting the team on 37

38 that day I was convinced this was the right opportunity for me that s where the excitement and hard work really started! How is the training and support? The initial six-week training course was intense and helped prepare me for a life back in the accountancy practice world. I also met other likeminded people who I got to know and develop a friendship which still continues. The initial course was as much about getting to know, and build relationships with, the support team in Norwich as it was about the technical and practical aspects of owning and operating a TaxAssist Accountants franchise. Ongoing technical training courses are available across a variety of topics, which help to ensure technical knowledge is enhanced. This is supported by a technical helpdesk. Marketing support has been excellent with practical guidance being available at the end of a telephone. They were particularly helpful when we were setting up the shop first class! Since then we have picked their brains a number of times for marketing ideas and guidance. We moved into a shop in September 2013 and have not looked back since, another part-time employee will be joining us shortly. In October 2015 I expanded my business further by moving into a second area, Wolverhampton. Financial and personal targets are being met, however, Rome wasn't built in a day, patient growth is far better and will provide a stronger business going forward! There is much hard work ahead for anyone staring in business and just because you join a franchise that does not mean it is any easier, however you do not have to re-invent the wheel, and you are part of a team! What would your advice be to anyone looking to join TaxAssist Accountants? If you have a desire to work for yourself and have an interest in small business then look no further. Ensure you carry out research about your target area and visit/speak with existing franchisees to pick their brains. During this process you should find out whether this is the business for you. Just because TaxAssist Accountants is a good business doesn t make it the right business for everyone! What have been the highlights of being a TaxAssist Accountants' franchisee? Working for myself with the challenges, flexibility and excitement that brings. Being part of a team which includes our shop team, fellow franchisees and the support team in Norwich What are your development and growth plans for the future? We aim to have a multi-shop franchise but the timing and location of each shop must be right. We are building an asset for the future and with my daughter showing an interest in accountancy, who knows she may be involved at some point time will tell! How are things going? Have you learnt from any mistakes? After training I moved into serviced offices, when it quickly became apparent that I needed some administration support. Sarah Noott joined me in February 2012 initially on a parttime basis (two days per week) to provide that support. 38

39 Industry-leading training Four TaxAssist Accountants training courses are spread throughout the year, along with ongoing training. Our Training Academy keeps you and your staff ahead of the curve. Bespoke training and technical support is delivered when you and your team need it to help ensure your business remains the local market leader, operating to the highest professional standards. The Training Academy provides our initial and ongoing accountancy, taxation and practice management training. We are confident that we have the best to offer with regard to course material and course tutors and we are delighted to be able to offer this training to franchisees of TaxAssist Accountants. Next course dates The next four course dates are: 07 February - 22 March June - 26 July September - 18 October October 13 December 2019 There will be due diligence, business plans and possibly raising finance to undertake before joining TaxAssist Accountants, so do contact us as soon as possible if you are interested in working towards any of these courses. This will give you plenty of time to prepare and us the time to assist you. The courses last for six weeks and take place in Norwich, with a week s home study in week four. All new franchisees are required to take an online aptitude test at home before joining the training course, and for those whom we feel it would be beneficial, we require them to attend a two-day introduction to bookkeeping course ahead of the six-week training course. If the franchisee passes the aptitude test they do not need to complete the pre-course training although they can still attend these two introductory days if they wish. The introduction to bookkeeping course (if attending) will take place on the Thursday and Friday preceding the six-week course. The next three weeks will cover all aspects of accounts production and taxation for sole traders and partnerships and software training. These three weeks of intensive training are then followed by one week of home study (which will include reading, case studies and launch planning). This will be followed by a week covering practice management, recruitment, payroll, IT set up, our support site and social media training. The final week will be dedicated to sales and marketing training. Getting to know the Support Team We pay for all accommodation and good quality meals during the residential period of the training course. We also ensure you meet and get to know the Support Centre staff so 39

40 that, when you are out in the field, you know who to turn to for help and our support to you will not be faceless. By the end of the initial six-week period of training you will know how to: Market yourself, find and retain your clients Competently complete year-end and monthly/quarterly management accounts and tax computations Complete Self-Assessment tax returns and a wide range of other tax forms Operate bookkeeping, VAT and payroll software and be able to advise your clients Run an efficient shop or office and business with the support of IT, marketing and eventually staff In short, how to run and grow a successful business. Follow-up training (included in Package) Additionally, after you have been trading two months you will return to the Support Centre for four days to complete further Software, Ltd Company training and QuickBooks online training. At month three you will return for a week, during which time you will attend a development day to review your progress to date and provide you with additional sales and marketing tools, study corporation tax and Ltd Company software, and receive guidance on preparing your own accounts. There will be three additional development days after you have been trading for six months at the Support Centre, focusing on TaxCalc, payroll & P11D, planning tools and helping you to further build your business. Ongoing training The TaxAssist Training Academy helps to keep our franchisees one step ahead. We provide a comprehensive range of ongoing technical and business training courses for you and your staff on a regional basis. The courses currently include: Technical updates Business development Software Bookkeeping Payroll Social media Pricing and fee raising Sales conversion Succession planning Twice a year we provide Regional Training Days to cover budget, tax and accountancy updates. These are held at four locations around the country at no extra cost. Continuing Professional Development Qualified accountants and students in the UK are required to maintain Continuing Professional Development (CPD) throughout their working life. It is also strongly encouraged for non-qualified accountants, and may well become mandatory in the future. We offer a complete solution to this, using innovative online learning aids and face-to-face courses. This solution enables existing and newly qualified accountants to meet the CPD requirements set by their qualifying institutes, as well as ensuring our entire network meets these same standards. 40

