I am taking the $150K of earning per McD store at its face value, which may or may not be. It is really does not matter for the argument I was trying to make.
You, however, are saying that a $150K of return is too low for any sane investor (of 2MM). My point is that the true return is likely far north of $150K, which will blow the 6% annuity out of the water. Sure, with annuity, you get a hassle-free steady stream but the payout is much lower. Assuming $150K earning McD, the franchisee will get their income separate (reported as an expense) and gets to build assets. The annual taxable income is just noise in the grand scheme of things. A loud noise, but still just that. Creative accounting is survival, or else the pay to the moochers would be too high to sustain.
With automation looming, most of these “$15/hr good paying jobs” would be obsolete. About time.
Also, it is not PC and avoided by all politicians, but ALL EMPLOYEES are expenses to a business. Businesses don’t exist to “create jobs”, so this talk of “jobs” blah blah is just sickening to hear from the populists.