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Frequently Asked Questions & Franchise Prices

 

 

What makes the Liberty Tax Service® franchise opportunity the right choice for me?
Our franchise system is designed and focused on your success. We want to help you achieve financial independence, while helping you reach your goal of owning your own business. When you franchise with Liberty Tax®, you receive:

  • A proven Operations System
  • 365-day Operational & Technology Support
  • National & local Marketing Support
  • Comprehensive on-going training for franchisees and their employees
  • National Brand Recognition
  • And more!


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How much do franchise owners make?
While we can’t quote exact profit levels, our low-cost franchise opportunity combined with our proven system means your opportunity for profit begins in year one. For specific information, Section 19 of our Financial Disclosure Document will outline the financial performance of an average operator. Please contact us to learn how to obtain our FDD.
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Do I have franchise territory protection?
Our franchise territories are exclusive to each franchisee. 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.

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What is the term of the franchise agreement?
Our franchise agreements are for 5 years. They 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.
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What is the initial investment?
Depending on size and location, typical franchise fees for 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.
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Is 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.

You can view our new franchise opportunities to start from scratch, or learn more about purchasing an existing franchise for sale.
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How much does a Liberty Tax® franchise cost?
Currently, our initial franchise fee is $40,000 for a Standard Territory. These inexpensive fees result in a low cost franchise, making Liberty Tax® one of the best values in the franchise world!
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What are royalties and how much will they cost?
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.
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Can I get financial assistance?
You sure can! 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.

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Who identifies my franchise location?
We have a team that can help you choose the perfect location. The team includes your Area Developer, with their local market knowledge, and the expertise of a Liberty Tax® Site Selector to 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.

With our years of knowledge, we consider whether the site location includes visibility, accessibility by car or public transportation, the size of the space and other related factors.
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What support will I receive after training is completed?
You will receive ongoing support from your Area Developer and your corporate team.

Additional franchise 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 franchisee marketing plans and daily marketing conference calls during the tax season, to help drive traffic to your tax office.

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How can I contact you for more information?
We can be reached, toll free, at 1-800-790-3863 or at sales@libtax.com for more information.
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Request Franchise Info
We will contact you within 24-48 hours
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