Inside a restaurant

This is an illustrative $5 million owner-funded project, not a franchise quote. Change the budget to explore proportional allocations; a study determines actual asset costs.

$5,000,000 project · $1,448,798 estimated first-year depreciation · $1,012,954 additional versus the stated baseline. Franchise amortization: $1,667 separately.

What the comparison assumes: $400,000 of purchased kitchen equipment, cooler, menus and office furniture is already classified separately. The remaining costs are initially in the building account. The illustrated study identifies another $1,025,000 of eligible short-life costs. This is a demonstration, not a promised study result.

Assumes eligible property acquired and placed in service after January 19, 2025, 100% business use and 100% federal bonus; no ADS requirement or election out. The building uses 39-year straight-line depreciation with the mid-month convention. Franchise rights use 180-month Section 197 amortization. Deductions are before owner-specific limits, state adjustments and eventual recapture. No tax rate or cash savings is assumed.

Cost allocations include illustrative installed and allocable project costs. Land and franchise rights are additional; opening inventory, working capital and financing are outside this simplified project.

IRS depreciation rules · IRS franchise amortization · Restaurant classification guide · Franchise fee reference

Actual Blender Cycles camera footage. The guided tour uses these rendered bookends; construction and free exploration use the shared interactive model.