charging for tradmark

charging for tradmark

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I have a restaurant, parent company who owns 100% shares in the second restaurant.  They now want to charge a franchise fee to the second restaurant

or at least charge them for the use of the name and format.  I can't see this is a franchise but is either of these possible

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By Tim Vane
14th Dec 2015 10:14

What would be the point?

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By tonycourt
14th Dec 2015 10:25

I don't see why not.

To answer TV's question, I'm guessing it's about shifting profits, but the OP will n doubt correct me if I'm wrong.

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By klerg000
14th Dec 2015 10:35

 

 

The parent company is taking money from the second restaurant but there is not enough profit to take it as dividends.  They want to show it as tax deductible in the second restaurant so a to use up the tax losses in the first.

Although I do realise that I need to do Consolidated accounts  at year end

 

 

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By johngroganjga
14th Dec 2015 10:44

As we still live in free country there are no laws against companies paying other companies for allowing them to use their name, brand, format - call it what you will.

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By klerg000
14th Dec 2015 10:58

 

 

Thank you so much for your answers Much appreciates

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