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42 Qualifications If you hold an accountancy qualification, you will require a practising certificate before you can engage in public practice. Practising certificates Institutions will vary on their requirement for practising certificates. The route to obtaining one depends on which institute you belong to. We would advise you to contact them direct to find out their requirements. ICAEW They confirm that a practising certificate is required before you engage in public practice. We are also pleased to inform you that we are an authorised training employer for ICAEW, authorised to train ICAEW Chartered Accountants. CIMA Confirms that it requires ALL Members in Practice to register with CIMA. Members in Practice must then apply for a practising certificate after one year and within three years of registration. AAT The AAT confirm that if you are a Full or Fellow AAT member and you are offering accountancy, taxation or related consultancy services to the public you must become an AAT member in practice. ACCA The advice given below is our understanding of ACCA rules and regulations and is not meant to be a definitive guide. If you have any doubts as to your eligibility to obtain a practising certificate, then you must contact ACCA who will guide you. ACCA Members If you are a full member of ACCA you must have a practising certificate when you join TaxAssist Accountants as a franchisee. If you do not have this, then ACCA will require you to dispose of your franchise or resign as an ACCA member. ACCA Students If you are a registered student of ACCA then you must relinquish this if you join TaxAssist Accountants as a franchisee. In order to gain a practising certificate, you must have been admitted to membership. Additionally, you must have obtained three years work experience at an ACCA-approved employer practising certificate development. Two years can be obtained after admittance to membership. This experience must be recorded in a practising certificate Training Record and verified by an appropriately qualified principal. You may still be able to obtain a practising certificate if you can get your previous employers sign off on work that would be relevant. We strongly suggest you speak to the ACCA yourself and explain your circumstances. Our recommendation would be to speak directly to your institute for their requirements. 42

43 Software for today s practice We continually research, evaluate and recommend the best software to suit the needs of our network and its clients. TaxAssist Accountants is a successful, modern accountancy network that works with its clients online, collaborating data in any location and taking advantage of cloud accounting software s many automated and paperless features. We ensure that our franchisees stay one step ahead of the competition, and are at the cutting edge of new technology. The TaxCalc Starter Pack includes accounts production, personal, partnership and corporate tax returns, VAT returns, Companies House forms and Companies House filings. With the tools available through TaxCalc you are perfectly positioned to: Promote your practice through marketing activities Respond to requests for information Offer high-quality advice with ongoing feeearning potential In 2018, we introduced a fully integrated software suite to our network TaxCalc. As well as compliance applications such as accounts production and personal and corporate tax, franchisees use TaxCalc software for practice management and customer relationship management. TaxCalc enables you to pull data from bookkeeping software (Quickbooks and Xero) meaning that no re-entering is required, and also enables you to pull some data from HMRC, while also submitting 64-8s via the software too (where HMRC accepts digital ones). The product also has the ability to produce other HMRC and Companies House forms, some of which can be submitted directly from within the product or can, at the very least, be printed/pdfed and sent to the client for approval. Share client documents and information online Practice Ignition provides the ability to create digital proposals which you can send electronically to your clients. Your clients can sign the proposals electronically and also ask questions before signing, eliminating the need to print and post engagement letters to clients, and enabling them to sign the proposal significantly quicker. Practice Ignition will also remind the client on your behalf if they haven t signed the proposal after a week. Practice Ignition integrates with Online Bookkeeping tools (QuickBooks and Xero) to automatically create the client and associated invoices and the dashboard gives you an overview as to what expected income you have over the coming months. You will also be reminded when letters are due for renewal, ensuring you actively review your client s fees. 43

44 Receipt Bank enables your clients to photograph and submit their invoices and receipts direct to you. Receipt Bank will extract the data with over 99% accuracy and enable you to send the data to the client s bookkeeping tool. Bank statements can also be scanned and submitted, further reducing the admin burden for extracting lines of data from your client s receipts. The software also enables you to carry out this work on behalf of the client, so if they bring you a bundle of receipts in one go, you can minimise the data entry required by your staff and gain the efficiencies within your practice. There are also opportunities to recharge your clients for the app as well. As the global leader in delivering accounting solutions to accountants worldwide, Intuit QuickBooks is a recommended partner of TaxAssist Accountants. With rapid advances in technology revolutionising sales, marketing and accounting activities for small businesses, QuickBooks is well-positioned to deliver a modern and comprehensive offering to clients. Franchisees benefit from discounted prices, training and marketing materials. Microsoft Office 365 comes as standard with the CSC Hosted Desktop it offers a wide range of applications that can be used within your practice. s As well as being able to access your s through your hosted desktop, Office 365 allows you to easily access through an internet browser and/or a mobile device with little or no configuration required. Skype for Business Skype for business offers you an alternative way to communicate both within the practice and potentially with you clients. It offers you the ability to send instant message, make calls through voice and video, as well as sharing your screen. OneDrive OneDrive is an alternative to Dropbox. It is an online personal storage area that automatically syncs allowing you to access the contents from your hosted desktop, web browser and mobile device. OneDrive allows you to easily share files and folders to allowing them to be collaborated on. OneNote An electronic notebook with no paper limitations, it allows you to have organise your notes in sections, sub-sections and pages. Teams Often referred to as a chat based workspace, Microsoft Teams pulls together a variety of Microsoft applications into one place giving you the ability to easily collaborate and work together on projects/documents. By automating the repeatable functions, and by ensuring we have an easy to use software estate, this enables our franchisees to free up time to work on more value-added services for their new and existing clients. 44

