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Suggest using a franchise business as a vehicle for family tax and estate planning. Using specifically as an example, The Car Wash Guys, a portable car wash franchise, where you will purchase a fully designed and equipped car wash truck and the right to develop a specific city or regional area with no upfront out-of-pocket costs between $25 -50,000. There are many other types of mobile franchise businesses in the same general price range due to the competitive components of the market.
Lots of questions on the minds of parents wanting to establish and perpetuate multi-generational wealth assets for growth and eventual transfer. The programs they wish to develop can range from a simple donation to a complex asset restructuring.
How can you help your kids start a business that doesn’t have extreme start-up costs, heavy liability for assets, and has a better chance of being profitable?
What kind of business could you establish, nurture, and grow that has the greatest chance of success, increases in value over the years, and is easily divisible among children with different management skills, different interests in owning or running a business and who live in different cities?
What type of business can be owned and operated by a family limited partnership that wants to diversify its holdings and add a “business interest” to ensure IRS qualification for the valuation discount by giving away minority interests?
Family gifts using the annual gift exclusion of $10-20,000 per child
Typical gifts are IRA funding, pensions, additions to stock, bond, mutual fund or annuity accounts, purchase of life insurance, education funds, or special travel expenses. There is a desire for these gifts to be productive, protective, have long-term value, distribute income, and have potential for growth. A franchise business addresses all of these issues.
Why not help your heirs purchase a mobile type franchise, such as the Decorating Den, Oil Butler, Dog Grooming Franchise, or perhaps a Car Wash Guys franchise? Two parents can give away in one fiscal year the initial out-of-pocket costs to purchase this business. The other costs can be financed. When there are several children who live in different cities or just have different ideas of how to run things, the purchase price of this franchise business is low enough that each child can have their own franchise business. To accommodate annual heir exclusion gift amounts for families with multiple children and grandchildren and for families wishing to establish business area dominance, arrangements can be made with These types of mobile franchises such as Car Wash Guys can be purchased for several cities or several regions. If you discuss this strategy with the franchisors of such businesses, they can help you meet your needs, after all, they too want to sell franchises and extend their brands in as many places as possible.
Planned asset transfers to children
Assets managed by parents for later transfer to their heirs include equity investment portfolios, real estate portfolios, and personal property business interests. There is a desire that these assets have a greater chance of sustaining their success, increase in value over the years, and be easily divisible so that all children can be treated individually and fairly. A franchise business addresses all of these issues. And when selecting an appropriate opportunity, why not make your new business an adventure filled with personal growth, civic recognition, financial reward, fun and enjoyment for all?
Why not buy a multi-city or multi-region mobile franchise franchise business? As a franchise buyer, you’ll be joining a proven system so no prior business experience is needed for your new venture. You will be putting more chances of success on your side. As a franchise buyer, you’ll join a dynamic team that will allow you to be in business for yourself, but not by yourself. A franchise business has a set ‘minimum value’ that should increase over time with good management. The Car Wash Guys franchise can easily be divided into individual cities or regions or organized and run from the start as different cities and regions so that their heirs, each with different interests and skills, who can live in different cities across the country and who don’t want to tied to their siblings or to a project in a city, they may receive a separate and complete business interest. This is now possible in a variety of franchised businesses.
family limited company
Effective estate planning is intended to provide for family members and others while minimizing taxes and expenses. Intergenerational transfers and gifts often involve assets owned jointly, partnership, and/or other types of ownership by multiple persons/entities. There is a need to limit exposure to family and property liabilities. Many families create a family limited partnership that provides a means to own, manage, and maintain control of assets while also providing a vehicle for the orderly transfer of wealth to a younger generation. They transfer various personal interests, securities, real estate and businesses to this partnership. In the future, it may be necessary for family limited partnerships to own and be in ‘active business’ to ensure IRS qualification for a valuation discount by gifting minority interests to their heirs. What type of business can families with different business backgrounds as well as different interests in owning and running a business buy to ensure IRS qualification?
Why not have your family partnership buy a multi-city or multi-region franchise business? This would be a mobile business, so there is no commercial property to own, lease, or trade, and no need for property to use as a store or office. In some mobile franchise businesses there is no need for an answering service or additional phone lines as this business comes with a nationwide 800 number and pager. Calls for your company are received through this number and are sent alphanumericly to you or your staff. And there’s no need for inventory, warehouse or shelf space, as all the equipment and supplies to run your business fit and can be stored in your truck. The ease of starting and owning a mobile franchise business or a business like the Car Wash Guys franchise business makes it a practical and rewarding addition to a family’s assets. You can start small and grow as your family grows or start regionally and continue your family’s legacy of quality and lifelong mastery. Think about this concept.