kalaru - franked dividends are not tax free - you are taxed at your marginal tax rate on the grossed up amount of the dividend (ie the cash dividend + franking credit) and then get a credit of 30% (representing company tax paid), so if your marginal tax rate is 40% or 45% you will have tax to pay on the dividend.
By the way - why do you need to burn off the profit? Its much better to have a profit and pay tax, than not pay tax because you have lost money. And if you're trying to keep your income down due to government benefits or similar, franked dividends will only make the situation worse.