45 Franchisee case study A featured case study from one of our franchisees. Alex Smith Plymouth & Peverell Alex Smith joined TaxAssist Accountants at the age of 30 in He now operates two shops within Plymouth in Devon, alongside his wife Sarah and six members of staff. Prior to joining TaxAssist, Alex who is an FCA Chartered Accountant, operated as an accountant in industry and also an auditor in practice. He made the decision to move from Guildford in Surrey to Devon, seeking a more rewarding career which at the same time would provide for greater flexibility in looking after the planned family. Eleven years and two children later he hasn t looked back! Alex comments It was a big decision to leave a job with a good regular income to join a franchise and start from scratch in a totally new area, but I can honestly say TaxAssist has provided me with everything I need. There are challenges along the way of course for me a significant reason behind joining a franchise rather than going it alone was that my experience before joining was largely technical, and not in sales or marketing. From speaking with other franchisees, it was clear that the TaxAssist model would fill these gaps in my skillset, and this has absolutely been the case. Initial business development training was excellent, and the ongoing refinement of our offering to clients continues non-stop. Eleven years on my role is more about looking after the great team of people we have in the business, and talking to clients and prospective clients. But I also think it important to keep fully up to speed on everything we do for this reason I ll always be at technical updates and keep a hand in the day to day technical work the team are looking after. I am happy to report that I now have over 400 clients, which generate an income and flexibility in how I work that could not have been achieved on the corporate ladder I stepped off. Further, I know that the practice will be a valuable asset for my future when the time is right. The shops, along with my own marketing, and the initiatives of the TaxAssist Support Centre Team, have proved invaluable in helping me to build a substantial practice. 45

46 Our additional services & partners Benefit from negotiated arrangements with high-quality service providers. One of the key benefits of joining TaxAssist Accountants is that you benefit from negotiated arrangements with a host of high quality Additional Service providers, to offer a range of services for you and your clients. We have associations with well-known brands which can only help the growth of our network and increase brand awareness, as well as ensuring that franchisees are able to offer a full range of business services to their clients. We have researched each of these providers by following our due diligence process. In many cases these providers have been recommended to us by members of our network, and we are always pleased to receive introductions in this way. Some of these providers pay a commission, this is usual in the course of their business and in every case this is passed on to the franchisee that makes the introduction. There is no hidden agenda the entire process is transparent. If you are able to profit from any commission made this is seen as an advantage, although it is not key in the decision making process and is not a part of the due diligence process. Examples of Additional Service Providers include tax consultancy and audits, independent financial advisers, general and commercial insurance, asset and invoice financing, telecoms solutions, debt recovery services, business recovery and insolvency, employment advice and many others. 46

47 Specialist services There will be times when your clients will need assistance with a query in a specialist area such as foreign taxes, inheritance tax or maybe a complex capital gains tax issue which would be more time consuming for you to deal with and outside of services covered by the normal engagement letter. It may not be efficient for the helpline to deal with these types of queries and therefore for enquiries of a specialist nature we reserve the right to charge a fee for this professional advice, using an internal or external specialist as appropriate, which you will then pass on to your client. You will of course be entitled to charge your clients a premium for this. After all, it is your knowledge and contacts that will have sourced this advice. the client to sign and return anything if you wish to increase your monthly payments, which you may wish to do as a result of a fee review. The initial set up fee of 250 is included in the franchise fee. Remember the philosophy of TaxAssist Accountants has and always will be to provide a service to small businesses only i.e. keep it simple. Direct Debit Scheme Using the power of the TaxAssist Accountants brand, we have now been able to negotiate a direct debit scheme which is an easy way of taking payments and maintaining good cash flow. This is available not only for you the franchisee, but also for your clients to sell to their clients. This is a major selling point for you, because small businesses would not normally have access to this scheme but they can through TaxAssist Accountants. Direct Debits are a better way of collecting payments than standing orders. The main disadvantage of standing order arrangements is that when you wish to amend monthly payments in any way, consent is needed by the client in written form. This then leads to time having to be spent on processing and chasing forms. The advantage of direct debit is that you are always in control and it does not require 47

48 Our Annual Conference As a franchisee, you will be invited to attend our prestigious Annual Conference. On 21 st April 2018, TaxAssist Accountants celebrated its largest conference yet, with more than 520 franchisees, partners and staff in attendance. Hosted at Celtic Manor, near Newport in Wales, the day started with a busy exhibition, at which franchisees were able to browse the 62 exhibitor stands and meet service providers and staff from TaxAssist s Support Centre. TaxAssist s Directors presented their vision for the organisation s future direction, focusing on a new software suite, as well as the importance of advisory services and client experience. Our next Annual Conference will be held on the weekend of 27th April 2019 at Center Parcs Woburn Forest. The first year s attendance is included in your franchise fee for yourself and a guest. What our franchisees say A quick note to say thank you for a terrific conference. Always excellent and while starting from an established high standard conference gets better every year! We had no less than 24 colleagues and TaxAssist Kids participate and everybody found the partner exhibition, afternoon content and the dinner celebrations excellent. Thanks from all of us Mike Melling, TaxAssist Accountants High Wycombe, Harpenden & Radlett Well done for putting together a very relevant and professional Conference. As usual I gained much from the informal discussions with peers, but the exhibitors and afternoon content also provided much clarity, information and vision for the short term and beyond (and much more for me to implement and build on) and thank you for the very favourable pricing you have negotiated with our key partners/suppliers! Great event. Thank you all. Terry Peachman, TaxAssist Accountants, North Hykeham & Lincoln Thanks to everyone for the conference set up. Very good again. I was very impressed with the quality of the spoken presentations this year, especially from our own people. Consistently high standard of thoughtful preparation, focus on what matters, guidance, and calm clear unpatronising delivery. This is exactly how it should be. Very, very good. Amongst the best corporate presentations I have ever heard to be honest. The switch toward service centred approach is a difficult and complex aspect to achieve. We had, to my mind, the most successful summary and explanation of that yet heard. Keith Adams, TaxAssist Accountants Bath, Trowbridge & Melksham More Annual Conference highlights can be seen at 48

