By Tolley

The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Franchising
  • Tax treatment of franchises

A franchise is the grant of a licence to carry on a ‘copycat’ business by a business (the ‘franchisor’) to a purchaser (the ‘franchisee’). The franchisee would, for example, be able to use the brand, marketing strategy, buying power, etc of the business out of which the licence is granted.

This is one possible way in which an owner-managed business may consider expanding. In return for the licence, the franchisor would receive upfront and on-going fees.

A useful sourc

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