How do I pay tax in a franchise?

This depends on the legal structure that the franchising business operates as, rather than on the franchise itself.

A franchise is where an established business (the franchisor) charges other businesses (the franchisee) to replicate their name, branding, and way of operating. The franchisee can use any kind of legal structure, though the terms of the franchise might insist that they operate in a particular way.

Our guide explains how franchises work, the pros and cons for businesses looking to become franchisors or franchisees, and offers tips on getting started.