Franchising

One of today’s fastest-growing industries is franchising, an exciting venture that requires knowledge of complex processes and regulations for reporting and compliance. Since our inception, EKS&H has worked with franchisors throughout the United States, North America, Europe, Asia and South America.

Working with franchisors, EKS&H provides sound and knowledgeable advice about a variety of topics, including:

• initial franchise structure, including multiple entities and tax-efficient strategies
• appropriate financing structure
• assessment of the initial franchise fee to be charged along with the annual royalty
• review and assistance in the preparation of the Uniform Franchise Offering Circular document, which contains information franchisors must disclose before selling a franchise
• structure of advertising fund agreements, ranging from trusts to not-for-profit organizations
• preparation of audit programs for auditing franchisee locations to ensure proper reporting of revenue and royalties to the franchisor
• management reporting packages for both franchisee operations and company-owned store operations
• structure of license and international franchise documents in other countries to minimize foreign taxes
• structure of franchise and development agreements, both domestic and international, to develop revenue recognition policies acceptable to the SEC as well as the Financial Accounting Standards Board
• corporate acquisitions related to franchise operations and reporting

The EKS&H team works closely with clients and their attorneys to ensure compliance with appropriate governmental filing deadlines and to minimize problems in fulfilling state and federal reporting obligations associated with franchise law. Our in-depth knowledge of working with state regulatory agencies assures timely approval of document