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- 2022 Franchise 500 Rank
#360 Not ranked last year
- Initial investment
$44K - $79K
- Units as of 2021
2,683 19% over 3 years
Here’s what you need to know if you’re interested in opening a Liberty Tax Service franchise.
Liberty Tax Service is a tax preparation service that has locations in both the United States and Canada. It is one of the largest tax preparation franchises in the country, with over 2,500 franchised locations all over North America. In 1997, John Hewitt of Jackson Hewitt Tax Service acquired the Canadian franchise and gave it the name we know today.
As a franchisee, you’ll not only provide friendly, professional tax services in person but provide support for online services, as well. Customers have access to a W4 withholding calculator to figure out their income online, a mileage reimbursement calculator, and a reimbursement adjustment calculator. As a franchisee, you might also handle tax debt relief services, car insurance, roadside assistance, and more.
Why You May Want to Start a Liberty Tax Service Franchise
If there’s one thing that life guarantees, it’s taxes, and that's something that will likely never go out of style. Besides always being in demand, Liberty Tax Service designs its franchise process to ultimately benefit franchisees and your customers.
The company makes their brand one of the more affordable startups to invest in so you can grow quickly. It also leaves you money to customize your franchise location and really make it your own. With the franchise comes their iconic sign-twirling Lady Liberty mascot. Who says taxes aren’t fun?
This is a company that can truly benefit you as a franchisee, and give you the opportunity to change your clients’ lives. They’ll be able to learn taxes as you help them with their debt, questions, and tax anxiety. You’ll soon become one of their first choices when they search for “tax accountants near me.”
What Might Make a Liberty Tax Service Franchise a Good Choice?
Opening a Liberty Tax Service franchise means that the low startup cost could better benefit you in the future. But, as you should know, the franchise is only as good as the person running the business and offering services.
To be part of the Liberty Tax Service team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should be prepared for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How to Open a Liberty Tax Service Franchise
Liberty Tax Service makes opening a franchise as straightforward a process as possible. The first step is to request information and a representative may be in touch with you. Thereafter, they will arrange for you to participate in a live conference call. You’ll then attend discovery day, a private meet-and-greet to speak with other franchisees, learn about the Liberty Tax Service culture, and discuss the Franchise Disclosure Document.
If all works out, you’ll fill out and submit the confidential franchise application and initial investment. On the company’s end, they’ll review your territory request, application, and set up a formal interview. After you complete their effective operations training, you’ll sign the paperwork that makes your franchise official.
About Liberty Tax Service
- Franchising Since
- 1973 (49 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 2,683 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Liberty Tax Service franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $20,000 - $40,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $43,700 - $78,900
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $100,000 - $250,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $15,000 off franchise fee; special financing
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 5 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Liberty Tax Service offers in-house financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
- Third Party Financing
- Liberty Tax Service has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 12 hours
- Classroom Training
- 30 hours
- Additional Training
- Additional training in various cities
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Liberty Tax Service? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Liberty Tax Service landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Liberty Tax Service ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Liberty Tax Service.
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