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LIBERTY TAX SERVICE Franchise Complaints

UnhappyFranchisee.com asked: Are LIBERTY TAX SERVICE Franchise Owners Happy? If you’re familiarliberty_logo with the Liberty Tax franchise, please share a comment below.

Entrepreneur magazine has ranked the Liberty Tax Service franchise #3 behind  McDonald’s & Subway.  However, some commenters who claimed to be former Liberty Tax franchisees left stern warnings on the Franchise-chat forum.

This post was originally published 

BostonTax wrote:

I’m a former Liberty Tax Franchisee

I hope you are ready for a little enlightenment! I held a successful Liberty Tax Franchise for 5 years until I decided to let the franchise agreement lapse. I did this for a few reasons:
1. The royalty fees were outrageous! 14% went to normal royalty while and ADDITIONAL 5% went for so called advertising royalties. The ad royalties were supposed to be put back into your local market to build the brand name. This was never done! All advertising in addition to the ad royalty I had to pay for because it did not fit into Liberty’s concept of advertising. I don’t know exactly what the concept was because our AD could not give an answer and the approved methods changed by the week.
2. Corporate was totally unresponsive to the needs of the franchisees. The AD system is designed to recruit anyone who can write a check for 100K. No other skills or ability required.
3. The minute you are behind in a royalty payment, they send you a notice to cure. After that, if you don’tpay, they try to terminate your franchise agreement.
4. Upon termination, Liberty enforces through legal proceeding a 2 year, 25 mile radis non compete clause that is in the franchise agreement. This is enforceable in the Eastern Division of the Federal District court, where, at least 2 Liberty friendly judges preside.
5. Liberty does not recognize chargebacks for bad debts as an adjustment for your royalty fees. All royalties are based on your gross, not your net collectable. This was an ongoing issue with them and the accounting department did not have the ability or the inclination to resolve!
My best advice is do not go with these guys, they are bad news. If you like to have people collect royalties and provide no support, then this is the franchise for you! It is very expensive to get into, the initial fee is around $32K just to buy the territory plus those pesky royalties. You can’t make money on this concept.

Most of the surviving franchisees I’ve talked to in the last 2 years have experienced great difficulty not only in making a profit, but in the corporate support or lack thereof.Remember, 19% of your gross is getting kicked back to Liberty, which is excessive by any standards. Please do yourself a favor and call former franchisees ,those that are currently getting sued (they are very likely to talk, as I found out), and current ones to try to get the straight poop.

Barbara Green wrote:

I too was a Liberty Tax Franchisee and I agree with everything you said.

The only reason for purchasing any franchise is because the business model is a proven marketing success as evidenced by the profitable franchisees. That is why you pay a license fee of $25,000. Being profitable is not in the cards for a Liberty Tax franchisee. Liberty Tax’s market/ business model is aimed at individuals who have very simple tax returns, i.e one W-2 and standard deduction which is why they were very successful in Norfolk, Va. That market is full of military people with one w-2.

Liberty will sell anyone a franchise at any location, in any georgraphic area, even if there is not a chance in hell of the franchisee being successful.

At one time, I too owned a Liberty Tax Franchise for one tax season. It was only one season because of the behavior of the Regional Manager who called me on January 15th demanding and screaming “Why had I not generated 200 tax returns and that maybe this business was not for me. I was stunned and confused since employers are given until January 31st. to give w-2’s to employees. Apparently, he thought that I was in Norfolk, Va. where that is possible.

It only goes downhill from there. The bottom line is I lost all of my investment in this businees (approx. $80,000) because I closed it rather than becoming a victim of this unethical company. NOthing would make me happier than to be a part of a class action lawsuit.

