TAD will be committed to providing ongoing training and business consultancy to a network of Master Franchisees.

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2 Executive Summary Following on from their continuing success in the UK Market and having awarded their first Master Franchise Rights for Ireland, TaxAssist Direct Ltd (TAD) are offering their Master Franchise Rights in markets deemed suitable for international expansion. Rather than attempting to establish, support and administer a network of Sub Franchisees themselves, TAD has decided to offer for sale their Master Franchise Rights for set territories. The Master Franchisee will then assume responsibility for establishing a network of Franchisees replicating the business model and support that TAD provides to their own network of Franchisees in the UK. TAD will be committed to providing ongoing training and business consultancy to a network of Master Franchisees. TaxAssist Direct Ltd, Figures and statistics correct as of February Please note that this is a Sales Document only and that none of the information for the Australian market has been verified, formal disclosure document that complies with the relevant Australian franchise laws and regulations will be made available upon request. 2

3 TaxAssist Direct Ltd Experience TaxAssist Direct Ltd (TAD) is the Franchisor for the TaxAssist Accountants network. With no accountancy practice of its own or other business concerns, the sole function of TAD is that of a training, marketing and support company servicing a network of franchised accountancy practices. Established in 1995, TAD has developed a strong brand and a robust business model. Each Franchisee provides a comprehensive range of accountancy and taxation services to small businesses (the self-employed, sole traders, partnerships and Limited companies) and personal income tax payers. As of December 2014, the UK network of over 199 franchised areas has a combined fee bank in excess of 34.3 million from over 51,000 clients. TAD was founded with the specific remit to service small businesses (defined as self-employed / sole traders and companies with a turnover of less than 2 million) as this is a lucrative and growing sector that is usually under serviced by the traditional accountancy practices. TAD has gone through a period of change and has revolutionised accountancy practices in the UK by creating a retail experience with customer friendly shop front premises which strip away the mystery and intimidation, something from which traditional practices can suffer. TAD currently has over 80% of their UK network trading from retail (shop front) based locations which, coupled with industry leading marketing strategies and the one-stop-shop services provided in-house along with additional service partners, gives TAD a powerful edge over the competition. All TAD Franchisees are committed to moving into retail based premises within three years of the commencement date on their Franchise Agreement. TAD enjoys full membership status with the British Franchise Association, Irish Franchise Association, Canadian Franchise Association and the Franchise Council of Australia and is proud to support and adhere to their Code of Ethics. TAD is a multi-award winning franchise started off well after TAD was awarded Most Innovative Tax Team of the Year by Acquisition International. These global awards recognize the outstanding achievements of individuals and companies within the tax industry, and crucially, are nominated by clients, professional relationships and peers. The awards are given solely on merit and are awarded to commend those most deserving for their ingenuity and hard work over the last 12 months distinguishing them from their competitors and proving them worthy of recognition. TAD were ranked first place in the 2010 BFA/HSBC Franchisor of the Year Awards beating eight finalists to the Gold Award which included McDonalds and Domino s Pizza. This followed on from winning the Silver Award in 2008 and 2009, which is unprecedented. In addition, in 2009 their Franchisee Mark Fordham won Bronze in the Franchisee of the Year award. In 2013 TAD won a number of awards and accolades including Accountancy Firm of the Year from AIA (Association of International Accountants) and Best UK firm supporting apprentices. For the last four years, TAD has participated in The Best Franchise Awards based on an independent franchisee benchmark survey. In 2013 for the third year running TAD were awarded first place in the Best Training and Support category. In 2014 TAD won the Best Franchise award in their category and also a Continuous Improvement award designed to recognise franchisors that have improved their Franchise Satisfaction Survey results for at least two years running. They were Best Large Franchisor in 2012 and runners up in 2013, again beating fellow finalist McDonalds in both categories. In addition to these awards, TAD were also awarded 5 star franchisee satisfaction as recognition for receiving better than average feedback in all key areas, joining as the organisers of the award put it an elite group of the UK s best franchisors. 3

