Demystifying taxation treatment of franchising presentation

Published on 28 May 08 by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE

More and more businesses are taking advantage of the mutual benefits that are available with franchise arrangements. The franchisor is provided with an avenue to grow its business whilst the franchisee has immediate access to the trade name, operating systems and reputation of the franchisor. This presentation demystifies franchises and considers many of the common tax and structuring issues associated with them. Topics covered include:

• what is a franchise?
• overview of regulatory framework for franchises
• when is a franchise arrangement appropriate?
• structuring issues for franchisors and franchisees
• taxation treatment of:
• upfront franchise fees
• ongoing franchise fees
• other fees and costs (marketing, fit outs etc)
• Intellectual property and goodwill issues
• Tax issues on sale, termination and expiry.

Author profile

Benjamin Wilson CTA

Ben is a partner with CCK Lawyers. He has a wide range of experience in corporate and commercial transactions, with a particular focus on taxation and revenue. Ben is an experienced tax adviser and advises clients on estate planning and business succession planning issues. He also acts for executors of wealthy and complex deceased estates and advises on the complex taxation and administration issues that arise in such estates. - Current at 22 December 2021

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