WHAT DO YOU THINK?  DO YOU OR HAVE YOU OWNED A LIBERTY TAX SERVICE FRANCHISE?  ARE LIBERTY TAX SERVICE FRANCHISEES HAPPY?  WHY OR WHY NOT?
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5,730 thoughts on “LIBERTY TAX SERVICE Franchise Complaints

  • Hi everyone and thank you for your responses.
    I am still in time to think things through.
    Now this is my scenario,
    I will only owe a very small loan acquiring the franchise.
    Thus, besides royalties and advertising costs plus overhead and employees. Some profit will be made. I am aiming at a high industrial area in a community with a high AGI. If I where to proceed what would be your recommendations to tackle such an area.
    **Sanfrandan thanks. I dont like the agreement either, correct me if im wrong. Is there a way to actually make a profit or living doing this franchise. What do you recommend I do or not do, or even do differently? I think more Siempre Tax
    Preparation stores will be opening next year to cater specifically to the Latino Community. Along with other services. Do you see this as good or bad?

  • Hi everyone thank you for your input.

  • out and glad

    J,
    Think about that you are looking to do. You state that you are looking at a higher AGI. That means more complicated returns. You will only have tax preparers that have only been through the 1 week course.The expectations that you possible clients will have about service and knowledge will be very high. You would be setting yourself up for a bad reputation in town.
    Also Liberty will want you open in early January. That means getting the location approved, scheduling/turning on all of your utilities buying and setting up furniture. Buying/setting-up and getting your computer system to communicate properly. Getting your marketing/promotional materials. Hiring/training marketing people. Hiring/training tax preparers.
    As for tax prep in the Latino arena, if you are not Latino it will be very very hard to break into.
    I hope this information helps. If you are going to set-up in a high AGI area, you need well qualified people. I would not try to start this late in the game because it is a recipe for disaster.

  • NCHILLBILLY

    J if you are in a high AGI area then a Liberty franchise is not for you. All of Liberty’s marketing ideas are towards lower income individuals. What happens is when you follow Liberty’s plan you actually isolate your business from higher AGI clients. The lower income is looking for frills, higher AGI is looking for experience and knowledge.

    If you are in a higher income area your costs are higher and you have to use a totally different marketing strategy which not supported by Liberty or your AD.

    If you borrowed money from Liberty read the fine print carefully. Liberty has a system called fee intercept, they will intercept your money from you bank products, which prevents giving you the needed cash to continue operating the business.

    If you did buy a Liberty or Siempre franchise I wish you luck.

  • Texastee

    I hope j didn’t get involved with Liberty. You cannot make a profit under this system because of the required minimums and lack of support by Liberty. What would make Siempre any better? You really have to have close ties in the Hispanic community otherwise you are sunk before you leave the dock. The high AGI market is a good one to go after as long as you have the experience and knowledge to handle it. These clients tend to be very loyal to you as you build up your rapport with them. They will refer family and friends to you. That is something no amount of advertising by a clown in a liberty suit can do to get clients.

    Any loans you take with Liberty are usurious at best. 12% interest to buy an intangible asset is a fool’s errand and you can ask any banker about that. You can do this much better on your own without the hindrance of Liberty Tax. As for building any value with this franchise, the evidence is overwhelming that you will not be able to sell it in the future because of the high costs and zero margin you will experience.

    If you are with Liberty now, get out. If you are not with them, good. You can do this on your own as long as you have your competencies.

  • mike

    Any one listen to Libturdy tax report yesteday? It looks like they changed the name of the formerly stupid name of Siempre Tax to Siempre Tax+!!!! The marketing department (Screwitt is a moron, in my completely humble opinion) Ask any Latino the conotation is FOREVER TAX PLUUUUES. hahahahahahhahahahahahaahahhahahahahahahah! Who wants taxes FOREVER! and PLUS in spanish is audible as PLUUUUUSE!

  • HappyZee

    I am one of those franchisees who is happy with Liberty. I was looking to purchase a tax business, and after working for Liberty corporate as an office supervisor, I was hooked. My AD has been nothing but helpful, listening as I share my ideas about marketing in my area, and sharing her own experiences. I may be the exception rather than the rule, but this franchise has been good to me so far. I have tax preps in my office (who I have known for many years, and worked with in the past) who have anywhere from 1-25 years of experience. Are there things I don’t like about Liberty? Sure. Who WANTS to pay those royalties? But it only took a small investment for me to get into this, much smaller to buy a developed Liberty territory than to purchase a “mom and pop” in the same town would have been. Liberty is well known in this area, and all in all, it has been a very good move for me.