4 In addition to the franchise industry awards, TAD has also won various marketing awards. In 2013 TAD beat the UK s top ten firms on growth in the national league tables recording a 12.4% growth in the Accountancy Age Top 50 listings, beating the Big 4 international groups and achieving the fifth highest growth across the whole Top 50. The network was placed 25th in the table on UK fee income in 2014, which rose to million, up from 34 th place from when they first appeared in the 2010 report. In August 2014 a Management Buyout of TAD and other companies within the TaxAssist Group, including TADI, was completed with a new company TaxAssist Group Ltd acquiring, amongst other shares in other companies in the TaxAssist Group, 100% of the entire issued share capital of TAD and TADI. The Management Buyout was supported by the three Executive Directors of TAD as well as investors with whom TAD has had long working relationships, Franchisees and staff throughout the TaxAssist Group. 4

5 TaxAssist Direct Ltd has an Experienced Executive Directorate of Three: Chief Executive - Karl Sandall FCIB, QFP Karl spent 26 years at a senior level with HSBC before joining TaxAssist Accountants on 1st January 2000 as Operations Director taking on the role of Chief Executive in A Fellow of the Chartered Institute of Bankers, a member of the Financial Industry Group and of the Committee of the IFS School of Finance for the East of England, Karl oversees the running of the company and the whole network on a day to day basis and ensures the company continues to expand. Karl has been awarded the British Franchise Association Qualified Franchise Professional (QFP) qualification in recognition of his expertise in ethical business format franchising. Business Development Director Sarah Robertson MSc, Dip M, Chartered Marketer, MCIM FIDM Sarah has over 20 years experience in the marketing and advertising industry, working with a broad range of national and regional brands such as the British Red Cross, Norwich Union, Oracle, Del Monte, the Imperial Cancer Research Fund and Swinton Insurance along with her own successful business. 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 on 1st September Sarah is responsible for marketing strategy, brand development, shop fronts, practice management and business development strategies for Franchisees. Sarah was named the 2007 & 2010 Marketing Person of the Year by the 2020 Innovation Group and runner up in Network Operations & Finance Director - Phil Sullivan BSc (Hons), ACIB During a 26 year career with HSBC Bank plc Phil achieved Executive Management status and undertook roles covering a wide range of disciplines. Prior to leaving HSBC Phil was Area Director for Leicestershire, a role with responsibility for all aspects of the bank's branch banking & commercial business in the county and corporate banking activities in the East Midlands. Phil established his own business in 2006 providing corporate and commercial advisory services to selected business clients. After working with TaxAssist Direct Ltd for 18 months on a consultancy basis, Phil joined the Board as a full-time Executive Director with effect from 1 October His responsibilities include overall technical competency and compliance of the Network and Support Centre, internal financial control and operational integrity and training. 5

6 Non - Executive Director - John Chambers 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. Non Executive Director Mark Fordham 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 3 years in a row as well as Accountant of the Year and the British Franchise Association Bronze award in In 2012, 9 years after starting his franchise, he sold the business with 900 clients to an incoming franchisee. Mark joined the board in January

