Tax for Franchises
A franchise return has moving parts a standard business return does not. The franchise fee, the royalties, the write off over time. We prepare and file your corporate return through a CPA, so every one of those pieces is treated the right way.
★★★★★ 5.0 from 80+ Google reviews
Where franchise tax gets tricky
Most tax preparers treat a franchise like any other small business, and that is exactly where it goes wrong. Your franchise fee is not a cost you write off in one year, your royalties are handled differently again, and your sales tax has to line up with what you actually collected across every location. We prepare and file your return with a CPA who knows how each of these is meant to be treated, so your filing is accurate and holds up.
How your franchise costs are taxed
The franchise fee is a capital cost
That upfront fee you paid to join the brand is usually a capital cost, not a full deduction in year one. It is treated as eligible capital property and written off gradually. We handle it correctly so you claim what you are entitled to over time.
Written off through Class 14.1
Since 2017 the franchise fee is depreciated through Class 14.1 capital cost allowance, at a 5 percent declining balance rate. See the CRA class list. We set up the class and claim it each year.
Royalties are an ongoing expense
Unlike the upfront fee, the ongoing royalties and advertising fund contributions you pay through the year are generally deductible operating expenses. We make sure they land in the right place on your return.
Sales tax has to reconcile
Your HST and GST filing has to match what you collected across every unit. We prepare and file it so the numbers tie back to your sales and there are no surprises.
Full tax service for your franchise
Corporate Tax (T2)
Your federal corporate return prepared and filed by a CPA, within six months of your year end.
Learn more →HST and GST Filing
Sales tax returns filed on time each period, reconciled to what you collected across your locations.
Learn more →Full Tax Services
The complete picture, from your corporate filing to the credits and claims that apply to your business.
Learn more →Capital cost allowance
Your franchise fee set up in Class 14.1 and claimed each year, along with the rest of your depreciable assets.
Learn more →Get your franchise return prepared right
Book a free 30 minute consultation. A CPA will walk through how your franchise fee, royalties, and sales tax should be handled, and what filing your return properly involves.
Book your free consultationRated 5.0 by our clients on Google
Franchise tax handled by a CPA
Prepared and filed by a CPA
Your corporate return is prepared and filed by a Chartered Professional Accountant, not seasonal software or a part time preparer, so the franchise specific pieces are handled with care.
We know how franchise costs are treated
The franchise fee as a capital cost, royalties as an ongoing expense, and the write off through Class 14.1. We treat each one the way it is meant to be treated on your return.
Accurate and always on time
We track every filing deadline and remittance for your corporate return and your HST and GST filing, so you avoid penalties, interest, and last minute scrambles.
Fully virtual, records always secure
Everything runs online with secure digital records. There is nothing to drop off and nothing to pick up, and we prepare returns for franchise owners right across Canada.
Franchise tax FAQs
Find us across the Ottawa region
116 Albert St, Suites 200 & 300
Ottawa, ON K1P 5G3
1000 Innovation Dr, Suite 500
Ottawa, ON K2K 3E7
114 Chancery Crescent
Orleans, ON K4A 4N3
867 Notre-Dame St
Embrun, ON K0A 1W0
File your franchise taxes with confidence
Let a CPA handle the franchise fee, the royalties, and the return that ties it all together. Reach out today and we will take it from here.