  • SanFranDan

    ^^Last I looked, this website is called “UNHAPPY Franchisee”.

    If you are one of the unfortunate ‘happy’ ones, go start your own website. Believe me, you won’t be ‘happy’ for long. And if you are, good for you. Most people I know do not enjoy working and handing all their hard earned money away.

  • ADMIN

    Happy franchisees are welcome and invited to post here. I am glad when legitimate, successful, non-troll, non-shill franchisees join the discussions. I hand it to those of them who hang in there, share their points of view and acknowledge that not everyone who hasn’t shared their good fortune isn’t “following the system” or working hard enough.

    Even the worst performing franchise systems often have some, or even a good number, of successful franchisees. Their participation can sometimes help identify the nature and cause of the problems in the system.

    We had an extremely heated and well-balanced thread on a particular tool truck franchise with very credible successful, happy franchisees vs. very credible unsuccessful, unhappy franchisees. The happy franchisees assumed their opponents were just lazy slackers and the unhappy franchisees assumed their opponents were corporate shills. After a few thousand heated comments it became clear that the happy, successful ones had been earlier franchisees who had less restrictive, reasonable franchise agreements and better territories. The unhappy franchisees had signed different franchise agreements after the company and new owners had adopted (in the opinion of many) a more exploitive and predatory strategy that included churning franchises and squeezing every last dollar from them. While the brand was the same, they in essence owned two different franchise concepts.

    Successful, happy franchisees would do well to share specifics about their markets, their volumes, special circumstances (perhaps from being a former employee) and observations as to why they think some locations are successful and others aren’t. Keep in mind that vague testimonials for the franchise sound simply like vague testimonials. Also keep in mind that most people do not invest their precious time, money and family’s future into a franchise with the intention of not following the system or not working their asses off to make it succeed.

  • SaraEA

    HappyZee bought a DEVELOPED territory in an area where Liberty was “well-known.” Also had experienced staff, some of whom likely brought clients with them, and had his or her own experience in the business. These elements certainly make success more likely than someone who is buying a new territory, hiring new staff, and doesn’t know the tax business.

  • SanFranDan

    ^^Admin:

    I stand corrected. Your post is valid. HOWEVER, if this “happy franchisee” is legit, then why on this very same page back on Nov. 17 would he/she have their very first post be a name calling post, calling people on here often “morons”. That leads me to believe that the franchisee is either not legit, or cannot understand how franchisees had such a negative experience. Nice way to put it, huh? I think not. “Nice introduction” to happy franchisee, not.

    Btw, “happy franchisee”……calling people “morons” without understanding their story gives too much credence to the CEO and their corporate staff. If people were “happy” all the time, then why would there be a need for an “Unhappy franchisee” website and why would there be thousands upon thousands of lawsuits filed each year?

    And btw, Admin: Not always are the “early” franchisees happy. Believe it or not, it was quite restrictive back then. Now it must seem like a prison cell. Better territories, perhaps. Better contracts? NOT AT ALL. The worst. Worse thing I ever did was not have a Franchise Attorney look over the contract before signing, but even then, there was so much mumbo jumbo and fine print that could be interpreted several ways……..and being ‘wet behind the ears’ as I was, you never think it’ll get as bad as it did. And I was anxious to get started.

    So a warning to all looking at franchisees in general: go over the contract with a fine tooth comb with a Franchise Attorney and then still back away. I will NEVER recommend a franchise to anyone again, even the nice, legitimate ones, if there is such a thing.

  • ADMIN

    SanFranDan:

    I wasn’t saying that this commenter is legit, and was certainly not saying the glowing endorsement of Liberty should not be questioned for more specifics… especially if it’s a former employee.

