PRESENTATION OUTLINE
Looking to Save? Three Thrifty Ways to Save Money Franchising This Year
Becoming your own boss and taking a huge step toward financial independence is one of the most liberating things you can do. However, the cost of opening a restaurant doesn’t come cheap. In addition to the must-haves of rent, utilities, and equipment, there are also side costs that ensure a given location will meet your needs.
If you’re looking to save on the cost of opening a restaurant, franchising may be a good choice to consider. Here are three thrifty ways you can save money by franchising this year:
Topics of Discussion
- Negotiate a Better Lease Deal
- Take Advantage of Tax Benefits
- Save on the Small Things
1. You’ll often find that financial institutions and property managers are much more willing to do business, and negotiate upon that business, when it’s a franchise. That’s because franchises are built upon a trademark that has a history of providing great returns. Use the history of the company to try and negotiate a better deal on your lease. Additionally, lengthening the term of your lease may help to lower your monthly payments, or you might offer to invest in construction in exchange for a better deal. Be ready to detail how your reconstruction will help to increase the building or property’s resale value.
2. It’s an uncomfortable truth that most tax loopholes were designed by and for the rich. But, as an upcoming new business owner, you also can take advantage of some of these tax benefits to lower the cost of opening a restaurant. For instance, franchise owners with a buyout lease are able to deduct the cost of all their equipment via Section 179 of the federal tax code. This provision allows the write-off of as much as $500,000 on both new and used equipment that has been both purchased and put into use during the given tax year. If your lease is at or near a fair market value, you’ll also be able to deduct your monthly lease payments as a general operating expense.
3. You’re probably asking yourself, how much money do pretzels make annually? This is a crucial question to ask as a new pretzel franchise owner, as it could impact your budget for your store, staff, supplies, ingredients, and other costs. Over $550 million in pretzels are sold in the U.S. each year, How Stuff Works notes.
Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.