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50 Frequently asked questions Frequently asked questions about joining TaxAssist Accountants. Why am I better off investing in a franchise than going it alone? A mantra often repeated in franchising states that you are in business for yourself but not by yourself. Some people have the confidence and experience to establish their own business and operate independently. Many others decide to take advantage of the benefits of joining a franchise such as TaxAssist Accountants, which for the fees that you pay, provide: A well-known brand name Technical and marketing training and support Investment in research and development National deals to enable you to grow a more substantial business faster and more efficiently than going it alone A proven exit strategy Investing in a franchise can give you a big competitive advantage over starting your own business from scratch. The franchisor can fill in any gaps in your skillset and provide business development support and initiatives so you can stay one step ahead of your competition. An additional advantage of franchising is that the main four banks remain supportive of lending to franchisees of quality brands, as the risks associated with establishing a franchise are much less than flying solo. It is also worth noting that franchising remains almost the sole business model that enables small businesses to compete effectively against larger businesses. What is the split between qualified accountants and non-qualified accountants at TaxAssist Accountants? As at March 2018, 89% of our franchisees are fully qualified accountants or full members of a related professional body such as the Association of Accounting Technicians (AAT) the Institute of Financial Accountants (IFA) or the Association of Taxation Technicians (ATT). We now have a full system in place for the completion and monitoring of Continual Professional Development. What financial assistance can I obtain if I need to? We have close contacts with all the major banks and, subject to status, etc., they will assist you. If you wish for assistance you should ask to speak to their Franchise Department and discuss the possibility of a loan towards the initial cost of the franchise, equipment, etc., and an overdraft facility for working capital. You may need to provide security for any finance obtained although this is not always the case. Can I talk to some of your existing franchisees? We would need your CV and Application Form to assess your suitability before giving names and numbers. We will give you access to the whole network, after you have attended a Discovery Day, and we would encourage you to speak to at least six franchisees as part of your research. 50

51 Do you advise us to obtain independent professional advice before we take out a franchise with you? Yes in all cases. Speak to the British Franchise Association, solicitors, accountants, banks, etc. and do not take on a franchise with us until you feel completely confident about every aspect of the business and ourselves. You should satisfy yourself on all aspects of our franchise before joining us. On what basis do you choose your franchisees how selective are you? We are highly selective because we do not want franchisees to join us who are not going to be successful. We look for ambitious, disciplined and capable people with a positive outlook and who are happy, pleasant individuals. Who will be my link with you after I have opened the business? Can I meet some of your staff? Our Support Centre staff are constantly in contact with you. The trainers, helpline staff, and Directors are always available for ongoing assistance. You can meet all these staff before you take on the franchise. You will have a Franchise Development Manager appointed to help you. How much IT knowledge do I need to have? We will only accept business owners who have a good degree of knowledge and experience in using software applications. This is due to the fact that practice management and the accounting industry is becoming increasingly technology-driven. How do you allocate an area? We grant you the ability to operate as a TaxAssist Accountant within an exclusive area defined by postcodes. We obtain our population figures from Atlas Mapping s territory mapping software Vision. Vision provides access to top level demographic and business figures to help you determine your territory. What if I decide to incorporate my franchise after I have signed my sole trader agreement? Should you decide to incorporate your franchise, you will be asked to sign a new current limited company Franchise Agreement. If you do not agree to the terms of that current agreement, then you will not be able to incorporate your franchise due to the personal guarantees contained within the limited company agreement. If you do incorporate and sign up to our current agreement, you will have the choice of two expiry dates. Your new limited company agreement can either have an expiry date up to the term of your original agreement or, you can sign up for a further five years. Do you train me? Who pays for my training? Where do I go for training? Full and professional initial and ongoing training is provided by the TaxAssist Accountants Training Academy. The initial training course which lasts for six weeks is included in the franchise fee as are three additional training days at month two (software and Ltd Company training), a week at month three (Ltd Company training, corporation tax, business development training, and guidance on preparing your own accounts) and three days at month 6 (TaxCalc training, business development training, payroll & P11D, planning tools and internal reporting). You pay for later training and updates at cost price. Later training as well as other ongoing meetings may be carried out regionally for the convenience of the majority of our franchisees. Currently, we hold two tax update training days per year. Now that accountants are expected to maintain Continuing Professional 51

52 Development (CPD) throughout their working life, as well as face courses, we also offer innovative online learning aids. We make our training course costs as reasonable as we can for partners/staff etc, because it is beneficial for both franchisee and franchisor to have a welltrained network. Training Academy is charged at 60 pcm per practice. We train you to be the principal of the business. What services can I provide? You will be trained on various aspects relating to accounts; tax returns completion, bookkeeping, etc. and you can offer these services to your clients. The normal procedure is to act for sole proprietors and partnerships initially and then at a later date, following further training, to move on to acting for small limited companies which do not require statutory audit. We avoid company auditing work and complex tax work and you should never take on assignments that you have not been trained for. However, you can call for the assistance of a specialist to help you with your clients affairs if required although there may be a charge involved for this type of service. In these circumstances, you may be able to pass on the cost, with a mark-up, to the client. We have also developed add-on services, which can be offered to clients through suitable third parties and we will continue to develop others. What help would I get? We would give you whatever additional help and assistance we could, including additional training. Because we are monitoring your performance closely and speaking to you regularly, we should spot this at an early date and give you whatever additional assistance you require. Can you demonstrate your capacity to provide the necessary follow-up services after the business has commenced? Our Support Centre is based in Norwich and employs people with a wide range of skills at varying levels in the company. We have a continuous relationship with you, giving you adequate backup and support on all technical, marketing, IT and administration matters. You will receive regular visits and have regular meetings and conversations with a Franchise Development Manager who will be responsible for helping you to ensure you develop your business in the right way. You will also have periodic visits from a Director or Technical Manager who will help you with any technical issues or concerns you may have and will ensure work continues to be produced to the required standard. We will also arrange periodic regional training workshops throughout the year. The function of our Support Centre is to support our franchisees in all areas of their business and to grow and develop the brand and company. Other franchisees that you will be able to speak to can confirm the level and adequacy of the back-up services. How much net profit can I earn from my operation? This is really down to you but we want you to build up your turnover and profits consistently, aiming for a turnover of 300,000+ after five years. Our training covers the staffing requirements for your business and we expect a third of your turnover to cover the costs of running your franchise, with a third payable for your staff, leaving you with a third of your turnover as net profit. 52

