Code section 195 would make the $42K start-up expenses - if they were incurred for the franchise before it begins operations. Under that code section, they are an intangible asset that must be amortized over 180 months starting with the month the franchise began operations. NO immediate deduction for the entire cost.
what type of entity is the franchise - Schedule C - these costs get entered once you get to the section of business expenses under the subheading assets and depreciation.
for as S or C Corp or partnership a similar section
