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While it is possible to form a Florida company from scratch, most people will benefit from purchasing an existing company with an established customer base and a proven business model. In this article, you will discover the key benefits of owning a franchise company in Florida. 

Benefits of Owning a Franchise in Florida – Tax Exemptions and Other Benefits  

Florida is a pro-business state. In this scenario, franchise companies have fertile soil to thrive. Among the fiscal benefits for companies, the state of Florida has: 

  • No state personal income taxes (as provided by Florida’s constitution) 
  • No corporate income tax on limited partnerships 
  • No state corporate income tax on S-corporations 
  • No corporate franchise tax on capital stocks 
  • No property taxes assessment (at the state level) 
  • No property taxes associated with business inventories 
  • No taxes over goods-in-transit for up to 180 days 
  • No sales tax on goods for exportation manufactured within the state  
  • No use tax on goods for exportation manufactured within the state  
  • No sales taxes on purchases of raw materials incorporated in a final product for resale 

The state of Florida also grants several sales and use tax benefits, such as: 

  • Benefits on machinery and technical equipment used by new or expanding companies to produce goods for sale 
  • Benefits on materials used for repair and incorporated into machinery and technical equipment 
  • Tax benefits on electricity used in the production and manufacturing of goods 

Benefits of Owning a Franchise in Florida – Negotiating a Solid Franchise Agreement 

Franchising companies involve several elements, such as royalties, supply chain, marketing, advertisement, etc. 

The franchise agreement is the key element of a franchisor-franchisee relationship. During the negotiations, both parties must consult with an experienced Florida business attorney to ensure the document is drafted adequately. A well-drafted Florida franchise agreement must include: 

  • The geographical area of the new franchise 
  • The franchisee’s unit territory size  
  • Right of renewal 
  • Personal warranties (for both parties) 
  • Restrictive covenants (if applicable) 
  • Minimum performance requirements 
  • Payment terms (in detail) 
  • Franchising fees 
  • Tax liabilities  
  • The extent of support provided by the franchisor 
  • Which type of support the franchisor must provide  
  • The fundamental items for the new company’s operations 
  • Intellectual property rights  
  • The use of the franchisor’s brand 
  • Supply chain, logistics, and quality control  

As it is plain to see, enjoying the benefits of Florida’s pro-business policies requires a strategic approach. The acquisition of a franchise company is generally more complex – especially if you are the franchisee. 

What Benefits Do You Get From Owning a Franchise in Florida? – Seek Professional Guidance  

Owning a company built upon a proven business model permits you to skip the start-up stage, rapidly generate cash flow and focus on expanding the franchise’s area of influence.  

However, it is quite hard to work your way through acquiring a franchise in Florida without the help of an expert attorney. A legal advisor may help you by: 

  • Providing valuable advice in legal and business matters 
  • Using legal knowledge and real-world experience to conduct transactions 
  • Actively participating in the negotiation process 
  • Negotiating on the client’s behalf to protect his or her interests 
  • Assessing business offers to identify whether it suits the client’s needs 
  • Reviewing the Franchise Disclosure Document (FDD) 
  • Preparing and handling the documentation involved in the transaction 
  • Ensuring both parties are aware of their duties and rights under the franchise agreement  
  • Helping clients handle tax liabilities and identify tax benefits  

Waste no Time with Uncertainty – Immediately Contact Attorney Romy B. Jurado 

Owning a franchise in Florida requires a strategic approach. Get in touch with Attorney Romy B. Jurado by calling (305) 921-0976 or emailing Romy@juradolawfirm.com to schedule a consultation. 

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