7 Ireland In February 2009 TAD awarded its first Master Franchise Licence to the Republic of Ireland (ROI). The Master Franchise Rights were awarded to an established accountancy practice (principles being Certified Public Accountants) that was already successful in its own right but wanted to grow nationally and saw the value in the TAD brand, experience and support. The Masters in ROI have at the end of 2014 recruited franchisees covering 26 areas, who look after 5500 clients with a fee bank of 5,034,000. All franchisees are in shop front premises. TaxAssist Accountants Ireland is managed by a team of two full time Directors who are supported by personnel from their existing practice. TAD worked closely with the UK and Irish banks to ensure that, even in times of deep recession when banks were reluctant to lend, they became supportive of the TAD model. Funding is now available for Sub-Franchisees. TAD enjoys close relationships with the banks in the UK and ROI and is able to provide references to prospective Master Franchisees and the Franchise departments of their banks which demonstrate the strength of the TAD proposition. Canada so far In January 2014 TAD successfully delivered their Master Franchisee training to a Master taking on the rights for the Greater Toronto area of Ontario in Canada. TAD continues to receive a high level of interest in the 4 remaining Master Franchise territories in Canada and potential masters from Alberta and British Columbia visited Norwich in August and November Master Franchisee Rina Mancini, B.A.S., MBA Prior to becoming the Master Franchisee for TaxAssist in the GTA, Rina Mancini held strategic leadership roles with Manulife Bank of Canada, Equifax Canada, Sears Bank and Rogers Communications. An experienced business executive, leader and strategist, Rina has extensive depth and breadth of experience within the Financial Services, Telecommunications and Information Solutions industries. Her experience spans Consumer Credit Risk Management, Accounts Receivable Management, Call Centre Management, Operations, Customer Service, Finance, Change Management and Process Improvement. With Rina s acquisition of the Master Franchisee licence for the Greater Toronto Area, she looks forward to introducing and growing the TaxAssist brand to Canada and to establishing a network of franchisees within the GTA. 7

8 International Franchising Having proven that the concept can be replicated in the Republic of Ireland and that ongoing training and consultancy support can be given to a Master Franchisee, TAD is in a position to be able to offer its Master Franchise Rights to selected international markets. Whilst there are many differences between the UK and the target countries, both cultural and legal, there is one constant every country has a high number of small businesses and selfemployed individuals that have to pay tax and are in need of a professional accountancy service. The TAD branding, marketing, training, support functions & shop front concepts lend themselves to Master Franchising; being one of the UK s leading Franchisors, TAD is able to demonstrate their ability to recruit and support Franchisees and the strength of the business model. The TaxAssist Accountants Market The accountancy market is dominated by four accountancy firms, PriceWaterhouseCoopers, Deloitte & Touche, KPMG and Ernst & Young all of which are global organisations. These firms audit almost all of the top 100 public companies and the majority of the top 350 companies. Beyond the big four there are many mid-tier and smaller firms. For franchisees the market is small business. In Australia, a small business is defined by Fair Work Australia as those with less than 15 employees and by the Australian Taxation Office as those with annual revenue of under $2 million. The Australian Market According to the Independent Contractors Australia website, 17.2% of the Australian workforce are self-employed which equates to 1.9 million people. According to the Australian Government Department of Industry small business key statistics and analysis December 2012, the vast majority at just over 2 million (96%) of Australian businesses are small businesses. The target market for TaxAssist Accountants in Australia is significant and it gives us a unique opportunity through our international branded network to provide services to a largely untapped market. 8

9 Target Markets Based on the principle that a standard single unit territory has a population of up to 75,000, TAD are offering Master Franchise Rights covering an area with a population of up to 4 million which will result in 45+ single unit territories for the Master Franchisee to award, support and administer. For regions with a larger population, and where the prospective Master Franchisee is able to demonstrate their ability to manage a larger scale business, TAD can offer larger territories with an additional fee up to a maximum territory of 12 million. The anticipated pricing structure is broken down into two elements; a fee for territory licence and a separate fee for the support provided to the Master Franchisee by TAD. For a population of up to 4 million the territory licence fee is calculated as 75,000 with a pro rata increase in the fee for a larger territory. For example, for a territory with a population of 6 million the territory fee will be 75,000 X 1.5 = 112,500. The support element of the fee will vary dependent on the level of support required and the costs involved to TAD. The support fee will vary from 75,000 to a maximum of 125,000. Factors including geographical location, translation requirements and potential re-branding will affect the support fee and will be discussed with a prospective Master Franchisee. The Australian Bureau of Statistics states the total population of Australia is 23,130.9 (June 2013) split mainly across six states and two major territories. The viable states / territories suitable for TAD are demonstrated as: Queensland Victoria & Tasmania South Australia, Western Australia and Northern Territory New South Wales & Australian Capital With a population of 23,127,800 million these states would yield up to 4 Master Franchises and approximately 200 single units. The proposed minimum Franchise Fee for a Single Unit is the equivalent of 34,950 plus GST. 9

