Liberty Tax Service Franchise FDD, Profits & Costs (2025)
Liberty Tax is a prominent tax preparation franchise that was launched in 1997 by entrepreneur John Hewitt. The brand took shape after acquiring the Canadian company U&R Tax Depot and soon after adopted the name Liberty Tax Service in 1998.
The franchise is headquartered in Virginia Beach, Virginia, and began offering franchise opportunities the same year it was rebranded. Today, it has grown into one of the largest tax service networks in North America, with more than 2,200 offices spread across the United States and Canada.
Liberty Tax provides a wide variety of financial solutions, including individual and small business tax filing, bookkeeping, tax debt assistance, and credit repair services. What sets the brand apart is its year-round operating model, distinguishing it from many competitors that primarily focus on the tax season.
Initial Investment
How much does it cost to start a Liberty Tax Service franchise? It costs on average between $42,000 – $61,000 to start a Liberty Tax Service franchised facility.
This includes expenses such as office build-out, furnishings, technology systems, signage, and initial working capital. The total investment varies based on factors like the size of the office, its geographic location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $15,000 |
| Initial Advertising | $5,000 |
| Travel and Living Expenses While Training | $1,000 – $2,500 |
| Equipment & Furniture | $7,500 – $15,000 |
| Signs | $2,500 – $5,000 |
| Rent | $3,000 – $6,000 |
| Payroll | $5,000 – $7,000 |
| Insurance | $200 – $400 |
| Additional Funds – 3 months | $3,000 – $4,500 |
| Total for a Single Franchise Agreement | $42,200 – $61,400 |
Average Revenue (AUV)
How much revenue can you make with a Liberty Tax Service franchise? A Liberty Tax Service franchised center makes on average $132,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many Liberty Tax Service locations are there?
As of the latest data, Liberty Tax Service operates approximately 2,300 franchised locations across the United States and Canada, along with about 180 company-owned offices.
What is the total investment required to open a Liberty Tax Service franchise?
The total investment required to open a Liberty Tax Service franchise ranges from $42,000 to $61,000.
What are the ongoing fees for a Liberty Tax Service franchise?
Liberty Tax Service franchisees pay a 14% royalty fee on gross receipts, with minimums of $0 in the first year, $5,000 in the second year, $8,000 in the third year, and $11,000 annually from the fourth year onward. They also pay a 5% marketing and advertising fee on gross receipts each month.
What are the financial requirements to become a Liberty Tax Service franchisee?
To qualify financially for a Liberty Tax Service franchise, you should have at least $50,000 in liquid capital and a net worth of around $100,000.
How much can a Liberty Tax Service franchise owner expect to earn?
The average gross sales for a Liberty Tax Service franchise are approximately $0.13 million per location. Assuming a 15% operating profit margin, $0.13 million yearly revenue can result in $20,000 EBITDA annually.
Who owns Liberty Tax Service?
Liberty Tax Service franchise is owned by NextPoint Financial Inc., a publicly traded financial services company.
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