Creative accounting only gets you so far... Putting up 1-2MM for a 150k annual return is stupid no competent business man would settle for that return.
“Creative accounting only gets you so far... Putting up 1-2MM for a 150k annual return is stupid no competent business man would settle for that return.”
I am fine with a low taxable return as long as an actual return is higher. Perhaps McD has some “creative accountants” that are keeping their taxable returns much lower. Good for them. Who wants to report higher and pay the moochers... unless you’re a sucker.
I take it you are not a businessman then. There is the cost of your initial investment, and then there are annual returns on that investment. The value of the initial investment does not go away, and may in fact increase over time (ie, when you go to sell the franchise). Therefore, investing 1-2MM, gaining a $150K/year cash flow, and downstream recouping your 1-2MM when you sell is actually better than most business owners do.
10% return is pretty good nowadays. Better than the stock market.