Ori’Zaba’s Shares with Entrepreneurs Year-End Tax Advantages of Starting a Franchise in 2023


LAS VEGAS – Ori’Zaba’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 franchisees’ financial prospects.

Ori’Zaba’s President Jennifer Howell emphasizes the financial benefits of acting now, “Fourth 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.”

Wealth Management Advisor Susan Alefi, AAMS®, ChFC® explained, “When 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 ‘Intangibles’ 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, “By 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 won’t want to pass up.”

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.

Ori’Zaba’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 franchise’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 our franchise team at franchise@zabas.com or call 720.817.9326