Franchise Financial modeling

One of the most common expense categories overlooked when creating your Franchise Business plan and corresponding proforma financial statements is the state and local income tax requirements.

The picture below gives a very clear representation of the personal income tax burden as defined by state residency. This is very important as it directly impacts what compensation, if any, you plan to pay yourself and/or family members for running your franchised business. Additionally you will have to evaluate the state business tax requirements and then make an informed decision whether it is more cost effective to pay yourself a salary, and if so, what amount and when, or pay the business taxes on any profits generated from ongoing operations.

Please let me know if you need my help navigating the financial components of your franchised business plan before you sign a franchise agreement. https://tomharperconsulting.com