Sales tax compliance is a challenge that can catch even the most seasoned franchise owners off guard. With every state enforcing different laws — and sometimes even county or city-level nuances — what’s taxable in one place may be exempt in another. For franchisors and franchisees alike, that complexity can lead to costly mistakes if not managed carefully.
Mike Greenblatt, partner and senior vice president of business development and strategic growth at BeanSquad, says the key is understanding the rules from the very beginning.
“The first step is understanding your concept — you buy into a franchise and you may not understand what is taxable and what is not taxable,” Greenblatt said. “Not every franchisor has a complete matrix. Every state has different laws. That is why one of the services we typically provide is handling sales tax for the majority of our clients so they don’t have to worry about it.”
Greenblatt notes that franchisors sometimes make the mistake of assuming sales tax is one-size-fits-all. “Sometimes a franchisor may do a blanket rollout and think certain items are taxable, but that’s not always the case in each individual state,” he said. “Those are areas that you don’t need to be overly concerned about as a franchisee — we take that off your plate.”
For franchise operators, having a trusted partner manage this complexity means avoiding the risk of penalties and freeing up time to focus on operations.
“Sales tax bookkeeping can be easy if you know how to calculate that information,” Greenblatt said. “It doesn’t have to take you hours every month. But not having to think about the deadline each month and having peace of mind is very attractive, especially for the very small cost that we charge. We try to make it as easy as possible and lift that burden. From the very start, it’s about understanding what is and is not taxable, creating the report, filing it and paying that sales tax. Ninety-five percent of clients choose to have us take care of it so they don’t have to worry about it.”
While franchisees often look to franchisors for sales tax guidance, Greenblatt cautions that franchisors need to be proactive in how they approach compliance.
“For franchisors, you have to ensure that you’ve thought of all 50 states. That is the easiest advice I can give — it’s not a square peg, round hole. Every state has differentiating factors towards sales tax. My best recommendation is to work with a firm like us that does work in all 50 states,” he said.
He also recommends that franchisors develop a clear, detailed sales tax matrix.
“Make sure you have a matrix, per service, by state so that you can properly inform the franchisees,” Greenblatt said. “They will be looking towards you for guidance, and you want to ensure franchisors know what they are doing.”
Even with the right tax rules in place, execution matters.
“You have to also make sure that your POS is properly calculating sales tax as well,” Greenblatt said. “Whichever vendor you are working with, you need to make sure that they are properly calculating items.”
An improperly configured POS can undo the best compliance planning, leading to under-collected taxes or overcharging customers — both of which create operational headaches.
At BeanSquad, sales tax management is built into the firm’s broader franchise bookkeeping and advisory services. For more than 1,600 units across the country, the team provides not only accurate monthly filings but also the strategic insight needed to prevent compliance issues before they start.
By pairing deep franchise knowledge with hands-on execution, BeanSquad helps both franchisors and franchisees focus on growth instead of paperwork. Whether it’s creating state-by-state tax matrices, ensuring POS accuracy, or handling end-to-end filing and payment, BeanSquad’s goal is simple: remove the burden and provide peace of mind.
“From start to finish, we make sure you’re covered so you can focus on running your business — not running down tax deadlines,” said Greenblatt.
Ready to transform your franchise finances? Visit BeanSquad’s website to learn more about their innovative solutions and start your journey toward financial clarity and growth.
Beansquad
SPONSORED
BeanSquad offers expert sales tax compliance services, helping franchisors and franchisees navigate complex state-specific regulations and ensure accurate financial operations.
Sales tax compliance is a challenge that can catch even the most seasoned franchise owners off guard. With every state enforcing different laws — and sometimes even county or city-level nuances — what’s taxable in one place may be exempt in another. For franchisors and franchisees alike, that complexity can lead to costly mistakes if not managed carefully.
Mike Greenblatt, partner and senior vice president of business development and strategic growth at BeanSquad, says the key is understanding the rules from the very beginning.
“The first step is understanding your concept — you buy into a franchise and you may not understand what is taxable and what is not taxable,” Greenblatt said. “Not every franchisor has a complete matrix. Every state has different laws. That is why one of the services we typically provide is handling sales tax for the majority of our clients so they don’t have to worry about it.”
Greenblatt notes that franchisors sometimes make the mistake of assuming sales tax is one-size-fits-all. “Sometimes a franchisor may do a blanket rollout and think certain items are taxable, but that’s not always the case in each individual state,” he said. “Those are areas that you don’t need to be overly concerned about as a franchisee — we take that off your plate.”
For franchise operators, having a trusted partner manage this complexity means avoiding the risk of penalties and freeing up time to focus on operations.
“Sales tax bookkeeping can be easy if you know how to calculate that information,” Greenblatt said. “It doesn’t have to take you hours every month. But not having to think about the deadline each month and having peace of mind is very attractive, especially for the very small cost that we charge. We try to make it as easy as possible and lift that burden. From the very start, it’s about understanding what is and is not taxable, creating the report, filing it and paying that sales tax. Ninety-five percent of clients choose to have us take care of it so they don’t have to worry about it.”
While franchisees often look to franchisors for sales tax guidance, Greenblatt cautions that franchisors need to be proactive in how they approach compliance.
“For franchisors, you have to ensure that you’ve thought of all 50 states. That is the easiest advice I can give — it’s not a square peg, round hole. Every state has differentiating factors towards sales tax. My best recommendation is to work with a firm like us that does work in all 50 states,” he said.
He also recommends that franchisors develop a clear, detailed sales tax matrix.
“Make sure you have a matrix, per service, by state so that you can properly inform the franchisees,” Greenblatt said. “They will be looking towards you for guidance, and you want to ensure franchisors know what they are doing.”
Even with the right tax rules in place, execution matters.
“You have to also make sure that your POS is properly calculating sales tax as well,” Greenblatt said. “Whichever vendor you are working with, you need to make sure that they are properly calculating items.”
An improperly configured POS can undo the best compliance planning, leading to under-collected taxes or overcharging customers — both of which create operational headaches.
At BeanSquad, sales tax management is built into the firm’s broader franchise bookkeeping and advisory services. For more than 1,600 units across the country, the team provides not only accurate monthly filings but also the strategic insight needed to prevent compliance issues before they start.
By pairing deep franchise knowledge with hands-on execution, BeanSquad helps both franchisors and franchisees focus on growth instead of paperwork. Whether it’s creating state-by-state tax matrices, ensuring POS accuracy, or handling end-to-end filing and payment, BeanSquad’s goal is simple: remove the burden and provide peace of mind.
“From start to finish, we make sure you’re covered so you can focus on running your business — not running down tax deadlines,” said Greenblatt.
Ready to transform your franchise finances? Visit BeanSquad’s website to learn more about their innovative solutions and start your journey toward financial clarity and growth.
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