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Franchising

Franchising. Austin Redick , Brendan Lawler, Matthew Weisel. Franchise Definition. A business uses another firm’s already successful business model and operated under their trade name for a fee Ex. Subway. Advantages. Independence in operating a business

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Franchising

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  1. Franchising Austin Redick, Brendan Lawler, Matthew Weisel

  2. Franchise Definition • A business uses another firm’s already successful business model and operated under their trade name for a fee • Ex. Subway

  3. Advantages • Independence in operating a business • Increased chances for success (associated with proven products) • Franchise agreement regulates a level of high quality. • Support from franchise: • Advertising • Training • Financing

  4. Disadvantages • Not completely independent • Initial fee and royalties • Image is dependent on other franchisees • Franchising Agreement regulates: • Pricing • Products and services offered

  5. Setting up a Franchise • You can work with a franchise consultant • Research what businesses your area could sustain • Find a suitable location • Secure funding • Sign franchising agreement and obtain permits/insurance • Hire staff and attend training • Open your franchise business

  6. Taxes from IRS • Corporate Income Tax • Annual tax - 6% of income generated in Georgia • Net Worth Tax • Ranges from $10 - $5,000 • Taxed based on net worth (assets - liabilities) • Franchise Tax: • NOT a tax of franchisees • Tax on doing business in the state

  7. Examples of a Franchise • Chick-fil-A • Life Time Fitness • Ace Hardware • Hilton Garden Inn

  8. Works Cited • https://etax.dor.ga.gov/ptd/adm/taxguide/franch.aspx • http://franchises.about.com/od/franchisebasics/tp/advantages-franchising.htm • http://www.franchise.org//franchiseesecondary.aspx?id=52630 • http://franchises.businessmart.com/advantages-disadvantages-of-owning-a-franchise.php • http://www.bizfilings.com/toolkit/sbg/tax-info/state-taxes/business-income/georgia-taxes-on-business-income.aspx

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