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54 What fees do I charge? We give you guidance on the level of fees that you should charge your clients for the various services you provide. This is covered extensively on the training course. What hours do I need to work, do I spend all my time completing client accounts and tax returns? You should be prepared to work normal office hours (typically Monday to Friday inclusive, 9am to 5pm plus an occasional early evening or weekend appointment). You should never spend more than half of your time on client accountancy affairs, as you need the balance of your time for marketing and development of your business, staff supervision and office administration. Do you have any minimum performance targets? Only sensible ones. If you do not achieve annual sales of 15,000 in year 1, 37,500 in year 2, 70,000 in year 3, 105,000 in year 4 and 145,000 in year 5, then you are not operating our franchise effectively. If the fees charged by you to your clients do not exceed this year on year increase, then we can terminate your Franchise Agreement at any time after the first year. If your annual fees have not reached 145,000 per annum after 5 years then we may not renew the Franchise Agreement at the end of the initial 5-year term. These figures are our minimums, and by keeping to the business model you should comfortably exceed these levels of growth. How do I find my clients? You will get your clients through a combination of leads generated from inbound calls to the Support Centre, local marketing, national marketing, networking and referrals. We cannot emphasise enough the importance of networking in your local area and the benefits this will bring to your business. My own accountancy business with TaxAssist Accountants We ve developed a reputation locally for the jargon-free advice we give to small businesses and start-ups. We re really passionate about helping our clients achieve their goals and with the upcoming Making Tax Digital changes on the horizon, we re confident we can offer a great service and support to the local business community. Carl Whitehead Loughborough & Long Eaton 54

55 We always recommend that you spend no more than half your time on completing client accounts and the other half of your time networking and meeting people in the business community to gain introductions and recommendations. Our most successful franchisees are those that approach this area with confidence and enthusiasm, appointing staff in a timely fashion and focusing on Business Development. You will obtain some clients from passing trade. We can advise you how to source business lists to develop your database of potential clients. What advertising and promotional expenditure do you incur and do we have to contribute to it? There is a Brand Awareness fund into which you pay at the rate of 1,920 per annum calculated and payable on a monthly basis increasing by 60 per year. This fund is used to promote the brand on a national basis. You are responsible for your own local advertising and for the cost of any leads provided to you (currently 55 plus VAT per qualified lead). What help will I receive in local advertising and promotion? On our support website there is a selection of advertisements that you may choose from and for a nominal fee we will ensure that the advert is tailored to your specification, with your personal details and sent to your chosen publication on time. It is down to you to pay for local marketing and you will need to budget for this. During the initial training you will be given guidance on what marketing works and will be given help to complete your own Marketing Plan. Are there any returns that I need to submit to the Support Centre? Yes, franchisees must submit a MIN form to the Support Centre before the 10th of the following month, which gives details of client stock and revenue information for the last completed month. In addition, franchisees are required to submit copy VAT returns and annual accounts as and when they are completed. We also require your client list on an annual basis. What exclusive rights do you get? You will be allocated an exclusive marketing territory defined by postcode boundaries and population. No other TaxAssist Accountant can market directly in your area or vice versa. When you and other franchisees carry out local advertising in publications covering more than one franchise area then the normal procedure is to share costs and divide out responses according to the geographical areas covered by you. However, should you receive a genuine recommendation from a potential client outside your exclusive marketing territory then you can act for that person. I perceive that it will be too expensive to go into shop front premises in my area. Is it absolutely necessary for me to make this move? Yes it is! This is the way we will build a strong brand throughout the whole of the UK. Don t forget that you will have up until the end of the third year to do this. We have franchisees who have managed to find good shop front premises when at first glance there appeared to be nothing remotely suitable. It is location, location, location translated as visibility, accessibility and affordability. This will help you to achieve the growth that we both seek. 55

56 What happens if I do not like the business? How can I terminate the contract? You must fully consider the position before you take on the franchise and we certainly would not take on anybody we thought was not going to be suitable. However, if you do decide at a later date that you have made a mistake and you do want to terminate the agreement then this is possible, subject to fees as quoted in the Franchise Agreement. There is a reduced termination fee of 6,000 if you decide to leave within the first year. (Terms and Conditions apply). Does this contract permit me to sell my business? Yes, the client base is a considerable asset built up and owned by you. The potential sales value of the goodwill of the business may typically be between x1 and x1.25 gross fees. There are various deferred fees to consider which are laid out in our Franchise Agreement, which you would factor into your selling price. Having assessed the value of your business, you must offer it to us in the first instance. Assuming we do not purchase your business, so long as there has been no breach of the Franchise Agreement, you will have the opportunity to sell your business at the end of the franchise term, although you do need to give us 12 months to find a new TaxAssist Accountant to take over from you if you wish to sell your franchise. This is to protect the TaxAssist brand name in the area. Hopefully we will find someone to take over your business, but if after 12 months there is still no one lined up to take over from you, then you are free to sell as you wish. If you dispose of your business to someone who is not going to be a new franchisee of TaxAssist Accountants, we will require a fee to be paid to us as set out in the Franchise Agreement. Should the purchaser wish to continue as a TaxAssist Accountant then, subject to our approval as to their suitability, we would require them to attend formal training just as you did yourself. Certain fees are payable for this arrangement as detailed in the Franchise Agreement. For how long is the franchise granted and is there a fee payable on renewal? The term of the Franchise Agreement is five years but this is renewable by you every five years for an administration fee of 500 assuming you have operated the franchise as set out in the Franchise Agreement including meeting your minimum targets. In most cases we anticipate franchisees will renew the agreement to continue the franchise every five years until they dispose of it at some future date. We also now offer at our discretion a 10- year Franchise Agreement. What if I already have clients before becoming a TaxAssist Accountant? We have recruited accountants who already have a block of clients of their own acquired during the period before they joined us. We have been asked to consider whether some relief can be given against charging our normal rates of Management Service Fees. Our policy for this scenario is subject to a minimum fee base of 5000 being involved, we will allow the fees introduced or acquired to be kept in a separate pool and for one year only we will charge a 3% Management Service Fee on these fees. After twelve months these fees will be amalgamated with other fees acquired during the TaxAssist Accountants Franchise term to form one pool and full Management Service Fees will be payable on the total pool of fees. I am not certain that the goal of 250,000/ 300,000 turnover and/or 400/500 clients is achievable in five years are you? Yes, and some franchisees have even bettered this, although each franchise grows at its own pace and it may take longer in some cases. 56

