Liberty Tax Service Franchise

Liberty Tax Service, a Liberty Tax Inc franchise, has been franchising since 1997 - 25 years after the concept was founded in 1972 , currently with 2,600 total locations in the business services sector, headquartered in VA. According to the 2024 FDD, the total initial investment ranges from $58K to $92K - a 59% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $40K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 14.0% of gross sales with an additional 5.0% national advertising fund contribution, bringing the combined ongoing cost to 19.0% of every dollar in sales. Notably, Liberty Tax Service does not disclose financial performance (Item 19) in its FDD. That is common (Item 19 is optional under the FTC Franchise Rule) but it puts the burden on prospective buyers to survey existing franchisees (Item 20 contact list), model unit economics from public comparables, and demand validated profit-and-loss data before signing.

Network momentum is currently negative: Liberty Tax Service contracted by 1.9% year-over-year with 100 closures on the record. Contraction warrants careful investigation, it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.