You need to understand the different tax treatments for franchise-specific payments and transactions and how these transactions work between franchisors and franchisees.

• Franchise fees
• Royalties or interest payments
• Training fees
• GST
• Transferring or terminating a franchise

The franchisor and each franchisee need to have separate Australian Business Number (ABN).

A franchisor grants the right to use a business brand name or trademark and the right to produce or distribute their product or service.

A franchisee, receives the right to use a business brand name or trademark and the right to produce or distribute the franchisors product or service.