How Fast Food Franchise Owners Can Capitalize on 2025’s Updated USA Tax Laws.
Strategic Facility Upgrades, Equipment Investments & Expansion Plans Made Easier.
Written July 24th, 2025.
As a quick-service restaurant (QSR) franchise owner, every dollar saved on taxes is a dollar you can reinvest into growing your business. With the recent 2025 tax overhaul—thanks to what’s being called the One Big Beautiful Bill—you now have powerful new tools to do just that.
From modernizing kitchens to expanding dining areas or drive-thru capabilities, these tax code changes can significantly improve your cash flow and help you reinvest faster and smarter. Here's what you need to know:
1. 100% Bonus Depreciation: Deduct Equipment Costs Immediately
Starting January 20, 2025, franchise owners can fully deduct the cost of qualifying assets in the same year they're placed into service. That includes:
Kitchen appliances (ovens, grills, refrigerators)
Point-of-sale (POS) systems
Dining room furniture or fixtures
Even technology upgrades or interior remodels
Why it matters:
Immediate write-offs mean improved year-one cash flow—giving you the flexibility to reinvest sooner into additional upgrades or staffing.
A newly renovated Popeyes Louisiana Chicken Restaurant.
2. Section 179 Expensing Limit Increased to $2.5 Million
For purchases of smaller-scale assets or updates that may not fall under bonus depreciation, Section 179 expensing now allows you to deduct up to $2.5 million annually.
Applies to qualifying equipment, software, and improvements
Phase-out threshold begins only after $4 million in purchases
Why it matters:
This is ideal for restaurants making incremental upgrades, technology investments, or rolling out standardized improvements across multiple locations.
3. Expanded Interest Deduction for Growth-Oriented Operators
The bill also adjusted taxable income rules allowing you to deduct up to 30% of earnings before EBITDA.
Why it matters:
Franchisees taking on debt to remodel, open new locations, or invest in real estate can now deduct more of their interest expenses, reducing net taxable income and making leveraged growth more attractive.
What Does This “Big Beautiful Bill” Mean for QSR Franchise Owners?
These changes represent a significant opportunity to optimize your tax position while modernizing your restaurants. Consider how you can:
Boost profitability through strategic equipment and infrastructure investments
Expand smartly with more favorable interest deductions and immediate asset write-offs
Future-proof your brand by investing in energy-efficient upgrades, new menu prep facilities, or digital innovations
Plan Ahead with the Right Construction Partner
Timing and execution are key. To fully benefit from these tax advantages, your upgrades and new builds need to be carefully planned and placed into service during eligible windows. Working with a construction partner experienced in the fast food industry ensures:
On-time project delivery
Code-compliant improvements
Strategic planning to maximize tax eligibility
Ready to turn your tax strategy into a construction strategy?
Contact our team to discuss how we can help you build smarter in 2025 and beyond.
Disclaimer:
This content is for informational purposes only and should not be considered legal, tax, or financial advice. The tax provisions referenced above are subject to change and may vary depending on your business structure and individual circumstances. Please consult a licensed tax professional or CPA to determine how these incentives apply to your specific situation.
