Required: For the transaction below, consider the impact of the $300 000 franchise fee as far as its deductibility is concerned, and also discuss whether there are current/future CGT consequences (4 marks). Sarah runs a burger shop. She wishes to increase business so pays a franchise fee of $300 000, which allows her burger shop to be part of the Starving Burgers franchise. This $300 000 is paid as a lump-sum and allows her to run the franchise for 10 years.

Using Australian Tax Law