Industry playbook · 07
Franchisees juggle royalties, ad-fund fees, multiple entities and lender reporting — on top of everything a single restaurant handles.
Where the details matter
Ongoing royalties are deductible as paid; the initial franchise fee is generally amortized over 15 years.
Separate LLCs per location protect you but multiply the filings. We keep them consistent.
Banks and franchisors expect timely, accurate financial statements — often quarterly.
Reaching 50 full-time-equivalent employees across related companies brings ACA reporting obligations.
A typical engagement
A late payroll tax deposit during the owner's illness triggered a failure-to-deposit penalty.
What we did
The result
The penalty was removed and deposits now run on schedule.
Penalty removed
Illustrative examples based on common situations — not specific client results.
FAQ
It's generally amortized over 15 years rather than deducted at once. Related costs like equipment can often be depreciated faster.
Often, for liability reasons — but it increases filings. We help you weigh structure, taxes and lender requirements.
Tell us about your business and we'll get back to you with clear next steps — no obligation.