Why Buy Before Yead End? Strategize Now.

There’s a push for people to make a franchise business purchase before the end of the year. It can feel like pressure, but there are valid reasons to make it happen. Here are some potential reasons an investor may choose to pay their franchise fees before the end of the year rather than waiting until the new year:

– Tax benefits – Franchise fees are generally deductible business expenses. Paying them in the current tax year allows the investor to realize those deductions sooner and potentially reduce their tax liability for this year.

– Lock in pricing – Some franchises may increase their fees annually. Paying early allows the investor to lock in the current lower fees.

– Meet deadlines – Franchisors often have year-end deadlines for existing franchisees to commit to renewing or paying fees for the coming year. Paying ahead of time ensures meeting those deadlines.

– Show commitment – Paying franchise fees early can signal an investor’s commitment and confidence in the franchise to the franchisor. This could potentially lead to benefits like preferential treatment or access to new locations.

– Budgeting reasons – Some investors may want to pay large recurring fees at the end of their fiscal year as part of financial planning and budgeting.

– Take advantage of cash flow – Investors may have surplus cash available at year end that can be used to prepay expenses versus investing or holding the cash into the new year.

Let me know if you need any clarification or have additional questions! Schedule a time with Cindy at bit.ly/schedulecindy.