57 Certainly, franchisees who commence their business in shop front premises will have a big advantage as regards client growth compared with those who start from a conventional office, who will build up their business more slowly. Not all franchisees will necessarily build up to these higher figures and it is really up to them how far and how quickly they want to grow their business although we do expect them to have achieved at least 145,000 of client fees after five years. Of course, we cannot guarantee what a franchisee will achieve ultimately it is down to each individual franchisee to set their goals and, with our help, ensure they are achieved. Speak to any accountant in private practice you know and you will hear the message that there is lots and lots of work being provided by the self-employed and small business community often more than most accountants can easily cope with. The problem for our accountants is often how to cope with large volumes of requirements for their services rather than scratching around looking for new clients. Feel free to speak to any of our existing franchisees for confirmation of this. The TaxAssist Accountants business model and the strapline The Small Business Champions refers to both the clients and the way of working. There is security in operating with small business clients, each with a modest average annual fee in that if some of the clients leave, the risk to the overall business is negligible. Therefore, TaxAssist Accountants will continue to service small business clients i.e. those with a turnover of less than 2m as their Core Business. However if a franchisee wishes to take on a client with a turnover more than 2m then they would need to make sure that the annual fee for this client must not be more than 3% of the overall fee bank and that the client issues are within their technical capability. This is our guideline on risk management of your portfolio, and a best practice guide. More frequently asked questions can be found at If you have any further questions, please contact the Recruitment Team. How has the increase from 1m to 6.5m for the small company audit exemption turnover limit affected TaxAssist Accountants? Strictly speaking, as the small business champions the pool of potential clients for franchisees is opened up significantly and you could go fishing for bigger business. However this brings with it a number of risks. Companies turning over up to 5.6m are more likely to have complicated transactions, which bring added risks and research may be required regularly to service these clients. They could therefore be less profitable and bring additional risk. Clients in the 1m to 5.6m category will naturally take longer than a smaller client, and a franchisee may find they neglect smaller clients as their Core Business in an effort to service these larger clients. 57

58 Exit strategies At TaxAssist Accountants, we have proven exit strategies for our franchisees. When you are ready to sell your practice, we can help you realise the value of your asset, on many occasions achieving prices in excess of the industry norms. It is prudent to consider an exit strategy before even starting a business venture or a franchise. The technical detail regarding exiting the franchise is covered in the Franchise Agreement, though you may feel encouraged to know that your franchise will be your asset to sell. So long as there has been no breach of the Franchise Agreement, you will have the opportunity to sell your business at the end of the franchise term, although you do need to give us initially 12 months to find a new TaxAssist Accountant to take over from you if you wish to sell your franchise. This is to protect the TaxAssist brand name in the area. We will do our best to find someone to buy and take over your business, but if after 12 months there is still no one lined up to take over from you, then you are free to sell as you wish. Examples of actual business sale prices: 182k fee bank, 1.23 x multiplier 190k fee bank, 1.3 x multiplier 254k fee bank, 1.1 x multiplier 460k fee bank, 1.3 x multiplier It is also the case now that yearly one-off work, if good records are maintained and it can be proven that one-off work comes in every year, can be included in the multiple. We recommend that you contact reputable business brokers for advice in this area. On leaving the franchise there are deferred fees to consider. However, so confident are we in our franchise concept and business model that we have introduced a reduced deferred fee in the first year. This fee is 6,000 rather than the standard figure, as explained in the Franchise Agreement and exists for those franchisees who feel they have made the wrong decision in taking on a franchise. This fee is subject to terms and conditions. Accountancy brokers tell us fee banks for accountancy businesses change hands at the rate of between 0.90 and 1.10 for every 1 of Gross Recurring Fee depending on the structure of the sale. However, we have seen that the strength of the TaxAssist brand can attract a premium to this multiple. 58

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60 Meet the TaxAssist Board of Directors Karl Sandall FCIB, QFP, FAIA (Hons) (Group Chief Executive) Karl spent 26 years at a senior level with a major clearing bank before joining TaxAssist Accountants in 2000 as Operations Director taking on the role of Group Chief Executive Director in Karl is a fellow of the Chartered Institute of Bankers, and a member of the Financial Industry Group and of the Committee of the IFS School of Finance for the East of England. He is also recognised by the British Franchise Association as a Qualified Franchise Professional (QFP) and is a trustee of its charitable trust helping disadvantaged individuals benefit from franchising. In 2017, Karl was awarded an honorary membership of the Association of International Accountants (AIA) in recognition of his contribution to accounting and finance. Karl oversees the running of the company and the whole network on a day-to-day basis, as well as the global recruitment of new franchisees, ensuring the company continues to expand rapidly. Sarah Robertson MSc, Dip M, MCIM FIDM, Chartered Marketer, FCIM FIDM (Group Operations Director) Sarah previously founded a successful Brand Agency in 1994, with offices located in Norwich and London. Sarah was the Managing Director of the group and it became one of the foremost marketing communications agencies in the Eastern region with billings in excess of 4.5m. Sarah has over 30 years experience in the marketing and advertising industry, working with a broad range of national and regional brands, specialising in financial services. She is a Fellow of the Chartered Institute of Marketing and a Fellow of the Institute of Direct Marketing. Sarah joined the TaxAssist Accountants Board in September 2004 and for 12 years was responsible for marketing strategy, brand development, shop fronts, practice management and business development strategies for our network. In 2016, Sarah was appointed as the Group Operations Director and has overall responsibility for the operational overview of the UK network and the TaxAssist Training Academy. She has a vast working knowledge of the network and is fully focused on the future needs of the business including the utilisation of technologies to improve practice performance and profitability. 60

