Based on Business Listings, Vetted Biz requires Businesses for Sale to share financial information on sales and earnings through credible sources, including but not limited to Tax Returns, Accounting Software, Point of Sale Software, etc….: 2020 Liberty Tax Financial Disclosure Document(FDD)
Liberty Tax has been in the income tax preparation business and has offered franchises in this business since 1997. As of December 28, 2019, there were 2539 Liberty offices in the United States, 2407 of which we franchised and 132 of which Wefile operated. Liberty Tax is a retail income tax return preparation business, which primarily attracts customers from the low to middle income brackets. The business is seasonal with most of the customer flow occurring from early January through the middle of April each year.
The initial franchise fee and resale franchise fees are $40,000. The resale franchise fee applies to a territory that has been previously sold. If a territory includes existing operations, the total cost will vary depending upon the Gross Receipts of the Territory and other pertinent market and economic factors. You are not required to spend any specific amount of money on any initial advertising for the opening of your Liberty office, but most franchisees will spend between $5,000 and $7,500 on initial advertising.
The total investment necessary to begin operation of a Liberty Tax office is $20,700 to $73,900.
Below is a list of the costs that factor in the range of startup costs from $20,700 to $73,900.
Royalty: 14% of Gross Revenues*
Payment: Royalties are due on 5th day of month
*Minimum Royalty: Depending upon the year of operation, the Minimum Royalty will range from $5,000 to $11,000.
The Franchisor Liberty Tax is not a When the earnings in a given period of time is more than the expenses in a business…. business with a net income loss in 2019 of 68 million in Liberty Tax has seen a decrease since 2018 when net income was a loss of 43 million.
The primary competition in this market is from H&R Block and Jackson Hewitt. Other competition comes from other national, regional, and local tax return preparation and accounting businesses, as well as from the Free File Alliance, online income tax preparation services, and nonprofit tax preparation assistance groups. There is also competition from SiempreTax+.
Liberty Tax Service offers a franchise program to operate tax return preparation offices utilizing special marketing techniques and operating procedures.
While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the business services industry.