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Ever wondered how successful franchisees minimize their tax burden while maximizing profits? In this eye-opening episode, we're joined by Michael Reeder, a financial strategist who specializes in helping franchise owners keep more money in their pockets through clever, legitimate tax planning.

Michael reveals his powerful "purchase and heavily finance" strategy for business vehicles instead of leasing, explaining how this approach allows franchisees to capture substantial tax benefits through depreciation while preserving precious working capital. This isn't just theoretical advice—it's exactly what Jack and Jill implemented in their own business with impressive results.

The conversation takes a fascinating turn as Michael unpacks his "three bucket methodology" for determining the optimal entity structure for your franchise business. From LLC partnerships to S-Corps and C-Corps, he demonstrates why cookie-cutter advice fails franchisees and how personalized strategies based on investment level, asset allocation, and household income can save you thousands. Through a compelling example, he shows how the right structure could save a franchisee with $200,000 in profits approximately $17,000 in self-employment taxes alone.

We also demystify franchise fee amortization, clarifying how these significant upfront costs must be treated for tax purposes and what happens to your tax benefits if you sell your business before the amortization period ends. Michael's guidance on balancing owner salaries with distributions in an S-Corp structure reveals yet another avenue for substantial tax savings.

Whether you're currently exploring franchise ownership or already running a successful franchise, this conversation will transform how you think about the financial structure of your business. Connect with Michael on LinkedIn or through his website at readercpagroup.com to discover how these strategies might apply to your specific situation.

Visit www.weboughtafranchise.com to subscribe.
Send us your questions for an upcoming episode at 305-710-0050.
From your pals in franchise ownership, Jack and Jill Johnson.

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Ever dreamed of running a thriving business from a Hawaiian beach? When our flight home was cancelled, we discovered firsthand the true freedom franchise ownership can bring. Instead of calling a boss to beg for more time off, we simply shifted into remote management mode, working with our capable teams from poolside. Our general manager's response? "No worries, I've got this."

This seamless work-life integration represents what's possible when you own the right franchise with proper systems and leadership. We're expanding this vision through our growing Franchise Insiders consulting team, welcoming two new franchise owner consultants who bring valuable firsthand experience to help others find the right franchise.

Financial awareness remains crucial for franchise success. We dive in on where you need to keep labor costs (as a percentage of revenue) and checking your P&L weekly. It's fascinating to see smaller market franchises sometimes outperforming larger territories—proof that the franchise owner makes more difference than location. Business ownership certainly brings challenges, especially in the first 12-18 months, but the rewards far outweigh the difficulties when you're building something that provides both financial success and lifestyle freedom.

For those considering franchise ownership, particularly in home services, prepare financially with approximately $50-60K for franchise fees plus $100K in working capital. Don't worry if that seems daunting—creative funding options exist, including 401K strategies without penalties.

Ready to explore how franchise ownership could transform your work-life equation? Text us at 305-710-0050 to learn more about finding your perfect franchise or join us for upcoming podcast episodes featuring our new consultants and financial experts who can help you keep more of your hard-earned money.

Visit www.weboughtafranchise.com to subscribe.
Send us your questions for an upcoming episode at 305-710-0050.
From your pals in franchise ownership, Jack and Jill Johnson.

Send us a text

Dan and Cori Anikstein share how they built a profitable Gatsby Glass franchise in under 18 months. Dan leveraged capital from his previous successful business exit, while Cori brought her digital advertising expertise to create a powerful partnership.

Their hands-on approach and focus on organic growth earned them top recognition within the franchise system.

The couple reveals how their complementary skills drive success—Cori handling client relationships while Dan manages operations—and how franchise ownership offers a different kind of freedom than corporate life.

Text 305-710-0050 to connect with Franchise Insiders for a consultation.

Visit www.weboughtafranchise.com to subscribe.
Send us your questions for an upcoming episode at 305-710-0050.
From your pals in franchise ownership, Jack and Jill Johnson.