BooXkeeping Franchise Information

The franchise industry’s favorite bookkeeper is looking to redefine the service, making it more efficient, modern and appealing to a wider range of entrepreneurs.

1851 Franchise: How did you fall into franchising?

Max Emma, CEO & co-founder of BooXkeeping: About 12 years ago, I co-founded a bookkeeping company called BooXkeeping and eventually entered the franchising market, providing bookkeeping services to different franchise brands. Through building up our reputation in the franchising industry, we have now become the preferred bookkeeping vendor for about 85 franchise brands in the United States, including FastSigns, Signarama, Sport Clips and more. Our relationship with some of these brands are so strong that many of them make it mandatory for franchisees to use our bookkeeping services. After spending time with these franchisors, I got the idea that I could be one of them. A few years ago, I decided to franchise the BooXkeeping concept, and now we have six franchisees and are working on finding more.

1851 Franchise: On the franchisee standpoint, are they required to be a CPA, or do you want them to have an accounting background?

Emma: They don't have to be CPAs since we don't work with taxes. We actually get most of our referrals from CPAs, so we don't want to compete with them. Our model is different from most accounting franchises because we stay away from taxes. We prefer some accounting or finance background, but they don't have to be bookkeepers. We fully train them and provide full staff to do the work, so they can focus on client acquisition and building relationships.

1851 Franchise: What are some interesting insights you see from a data standpoint, given your experience with various businesses?

Emma: I see that people are hesitant to invest in advertising and marketing due to economic uncertainties. However, I'm not seeing a slowdown. Most of our clients are growing or maintaining their level. I see more franchises being sold during economic slowdowns. We're onboarding more clients on the bookkeeping side.

1851 Franchise: What's your dream as a franchisor?

Emma: The goal is to sell five more franchises before the end of this year and 10 to 15 next year, reaching about 25 by the end of 2024. It's a home-based, low-investment business, so there's growing interest. However, many people are not aware of bookkeeping franchises. Once we hit a critical mass of 15-20 franchises, growth should accelerate. We're in big markets like Miami, Orlando, San Diego and Texas.

1851 Franchise: How do you break up the territory size for a home-based franchise?

Emma: We guarantee a population of half a million as their territory. However, franchisees can get referrals from anywhere, even outside their territory. It’s not limited to a specific location.

1851 Franchise: Are you disclosing Item 19 yet, or is it still too early?

Emma: Yes, we are disclosing Item 19, which includes the average gross profit for the past 10 years and average gross revenue. The average gross revenue is $424,000 per year, and the average gross profit is $257,000. That's a great number for a small investment. 

Bookkeeping is a $4.2 billion industry in the United States, and there's growing interest in bookkeeping services, especially with the economic slowdown. Many are questioning the need for a full-time bookkeeper when much of the work can be done more efficiently by an outside party.

1851 Franchise: What brings you happiness in this journey?

Emma: Happiness for me is in the process, not just in reaching the end goal. For instance, my current goal is to sell 25 franchises by next year. But once I achieve that, the goal will shift, maybe to 40 or 50. It's about enjoying the journey and comparing where I am now to where I was before. Two years ago, I had no franchises, but now I have six. I focus on my own journey and growth rather than comparing myself to others.

1851 Franchise: That's a great perspective. Let's talk about your franchising model. What do you offer to franchisees?

Emma: Our franchisees receive comprehensive support. This includes two weeks of training and six months of sales coaching. Additionally, there is one year of executive coaching, featuring bi-weekly meetings focused on enhancing their performance and fostering continuous growth. Such consulting, typically valued at around five to six thousand dollars, is provided at no charge by our co-founder, Elena Emma. This is a significant advantage for our employees and franchisees, as their success directly contributes to our success. 

We handle all the marketing and provide the necessary technology. We also offer staffing solutions, where we cover employee benefits and our franchisees only pay an hourly rate. This allows them to focus on growing the business. In addition, we leverage our network of 85 franchise brands to help our franchisees acquire clients. We're focused on ensuring their success, which in turn contributes to our success.

We are currently exploring partnerships with CPAs and firms considering integrating our services. Once we secure a bookkeeping client for a franchisee, they have the opportunity to offer additional services like tax and CFO consulting, retaining 100% of the revenue from these services while we receive royalties only from the bookkeeping aspect.

1851 Franchise: How do you see the future of your franchise?

Emma: The future is about continuing to provide exceptional support to our franchisees. This includes leveraging our own accounting software, which we've developed, and continuing to innovate in the bookkeeping industry. Our goal is to redefine bookkeeping, making it more efficient, modern and appealing to a wider range of entrepreneurs.

1851 Franchise: Any final thoughts for those interested in your franchise?

Emma: I want to emphasize the importance of our approach: Our success is tied to the success of our franchisees. This isn’t just about selling franchises; it’s about driving their profitability. The onboarding process, which includes sales and executive coaching, is crucial. Many franchises overlook this aspect, but we believe in providing our franchisees with the skills and support they need, redefining franchisee support and potentially the role of a franchise business coach.

For more information on franchising with BooXkeeping, visit: https://www.booxkeepingfranchise.com/