A franchisee who opened one quick-service restaurant in the GTA in 2017 now runs nine, held through four numbered companies (corporations registered with a number instead of a name). The part-time bookkeeper who set up store one still keeps accurate books, but nobody can say which locations made money last month. That gap is what a franchise accountant or a restaurant group controller fills.
Franchised businesses contribute almost $150 billion per year to the Canadian economy, creating jobs for almost two million Canadians. Yet many multi-unit operators still run on single-store accounting.
Why Multi-Location Accounting Is a Different Job
You need each location’s results to stand on their own and several companies to roll into one picture, and most generalist bookkeepers aren’t set up for that.
Each store needs its own P\&L (profit and loss statement), so you can compare stores side by side. That means sales, prime cost (food plus labour), labour as a share of sales, and occupancy, meaning rent and related costs. When one store’s labour runs well above the others, you want to see it that month. A head-office company might pay a manager who covers three stores, lend money to fund a new build, or charge management fees. Your accountant has to book those entries consistently and cancel them out when the bank asks for consolidated statements.
More than 1,200 franchise networks operate in Canada, and hospitality-related franchises make up about 40% of the sector. Outside food service, fitness studios collect membership revenue in advance, so part of each month’s cash belongs to future months. Home services and clinics add technician payroll and booking-software revenue that has to be matched to the right location. If your units lean toward selling product, the inventory and margin side looks more like accounting for a retail company.
Royalties, Ad Funds and the Reporting Your Franchisor Expects
Every month you report and pay royalties and ad-fund contributions, usually as a percentage of gross sales. Check those figures against your own POS (point-of-sale system) data. Mistakes cost money in both directions.
Your accountant needs to know exactly how your agreement defines gross sales, including whether discounts, delivery-app commissions and HST come out first. Overpayments are hard to recover, so they should check the franchisor’s monthly statement line by line. Many agreements also give the franchisor audit rights over your sales records, and some shift the audit cost to you if the audit finds an underpayment. Royalties can also attract HST, so ask your tax adviser how it applies.
When you buy or build more units, your accountant should be able to read the franchisor’s disclosure document. In Ontario, the franchisor must give you that document at least 14 days before you sign an agreement or make any payment, and it includes the franchisor’s financial statements, although some large, established franchisors do not have to provide them.
POS, Delivery Apps and Payroll: The Daily Reconciliation Load
Most errors in a multi-location business start in daily sales and payroll reconciliation, not at year-end.
On the sales side:
- Card batches land a day or two later, minus fees, and have to be matched to each store’s deposits.
- Delivery-app payouts arrive net of commissions, promotions and refunds, so they need grossing up: recording the full sale as revenue and the app’s commissions and fees as a separate expense.
- Gift cards and loyalty points are liabilities. When one of your companies sells a card and another redeems it, that becomes an intercompany entry. If the franchisor runs the program, you settle it with the franchisor.
- Track tips and cash variances by store weekly.
Payroll gets harder as staff pick up shifts at more than one site. Rate changes have to hit every company at once. Ontario’s general minimum wage rose to $17.95 an hour on October 1, 2026. The CRA also notes that businesses with more than one location may want to keep track of their GST/HST and payroll accounts separately.
Then there’s the Employer Health Tax (EHT), which treats companies linked by ownership or control as one group. Associated employers must share one $1,000,000 EHT exemption, and lose it if their combined Ontario payroll exceeds $5 million. If four associated numbered companies each claim the full $1,000,000, they have over-claimed. The group can owe the unpaid tax, and Ontario charges interest when EHT isn’t paid on time and applies penalties when employers don’t meet their obligations.
Bookkeeper, Accountant or Restaurant Group Controller: When to Move Up
Bring in an accountant or controller when location P\&Ls take more than about 10 business days after month-end, or when you run several companies. Do the same when a lender asks you to report on covenants (the financial conditions in your loan agreement, such as minimum ratios). The smallest groups can rely on a full-charge bookkeeper (one who keeps the whole set of books, from daily entries to bank reconciliations and payroll).
| Your setup | Who you need | What they own |
|---|---|---|
| 1-3 locations, one company | Full-charge bookkeeper plus an external CPA firm | Daily entries, bank reconciliations, payroll |
| 4-10 locations or 2-4 companies | Senior or staff accountant | Month-end close (finalizing each month’s books), POS and bank reconciliations, location P\&Ls |
| 11+ locations or 5+ companies, often with bank debt or growth plans | Controller (a restaurant group controller in food service) | Consolidation, cash forecasting, new-unit capital budgets |
A group with six stores but heavy bank debt may need controller-level reporting sooner than a debt-free group with twelve. For the general sequence of finance hires, see our guide to building an accounting team. For current pay by role, use our 2026 salary guide.
How to Screen a Franchise Accountant or Controller
Test for multi-entity and high-transaction experience, not a franchise brand name on the resume.
- “Walk me through how you’d build a location P\&L from POS data.” Listen for prime cost, labour percentage and how shared costs get allocated.
- “How have you handled intercompany between numbered companies?” Strong answers mention reconciling both sides monthly and eliminating those entries on consolidation.
- “How would you check a franchisor’s royalty statement?” They should start with the agreement’s definition of gross sales.
- “What’s your process for delivery-app reconciliation?” Look for grossing up payouts and chasing refunds by store.
- “How would you set up cash forecasting for opening a new unit?” Expect construction draws, pre-opening payroll and the ramp-up period.
- “Which POS and accounting integrations have you used?” Specifics matter more than brand names.
Where the role calls for a CPA, check CPA Ontario’s public member directory before an offer goes out.
At Minted Search Group, we’re a CPA-led boutique that places permanent accountants and controllers, so we screen for multi-entity and high-transaction skills before you meet anyone. Partner Jack Kalb, CA, CPA, started his career in audit at EY. Here are our controller screening questions.
FAQ
Do franchisees need a CPA or is a bookkeeper enough?
With one company and a few locations, a full-charge bookkeeper plus an external CPA firm for year-end and tax is enough. With several companies, you need a senior or staff accountant who owns the close. Once a lender wants consolidated statements or you have covenants to report on, you need a permanent controller with CPA-level reporting skills. Our guide on when a private company needs a CPA walks through that call.
What does a restaurant group controller do?
A restaurant group controller owns the monthly close across every company in the group. That covers location P\&Ls, intercompany and consolidated statements. They also run cash forecasting, report to the bank, build capital budgets for new units and manage the bookkeepers and accountants doing the daily work. Not sure you need that level yet? See controller vs. senior accountant.
Should each franchise location be a separate company?
It can be, but every company you add brings its own books, filings and intercompany work. That means separate bank accounts, HST and payroll filings, and year-end statements. Separate companies can also be associated for EHT purposes. Confirm the right structure with your tax adviser, then size the finance team to the number of companies.
Can one accountant handle multiple franchise brands?
Yes, if every location uses a standardized chart of accounts. Each brand has its own royalty rates, ad-fund rules and reporting calendar. Mapping them all into one structure lets you compare a burger location with a fitness studio on the same terms. It also keeps each franchisor’s royalty check quick and repeatable.
Getting the Nine-Location Books Right
For the franchisee with nine stores and four companies, a permanent hire at the right level finally shows which locations make money. That might be a senior accountant who owns the close, or a controller who owns consolidation and cash. We can help you decide which one your group needs, then find and screen that person. See how our accounting and finance recruitment works, or talk to Minted Search Group for an honest read.
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