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Liberty Tax Service Franchise ProfileTax Franchises > Tax Preparation |
How to Open a Liberty Tax Service Franchise?
To open a Liberty Tax Service franchise, you’ll begin by submitting an application along with the initial franchise fee of $15,000. Following this, you must review the Franchise Disclosure Document (FDD) for at least 14 days before attending the Initial Owners Training (IOT). If your application is approved, you'll participate in the IOT, where you will learn the operational aspects of running a Liberty Tax office. Upon successful completion of the training, you will be awarded a franchise location and can start preparing tax returns.
What Makes Liberty Tax Service a Compelling Franchise Opportunity?
Liberty Tax Service has a well-established brand in the income tax preparation industry, boasting 1,885 offices across the United States as of December 31, 2023. The franchise offers a robust support system, including training, marketing resources, and operational assistance, which can be crucial for first-time franchisees. Additionally, Liberty Tax focuses on the low to middle-income demographic, providing a consistent customer base during the peak tax season from January to April.
Why Consider Becoming a Liberty Tax Franchisee?
By joining Liberty Tax Service, you step into a business model that thrives on seasonal demand for tax preparation services. The average gross receipts for franchisee-operated offices have shown promising figures, with established offices generating significantly higher returns. Moreover, the franchise's marketing strategies and brand recognition can help drive customer traffic to your office. If you are passionate about helping people navigate their tax obligations and enjoy engaging with your community, this may be a fulfilling venture for you.
Is Owning a Liberty Tax Franchise Right for You?
Owning a Liberty Tax Service franchise requires not only financial readiness for the initial investment and ongoing fees, such as a 14% royalty on gross receipts and a 5% advertising fee, but also the ability to operate in a competitive environment. The franchise system is designed for those who can manage the seasonal nature of the business and are committed to providing excellent customer service. Before making a decision, it's advisable to consult with a financial advisor and review the FDD thoroughly to understand the financial implications and operational requirements involved.
Liberty Tax Service Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Liberty Tax Service Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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Units | 2021 | 2022 | 2023 |
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Total Units | 2256 | 2105 | 1885 |
Net Change YoY | -151 | -220 | |
Franchised Units | 2121 | 1991 | 1813 |
Net Change YoY | -130 | -178 | |
Corporate Units | 135 | 114 | 72 |
Net Change YoY | -21 | -42 |
Company Background
Liberty Tax Service is a prominent tax preparation franchise that has been serving clients since 1997. With a commitment to providing affordable and reliable tax services, Liberty Tax has grown to over 4,000 locations across North America. The franchise offers a range of services, including personal and business tax preparation, e-filing, and financial consulting, all aimed at helping individuals and small businesses navigate the complexities of tax season with ease.
Franchise Opportunity
Entering the Liberty Tax Service franchise family presents a unique opportunity for entrepreneurs looking to invest in a rewarding business model. With a low initial investment and a strong support system, franchisees can capitalize on the growing demand for tax services. Liberty Tax's established brand and comprehensive training programs provide new franchisees with the tools and knowledge necessary to thrive in the competitive tax preparation industry.
Corporate Structure
Liberty Tax Service, Inc. was founded in 1997 by John Hewitt and has since developed a robust corporate structure to support its franchisees. Headquartered in Virginia Beach, Virginia, the company operates under several names including "Liberty Tax" and "Liberty Tax Service." The corporate team is dedicated to ensuring that franchise locations are equipped with the resources they need for operational success and client satisfaction.
Royalties
Franchisees of Liberty Tax Service are required to pay a royalty fee of 6% of their gross sales. Additionally, there is an advertising contribution of 3% of gross sales that helps fund the national and local marketing campaigns, ensuring brand visibility and growth within the communities served. These fees contribute to the overall support and resources available to franchisees.
Company Mission
At Liberty Tax Service, our mission is to empower individuals and small businesses by providing expert tax preparation services that are accessible and affordable. We strive to create a welcoming environment where clients feel valued and informed, ensuring they receive the maximum refund possible while navigating their tax obligations with confidence. Our commitment to excellence, integrity, and community involvement drives us to make a positive impact on the lives we serve.
Brand Story
Liberty Tax Service began its journey in 1997 when founder John Hewitt recognized the need for a customer-focused tax preparation service. The brand quickly gained popularity for its friendly service and innovative marketing strategies, such as the use of animated "Liberty" characters. Over the years, Liberty Tax has expanded its footprint across North America, becoming a trusted name in tax preparation. The company's dedication to community engagement and customer satisfaction continues to set it apart in the industry, making it a leader in the franchise sector.
Frequently Asked Questions
The initial franchise fee to open a Liberty Tax Service franchise is $15,000. This fee is payable upon execution of the franchise agreement and is fully earned at that time.