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Clever Forum Name

  • Posts: 5942
How does franchising and income tax work ?
« on: September 05, 2014, 03:34:15 pm »
If the franchisee is working under your company name and logo. How does the tax work?

Are they self employed? Or employed ?

Any useful links?


Perfect Windows

  • Posts: 4334
Re: How does franchising and income tax work ?
« Reply #1 on: September 05, 2014, 04:01:38 pm »
The franchisee operates a business entirely separate from yours.  You give them a licence to use your logo, designs and business operation model.  They pay you a licence fee for that right, on which you pay tax.

Vin

Clever Forum Name

  • Posts: 5942
Re: How does franchising and income tax work ?
« Reply #2 on: September 05, 2014, 04:21:17 pm »
This license fee is it just a simple contract or is there official forms.

Thanks for the reply :)

Perfect Windows

  • Posts: 4334
Re: How does franchising and income tax work ?
« Reply #3 on: September 05, 2014, 04:41:00 pm »
This license fee is it just a simple contract or is there official forms.

Thanks for the reply :)

The licence fee is specified in the franchise agreement.

Ref is it a simple contract, ours is 29 pages.

Vin

Clever Forum Name

  • Posts: 5942
Re: How does franchising and income tax work ?
« Reply #4 on: September 05, 2014, 04:56:23 pm »
This license fee is it just a simple contract or is there official forms.

Thanks for the reply :)

The licence fee is specified in the franchise agreement.

Ref is it a simple contract, ours is 29 pages.

Vin

Thats great thanks for the advice :)