    I just didn’t want to leave the comment that happy franchisees (in general) shouldn’t comment here. The conversations that often get highest in the search engines are often those where there is lively back and forth between viewpoints.

    In Liberty’s case, I’m not sure we’ve had any credible defenders of the company (if so, not many).

    Anyway, carry on… SanFranDan and others are doing a great job keeping the conversation going and giving those considering investing in a Liberty Tax franchise plenty to think about. I’m looking forward to topping 5000 comments on this thread, which is not all that far off.

    Thanks everyone for sharing your opinions!

  • Sad but true

    I do not think that there are too many happy Liberty Tax franchisees. Reason; if you are successful, you know you are paying way too much in royalties and ad fees.

    John wins if you fail, if you are mediocre, you are a little successful, and if you are wildly successful.

    When it is always a winning, one sided deal, it is smart to not get involved with the party that holds all of the cards in their favor.

  • out and glad

    One thing to remember is that HappyZee was a corporate Office Supervisor. That person was able to find the best AD’s and the best/most profitable territories. Also HappyZee has the ear of people in the corporate office. Knowing that the AD is going to treat them differently. Finally HappyZee will know what territories are coming available, and which ones are the best to own.
    Now, if this Zee did not make money, they would have had to be a total airhead. This Zee had months of corporate training and discussions before buying a territory.

    An average person looking at buying a franchise, would not have all of the advantages that HappyZee did. They want a territory in an area near them. It is the luck of the draw what type of AD they get. Also They will get what is available, not the best that is out there.

  • Guest

    I agree the best territories are available to insiders. Others get what’s left.

  • Texastee

    I came across an ad looking for a CFO in Virginia Beach. I wonder who that could be?

  • Happyfranchisee says ” I was looking to purchase a tax business, and after working for Liberty corporate as an office supervisor, I was hooked.”

    So you are looking to purchase a tax business but in the mean time you took a position with Liberty Tax as an office supervisor?

    “Are there things I don’t like about Liberty? Sure. Who WANTS to pay those royalties? But it only took a small investment for me to get into this, much smaller to buy a developed Liberty territory than to purchase a “mom and pop” in the same town would have been. Liberty is well known in this area, and all in all, it has been a very good move for me.”

    Established tax practices sell for 1 to 1.25 times gross receipts. I know from southern NJ that Liberty does the same thing even though there is a royalty involved.

    If Happyfranchisee is legitimate and purchased a Liberty franchise with Liberty financing then unfortunately for them they really are hooked.

    Buyer Beware!!!

  • Texastee

    There is no way that a Liberty Franchise has the ability to make money as a franchisee. Liberty corporate and Hewitt are the only ones making money on this by luring unsuspecting business people into their system and holding on to them by false promises of future profits and usurious loans that are impossible to pay back based on terrible earnings in the tax business. The point here that I want to make is that with these high fixed costs that come off of the top such as the royalties, the cost of territories, labor, overhead and other expenses, it is impossible to make money with this system. The only easy money is for Hewitt and Liberty.

    Another consideration is that there is a growing army of ex franchisees of Liberty that are alerting people of the poor practices that Liberty expounds. These practices, such as high fees to your clients and over aggressive refund manipulation, are hallmarks of a very corrupt business model. Add to that a management team that seems to be in a constant state of flux, especially the finance area, with no support from AD’s all the way up, gives you a clear picture of what a bunch of crooks these people really are. Those that claim to have made a success in this business are most likely Liberty plants that try to help manage Liberty’s reputation. I got news for you people: the public relations campaign is not working.

    Smart money says stay away from this company as a franchisee and as an investor. This is a smoldering house of cards.

  • Trisha Grabert

    Happy Holidays Everyone!!

    My email has changed. Please ask ADMIN for that information if needed.

    How does the Area Developer benefit from the franchisee?

    What is their general role?

    What does their average investment look like?

    Do they have some control in decisions that affect the franchisee on any issues at all?

    Are their powers strictly limited on certain decisions?

    What are their common duties to expect by contract in relation to the franchisee and in relation to the franchisor?

