What the Big Beautiful Bill means for franchising

Hey readers,

Happy 4th of July!

A quick send today on the Big Beautiful Bill. 

First off, two important caveats: 

• I’m not here to get political, or endorse or criticize this bill. I am here to flag what matters for franchise buyers and owners.

• This isn’t tax advice (talk to your CPA). 

I’m just going to walk you through how a few of the changes might affect your franchise journey.

Let’s hit it.

1. Bonus depreciation is back

100% bonus depreciation has returned. So if you’re already planning to invest in something capital-intensive, this is a win for you. 

Basically, it lets you write off 100% of certain investments in year one. 

In franchising, that could mean leasehold improvements, vehicles, FF&E… basically anything you’d depreciate over time, now gets expensed immediately.

Why this matters: Bigger write-offs up front let you keep more cash early on.

But… Don’t spend $1 just to save 40 cents on taxes.

A tax perk is not a good reason to change your strategy towards capital-heavy businesses. Don’t let this change your game.

2. Tips are no longer taxed

Theoretically, this could drive more people to work in service businesses.

And if service workers want more of their income to be tip-based, it could change how these businesses compensate their staff. 

Expect to see some creative workarounds (discounts for tipping, tech stack adjustments, etc), and franchise head offices will likely be looking for ways to tweak their models.

If you’re in the service game, or thinking about buying in, this is one to watch closely. 

The playing field could be pretty fluid for a while. 

3. Medicaid work requirements by Dec 2026

States will now have to require able-bodied adults to work at least 80 hours per month to maintain Medicaid.

This could mean more people entering the labor pool, which could be good news for employers — especially those struggling to find good frontline workers.

Will it move the needle? TBD. 

But if you’re looking at a business model where hiring has been tough, this might offer a little relief.

So, what should you actually do with all this?

My hot take: not much. 

It’s the same as with any macro situation, whether it’s this or the tariffs or the election.

Because the biggest impact on your success is what happens in your house, not the White House.

If you were going to buy a franchise before this bill passed, you still should. If you weren’t, this shouldn’t change your mind.

Long-term decisions deserve a long-term lens.

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Want help evaluating a franchise opportunity, or talking through these changes?

I’m opening up my schedule: book a free strategy call right here.

Until next time,

Connor