Are restaurant franchise fees paid over the course of the year reportable in box 2 of 1099 misc?

[DanO]

Yes, the amount found in Box 2 of 1099-MISC are for the royalties fees that are paid to the franchiser.

As a franchise operator the amount is reported on your schedule C as a business expense.

The following TurboTax products can be used for reporting self-employed business.

TurboTax Online Self-Employed

TurboTax Business and Home Desktop

[kecbiker]

Does this include franchise fees paid to a corporation?

[KarenM90]

Generally, it is not necessary to issue a 1099-Misc to corporations, with a few exceptions.  

The following types of payments require a 1099-Misc to be issued to a corporation;

* Medical and health care payments reported in Box 6

* Gross proceeds paid to an attorney in Box 10

* Payments in lieu of dividends or tax exempt interest in Box 8

I am including the instructions for the 1099-Misc if you need more detailed information:

1099 Misc