Republic of Ireland Franchise Prospectus The Prospectus is a detailed document that explains the TaxAssist Accountants business model, including a number of testimonials from existing franchisees. Executive Summary The purpose of the Executive Summary is to give a condensed overview of the TaxAssist Accountants franchise concept and the associated investment requirements. You will find more detailed information on each of the topics in further sections of the Prospectus. 2
The TaxAssist Accountants Concept We have developed a robust business model that allows us to focus on a particular market of potential clients. The model is to focus on the supply of accounting, taxation and associated services to small businesses and taxpayers. A small business is defined as any trading entity with a turnover of up to 2 Million. This includes Sole Traders, Partnerships and smaller Limited Companies. Our shop front strategy is based on making our services more accessible to this client base, and to aid in the development of brand awareness. The niche of small businesses has traditionally been ignored by larger accountants, and poorly serviced by smaller practices. Establishing a unique network that focuses solely on smaller businesses means that we are targeting a market that has a need for our services, and operating from key office locations or shop-style premises makes us more accessible. 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, comprising training, marketing and technical helplines 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 1996. Since that time the network has grown to over 180 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 Best Practice Forums, 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. In summary the total support package is technical, developmental and personal. Our success as a franchise is based on the success of the franchisees, and our set-up is focused to help you reach your goals. 3
Testimonials The best way to gauge a franchise and the franchisor is to listen to the franchisees. We have a raft of comments from a number of people from the network who express themselves in an honest and candid way: After qualifying as a Certified Public Accountant in 1991 I worked in small to medium practices for 19 years. I was partner in a 2 partner practice with 20 staff in Dublin for 6 years specialising in audit and compliance services for the SME Sector. I recently moved back to Kildare and worked alongside a couple of local practices servicing the needs of small to medium sized clients. I decided to go back to my studies to specialise in Taxation and embarked on the Irish Taxation Institute professional exams in April 2009. I am currently at the final stages. I read about the TaxAssist Franchise opportunity in a Sunday newspaper, and contacted Greg in summer 2009 to find out more. We discussed the franchise opportunity and Greg suggested I go to the UK to explore a bit more. After the discovery day I was completely sold on the idea and decided to go for it. For me, the chance to be part of a network was an attraction. We are all going through or have gone through the same process so being able to talk and share ideas has been really helpful. I took on my first employee in January 2010 and I set my heart on a premises late in 2009 but various delays meant it took a while to get it secured. I am glad I waited though, I really think the right premises makes all the difference. The shop opened in July 2010, and since then there has been a steady flow of walk in clients and phone calls. Over the two days after the August bank holiday we had 12 walk-in s! The premises are bright and attractive to passers-by, the visibility and the openness makes it so much easier for clients to pop-in. As an accountant, I was slightly uncomfortable with marketing, but the training took away any inhibitions and really made me believe I had to go for it! The marketing certainly works. As well as marketing efforts like running adverts in newspapers I became involved in setting up a new BNI chapter in Kildare. Both have paid off and delivered quality leads. Having someone to turn to in the form of the technical team at head office has been fantastic, Having support on technical issues is very beneficial, especially in the first few months I have worked hard over the past few years setting up the business, but it is the most rewarding and enjoyable work that I have done in some time. I am in the process of setting up a second shop in my territory and although things will be hectic for the foreseeable future I am confident I have made the right decision and I will enjoy a healthier work life balance in the years to come. Anne Cunningham - Kildare 4
I am a qualified Chartered Accountant and prior to joining TaxAssist Accountants I was a senior manager with PriceWaterhouseCoopers. Before that I trained with a small practice based in Cork. I joined TaxAssist Accountants in December 2009 and opened my first shop in April 2010. The growth of my business over the last two years has been faster than I expected. Part of this I put down to the shop front as it provides a highly visible office in a prominent location. Active sales and marketing has been the key to my sales growth and not just in one specific area. I have tried a number of different approaches including off the page, cold calling, radio, Google, Facebook, networking amongst other. I currently employ three people and aim to recruit another qualified person in the New Year. One of the biggest challenges at the moment is getting the right mix of time spent doing work verses generating work. I have had great support from head office who are always on hand to answer any queries I have or to bounce ideas off of whether these are technical or general practice management queries. The biggest help though has been in the sales and marketing area as like most other accountants marketing would not previously have been my strong point. Being part of TaxAssist Accountants has given me access to excellent sales and marketing training, tried and tested campaigns and adverts and sales approaches that do work. My advice to anyone considering the franchise option would be to talk to as many people as possible before you make your decision as the more information you have the better. Prepare a detailed business plan and review it regularly. Clive Aherne Cork City Over the past year I have put in a lot of hard work and long hours however the amount of clients I have acquired would not have been possible had I not been part of the franchise. The support I have received since from Greg and his team in Fairview has been exceptional both in terms of technical content and willingness to assist. The sales and marketing training I received has, in my opinion, played a major role in my success. For Accountants who are not used to having to do marketing, this is a really valid contribution. As well as my own local marketing, leads are qualified and delivered by head office regularly which means I am always adding to my client base. I m happy to report that I plan on opening a second shopfront in 2011. Michael Sandys Kimmage More testimonials are supplied further into the recruitment process. Should you become serious about joining TaxAssist Accountants and attend one of our discovery days, you will be given a directory with the contact details of all of our franchisees and you can contact as many as you like to further your research. 5
