Australia Master Franchise Prospectus

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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 2015.

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.

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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. 2014 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.”

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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 £27.21 million, up from 34th 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.

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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 2002. 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 2004. 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 2009.

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 2008. His

responsibilities include overall technical competency and compliance of the Network and

Support Centre, internal financial control and operational integrity and training.

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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 1998. 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 2012.

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 2009. 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 2015.

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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 2014.

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.

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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 self-

employed 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.

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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.

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The role of the Master Franchisee

The key roles of the Master Franchisee will be:

Establishing a pilot operation

Recruiting Franchisees within their territory

Training – both initial and ongoing

Technical support

Marketing & business development support

Brand protection

Network administration

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

Initial training for Franchisees

Managing Franchisees

Ongoing development for Franchisees and continual professional development

Network administration

Strengthening the network

Brand development

Strategic partners

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.

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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%

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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.

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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.

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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.

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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 Email, 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 & EMAIL ADDRESS

All new franchisees are set up with email and their own website for you to personalise with information about you and your local contact details. We administer and maintain this for you.

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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 1996. 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.

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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:- £1,800 pa

(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

Commercial Premises Costs

Commercial office lease (per calendar month) £250- £650

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) £1,760 + £60

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Software

CCH Central (first three months free) £131 pcm

Moneysoft Payroll (first year’s subscription) Inc. in package

Microsoft Office 365 (first two years’ subscription 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) £400 - £600

Professional Indemnity Insurance £200 approx

First 12 months general marketing (networking, advertising etc)

Initial working capital (to be considered) will vary on an

individual basis.

£5,000

Leads

Inbound qualified leads £50 per lead

Employment & HR package

Employmentor (value £495 per year) Inc. in package

(Please note that all fees are subject to VAT at the applicable rate)

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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).

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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: 0800 0929117

franchise.retailbanking@

natwest.com

Richard Holden

National Franchise Manager,

Lloyds TSB Bank plc

Tel: 0800 6816078

[email protected]

Lorna Smith

Senior Franchise Manager,

HSBC Bank plc

Tel: 0121 4553438

[email protected]

David Williams QFP

Director, Franchise Business

Development

RBS Corporate Banking Tel: 020 7615 4657

[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.

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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.

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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.

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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 email helpline staffed by

qualified lawyers who, unlike many call centre type competitors, benefit from their day to

day experiences as active employment lawyers.

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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.

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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

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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

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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

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“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 email 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

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Next Steps

If you would like to take your interest further, you will need to contact David Paulson on 01603

447402 or [email protected] 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.