61 Phil Sullivan BSc. Hons, ACIB (Group Finance Director) During a 26-year career with HSBC Bank plc, Phil achieved Executive Management status and undertook roles covering a wide range of disciplines including retail banking, corporate and commercial banking, credit control, strategic planning, human resources and training. Immediately prior to leaving HSBC Phil was Area Director for Leicestershire, a role with responsibility for all aspects of the bank s retail banking and commercial business in the county and corporate banking activities in East Midlands. He was responsible for 400 staff operating from 36 offices. Phil established his own business in 2006 providing corporate and commercial advisory services to selected business clients. He specialised in assisting with the creation of strategies for large transactions (including business expansion, sales, acquisitions and exit/succession planning) and business financing solutions (bank and non-bank borrowing, raising unquoted equity and re-financing). His main business interests lie in corporate finance and management/leadership theory and practice. Phil was appointed as an Adviser to the Board in 2007 and became an Executive Director in October Phil's main responsibilities include UK and international finance, internal financial control, company secretarial responsibilities and a major input into strategic planning. In addition, he has a remit to develop our relationships with the banks and other lenders in order to enhance the services available to our business overall. James Mattam BSc. Hons (Group Business Development Director) James has spent his entire full-time career with TaxAssist Accountants since completing his honours degree in Business Information Systems. After spending five years as our IT Manager building many websites and providing support to the franchisees, he then took on the role as our Marketing Manager in 2004 to face a new challenge. James went on to become Senior Business Development Manager driving a team to deliver thousands of leads to the network and ensure brand consistency was maintained through online, printed literature and the hundreds of retail outlets within the UK accountancy network. His recent achievements involved a national partnership launch with Intuit QuickBooks and Sales and Communications courses to help the franchisees and their staff win more business and improve communications to clients and partners. James joined the board in September 2016 and is responsible for marketing strategy, brand development, shop fronts, practice management and business development strategies for our accountants. 61

62 Daren Moore FCCA (Group Commercial Director) Daren Moore has spent his whole career in the accountancy practice sector, having worked his way up from accounts trainee to a member of the Management Board of Price Bailey LLP, a Top 25 regional firm, where he has an outstanding track record of achievement. Daren s roles whilst in practice have been varied and include portfolio development, having twice built up fee banks with different practices as a client portfolio partner, practice management as senior partner in a sizeable office with five fellow partners and 50 staff and business development through his role as head of sales and marketing. His Management Board role also involved a number of strategic planning functions, looking at business growth, acquisition opportunities, investment analysis, team building and incentive initiatives, innovation in technology and cloud services and broader operational planning. Daren joined The TaxAssist Direct Group Board of Directors in February With a solid knowledge of the accounting and taxation industry, in which he is a well-known and respected figure, Daren brings his 26 years of expertise to the role of Group Commercial Director to ensure the continued success and growth of the network in the UK and internationally. Meet our Non-Executive Directors John Chambers LL. B (Non-Executive Director) John has specialised in franchising for over 20 years. He thinks of himself as a business man first and a solicitor second. His no nonsense, practical, commercial approach is appreciated by clients as much as is his unrivalled knowledge of the franchising sector. He read law at University College London and worked in the City of London for Mitsui, a Japanese trading company, and in the Middle East for Turner & Newall Plc. John then worked in sales and contract management roles in the oil industry, first in the UK and then abroad before deciding that he could provide more commercially focused and practical advice than he was receiving from lawyers. He re-trained as a solicitor and worked for two leading international law firms prior to setting up Chambers & Co in After establishing himself as one of the UK s leading franchise lawyers and acting for 20% of the franchisors in the UK, Ashton KCJ acquired the practice in early John is a former member of the now disbanded British Franchise Association Legal Committee, and regularly speaks on franchising law both at home and abroad. 62

63 Mark Fordham BA (Hons), ACIB, CMIIA (Non-Executive Director, Franchisee Representative) Mark s career has been spent entirely in the Financial Services industry. He spent the early part working for NatWest Bank in Retail, Corporate and Investment Banking including spells in Corporate Lending and the Training department where he taught Financial Analysis (Balance sheets, cashflow forecasts, profit and loss accounts and bookkeeping). He also taught Investment Management including personal tax at degree level for 14 years. The latter part of his banking career was spent qualifying as an auditor and then planning and managing a team of 150 auditors to run audits across the Royal Bank of Scotland Group. Mark was awarded his TaxAssist Accountants franchise is 2003 and built up a client base in St Albans and Harpenden in Hertfordshire. He won the TaxAssist Fastest Growth Award three years in a row as well as Accountant of the Year and the British Franchise Association Bronze award in In 2012, nine years after starting his franchise, he sold the business with 900 clients to an incoming franchisee. Mark joined the board in January

64 Our award-winning Support Teams Professional, experienced and qualified personnel provide full training, technical marketing and business development support. Franchise Recruitment Team Our Franchise Recruitment Team are your initial key contacts throughout the recruitment process. They will be able to answer any questions that you may have, and will guide you through the process of learning more about our franchise and helping you to decide if it is the right choice for you. David Paulson QFP Senior Manager, Global Franchise Recruitment Richard Chatten BA (Hons), QFP, DipFM International Support Manager Nikki Haythorne QFP UK Franchise Recruitment Manager Clare Alexander UK Recruitment Executive Sherie Reynolds UK Recruitment Officer Hannah Westgarth UK & International Recruitment Officer Technical Support Team Our highly-qualified Technical Team are here to support you and your staff within your practice with any Technical or Software enquiries. Andy Gibbs ATT, CTA Senior Technical Manager Tim Duffield BA (Hons), FCCA Technical Planning Manager Graham Taylor CTA Technical Manager Philip Youngs ACCA (Affiliate), MAAT Technical Manager Michael Whiteman ACA Technical Manager Rebecca Hollis MAAT Technical Officer Claire Trudgill FCCA Technical Manager Marketing & Business Development Team Our experienced Business Development team are here to support you and your staff with any Business Development or Marketing enquiries. Danielle Fish (CIM Affiliate Professional) Marketing Manager Fraser McKay Communications Manager Dave Thomas Inbound Lead Manager Alisha Huckle (Award DDM) Marketing Executive Amanda Graham BA (Hons), FPC Marketing Executive Ray Robertson DIPM DIPMM Marketing Executive Nikki Brister Marketing Executive Jo Nockels FCCA, FMAAT Senior Training & Technical Communications Manager Samantha Skyring ACCA, MAAT Franchise Development Manager Terry Hawes FCIB, MA (Hons), ACIB, CMCIPD Marketing Trainer 64

