As a franchisor, you need to understand your tax obligations and how franchising fees are treated for tax purposes. It's also important to review your income tax and Goods and Services Tax (GST) reporting requirements. In most cases all payments you receive from a franchisee will be assessable income. They will also involve GST.
As with any business, taxation requirements will be determined by your business structure, assets and income. Refer to our taxation page for more information.
