Liberty Tax Service Franchise Opportunities
Liberty Tax Service is a full-service tax service specializing in computerized federal and state preparation of individual returns. On September 1, 1997, tax legend John Hewitt acquired a Canadian tax franchisor, U&R Tax Depot. In 1998, the company opened five offices in the U.S. and became Liberty Tax Service. As of 2018 they have more than 3,000 Liberty Tax Service offices in the United States and Canada.
How much does Liberty Tax Service franchise cost?
Liberty Tax Service has the franchise fee of up to $40,000, with total initial investment range of $58,700 to $71,900.
Initial investments: $58,700 - $71,900
| Type of Fee | Amount |
|---|---|
| Royalties | 14% of Gross Receipts subject to the following minimums: First year – minimum $5,000 Second year – minimum $8,000 Third year and beyond – $11,000 minimum |
| Advertising | 5% of Gross Receipts. |
| Retail Kiosk Programs | Rent and applicable fees as required by the retailer. |
| Mexpliqa | Sharing of Revenue as detailed in the Agreement between Mexpliqa and the franchisee. |
| Non-Profit Fund | $50 Customer Referral Payment in the form of a donation. |
| Guerrilla Marketing Boot Camp – On-Site | The fee varies based upon when the Camp takes place as follows: January/February – $1,500; March/April – $500 |
| Exclusion of Pre-Existing Clients | $5 per client. |
| Interest | 12% |
| Transfer Fee | $5,000 per territory. |
| Commission Fee | 10% of the sales price, subject to a minimum of $5,000 |
| National Call Center for Tax School | $.50 – Appointments; $1.50 – Tax School; $3.75 – customer follow up; $5.25 – Tax School kit sent |
| Customer Refunds, Penalty & Interest, unpaid Send a Friends | The amount of tax preparation fee, financial product fees, misdelivered check amount, penalty and interest, or unpaid Send a Friend or E-Send a Friend. |
| Change to Opening Schedule in Multi-Territory Stipulation | $3,500 |
| Retail Rent to Own | Franchisees must pay a royalty of 14% of Gross Receipts, subject to a $5,000 minimum, and an advertising fee of 5% of the Gross Receipts. If franchisees operate an office in the Territory, that office shall not be subject to the minimum royalty. |
| Rent to Own | Franchisees must pay to the franchisor a royalty of 14% of Gross Receipts and an advertising fee of 5% of the Gross Receipts. |
| Sales or Gross Receipts Tax | If required by the state or locality in which the territory is located, the initial franchise fee, royalties, and advertising fees will be subject to sales or gross receipts tax. |
| Transmitter, Electronic Filing, Handling or Software Fee | Refund Advance from $500 up to $3,250 – 3.75% to 5.5% of the Easy Advance for each approved loan. In California and Illinois, $39.95 handling fee for each Refund Transfer. |
| Cash in a Flash Financing Set Up Fee | $55 for entities who own a single office; $110 for all other entities. |
| Assessment Related to Understatement of Revenues | The costs of the review and interest of 12% per annum on the understated amount. |
| Sublease Fee | Up to $1,000 |
| Attorneys’ Fees and Costs | An amount equal to the franchisor's costs and expenses |
Ongoing Fees
Initial Franchise Fee: $40,000
Ongoing Royalty Fee: 14%
Ad Royalty Fee: 5%
Support Options
On-The-Job Training: Varies
Classroom Training: 40 hours
Additional Training: Additional training in various cities
Number of Employees Required to Run: 5 - 10
Liberty Tax Service Franchise Expansion Plans:
United States: Nationwide
International: Canada
Liberty Tax Service Franchise Info: https://www.libertytaxfranchise.com/
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Starting investments from:$58,700
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Company type:Company
- Company foundation year:1972
- Year of launching the franchise:1973
- Franchise enterprises:3104
- Corporate Address:1716 Corporate Landing Virginia Beach, VA 23454
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