Franchise Accounting Project Pilot

14. 02. 2022

The main goal of the franchise project is to onboard Nordic franchise shops and offer them the same accounting services as provided to our own shops. Currently there are many owners of approximately 170 franchise departments and each of the owners has a possibility to choose his own accounting firm. The idea is built on changing the approach completely and instead of feeding the ledger data to those external accounting companies, we will provide the final reporting directly to the owners. 

For the Franchise project, we are in the role of the process owner, we set up rules and conditions based on which the services would be provided, we list detailed routines, responsibilities, and timelines to be followed and if they are not met, we are obliged to charge additional fees.

As you can imagine there is a huge chunk of legal work required and additionally you need a massive IT involvement including adjustments and development. From a high-level point of view, we need to secure that all invoices will be received, processed, and paid on time – that requires testing of the electronic invoicing, new vendor setup, approval matrixes in place, chart of account mappings or bank account accesses.

For CoE it is a massive opportunity to show the quality of our services, prove our Trusted Advisor status, learn more about the retail business and understand motivation and drivers from the “owner” perspective. Finally, it also provides us with a huge opportunity to adjust or change routines we believe could be done in a simpler and more efficient way.

As for the timeline, the project went live on 1 January 2022 and the next major milestone is the Go/No Go decision planned for March 2022. We have onboarded two Norway franchise owners, totalling 7 stores who took the opportunity to be the first ones to lay a cornerstone in what we aim to be a long-term cooperation. Pictures attached are from our first face to face meeting to finalise the Service Level Agreement contract and manage future expectations. The meeting took place in Prague in early December 2021.

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