“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.
You can be fine with it but it’s not reality. The Typical MCD franchise profit is 500k to 1MM a year... It would have to be to get anyone competent to even think of opening up a McD’s.
The idea that a MCD franchise typically only makes 150k a year is absurd on its face, no matter how good of an accountant you have.
Simply put 2Million put in a 20 year annuity at 6% return will put more than 150k cash in your pocket for year, with a lot less headache and risk. No one, I repeat No One with a functional brain would agree to tie up 2MM into operating a business with only a 150k a year return.
Yes higher wages will result in fewer jobs, but the author of this article doesn’t have a flipping clue about business to present the notion that a typical McD franchise only profits 150k a year. If that were true MCD would not be able to sell a franchise.