    What is the remedy by contract if their duties are not performed?

    What type of relief was offered by Corporate when those duties were not performed by the Area Developer?

    Describe the ease of contact and support or the lack of support when you were required to make any type of requests through your Area Developer.

    Did your Area Developer change budgets, projections, reports, PandL/ or generate emails to departments in order to squeeze an approval after their approval? Was the purpose to attain benefit to themselves in any way by doing this with or without consulting you when they submitted to Corporate?

    All feedback is appreciated.

    Thanks,
    Trisha Grabert
    502-341-7319

  • Franchizee

    All of our budgets and projections were corrected not reflecting the dismissal losses we were sustaining every year. I never saw the final reports, so I am not sure what was given to home office for how great we were doing.

    Our AD owned stores in our area, so half of the money sent in to home office, they would receive half and low and behold, they were able to out market everyone in the territory, hire more people, stay open later and able to lure more people to their places just by having the monetary means to do so.

    Our AD would break every rule and was very unethical and immoral. They would advertise in our territories and especially during the first peak. They ruined all my peaks, if it wasn’t for the AD offices or the 2nd largest office advertising in my territories. By the time you find out, the peak has come and gone. Of course home office sends out a letter, but they have the money and I don’t.

    Of course, I was able to screw them all monetarily and am still reaping the benefits of the disaster they handed me. Over two years from having a contract and getting poised to cause more damage legally!!

  • Franchizee

    Also, Our AD would have days of free returns and heavily advertise that, which just killed our little piece of the rotten pie. They would give away 100’s of free returns, which if we had just half of them, we could of balanced our books.

    But the AD and the other office just didn’t care. Horrible corporation and horrible people involved with LTS.

  • out and glad

    Trisha, I hope your holidays were also good.
    As per AD’s, they come in the same range as franchisee’s. Some were good some are terrible. As for you questions, here is what I know.
    1. The AD’s get 1/2 (or 7%) of the Royalties that are paid to corporate. That is the incentive for them to help franchisee’s.
    2. Their general role is to assist the franchisee in site location, contract negotiation, be a conduit between the franchisee and corporate, assist the franchisee when problems arise that they cannot resolve, review and approve all operating budgets/ P/L statements.
    3. The cost of an area differs depending on the number of offices and returns completed. I believe the base cost (When I was in) for an undeveloped area was $500,000.00.
    At times it was very hard to get a hold of the AD, other it was not. As for your last question, yes the AD did.

    I hope this helps.

  • Texastee

    My AD refused to accept any budget I submitted. He insisted that the numbers were not accurate and that my P and L was too low. I showed him all the entries and gross sales I had with expenses (I did not hide anything) and he refused to accept my financials. Corporate and him decided to make up PL’s that were fictitious since I was congratulated by JH himself on being one of the most profitable stores in the region. I knew what I had submitted and that it did not even suggest any semblance of a profit. I guess they made it up as they went and in direct contradiction to the actual returns and fees my entity generated. It makes me wonder just how accurate their corporate financials really are, now that they are a public company. Maybe the SEC should look into this before more investors are defrauded.

  • SanFranDan

    I see this forum was deleted from the Unhappy Comments section due to inactivity. C’mon people! We need to keep this forum front and center at all times!

    Has anybody noticed that the stock has taken a nose dive? They’re down about 10% for a few weeks…………lots of selling, no buying…………

    Tax season is now beginning. (yucch) How many franchisees will survive this year? How many new franchises were sold for this season? How many were sold a fake bill of goods? How one sided has the contract become? How many have bought Siempre Tax locations? How many are competing with themselves? How many franchises got their Insurance licenses for that all important ACA? Not.

    What a racket. This is not even a Tax business that Liberty is in. It’s a “how quickly can you part with your money” business. :(

    Stay away. Far, far away. You will have dodged a bullet.

