The Internicola Law Firm, P.C.

Veteran Franchise Bill to Offer Tax Breaks for Discounted Franchise Fees

A bill that was recently introduced to the United States House of Representatives and the Senate is advancing a tax credit that would encourage and reward franchisors for implementing discounts to veterans interested in purchasing a franchise.  Presently franchisors participating in VetFran's programs offer discounted fees to veterans.

The bill known as the "Help Veterans Own Franchises Act" has gained the support of over 45 co-sponsors. One incentive associated with the proposed bill relates to tax credits offered to franchisors that, in certain instances, will amount to fifty (50%) percent of the discounted franchise fee.  There are caps on the amount of the credit but the bill also offers a potential tax credit to the franchise veteran.

The International Franchise Association ("IFA") says they are backing the bill and have testified twice in the past year for the passing of the bill according to Alisa Harrison, vice president of communications and marketing for the IFA. Harrison also added that "This bill is not about helping veterans find employment. It is about helping them take the skills they gained in the military and applying them in their own business".

The bill currently continues to sit in the House Ways and Means Committee pending information on the impact of its tax credits from the committee members from the administrator of the Small Business Administration and the Secretary of Veteran Affairs.

Tax credits designed to assist and encourage entrepreneurship among veterans represent a well deserved benefit and obligation owed to our veterans.  Nevertheless irrespective of discounts and credits the purchase of a franchise requires research and a thorough examination of the franchisor and the overall franchise system.  The following articles should provide a good starting point.