The franchise fee and how it is amortized, reading the FDD for tax, multi-unit structures, royalties, working capital, leasehold improvements, and selling or transferring a franchise.
19 guides, each written by a CPA licensed in the US and Canada.
Franchise training travel, pre-opening payroll and grand opening ads are IRC 195 startup costs. The franchise fee is a 15-year Section 197 intangible; buildout is depreciated.
US TaxFranchise build-out costs are split across several depreciation categories. Qualified Improvement Property (QIP), meaning.
US TaxFranchise bookkeeping must satisfy franchisor audit rights and reconcile royalties to POS data. How to set up the chart of accounts correctly.
US TaxHow franchise owners manage estimated tax payments, choose accounting methods, handle inventory, and time deductions to protect working capital.
US TaxA franchise comes with a contract that may dictate the entity type, restrict ownership changes, and require franchisor approval before you restructure.
US TaxEvery franchise agreement has an end date. Whether you're fifteen years into a twenty-year term and starting to think about what comes next.
US TaxThe Franchise Disclosure Document contains raw financial data that determines your cost structure, deduction schedule, and capital expenditure plan.
US TaxYou paid $45,000 to open a franchise. You wrote the check, signed the agreement, and started building out the location. Covers industry-specific.
US TaxThe initial franchise fee is a Section 197 intangible amortized over 15 years. The initial franchise fee is a Section 197 intangible.
US TaxFranchise owners face layered payroll tax obligations across locations and states. Franchise owners owe employer FICA of 7.65% on every dollar of wages.
US TaxA franchise resale splits the price across seven asset classes under IRC 1060. Goodwill is capital gain to the seller, and the buyer amortizes it over 15 years.
US TaxYes, nearly every fee a franchisor charges you after opening day is deductible in the year you pay it. Royalties. Includes IRS rules, documentation.
US TaxTerritory fees, area development rights, and exclusivity payments are Section 197 intangibles amortized over 15 years. Covers industry-specific.
US TaxThe moment a franchisee signs a second franchise agreement, the tax picture changes in ways that a single-unit operator never has to think.
US TaxRestaurant franchises face tax rules that other businesses never encounter. Restaurant franchises benefit from a unique set of tax provisions.
US TaxFranchise owners have retirement plan options that shelter $23,500 to $200,000+ per year from taxes. For single-unit franchise owners with no employees.
US TaxSelling a franchise triggers capital gains, depreciation recapture, and a purchase price allocation under IRC 1060. Covers industry-specific deductions,.
US TaxFranchise royalties, ad fund contributions, technology fees, and training costs are deductible. The initial franchise fee is amortized over 15 years.
US TaxMulti-unit franchise operators can stack cost segregation, Section 179 deductions, and intercompany structures to reduce tax across an entire portfolio.