Recent Articles

Franchise Fee

This is typically a one-time upfront fee to begin the process of the relationship. Often the franchisor is trying to recoup the initial cost outlays to establish the franchise system. For the franchisee, this fee is an expensive outlay that will take years to recover. Often this upfront fee is in the tens of thousands of dollars.

Bookkeeping – Franchise Fee and Revenue Taxes (Lesson 57)


Lesson  56 through 59 cover various business and income taxes along with the appropriate bookkeeping functions.   This lesson focuses on the accounting procedure for franchise fees and the formula used for revenue taxes    What is interesting [...]

Organizational Expenses – Types and Tax Implications


Prior to initiating operations, every business spends money to develop the idea and create the legal entity.  These types of costs are referred to as ‘Organizational Expenses’.  There are several different types of organizational [...]

The Franchise Relationship


A franchise relationship is a partnership between two parties.  The primary party is the Franchiser.  This entity owns a master group of similar business selling/providing the same product or service.  The Franchiser sells a ‘Right’ to his [...]

Introduction to Franchises


Simply put, Franchising is a partnership relationship.  As a small business owner, you have to decide if you truly want to be in a relationship with an authority in your business operation.  This can be a mutually beneficial arrangement or a [...]