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Looking to Save? Three Thrifty Ways to Save Money Franchising This Year

Mar 2, 2016

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 include training new employees, marketing, and reconstruction costs to ensure that a given location is outfitted to 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:

cost of opening a restaurant

1. Negotiate a Better Lease Deal

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.

The most reliable and effective way of doing this is to bring in a franchise architect to give the property owner a professional statement on the building’s worth and what tenant improvement dollars you’d use to correct existing conditions.

2. Take Advantage of Tax Benefits

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.

But perhaps the biggest tax advantage of being a franchisee is the ability to shelter your earnings. This enables you to set aside a significant sum for your retirement years in exchange for a large tax deduction on the current year.

3. Save on the Small Things 

Franchises have an amazing way to lower the cost of opening a restaurant due to their already having set business components in place. So while you’ll pay certain franchise fees or royalties, you’ll also enjoy being alleviated from the burden of having to do intense marketing and advertising campaigns to establish a brand name.

In addition, while there’s likely a protocol established for how you can present signage and other product merchandise, there is also a cost-effective system in place to help you meet those needs cheap. Talk with other franchisees about purchasing old signage or get advice on the best places to go for used equipment and bulk ordering.

This network of other experienced business owners within one system is arguably the greatest advantage for new owners.

Is franchising a good idea? Franchising has many things to offer entrepreneurs. To learn more about the cost of opening a restaurant and about how you can get started with your own business this year, contact us today or download our franchise report to see all the details.



If you’re ready to bring Pretzelmaker to your community click here to skip to the front of the line by filling out a franchise application.

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Success Stories

Global Franchise Group is Amazing because the best thing about them is that's all they do is Quick Service Restaurants. They've got a specialty area of focus and they know everything about that.

Allen Fuss

I love this business. One of the reasons my wife and I chose this business is because of the simplicity of the product. It's a very simple business model. A very simple business.

Rajat Ghosh

There's nothing I can't call them on. Anything from a simple plumbing problem to negotiating an exclusive on my lease. There's always somebody there who's been through it and can help you with it

Allen Fuss
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