10 The role of the Master Franchisee The key roles of the Master Franchisee will be: Establishing a pilot operation Technical support Brand protection Network administration Recruiting Franchisees within their territory Training both initial and ongoing Marketing & business development support Master Franchise Package TAD will deliver full training split into two programmes. The first element will cover running a TaxAssist Accountants practice and includes training on software, practice management, sales and marketing. The second programme will train the Master Franchisee on how to recruit, develop and support a network of Sub-Franchisees. Course content will include: Recruiting Franchisees Setting up Franchisees Managing Franchisees Network administration Brand development Strategic partners Initial training for Franchisees Ongoing development for Franchisees and continual professional development Strengthening the network TAD has a support centre of dedicated professionals all focused on supporting the UK network of single/multi-unit Franchisees. As the international side of TAD s business grows the Directors are committed to, where necessary, recruiting specialists in international franchising to ensure that the UK business does not suffer. 10

11 TAD is focused on not just awarding Master Franchise Rights but working with the Master Franchisee to secure long term success. Whilst not providing technical support directly, TAD will provide comprehensive ongoing consultancy advice to the Master in establishing systems for: Ongoing training programmes Establishing helpline facilities Support website Support personnel visits Regular communication Marketing initiatives Franchisee recruitment Business coaching Details of the set up, training and support packages will be available in the Master Franchise Information Memorandum. To further support the Master TAD will: Appoint a dedicated support person who is highly experienced in franchising to be responsible for International Development Provide visits to the Master Franchisee during the crucial set up and initial trading period The Master Franchise fees are proposed as: Territory fee 75,000 Support fee 75,000 to 125,000 MSF on Sub Franchise fees 10% MSF on own MSF received from Sub-Franchisees 25% All other fees detailed in the Franchise Agreement 25% 11

12 What follows is part of the UK Single Unit franchise prospectus and has been used to illustrate what TAD delivers to their franchisees in the UK. Where possible TAD will expect the Master Franchisee, with their assistance, to source suitable suppliers for the services detailed that the Master Franchisee doesn't provide directly and will work with the Master Franchisee to create their own Single Unit Master Franchise Prospectus for the relevant Australian Markets. Please note that not all services may be available in Australia. 12

13 The Franchise Package The TaxAssist Accountants Franchise Package includes: LICENCE FEE The licence fee grants the right to trade under the corporate identity of TaxAssist Accountants for the duration of the Franchise Contract. IT EQUIPMENT AND MAINTENANCE PACKAGE We specify high spec laptops which are suitable to run all applications. TRAINING FEES A six week intensive induction training course (including one weeks home study) covers all aspects of the TaxAssist Accountants business model and prepares new franchisees for trading as a TaxAssist Accountant. This training covers 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 all staff in the Support Centre. During the initial six month 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 have also introduced the 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 in Norwich and at regional centres around the UK. The Training Academy fee of 50 pcm per territory covers ongoing training resources, additional courses are charged at nominal rates. MARKETING 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 in your first month!) and, up to the value of 500, pay for your first year subscription to a networking group of your choice. 13

14 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. EMPLOYMENTOR HR AND EMPLOYMENT PACKAGE We are pleased to offer all franchisees subscription to Employmentor. This service provides you with comprehensive HR support for all your employment needs and much more. SUBSIDY FOR SUPPORT AND HELPLINE The franchise fee gives you access to all services provided by the Support Centre from day one. OPERATIONS MANUALS The detailed Manuals form the basis of your training reference material and are explained fully during the training programme. All the manuals are available online, on our support website, once the course has been completed. SUPPORT SITE A wealth of useful information is contained in our easy to use intranet. 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, and adverts, and book into training sessions to name but a few features. ADDITIONAL INITIAL SUPPORT In addition to dedicated internet support, the franchise fee covers the first year s payroll software, 12 months use of the online learning facility, 3 month s usage of CCH, first years Federation of Taxation Advisers student Membership if required and launch assistance. 14

