LAS VEGAS â€“ Oriâ€™Zabaâ€™s Scratch Mexican Grill, a respected name in the fast-casual restaurant industry, is providing useful insights for potential entrepreneurs about the year-end tax benefits of establishing a franchise in 2023 versus 2024. This strategic shift has the potential to significantly alter potential franchiseesâ€™ financial prospects.
Oriâ€™Zabaâ€™s President Jennifer Howell emphasizes the financial benefits of acting now, â€œFourth quarter presents a unique opportunity for entrepreneurs looking to venture into the franchise business. Committing to a franchise business in 2023 allows them to take advantage of many tax breaks that can result in significant tax savings sooner rather than waiting another year. The benefits are concrete, ranging from accelerated depreciation to startup cost deductions, and can have a favorable influence on your bottom line.â€
Wealth Management Advisor Susan Alefi, AAMSÂ®, ChFCÂ® explained, â€œWhen a person becomes a franchise business owner there is likely an initial franchise licensing fee as well as ongoing residual fees that are due on an annual basis. The initial franchise fees are categorized by the IRS as â€˜Intangiblesâ€™ and are amortized over 15 years. You can deduct the ongoing franchising fees on your income tax return.
This benefit is highlighted by Ori’Zaba’s Franchise Sale Manager Maria Maciel who added, â€œBy launching your franchise this year, you can potentially deduct up to $1,080,000 in qualifying expenses under Section 179, significantly reducing your taxable income. This can result in significant tax savings for the 2023 tax year that you wonâ€™t want to pass up.â€
Furthermore, the advantages include bonus depreciation, which allows you to deduct 100 percent of eligible property, including specific enhancements to restaurant facilities. This tax technique may help reduce tax liability in the year the business is started.
Franchisees who start their entrepreneurial journey in 2023 can also benefit from initial franchise fee deductions that can be spread out over 15 years, offering financial assistance in the early years of operation.
Oriâ€™Zabaâ€™s also notes that year-end tax tactics might involve taking advantage of numerous credits available to small business owners. These incentives can give significant savings and increase a new franchiseâ€™s overall profitability.
Entrepreneurs considering establishing a franchise can optimize their potential for tax savings by taking action now, creating a solid financial foundation as they launch on their entrepreneurial adventure.
For more information on Ori’Zaba’s franchising opportunities and the year-end tax advantages, please contact the franchise team at email@example.com or call 720.817.9326
About Ori’Zaba’s â€“ Oriâ€™Zaba Scratch Mexican Grill is a fast-casual Mexican restaurant chain whose mission is to feed the soul of every guest with old world Mexican flavors, made every day with care in their scratch kitchens, with the finest, freshest ingredients. Originating in Las Vegas in 2001, Oriâ€™Zabaâ€™s multiple locations can now be found in Nevada and is currently expanding into Michigan and Texas. To learn more, visit https://zabas.com/franchising.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Susan Alefi is a Registered Representative with LPL Financial. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.