Franchise

Franchise means:
an arrangement between a franchisor and a franchisee other than a sports franchise) whereby the franchisee uses the company name of the franchisor and is provided specific business services in exchange for a franchise fee. The fee is usually an initial purchase requirement plus an ongoing percentage of the gross sales of the business. The fee is normally ordinary income to the grantor, and the franchisee may deduct the payment. See Section 197 Intangibles. Former IRC (check if this IRC provision is current here) §§197 and 1253.

Franchise Tax Board (FTB) and California Tax

For more information about taxes in California, click here.

An administrative agency of the State of California that is responsible for collecting California personal and business income taxes.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.