IKEA: ASSEMBLY REQUIRED

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Every Ikea store, whether or not owned by the Kamprads or Ikea Group, pays a franchise fee (3% of sales) for use of the Ikea “Concept”—the trademarks, shopping experience, and values that define Ikea. Beyond unifying the global company, the franchise fee also results in tax savings twice: The fee lowers the stores’ taxable income at home, and it’s paid to Inter Ikea Systems in the Netherlands, where there’s little or no tax on such income. Similar systems are common among many multinationals.

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