Thank you for your question..
A franchise with a turnover of less than £100k can join the Flat Rate VAT Scheme.
Section 3.8 of VAT Notice 733 covers the point about "business closely linked with another business" and the llink is here
You would be paying a fee to the franchisor for a licencsed privilege to the franchisee to do business.
This does not make you associated with another business for Flat rate VAT Scheme purposes.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Thank you for your reply.
A franchisor would always have tight clauses in an agreemnet as you are using their name/expertise. As far as the day to day running of the business goes, if you mess it then they are not going to bail you out..as you are the risk taker. In my view section 3.8 does not cover your scenario.
I hope this is helpful.
I thank you for accepting my answer.