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There are several advantages to franchising in Georgia. The state has a bustling economy, a growing consumer base, and relatively lower operating costs when compared to other states.
Whether you are a seasoned franchisor looking to expand into Georgia or an entrepreneur seeking a reliable startup plan for a new enterprise, Franchise.Law can help with building a franchise.
According to the Georgia Department of Economic Development, more than 450 Fortune 500 companies have a presence in the state. This is because Georgia offers a very welcoming environment for businesses, with favorable income tax rates, sales tax rates, commercial property, and labor costs.
Georgia’s corporate tax rate is 5.19 percent, which is among the lowest in the nation. This low tax rate encourages entrepreneurs to incorporate and scale aggressively. For franchisors, it means more access to funds every year.
Statewide sales tax is also low, starting at 4 percent. However, some cities do charge additional sales tax. As of 2025, the combined sales tax in Atlanta, for instance, totals 8.9 percent.
Furthermore, the state makes bookkeeping and tax forecasting easy because the state follows a single-factor apportionment system. Businesses are taxed only on the sales they make inside the state. Out-of-state sales are not taxed in the state. This is favorable to franchisors based in Georgia that collect royalty fees and other revenue from franchisees located outside of Georgia.
Georgia’s minimum wage is very low; in fact, it is lower than the federal minimum of $7.25/hour, and even lower for “tipped” employees like serving staff or bartenders.
This low minimum wage offers tremendous savings compared to some other states, particularly in service industries and fast food.
Compared to a $15 to $20 minimum wage in California, for instance, labor costs in Georgia may be nearly 50 percent less. This can make a franchisor’s concept more profitable for franchisees in Georgia than for franchisees located in other states, where labor costs can quickly eat away at profit or make a business model impractical.
While commercial real estate is never “cheap,” it is relatively affordable in many parts of Georgia. The only exception is sometimes Atlanta, where commercial property may be on par with more expensive metros.
With these advantages, it is easy to see why more than 450 Fortune 500 companies have a presence in Georgia. Many of these companies are franchisors based in Georgia or franchisors that have entered the Georgia market through franchising.
Seasoned business owners and C-suite executives know the value of an experienced, talented attorney when it comes to launching a location in a new state or expanding a business through franchising.
A skilled franchise attorney can help their clients:
Suppose one is weighing the advantages of opening a new location in Georgia for the first time or franchising their successful Georgia business. These entrepreneurs should contact a seasoned franchise attorney.
If you are ready to take a closer look at the advantages to franchising in Georgia, consult with our experienced attorneys today.
At Franchise.Law, we are proud to offer Excellent Legal Services For Every Franchisor®. Unlike some of our competitors, we treat every client with dignity and respect, and we do not leave emails and phone calls unreturned. If you are tired of law firms that only deal with the biggest accounts, contact us today and experience the difference.