5/10

Franchimp Summary Rating

3 /10
Higher than 73% of peers
8 /10
Lower than 21% of peers

Franchise Summary

Description
JTH Tax, Inc. d/b/a Liberty Tax Service offers a franchise program to operate tax return preparation offices utilizing special marketing techniques and operating procedures.
Company Background
Liberty Tax Service is a national brand that has been in the tax preparation business for over 40 years. JTHTax, Inc. d/b/a Liberty Tax Service offers a franchise program to operate tax return preparation offices utilizing special marketing techniques and operating procedures. We are committed to our clients by providing them with an experience that will exceed their expectations when they come in for service from us. Our goal is to provide every client with the information needed so they can make informed decisions about their taxes and financial future.
Franchise Opportunity
Tax preparation is a highly regulated industry, and it's difficult to find an accountant who will work with your schedule. Some tax preparers are too busy to see you when you need them the most, and others have very limited hours on weekends because they're not open all year round. Our franchise program offers a unique opportunity for entrepreneurs looking to start their own business or expand their existing one into new markets. We offer two types of franchises that operate in different ways so that you can choose which type best fits your lifestyle needs as well as your long-term goals. Both models provide access to our proprietary marketing materials, operating procedures, and support staff at no additional cost. This allows us to help you grow your business while maintaining high quality standards across the board. If this sounds like something that would be beneficial for both parties involved then we encourage you to apply now!
Corporate Structure
JTH Tax, Inc. d/b/a Liberty Tax Service is a Delaware corporation incorporated on October 23, 1996. They do business as “Liberty Tax Service.” On September 23, 2010, they incorporated JTH Holding, Inc. in Delaware. In July 2014, they formally changed the name of JTH Holding to Liberty Tax, Inc. Their  principal place of business is 1716 Corporate Landing Parkway, Virginia Beach, Virginia 23454. They have offered area developer agreements since June 2001.

Earnings Transparency

4 /10
This Franchise discloses slightly less information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Franchisee Attrition

3 /10
This franchise's rate of attrition in 2019 of 9.79% was Slightly Higher than the 8% in the Business-Related industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Liberty Tax Service Franchisees

Liberty Tax Service Franchise System Development in 2020

FAQ

How much investment do I need to start my own Liberty Tax Service business?
Franchisees typically require at least $42 to $61 investment to get their Liberty Tax Service business started
What are the initial franchise fees for Liberty Tax Service?
Franchisees typically need to pay at least $15 in fees directly to Liberty Tax Service in order to earn the right to launch their business
How much money can I make with a Liberty Tax Service franchise? What are the average revenues for a typical Liberty Tax Service business?
We haven’t done the math on how much revenue a typical Liberty Tax Service brings in each year. We estimate that other franchisees in the Professional Services industry generate $952,375 revenue, so we would expect Liberty Tax Service to generate a similar amount
How long do I need to commit to running a Liberty Tax Service unit? What is my contractual commitment?
Liberty Tax Service franchisees are typically required to sign up to a 5 year contract initially. The renewal length is 5 years. You can of course exit early but don’t expect to get any refund!

Accessibility

8 /10
The Franchisor's investment costs ranges from $42,200 to $61,400 which is Much Lower than the $0 to $0 average in the Business-Related industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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