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Frequently Asked Questions & Franchise Prices

 

 

Why is the Liberty Tax® franchise opportunity the right choice for me?
Our proven franchise system is designed for and focused on your success. We want to help you achieve financial freedom by helping you reach your goal of business ownership. When you join the Liberty Tax® family as a franchisee, you receive:

  • Experienced Executive Leadership Who Were Also Franchisees
  • Proven, World-class Operations and Technology Systems
  • Year-round Support from the Corporate Office
  • National & Local Innovative Marketing Programs
  • Comprehensive On-going Training for Franchisees and Their Employees
  • National Brand Recognition and Reputation


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How much do franchisees make?
Our low-cost franchise opportunity, combined with our proven system, means profits could begin in year one. To learn more, read our free whitepaper, “How Much Can I Make By Owning a Franchise?” For additional information, please contact us to learn how to obtain our Financial Disclosure Document.
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Do I have franchise territory protection?

Our franchise territories are protected and 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. A Small Market Territory cannot be within 25 miles of a city with a population of 200,000 or more and cannot be within 60 miles of a city with a population of 600,000 or more.

When determining a franchise territory, we also look at demand for paid tax preparation and electronic filing, demographic factors, and other pertinent market factors in the area.

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What is the term of the franchise agreement?
Our franchise agreements are for five years. They can be renewed for successive five-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 from $58,700 to $71,900, including 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 search our new franchise opportunities that you can start from scratch, or you can learn more about taking over an existing franchise.
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How much does a Liberty Tax® franchise cost?
Currently, the initial franchise fee for a standard territory is $40,000. Our inexpensive fees result in a low-cost franchise and make 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 financing 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 — for everything from supplies to working capital.

Liberty Tax® has also been approved by the Franchise Registry program, which enables SBA loan applications to be processed more quickly.

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Who identifies my franchise location?

Who identifies my franchise location?
Our location team can help you choose the perfect location for your new business. The team includes your Area Developer, along with their local market knowledge, and the Liberty Tax® Site Selector to provide expert guidance regarding the location of your new office. As a precaution, you may not sign a lease until we approve that the site chosen for your office includes:

  • Optimal location
  • Appropriate rent
  • High visibility from the street
  • Accessibility by car or public transportation

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What support will I receive after training is completed?

Our proven system provides you with ongoing support from your Area Developer (if applicable) and the corporate team, including:

  • Networking meetings with other Liberty Tax® franchisees
  • Our exclusive annual convention
  • Newsletters
  • Store visits
  • Unique and effective business tools
  • Franchisee intranet site
  • Toll-free support desk
  • Professional growth and development programs
  • Regional marketing campaigns to increase brand awareness and strong local franchisee marketing plans
  • Daily marketing conference calls during tax season to help drive traffic to your tax office

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How can I contact you for more information?
Call 1-800-790-3863 or email us at FranchiseInfo@libtax.com to get more information.
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