6 worked Franchises case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to franchises work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $127,000 Across 4 Open Years — Bar and Live-Music Venue, Toronto
Client: A bar and live-music venue · Where: Toronto, Ontario · Engagement: 8 weeks, fixed fee
Recovered$127,000
Open years claimed4
Ongoing trackingIn place
The situation — A bar and live-music venue, Toronto, Ontario
An incentive review at a bar and live-music venue in Toronto, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years. It was driven by sector incentives that had never been tested against franchises activity.
What we did for A bar and live-music venue, Toronto, Ontario
We rebuilt the chart of accounts around how a franchises business actually earns and spends. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A bar and live-music venue, Toronto, Ontario
The credits produced $127,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 2 · Backlog brought current
Collections Halted And $14,000 Cut From A 6-Year Backlog — Food Truck Operator, Moncton
Client: A food truck operator · Where: Moncton, New Brunswick · Engagement: 7 weeks, fixed fee
Balance reduced by$14,000
Backlog cleared6 years
CollectionsHalted
The situation — A food truck operator, Moncton, New Brunswick
By the time a food truck operator in Moncton, New Brunswick called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat sector deductions claimed on a general-business basis rather than the franchises rules.
What we did for A food truck operator, Moncton, New Brunswick
We reconstructed the records year by year. We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. Each filing replaced an arbitrary assessment with a real one.
The result — A food truck operator, Moncton, New Brunswick
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $14,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Objection and relief
$73,000 Of Penalties And Interest Cancelled On Relief — Craft Brewery, Regina
Client: A craft brewery with a taproom · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$73,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A craft brewery with a taproom, Regina, Saskatchewan
An assessment of $73,000 landed at a craft brewery with a taproom in Regina, Saskatchewan following a desk review. It turned on a chart of accounts that told the owner nothing about franchises margin. The auditor had not seen the records behind it.
What we did for A craft brewery with a taproom, Regina, Saskatchewan
We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A craft brewery with a taproom, Regina, Saskatchewan
$73,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Records and systems rebuilt
19 Months Reconciled And $17,000 Of Input Tax Recovered — Ghost-Kitchen Operator, Halifax
Client: A ghost-kitchen operator · Where: Halifax, Nova Scotia · Engagement: 11 weeks, fixed fee
Months reconciled19
Input tax recovered$17,000
Close time6 days
The situation — A ghost-kitchen operator, Halifax, Nova Scotia
Nothing reconciled at a ghost-kitchen operator in Halifax, Nova Scotia. Every filing started with 19 months of cleanup. The file was carrying equipment and asset classes assigned by guesswork rather than the CCA schedule.
What we did for A ghost-kitchen operator, Halifax, Nova Scotia
We rebuilt from source rather than correcting on top of the existing file. We reassigned the asset classes on the CCA schedule and corrected the opening balances. Then we set the routine that keeps it clean.
The result — A ghost-kitchen operator, Halifax, Nova Scotia
19 months reconciled to the bank. The close now takes 6 days, and $17,000 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $33,500 Across Corporate And Personal Returns — Fine-Dining Restaurant, Edmonton
Client: A fine-dining restaurant · Where: Edmonton, Alberta · Engagement: 9 weeks, fixed fee
Combined saving$33,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A fine-dining restaurant, Edmonton, Alberta
Nothing was wrong at a fine-dining restaurant in Edmonton, Alberta. The filings were on time and accurate. What they were not was planned. Industry-specific reporting obligations nobody had flagged had never been reviewed.
What we did for A fine-dining restaurant, Edmonton, Alberta
We documented the positions to the standard the CRA applies to this sector specifically. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A fine-dining restaurant, Edmonton, Alberta
$33,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · CRA review defended
$134,000 Proposed Adjustment Withdrawn In Full — Catering Company, Lethbridge
Client: A catering company · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$134,000
File closed in8 weeks
Penalties assessedNone
The situation — A catering company, Lethbridge, Alberta
A catering company in Lethbridge, Alberta received a proposal letter opening a review of franchises accounting and tax. The CRA had identified seasonal revenue reported without matching the costs that produced it. It proposed an adjustment of $134,000, with 30 days to respond.
What we did for A catering company, Lethbridge, Alberta
We treated the response as an evidence exercise rather than an argument. We rebuilt the chart of accounts around how a franchises business actually earns and spends. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A catering company, Lethbridge, Alberta
The proposed adjustment was withdrawn in full — all $134,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