  • Betty Hambric

    I went to liberty tax Monday today is sat 9th I held there sign on conor for 6hrs last Monday She put me out there as soon as I went in around 9 30 am Today she said human resorce did not bring money for me yesterday Friday. So she would pay me a couple of hrs out her pocket. I say if Liberty Tax on broadway by KFC rob me I would not recommend trusting them file my taxes It was very cold standing there those hours from 10am to 4pm Beware usin Liberty tax world. Cant be honest pay me 6hrs Then what are they capable taking from your taxes

  • Betty, go to the state Department of Labor. It is illegal not to pay people for time worked. My hunch is the franchisee does not know the law and made a mistake. She likely didn’t make enough money that week to afford to pay you. Too bad for her, the law says she has to. Why is Liberty trying to drum up business on Jan 4??? Way too early for anyone to have their tax docs yet. Is this what “the system” recommends?

  • out and glad

    SaraEA, a couple of large companies have the w-2 online. Wal-Mart is one of them. They can log in, use a specific amount from the last paystub of 2015, to access the w-2. It can then be downloaded.
    Also the Liberty in town has one waiver out this last week.

  • Guest

    My phones ringing daily. Setting appointments and answering questions. Some of the W2’s are out and the local mom and pops are open. We don’t have time to complain. Also, hrblock stepping up their game. I just saw the worst commercial they’ve every had. Giving away 1000 a day to 1000 people, but the commercial sucks. Insurance is a great attention getter. Expect it’s gonna be a very good season. Block also giving away gift cards. This means all three going after early customers liberty, jh, and block. Don’t think you’ll see much posting. No time since all three are mixing it up with promos. Gotta to keep marketing or be left out. Exciting!

  • Franchizee

    Same here phones are ringing and appointments are being made, with real tax payers. Small business and professionals. Nice not to have to work on the “crazy train” people who run from one promotion to another. No relationships being built and not real business being built upon.

    You may be busy, but you are a hamster on a wheel just running after a group of people who don’t care and possibly LTS, JH and H and R don’t care either about them, just bribing them to do a tax return.

  • Guest: The HR Block and JH offices haven’t even started regular hours. Your using the same old stick that Liberty always uses and its old and tired.

    As a former franchisee I don’t route against any individual franchisee. I understand the frustration of dealing with this company and I also understand you wanted to protect your own investment. Guest of course is not a real franchisee she/he is a company plant.

    Buyer Beware!!!

  • Guest

    Funny.

  • Texastee

    I noticed that the stock has taken quite a tumble. It looks like rats leaving a sinking ship. Oh, this was predicted by a few of us for the last 6 months. Funny how these things happen.

    There are quite a few reasons for this to happen. Liberty stock is overvalued. Liberty financials are disappointing. Liberty’s concept is antiquated. The company is under investigation (IRS, Justice Dept?) No corporate direction. Ripping off consumers and franchisees with high prices. A morally bankrupt executive board. Seems there is a lot to sink your teeth into and anyone who is even remotely considering this scam organization had better do their research. A fish stinks from the head down.

  • Now this is funny:

    “Liberty Tax’s $1K-a-day sweepstakes opens January 15, and runs through February 15. Customers who have their taxes prepared at a participating Liberty Tax office can have their names entered into the $1K-a-day sweepstakes. Each day during the contest, one $1,000 winner will be randomly selected until the company has given away $32,000. For more information, including official rules and other methods to enter, please visit”

    Of course I didn’t see this in an Ad on TV, radio or newspaper. Instead I see it as a press release on the financial section of Yahoo. So guest that’s how your advertising dollars are being used.

    Buyer Beware!!!

  • Sad but true

    Block comes out with $1000 to 1000 per day. Liberty $1000 total per day up to $32,000 total give away, An embarassing news release. Actually, it seems to be a way to confuse the public. Giving away the total of $1000 total a day versus 1 million a day is very different. Again, Liberty is showing they cannot compete with Block.

    I feel bad for the franchisee’s but soon it will all be over for them. Liberty is close to being no more.