15 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 offer the services of a personal answering service for either a full year's service or 120 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. BUSINESS STATIONERY A starter pack of stationery is provided, including letterheads, envelopes and business cards, fully personalised with your details. PROMOTIONAL MATERIAL A comprehensive initial starter pack will be provided, including personalised corporate brochures, marketing leaflets etc. COMPETITOR ANALYSIS REPORT Some thorough research into your competitors, their products 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. WEBSITE & 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. 15

16 ANTI MONEY LAUNDERING COMPLIANCE We are pleased to provide as part of the franchise fee 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. 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 is comprehensive and comprises training, marketing and technical helpdesks for accounting, tax, software and Human Resources. In addition to this, you will benefit from field visits from our Franchisee Development Managers, Directors and our Technical and Training Teams, as well as ongoing training to accommodate Continuing Professional Development requirements from the accounting institutes. We have been established since 1995 and recruited our first franchisee in Since that time the network has grown to over 190 and our franchisees have gained substantial experience that you can benefit from. You will find that the network will have experienced nearly every aspect of setting up and trading as a TaxAssist Accountant. 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, Regional Meetings and an Annual Conference. These activities allow franchisees to express themselves and make operational recommendations, and the franchisor has opportunities to cement relationships with the network. Unlike some of our competitors, we have no other business interests or our own accountancy practice to support meaning we can concentrate 100% of our time on you our franchisee and your growth. Compare our competitors offerings closely to our own, both on an initial basis and ongoing, because we feel we have a fully comprehensive offering. 16

17 Finances A GUIDE TO ESTIMATED START-UP COSTS, AND ONGOING FEES: Franchise Fee Standard 5 year Agreement 34,950 Management Service Fees First 140,000 turnover 9% Next 140,000 turnover 6% Over 280,000 3% Above 420,000 1% Brand Awareness & Client Acquisition fund:- (calculated and payable on a monthly basis increasing by 60 per year) Our Management Service Fee is set so that as your turnover increases the rate payable to us decreases 1,800 pa Commercial Premises Costs Commercial office lease (per calendar month) Shop front lease (per calendar month) 1,000 pcm Shop front re-fit (depending on premises) 20,000 (Prices would vary between regions) Equipment Black & white laser printer 200 Office furniture & photocopier/scanner 2,000 Mobile phone (per calendar month) 40 Fax 120 Telephone System (per calendar month) 1,

18 Software CCH Central (first three months free) Moneysoft Payroll (first year s subscription) Microsoft Office 365 (first two years subscription inc. in package) 131 pcm Inc. in package 118 pa Training The TaxAssist Accountants Training Academy provides bespoke training courses to Franchisees and staff in Norwich and at regional centres around the UK 50 pcm per territory Other start up costs Legal fees (optional) Professional Indemnity Insurance First 12 months general marketing (networking, advertising etc) Initial working capital (to be considered) will vary on an individual basis. 200 approx 5,000 Leads Inbound qualified leads 50 per lead Employment & HR package Employmentor (value 495 per year) (Please note that all fees are subject to VAT at the applicable rate) Inc. in package 18

19 Property & Working Capital The Franchise Agreement states that you will operate from shop-style premises within 36 months of joining TaxAssist Accountants. You may wish to start trading from such premises from day 1, and we have strategic relationships with certain suppliers that can facilitate this. SHOP REFURBISHMENT We have a Preferred Supplier for shop fitting and they have been fully briefed on our minimum 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. The cost of refurbishment at our flagship office in Norwich was 26,500 including IT hardware. Other shop-style offices across the country have been refurbished at nominal costs, so it is prudent to research this thoroughly. PROPERTY SOURCING Our support team have been specifically tasked to look after all aspects of sourcing and operating from office and shop-style premises. 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. WORKING CAPITAL If you are joining us without an established client base, you will not have an initial regular income. This calls for the provision of Working Capital and we have bespoke finance packages provided by HSBC, Lloyds TSB and NatWest. The level of capital you will need is dependent on several factors regional variations in property and staff costs, personal expense requirements and trading status (office or shop front). 19

