Share this content

Is a Franchise fee tax allowable?

Hello my boss just came into my room and asked whether paying a franchise fee is tax allowable?

I don't know of any specifics but any information or a pointer of where to look would be much appreciated. (I'm thinking it may be treated similar to a lease premium?)

Thanks in advance


Please login or register to join the discussion.

25th Jan 2013 10:04


Are you a Company? If so, consider the Intangible Fixed Assets Regime 2002.

If you are not, it is unlikely you will be able to claim (most) of the Franchise fee.

Thanks (0)
By DMGbus
25th Jan 2013 18:57

Analyse the fee as to what it buys / pays for.

Training - for a new activity / trade : disallowable in a sole trader or partership.  But allowable in a Ltd Co.   Same for "Goodwill" or right to use the franchise name (intangible).

Sometimes there might be an element of other costs included in the fee - for example see if there's initial supplies of marketing materials, consumables, operating manuals or equipment.   It might include a few weeks "marketing support" which is tax allowable.  Tricky thing can be evaluating these allowable vs the non-allowable training costs or (sort of)  "goodwill" (intangible) elements.


Thanks (0)