65 Digital Technology Team The Digital Technology team can help with s, support site, client website, recruitment website, international websites, and software queries. Richard Washington Senior Digital Technology Manager Simon Hutchinson Software Manager Allyson Bailey Software Training Officer Steve Coppard ACIB Network Data Analyst Nathanael Ricketts Data and Technology Support Officer Nicholas Ruddock Web Developer Additional Support Further to the listed staff, we have additional staff to fully support you in growing a successful business: Julie Davies AAT HR Manager, PA to Group Chief Executive & Group Commercial Director Jo Rowland PA to Group Operations Director Heather Anderson PA to Group Business Development Director Liz Baldry Inbound Supervisor Lynn Dunbavin Inbound Executive Andrew Parfitt Inbound Executive Linda Visser Legal Administrator Stephanie Muffett FMAAT, AATQB Finance Manager Amanda Rix Finance Officer Noelle Harris Technical Administration Officer Jackie Bourner Training Administrator Samantha Dunn Training Administrator 65

66 Why should you join TaxAssist? There are many reasons as to why you should consider joining the TaxAssist Accountants network. 1. Our brand name We are the leading franchised accountancy organisation looking after small businesses. We have a proven track record with over 23 years experience of operating a substantial national network of branded shops and offices that is well-recognised and respected. 2. Our training We provide an industry-leading initial six-week training course, which includes meals and accommodation. Our Training Academy provides ongoing update days, as well as bespoke training if needed in Norwich and regionally, along with a Continuing Professional Development Programme. This all equates to a low failure rate. 3. Support Centre All of the Support Centre staff are committed to supporting the franchise network and their clients, with no other business interests to take their focus away from the importance of assisting the network. 4. Shop front concept We have a highly visible presence with over 200 shop fronts and growing around the country. The shop front brand is supplemented by the many branded cars driving around the country, national advertising, online presence and marketing collateral. 5. An exclusive territory You gain the rights to operate and receive leads in an exclusive territory based on either one or adjacent postcode districts. 6. Ongoing lead generation & business development You will receive a number of free leads, currently 25, as part of your initial franchise package. These will be generated from a marketing campaign in your area and our ongoing inbound lead service. In 2017, 8,510 inbound leads were delivered to the network. 7. Access to specialist advice/in-field back-up We work closely with all franchisees on maximising their profit and working towards their own exit strategies. We see this as an invaluable contribution to our franchisees business life. 8. Resale value The business model makes financial sense, with the potential for taking a good salary whilst creating a real asset for your long term future. Fee banks are very saleable and with the TaxAssist Accountants brand name, this could add a premium to the value of the business when you decide to sell. 9. Additional Service Providers So that your business can be the one stop shop for small businesses, we have a range of branded partners including: Asset Finance, Independent Financial Services, Debt Recovery, Company Formations, Employment Advice, amongst other services. 10. Helpdesks All of the Support Centre staff are on hand if you need to talk through any issues or queries. One of the main support functions is the technical helpdesk. 66

67 What are the next steps? Have you liked what you have read? Are you keen to find out more about us and meet us? At our Support Centre in Norwich, we hold regular Discovery Days. These days are a chance for you to come along and meet senior support personnel including one or all of our Directors, and discover more about our franchise offering and our network. A Discovery Day is a valuable and informative day that gives you the opportunity to find out about our franchise in a friendly and nonpressured environment and ask us any questions to find out if a TaxAssist Accountants franchise is right for you. Top topics on a Discovery Day Our history and what makes TaxAssist a unique franchise What do I receive for my franchise fee? The TaxAssist network Our award-winning training The support we provide to make your business a success Meeting the banks and bank funding How to market and develop your business successfully Our Business Plan And anything else you would like to know! 67

68 One-to-one meetings And at the end of the day you will have the opportunity to have a one-to-one meeting, so you are able to ask us any questions personal to you about the franchise, and your next steps if you wish to find out more about joining us. Next Steps To take your interest further and find out more about our network with no obligation, then please contact us on , or nikki.haythorne@taxassist.co.uk. We recognise that investing in a franchise is a big decision, not just for you but also for your family. You are welcome to bring a guest with you, whether it be a business partner or a family member, that way they can learn firsthand about us and, of course, meet us too. What our franchisees say Ravi Taggar our franchisee based in Kettering tells us about her Discovery Day experience: My husband and I attended the Discovery Day to gain a better understanding of how an accountancy franchise would operate in practical terms and also to meet the people we had spoken to on the phone with all our initial queries and questions. There was no doubt over the power of the brand and the name but we wanted to make sure that we would be supported throughout our journey as we were aware that successful franchising was dependent on the franchisor themselves. I am so glad we went, and we realised there was a reason that TaxAssist won so many awards on a regular basis! Both of us just clicked with everyone we spoke to in Norwich. Questions we asked were answered honestly and frankly, and the fact that the directors played a large part in the presentations showed the commitment they have to their franchisees, and that they do actually care. Don t forget they are vetting you too! The day was well structured and covered a lot of areas, and, in true TaxAssist style, the lunch was fab. The presentations made you feel there were no hidden costs, or that you would encounter any nasty surprises later down the line. 68

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70 TaxAssist Accountants Second Floor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0WF Follow