20 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. Funding for your franchise can be arranged by means of a loan and overdraft combination, thus allowing for flexibility in terms of monthly expenditure. RAISING FINANCE: THE BANKS 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 subject to their normal lending criteria. Below are the contact details for the franchise sections of the banks we have made good relations with: Mark Scott Franchise Development Director, RBS and NatWest Franchise Section Tel: franchise.retailbanking@ natwest.com Richard Holden National Franchise Manager, Lloyds TSB Bank plc Tel: [email protected] Lorna Smith Senior Franchise Manager, HSBC Bank plc Tel: [email protected] David Williams QFP Director, Franchise Business Development RBS Corporate Banking Tel: [email protected] 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. 20

21 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 but if all other aspects of the application stacks up and the only issue is the lack of security then the EFG is an attractive route which many franchisees have benefited from. Revenue Projections By adhering to 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, and your marketing and networking activity will seriously help the build-up of your fee-bank. Further client development will also come from referrals. It is not helpful to talk about average levels of achievement because each franchisee approaches the business with their own aims, objectives and approach, under the guidance and support of the franchisor. It is more practical to consider what can be achieved in reality. For the franchisees that have opened in the last 3 years, the top 20% at the end of their first year have an average of 116 clients and 75,000 of fees. We do not pretend that these are easily achieved it required real effort and enthusiastic following of our business model but that level of success is being achieved and, of course, bettered. Gary Jacks joined our network in April 2006 and went straight into a shop front in Ellesmere Port in Cheshire. He states "I found that after my April launch I was soon securing clients - I've already (at month 5) secured 59, and the annual fees from these currently stands at 46,000. By following TaxAssist Accountants business model, the speed with which I've grown my client base has far outweighed my expectation". As at October 2014 Gary looks after 651 clients and has a fee bank of 369,000 across his three shop fronts in Queensferry, Chester and Ellesmere Port. Please note the above 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. 21

22 10 Reasons Why You Should Join TaxAssist Accountants 1. Our Brand Name: We are the leading franchised accountancy organisation looking after small businesses, with over 20 years experience of operating a substantial national network of branded offices that is well recognised and respected. 2. Our Training: We are confident that we are providing the best initial and ongoing training for you and your staff. As well as providing a comprehensive initial six week training course which includes food and accommodation, we also offer ongoing update days as well as bespoke training if needed in Norwich and regionally, as well as CPD facilities. The tax and accounts training is provided by our own staff and specialist training partners, and we provide a nurture programme which lasts for six months after the initial course focusing on business development, HR, staff recruitment and client acquisition. We also provide courses on pricing and fee raising as well as social media training to keep our network abreast of business relevant developments. 3. Support Centre: All of the Support Centre staff are 100% committed to supporting the Franchise network and have no other business interests to take their focus away from the importance of assisting the network. The three executive directors have a breadth of business experience which they bring to the franchise. Karl Sandall had 26 years working for a major clearing bank, and is an ex bank manager, Sarah Robertson is a Chartered Marketer who previously operated her own Marketing and PR company and Phil Sullivan spent 26 years with HSBC achieving Executive Management status before leaving to establish his own business in 2006 providing corporate and commercial advisory services. 4. Shop Front Concept: We have a highly visible presence with over 170 shop fronts and growing around the country. The shop front brand is supplemented by the many branded cars driving around the country, national advertising, internet presence and marketing collateral. We constantly look to be at the forefront in terms of brand awareness, technical training and support for business growth. The shop front will allow you to build up a team of staff who you can delegate to, allowing you the free time to work on the business not in it. 22

