.png)
Franchise Group
Franchise Financial Reconstruction & Compliance Transformation
A franchise organization lost its accounting records to a data loss event. We rebuilt the books, the controls and the ASC 606 franchise revenue framework.
The challenge
Where the business started.
A franchise organization experienced a significant data loss event that resulted in the loss of critical accounting records and financial information. Without reliable books and records, management lacked visibility into the financial health of the organization, and key compliance requirements were at risk.
​
The organization required a complete reconstruction of its accounting records, financial reporting processes, franchise accounting procedures, and compliance framework.
Our approach
What we did.
Our team performed a comprehensive financial reconstruction and accounting cleanup project designed to restore the integrity of the company's financial records and establish a sustainable reporting process moving forward.
​
Reconstruction & controls
​
-
Rebuilt accounting records using bank statements, credit card statements, payroll reports, and supporting documentation.
-
Reconstructed and reconciled balance sheet accounts.
-
Established and reconciled intercompany due to and due from balances across multiple entities.
-
Reviewed fixed assets and developed depreciation schedules to improve financial reporting accuracy.
-
Implemented accounting policies, procedures, and month-end close processes.
-
Established payroll and vendor payment workflows.
-
Reviewed multi-state sales tax obligations and compliance requirements.
-
Evaluated vendor compliance and 1099 reporting requirements.
Franchise accounting & ASC 606 compliance
​
-
Implemented accounting procedures for franchise fee recognition under ASC 606.
-
Established revenue recognition processes aligned with applicable accounting standards.
-
Developed royalty tracking and financial reporting procedures.
-
Implemented accounts receivable monitoring for royalty and marketing fee collections.
-
Created financial reporting structures to support franchise operations and executive oversight.
Financial Disclosure Document (FDD) support
​
-
Organized and maintained supporting financial schedules for the FDD process.
-
Prepared financial information used in the Financial Disclosure Document (FDD).
-
Supported audit readiness and external audit requirements.
-
Coordinated financial reporting required for audited financial statements.
The result
Where they are now.
The organization successfully restored its financial records, reestablished accounting controls, and implemented a reliable reporting structure capable of supporting future growth.
​
Management gained visibility into financial performance, compliance requirements were addressed, and the company established a scalable accounting framework to support ongoing franchise operations.
​
At L&L Secured Financial, we specialize in solving complex accounting challenges and building financial systems that support long-term growth, compliance and operational success.
Impact
What changed
-
Reconstructed accounting records following a significant data loss event
-
Rebuilt and reconciled balance sheet accounts
-
Established intercompany accounting processes
-
Created fixed asset and depreciation schedules
-
Implemented ASC 606 franchise revenue recognition procedures
-
Established royalty and marketing fee receivable tracking
-
Improved sales tax and 1099 compliance processes
-
Supported FDD and audit-related reporting requirements
-
Delivered reliable financial reporting for management decision-making
OUR SERVICES
Explore other services
Accurate monthly books, clean financial statements and a reliable close process — so you always know where your business stands.
Business Tax Planning & Preparation
Proactive tax strategy combined with accurate preparation for individuals and businesses across the United States.
Business Formation & Compliance
Entity setup, registrations and ongoing compliance, so your business is structured correctly from day one and stays in good standing year after year.