You are responsible for obtaining building and occupancy permits within your own state. Local ordinances that may govern your type of business must be followed. Fines and permit fees typically are your responsibility. If you need a license to operate in a certain area, it’s up to you to file for the necessary papers. Local, state and federal taxes also are your responsibility. You must follow the same rules as single-owner businesses in your area regarding payroll taxes, self-employment taxes and any other tax obligations. At the same time, you can deduct franchise fees and other costs associated with owning and operating your business to reduce your tax burden. You also assume the risk. Loans you take out to open the franchise are your obligation.