ABSTRACT
As previously referenced, franchise operations are set up as small businesses. The owners can choose what business entity works best for them. Their choices are as follows:
◾ DBA or “doing business as.” This is basically an individually owned operation where the business name is separate from the name of the actual owner: John Doe operating as Johnny’s Donuts. With this type of business setup, the individual owner is completely responsible for the entire operation, including any debt. Additionally, the owner is not protected by any type of corporate umbrella in case of a lawsuit. If this type of business setup has more than one owner, it is classified as a general partnership. All business-related income and losses are filed as part of the owner’s individual tax return.
