Liberty Tax Franchise Frequently Asked Questions
What makes the Liberty Tax Service franchise opportunity the right choice for me?
With Liberty Tax Service you can harness the power of the Liberty Tax brand and benefit from our legendary franchising history as a leader in the tax preparation industry. Together, Liberty Tax Service locations form a network of more than 4,000 locations worldwide, providing new franchisees with strength and support. Through ongoing operational support, national and local marketing, extensive training and technology development, we are committed to helping you reach your goals.
How much money am I going to make?
Many factors contribute to the amount of money a business earns. We are prohibited from suggesting exact profit levels. However, you can receive some guidance from the earnings claim in our Offering Circular. Also, we do recommend that prospective franchisees collect information on the industry and from other franchisees in order to make informed decisions.
Am I given a protected territory?
Your franchise territory is exclusive to you. Neither Liberty Tax nor another franchisee may operate a tax return preparation office in your Territory. The geographic area granted in a territory will typically cover an area in which approximately 7,000 to 8,500 paid federal returns are prepared and will vary with population density, geographic layout, road layouts and traffic patterns. The population density in a territory will typically cover an area of less than 10,000 people. The Small Market Territory cannot be within 25 miles of a city with a population of 200,000 or greater, and cannot be within 60 miles of a city with a population of 600,000 or greater. Also, demand for paid tax preparation and electronic filing in an area, demographic factors, and other pertinent market factors are looked at.
What is the term of the franchise agreement?
The franchise agreement is for 5 years. It can be renewed for successive 5 year terms if you are not in default of any provision of your franchise agreement. There is no fee for renewal.
What is the estimated initial investment cost?
Depending on size and location, a new Liberty Tax office will range in cost from $58,700 to $71,900. This includes the franchise fee, start-up costs, equipment, supplies and working capital.
there a difference in cost between new and existing locations?
Prices for existing locations are decided solely between the buyer and the seller and can vary greatly based upon size, location, profitability, etc.
Currently, our initial franchise fee is $40,000 for a Standard Territory.
How much are royalties?
Currently, our royalties are 14% of Gross Receipts less allowable exclusions, subject to the following minimums: First year - minimum $5,000 Second year - minimum $8,000 Third year and beyond - minimum $11,000 In addition, a 5% National Advertising royalty is collected.
Can you help with financing?
Yes, financing assistance may be available. For information on available financing options, please contact your Franchise Development Representative.
We also have established relationships with several preferred lenders, including Small Business Administration (SBA) lenders that can assist you with all your financing needs - everything from supplies to working capital.
Liberty Tax Service has been approved by the Franchise Registry program, which enables SBA loan applications to be rapidly processed.
Who identifies my franchise location?
Your Area Developer, with their local market knowledge, and the expertise of a Liberty Tax Site Selector will provide guidance and advice regarding the location of your office. You may not sign a lease until we approve the site chosen for your office. We will consider whether the site location includes visibility, accessibility by car or public transportation, reasonableness of the office size for a tax preparation office and other related factors.
What support will I receive after training is completed?
You will receive ongoing support from your Area Developer and Liberty Tax Service.
Additional support includes networking meetings with other Liberty Tax franchisees, our Annual Convention, newsletters, store visits, business tools, a franchisee intranet site and a toll-free support desk.
We also provide professional growth and development programs throughout the country to help you stay on top of a dynamic marketplace.
We combine regional marketing campaigns to increase brand awareness, with strong local marketing plans and daily marketing conference calls during the tax season, to help drive traffic to your tax office.
How can I contact you for more information?
We can be reached, toll free, at 1-800-790-3863 or at firstname.lastname@example.orgSource: www.libertytaxfranchise.com