Where to Franchise Fees Go on the Income Statement?

~

 

Where to Franchise Fees Go on the Income Statement?

 

 

CLICK TO GET YOUR FREE 8 STEPS TO $100,000 in TAKE HOME PAY eBOOK

 

Where to Franchise Fees Go on the Income Statement?

Episode 281 – The Local Small Business Coach Podcast 

Where to Franchise Fees Go on the Income Statement?

 

One question I get is where do you put the franchise fees on your income statement – expenses or cost of goods sold? Typically, the franchise will have a preferred location they want you to report it.

However, you want to include them in your COGS when figuring out your gross margin as they are off the top before you do anything else. So my personal favorite location is in your COGS.

So even if the franchise has you put it in your expenses, make sure to include them when figuring out your GM so you use the right number when looking at potential profit since you are taking these off the top.

Listen below.

Tammy

 

 

Listen to the Local Small Business Coach Podcast Below or on Your Phone: 

Local Small Business Coach Podcast: 
iPhone: http://bit.ly/LSBCpodcast1 | Android: http://bit.ly/LSBCGoogle  | Spotify http://bit.ly/LSBCPodcast

Ready to Dive in and Learn Your Business Numbers Better?

 

Join the Conversation in our Badass Local Small Business Owners Facebook Group!

https://www.facebook.com/groups/badasslocalbusinessowners

Don’t forget to shoot me an email on any topic or question you would love for me to cover in an upcoming episode of the show. Just send your ideas to tammy@localsmallbusinesscoach.com.

 

 ~

HELPFUL LINKS