23 5. An Exclusive Territory: You gain the rights to operate and receive leads in an exclusive territory of postcode districts based on a population of up to 75,000 people. Once established, there is the possibility of taking on an area and a half or two franchise territories. 6. Lead Generation & Business Development Strategies: You will receive a number of free leads as part of your initial franchise package. These will be generated from a marketing campaign in your area and our ongoing inbound lead service. The Support Centre provides a social media presence, PR, national advertising, telemarketing and an unparalleled internet presence. These and other initiatives will generate inbound leads (business opportunities) for you. 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. This type of consultancy work does not come cheap and we are pleased to provide this as part of our service. We utilise a range of bespoke business tools for our network in respect of their own business planning, fee charging and profitability analysis. We also have an association with the 2020 Group who provide specialist marketing and technical advice to accountants. 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 (there are more buyers than sellers) 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 and Will Writers, amongst other services. Many of these suppliers pay a commission to you, which can form a substantial part of your revenue. These services are not only available to you, but for your clients to offer their clients too. Employmentor is available at a much reduced cost via TaxAssist Accountants, and offers businesses a complete administrative tool for handling the recruitment and management of their staff, whilst ensuring that they comply with all their legal requirements. They offer an on-line service which allows access to all of the legal resources you (and any employer clients you may have) will need. The website provides subscribers with an array of templates, precedents, model letters and general procedural guidance on each stage of the employment process, and is backed up by a telephone and helpline staffed by qualified lawyers who, unlike many call centre type competitors, benefit from their day to day experiences as active employment lawyers. 23

24 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. It is not normally possible for small businesses to originate direct debits. The Banks restrict this facility to larger companies and often impose stringent security and financial requirements. Our supplier of the Direct Debit Scheme, CMS Limited (a wholly owned subsidiary of London and Zurich plc), acts as an intermediary, amalgamating the requests from a range of smaller users so that it becomes a large originator and meets the exacting requirements of the Banks to originate direct debits. Using CMS software you can arrange for the collection of direct debits from your clients on a regular basis in addition to occasional irregular payments. CMS Limited collects the monies due into a holding account and the proceeds are remitted to you on the day after collection. When you join TaxAssist Accountants you are joining a network with a visible, credible brand. We have a bank contact scheme whereby we keep banks updated with all franchisees, sending out your business card and introduction letter. We also keep in regular contact with the Associations of Self Employed who can provide access to their many trade members and potential clients. 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 that is available to you as part of the franchise package is the technical helpdesk. This is manned from Monday to Friday 8.30am 5.30pm, by individuals with a range of accountancy and tax qualifications and is available to you and your staff. There is also a marketing helpline if you wish to discuss an idea, advert, proposal or campaign. As technology progresses the reliance placed on your IT increases which is why we have researched a panel of recommended national IT support partners across the UK for you to choose from. Should you prefer to use a local IT company you are free to do so. A laptop and CCH software is provided as part of your franchise fee and CCH themselves will be responsible for the installation and updates of their software, at no charge to you. All in all a complete practice management system. 24

25 Achievements 2014 Smith & Henderson Awarded the 5* Franchisee Satisfaction Recognition Award 2014 Smith & Henderson Continuous Improvement Award 2014 Smith & Henderson Best Franchise Award 2014 British Franchise Association 2014 Most Innovative Tax Team of the Year Winner 2013 Best UK Accountancy Firm Supporting Apprentices 2013 Smith & Henderson Best Franchise Award Best Training & Support 2013 Smith & Henderson Best Franchise Award Best Overall Franchise 2013 Smith & Henderson Awarded the 5* Franchisee Satisfaction Recognition Award 2013 British Franchise Association, Franchisee of the Year Award Finalist 2013 Association of International Accountants Winner 2013 Unbiased.co.uk s Media Adviser Awards Professional Adviser of the Year Awarded to Jo Nockels, Communications & Training Manager 25

