Special situations
Franchise and multi-entity consolidation
UK groups running several trading entities or franchise units get one consolidated view built from clean per-unit books, each kept on the same monthly schedule under Xero or QuickBooks Online. Finbryn matches the chart of accounts across units, tracks intercompany charges, and rolls everything into a single profit and loss and balance sheet.
Bank reconciliation summary
Illustrative client · August 2026
GBP
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri 28 Aug, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
One view across several trading entities
A UK group running several franchise units or related companies usually ends up with each entity's books kept slightly differently, on different schedules, in different software, until someone has to stitch a group-level picture together at year end by hand. Finbryn starts by matching the chart of accounts across every unit or entity, so figures line up before any consolidation happens rather than being forced together afterward.
Each location's books get categorised and reconciled on the same monthly schedule, and intercompany charges, royalties and transfers between entities are tracked and eliminated on consolidation rather than left to inflate the group's reported turnover. That elimination step matters for a UK group reporting under FRS 102, where related-party transactions need to be disclosed correctly even when they net out on consolidation.
The result is a consolidated profit and loss and balance sheet alongside per-unit reports, so an underperforming location surfaces early rather than getting absorbed into a group-level number that looks fine on average. Where the group crosses the FRS 105 micro-entity thresholds, turnover above £1 million or a balance sheet above £500,000, at either the entity or group level, the accounts have to move up to FRS 102 rather than staying on the simplified micro-entity regime, which changes what has to be disclosed.
Franchise royalties are tracked as an intercompany or standard expense line depending on how the agreement is structured, and reconciled each period against the franchisor's own statements. See multi-year catch-up if one or more units are behind before consolidation can start.
Questions
Frequently asked questions: Franchise and multi-entity consolidation
Can each UK entity or franchise unit keep its own file?
Yes. Each unit keeps its own books, and we roll them up into a consolidated set on your reporting schedule.
Can a unit that is behind on reconciliation join the consolidation later?
Yes. It is caught up first through multi-year catch-up, then folded into the consolidated view once its own books are current.
What happens once a group grows past the micro-entity thresholds?
The accounts move from FRS 105 to FRS 102 once turnover or balance-sheet size crosses the threshold, which changes what has to be disclosed.
How are royalty and marketing fund payments to the franchisor tracked in a consolidation?
These are tracked as their own account across every unit so the group total, and each unit's individual obligation, is visible separately from ordinary trading costs. This also makes it straightforward to check a unit's calculation against the franchise agreement's actual percentage.
Can a new franchise unit join an existing consolidation partway through the year?
Yes, a new unit is onboarded onto the same chart of accounts and reporting structure as the existing units and included in the consolidation from its start date, with its pre-acquisition or pre-opening figures excluded so the group total is not distorted.
Can each franchise unit keep its own file?
Yes. Each unit keeps its own books, and we roll them up into a consolidated set on your reporting schedule.
How do you handle royalty payments to the franchisor?
Royalties are tracked as an intercompany or standard expense line depending on your structure, and reconciled each period against the franchisor's statements.
How do we get started with franchise and multi-entity consolidation?
Getting started with franchise and multi-entity consolidation begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
What if our records for franchise and multi-entity consolidation are not up to date?
If your records are behind, we scope a catch-up first so franchise and multi-entity consolidation starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
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Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.