Currently in Spain, the taxation of a franchise depends largely on the corporate form of the franchisee. For example, if a franchisee is an individual entrepreneur, the fee paid to the franchisor may be deducted in his Income Statement, while, if we speak of a franchisee as a legal person, that fee will be deducted in Corporation Tax.
Tax management, as well as accounting for your company, can be done in two ways:
- On your own, if you have the precise knowledge on tax and accounting issues. This form requires a high cost on the part of the entrepreneur since he should obtain a program to carry out taxes and accounting and the labor issue, if applicable. Also keep in mind that you should take refresher courses in tax and accounting matters. Another option is to outsource the accounting and tax service with expert advisors in this area. This would increase the franchisee's productivity, in addition to always having their accounting and taxes updated for a small monthly fee.
Another issue to consider is that the franchisee must be registered in the Register of Franchisors. It is necessary to provide a series of data to the Registry:
- Company name or name, registration data in the Mercantile register and the tax identification number.Denomination of intellectual property rights according to the franchise agreement, in addition to the corresponding accreditation that guarantees the granting of the license rights to use them., along with the duration and eventual resources. A description of the business that is the object of the franchise, that is, a report explaining the activity to be carried out, the number of franchisees that the franchise has and the number of establishments indicating the provinces in those who are present the franchise and the franchisees who have stopped carrying out operations under the modality of said franchise in the last two years.
Another fact to keep in mind is that when the franchisor is a main franchisee, the franchisor must gather the documentation that shows the following details of their franchisor: name, company name, legal form, address and duration of said agreement.
It is important that, before starting the activity in the form of a franchise, it must be constituted and carrying out all the necessary procedures for its constitution.
Once all these procedures have been completed, it is necessary to sign a franchise commercial contract, that is, the agreement between the franchisor and the franchisee.
If we focus on the ranking of franchises here in Spain, we can see that there are some in our country that are among the top 100 positions worldwide.
The five most outstanding franchises in the world are Dia with the position number 19. Further down, Naturhouse is located with position 47 and the 100 Montaditos with number 52 in the ranking.
At 100 montaditos, No + Vello follows. This franchise belongs to the aesthetic and hair removal sector. And finally, there will be the Pressto franchise, which is dedicated to the dry cleaning sector.
Currently, in Spain, the franchise sector is increasing considerably, because for entrepreneurs it is one more option to go it alone.
However, when choosing a franchise in Spain, it is necessary to have a series of points to take into account such as the capital invested, the fee to pay, the average benefits obtained in said franchise, as well as the labor costs associated with the business.
