Tax Aspects of Franchising (Portfolio 559)
At a glance
I. Franchising and Its Legal Environment
II. Franchise Transfers and Retransfers
III. Multiple-Unit Transactions
IV. Pooled Advertising Funds
V. Passive “Royalty†Income: Personal Holding Company and S Corporation Considerations
VI. State and Local Tax Nexus
VII. Succession Planning for Franchisees
Abstract
Bloomberg Tax Portfolio, Tax Aspects of Franchising, No. 559, discusses the legal environment and history of franchising in the United States before analyzing the tax and legal aspects of franchising. The Portfolio examines federal and state regulation of franchises, start-up considerations, the different treatment of franchisor and franchisee, and looks at area development agreements as well as many other aspects of operating a franchise.
The Portfolio explores in depth the tax issues involved in franchise advertising, personal holding company and S corporation considerations, state and local taxation of franchises, and succession planning for franchisees.