26 2012 Smith & Henderson Best Franchise Award Best Large Franchisor 2012 Smith & Henderson Best Franchise Award Best Training & Support 2012 British Franchise Association, Franchisor of the Year Award: Selected Finalist 2011 Eastern Daily Press Business Development Award Winner 2011 Best Franchise Award Best Training & Support 2010 British Franchise Association Franchisor of the Year 26

27 In 2010 TaxAssist Accountants were the British Franchise Association Franchisor of the Year GOLD WINNERS TaxAssist Accountants faced tough competition from the seven other shortlisted finalists including household names such as Dominos and McDonalds. This award win followed two Silver place wins for the small business accountancy specialists. Winning an award for a third consecutive year at this prestigious event confirms that TaxAssist Accountants continues to be one of the major players in the Franchise world. Karl Sandall, Chief Executive of TaxAssist Accountants, collected the award on behalf of the company from Brian Smart, Director General of the bfa at a gala ceremony held in Nottingham. Karl is justifiably proud of their success and comments Being named as 2010 bfa HSBC Franchisor of the Year is extremely exciting and is recognition of how we've adapted our business and shaped our future plans for the benefit of all 180 of our franchisees. We provide them with the support they need, whatever and whenever it may be, to make their business as successful as possible." "Judging the finalists was tremendously difficult as so many franchisors have shown innovative ways in which to survive and prosper despite the economic downturn. TaxAssist clearly demonstrated unique and exciting business success and is a deserving winner of the bfa HSBC Franchisor of the Year Award. Cathryn Hayes, Head of Franchising, HSBC "The affect of the recent economic conditions has been a constant threat for franchisors and franchisees alike. However, it has been a delight to recognise and award some truly outstanding franchisors for their strategic direction and support for their franchisees. "By being named as one of the winners, the franchisors have been recognised as being the best in industry for customers, suppliers and potential franchisees. It can also help further motivate their own franchisees by recognising their hard work and dedication. Brian Smart, Director General of the bfa 27

28 Being named as 2010 bfa HSBC Franchisor of the Year is extremely exciting and is recognition of how we've adapted our business and shaped our future plans for the benefit of all 180 of our franchisees. We provide them with the support they need, whatever and whenever it may be, to make their business as successful as possible." Karl Sandall, Chief Executive TaxAssist Accountants Just a quick to say congratulations to everyone at TaxAssist for winning the Gold award. I have spoken to current clients, potential clients and people I am networking with about this achievement and they are all very impressed. I am so pleased that I chose to become a TaxAssist accountant rather than try to start up on my own from scratch. Winning awards like this confirms I made the right decision and it has certainly given me even more of a boost to reach my targets. Very well done once again. Ron Mansfield TaxAssist Accountants, Romford Many congratulations on the great achievement of the Gold Award. It is something that we in the field have known for a long time that as a Franchisor you are Number One. Best wishes to all at Norwich. Jonathan Berks TaxAssist Accountants, Royston End of extract from UK Single Unit franchise prospectus 28

29 Next Steps If you would like to take your interest further, you will need to contact David Paulson on or and if appropriate you would need to arrange to visit us in the UK. The UK visit will involve Discovery Day presentations, covering the business model, shadowing support centre personnel and meetings with the Directors to discuss the opportunity in greater detail. The visit may also include a tour of UK Franchisees and a visit to Ireland to meet with our Master Franchisee to see firsthand how we have assisted them in setting up their operations. Your only obligation is getting yourself to the UK, once here we will arrange your airport transfers and accommodation whilst you are with us. The discovery day and subsequent meetings are not a hard sell and there is no obligation to join us after visiting. The sessions are a two way process to establish if we can work together. Once you have visited with us we will invite you to conduct your own research on the potential business within your territory whilst we both complete due diligence on each other. We welcome questions on any issue connected with our Franchise as we want you to be completely satisfied with our concept so you can feel confident and fully committed to our business relationship. Feel free to contact us for any information you require. We look forward to hearing from you. 29