According to the IRS, franchise fees fall under “Section 197 Intangibles" and are not tax deductible. However, since the IRS requires you to amortize the franchise fee over 15 years, you can recoup the fee through a depreciation tax deduction every year during that time period.
Please follow the link below for further information:
Part I Section 197.--Amortization of Goodwill and Certain ... - IRS
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