Franchising
Greywood CPA audits franchisors' financial statements for the Franchise Disclosure Document, helps new franchisors through the audit phase-in, and handles revenue recognition, tax and franchisee accounting. We are a licensed CPA firm (Virginia Board of Accountancy firm license #134961) working nationwide, at a fixed fee.
Every franchisor needs audited financial statements in Item 21 of its FDD, updated within 120 days of fiscal year-end. Start-up franchisors can phase in the audit, though several registration states don't allow it.
Last reviewed: November 2026
Each service has its own page with requirements, what we test, timelines and FAQs.
U.S. GAAP statements audited under U.S. GAAS: generally two years of balance sheets and three years of operations, equity and cash flows, updated within 120 days.
An unaudited opening balance sheet in year one, an audited balance sheet in year two, full audits after. Several registration states require audits from the start.
Initial fees over the franchise term, the private company practical expedient for pre-opening services, sales-based royalties and brand funds.
States can tax franchisors on royalties from in-state franchisees. Fee timing for tax can differ from your books.
POS and delivery reconciliations, royalty reporting, unit-level P&Ls and tax for single and multi-unit franchisees.
| Who is asking | Usually requires |
|---|---|
| Filing or renewing an FDD | FDD audit |
| Launching a new franchise | Opening balance sheet or phase-in plan |
| Auditor questioning franchise fees | Revenue recognition review |
| Franchisees in many states | Franchisor nexus review |
| Running franchise units | Franchisee accounting and tax |
A 30-minute call about your organization, who needs the report and your deadline.
Scope, report type, timeline and one fixed fee, in writing.
Everything we need, uploaded through a secure portal.
Remote testing, then a draft for your review.
A CPA partner signs, and we walk you or your board through the results.
Yes, for the FDD, with a phase-in available for start-up franchisors under the FTC Franchise Rule.
Within 120 days after the franchisor's fiscal year-end.
No. Several registration states require audited statements from the start.
We quote one fixed fee in writing before any work starts.
Yes, nationwide and remotely.
Tell us your fiscal year-end and states. A senior CPA will send a fixed-fee proposal within 1–3 business days.