A bill has
been introduced into the House and now the Senate that financially assists franchisors with tax credits for selling franchises to veterans.
In June of 2009 House Representative Aaron Schock (R-IL) and Rep. Leonard Boswald [D-IA] introduced the Help Veterans Own Franchises Act (H.R. 2672). The act aims to change the 1986 Internal Revenue Code to provide a special tax credit for franchisors that offer veterans a discount on their franchise fee. With now over 45 co-sponsors, the tax credit seems like a winner for representatives to give veterans a leg up when they return home. The bill incentivizes franchise sellers with a 50 percent tax break on the amount it discounts on the franchise fee.
Franchise fees are usually a rounded, arbitrary fee. For example, a Dunkin’ Donuts franchise fee can be as high as $80,000.
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