Finances The Franchise Fee 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 supply laptops with Intel Centrino dual core processors which are far superior to the AMD and cheaper Celeron processors available. All laptops are specified with 1Gb of ram to allow applications to run at optimum without being held back by hardware. The package comprises a laptop, USB mouse and targus keypad, Microsoft Office, Anti-Virus software, online backup (1 year subscription) and CCH Practice Management software (you start to pay for this in month 4). TRAINING FEES Our in house five-week intensive induction course covers all aspects of the TaxAssist Accountants business model. Accountancy and tax, software, marketing and sales training is included. We pay for all meals and accommodation during the course and ensure you get to meet all of the Support Centre staff. MARKETING To kick start your business we provide you with an initial marketing campaign and 25 free leads from our lead generation activities (either outbound or inbound) and where possible, pay for your first year subscription to Business Network International. 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 two follow on training days reviewing your progress. OPERATIONS MANUAL 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 6
SUBSIDY FOR SUPPORT AND HELPLINE The franchise fee gives you access to all services provided by the Support Centre from day one. SUPPORT SITE A wealth of useful information is contained in our easy to use 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, 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, 3 month s usage of CCH, launch assistance etc. 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. BUSINESS STATIONERY A starter pack of stationery is provided, including letterheads, envelopes, business cards etc., fully personalised with your details. PROMOTIONAL MATERIAL A comprehensive initial starting 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 competitor s strengths and weaknesses. It will also tell you how to use the information to win more customers and keep the ones you ve got. Total = 39,450 +VAT The above total is subject to reclaimable VAT at the ruling rate. We would advise you to discuss this franchise with your professional advisers before signing the franchise agreement. The banks can provide guidance as can the Irish Franchise Association. 7
A Guide to Estimated Start Up Costs & Ongoing Fees Commercial Premises Costs Shop front premises 1,000-2,000 PM Approx Equipment Black & White Laser Printer 400 Office Furniture, Photocopier/ Scanner, Mobile Phone, Telephone / Answerphone / Fax 1000 Software CCH ProSystem Starter Pack including: Practice Management, Accounts Production, Bookkeeping and VAT. Personal, Partnership and Corporate Tax. Dividends and Tax Return Review Thesaurus Payroll (first year s subscription) Microsoft Office SBE, Anti Virus software & Online Backup 150pm Inc. in franchise fee Inc. in franchise fee Other Start up Costs Legal Fees (optional) 750 Professional Indemnity Insurance First 12 months general marketing (networking, advertising etc) Initial Working Capital 1,500 approx 5,000 will vary on an individual basis Management Service Fees (based on turnover) On first 150,000 9% On next 150,000 6% Over 300,000 3% Brand Awareness Fund Leads provided from inbound call centre activity 150pm 75 per lead Employment and HR package Inc. in franchise fee Notes: the above figures are excluding VAT. 8
Working Capital & Property The Franchise Agreement states that you will operate from shop-style premises within 36 months of joining TaxAssist Accountants. We recommend that you 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. Clive Aherne Washington Street, Cork. Anne Cunningham, Naas, Co Kildare 9
PROPERTY SOURCING Our Franchisee Development Managers have been specifically tasked to look after all aspects of sourcing and operating from office and shop-style premises. With many years experience, the Franchisee Development Managers 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 SOURCE 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 Bank of Ireland. 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). Funding for your franchise can be arranged by means of a loan and overdraft combination, thus allowing for flexibility in terms of monthly expenditure. 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. 10
Ten Reasons Why You Should Join TaxAssist Accountants 1. Our Brand Name We are the leading franchised accountancy organisation looking after small businesses and taxpayers 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 five week training course which includes food and accommodation, we also offer ongoing update days and bespoke training if needed, as well as CPD facilities. The tax and accounts training is provided inhouse 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. 3. Support Centre Our Republic of Ireland Support Centre is managed and staffed by experienced, qualified accountants. Our Irish master franchisees, Greg Murphy and Roddy Comyn have over 30 years experience working in and building small accountancy practices that service the needs of small Irish businesses. 4. Shop front concept We have a highly visible presence with our shop front brand. The shop front brand is supplemented by our branded cars, Golden Pages 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. 5. An Exclusive Territory You gain the rights to operate and receive leads in an exclusive territory based on population. Once established, there is the possibility of taking on two franchise territories. 11
6. Lead Generation You will receive a number of free leads as part of your initial franchise package. These will be generated from an initial marketing campaign in your area and our ongoing inbound lead service. The Support Centre will carry out national advertising including Golden Pages and internet key word optimisation amongst other initiatives which will generate inbound leads. We can also offer the services of cold calling telemarketing agencies should you wish to run a campaign. 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 specialise in marketing/technical advice specifically for 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 Services Partners 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. 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. 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. 12
10. Helplines 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 helpline. This is manned from Monday to Friday 9am 5pm, 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. What Next? To hear more about the TaxAssist Accountants franchise please contact Greg Murphy for a confidential chat on 1890876887 or on email greg.murphy@taxassist.ie. If you are keen to progress we ask that you attend a Discovery Day at our UK support centre in Norwich. The discovery day is not a hard sell and there is no obligation to join us after the day. The days are a two way process to establish if we can work together. Once you have attended a Discovery Day you may wish to reserve a territory whilst you carry out some research. If we are happy to accept, then we will ask for a refundable deposit that reserves your preferred territory for a 30 day period so that you have some exclusive time to research your area. 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 telephone us for any further information you may require: FREE 1890 87 68 87 I Email recruitment@taxassist.ie I Visit www.taxassist.net 13
The Recruitment Procedure Following an initial enquiry, TaxAssist Accountants will send out an initial information pack and Application Form. Candidates showing the right aptitude and with the right background will be invited to a Discovery Day and asked to forward a completed Application Form and their CV. Successful candidates who have attended the Discovery Day will be invited to reserve a territory and be advised on Due Diligence investigations. They will also be supplied with a blank Franchise Agreement and Business Plan template. With all relevant research completed, those looking to join us will be asked to complete a financial Business Plan and taken through the final preparations before joining a training course. Our network of Franchisees is expanding rapidly Join us now and share in our success 14