Lambert sets CountPlus conditions of entry

CountFinancial has announced it will give its accountants the opportunity to work under the brand of its new accountancy business, CountPlus, in franchise arrangements from as early as next July.

Managing director Barry Lambert said it would then be another 12 months before Count begins buying out the franchisees.

The bought-out franchisees would form part of a new unlisted company, CountPlus Limited, which Count intends to list on the Australian Stock Exchange two years later.

Practices will not be allowed to join the unlisted company unless they have already entered into a franchise agreement first, Lambert said.

“To be a part of the franchise you have to meet certain criteria then you’ll qualify for us to buy you. And that’s where the model differs from [competitor] Investor Group. We want the businesses to get into shape first, instead of accepting practices who just turn up in three years time and say we want to be in this new accountancy business. We can’t afford to take that risk.”

Once the unlisted CountPlus, otherwise known as the consolidator company, is formed, Lambert said the franchisees won’t necessarily have to sell their practices to Count.

“If you then want to sell to Investor Group or someone else down the road, you still can.”

Lambert said those practices that decided to stay with CountPlus would be more likely to get more money for selling their business and would receive access to Count options.

“The chances are that we could afford to pay more because they have met the requirements of our business,” he said.