  • Forrmer LTS owner

    As a former Owner I dumped my Non-profit organization moved 180 miles and opened my own office …making more money than ever
    STAY AWAY from Liberty they make promises they never keep .. If you get sucked into borrowing money BEWARE they are loan sharks 12 % interest even on the franchise fee,,,so they charge you interest on money they did not lend,,,WOW what a deal

  • SanFranDan

    The people that joined Liberty Tax for this season are way too late to do anything about it now. (My biggest condolences to you) I knew within the first 6 months of a 5 year contract I had made a grave error by signing on. However I had no idea how horrific it was going to become for 5 years, but especially when it was time to leave after that contract ended.

    My words of advice are to the people at the end of their 5 year contract that want to get out: They will be watching you very carefully. Franchizee: I don’t know how you did it, but I’m proud of you! No lasting lawsuits or nightmares, huh? Lucky!

    They will do whatever it takes to mow over you and show you “who’s boss”. Whether they sue you or you sue them, they will NEVER let you ‘win’. They will always make sure they come out on top. And they pay off people (like the IRS). This is not a made up statement, this is a fact. I can prove it.

    When will this “grandfather of Tax” be investigated to the point where he can no longer run his company and will end up in jail? He’s been able to get away with SO much all these years and there are people and Depts. turning a blind eye away. He must have paid off those individuals too. :(

    For those people still contemplating a Liberty Tax franchise location for next year: reading through 4000+ posts would make anyone turn around screaming in the other direction. Hope that happens to you too. Keep your money & go elsewhere.

  • Franchizee

    San Fran – We were not targeted by the Home Office, but by the zee nearby. They are still calling my office, which is so dumb. Like I haven’t seen anything like this in the last 25 years.

    Also, my territory is dead to LTS and should of never been a territory. I also did not make over $75k, which is the magic number to even file a lawsuit. Had I made over that, I would of been targeted, but also the territory is not an LTS territory.

    My AD left just before I left, so the AD is out of home office and not in our back yard. Basically the stars were aligned. But $75K is the magic number, and they can’t take you to court because the court will not accept the lawsuit!

  • Franchizee

    Also, I did not use any computers nor routers from LTS. Everything went off line. Many people are snagged by the use of the computers which can be accessed by LTS anytime they are turned on.

    This is how they snag a lot of people because they can look at the computer and turn them on remotely. I lost $12K in computer equipment, but worth not being caught by them.

  • SanFranDan

    ^^Franchizee:

    My ‘case’ was so early on. It actually set a precedent for how certain things are now handled. So if you think you were strangled by the contract way back then, it’s gotten SO much worse and one-sided now. Yes, it was definitely over $75K, which is the Federal number, not the State. I am STILL not 100% free from their mighty grip. Almost, but not quite after many, many years. Anyone reading this: Be careful signing ONE 5 year contract………….it can multiply into many more years of horrific stress and unnecessary money loss all because they have you in their tight grip and will not let go.

    This was the most vindictive, personal attack by a CEO and his representatives. And if you ever think it cannot happen to you, think again. It most certainly can.

    I knew about the spyware in the computers long before I left. That’s what happens when you have crap software and then go to a professional to have the computer fixed. He said, “Did you know that spyware has been loaded on your machine”, um, no! Back then I was too wet behind the ears.But it’s absolutely understandable now. What the company did to me made me grow up real fast. This was a real, grown-up ‘solution’ to a franchisee leaving after a 5 year contract ended and how they twist everything, and I mean everything around. Money is power and they will not let anyone but themselves “win”. EVER.

    If any one reading this wants to join a crooked organization, this is the one for you. ^^Franchisee: Losing 12K in computer equipment is unfortunate, but it could have been MUCH WORSE. Thank your lucky stars you are OUT!!!!!

  • SaraEA

    I actually heard a Liberty ad on the radio yesterday–about the $50 and maybe the $1000. Only heard it once. Was it possibly national, or was it a franchisee choosing to self-advertise? I didn’t hear anything about a location, but I didn’t listen closely.

  • out and glad

    Liberty will run radio spots in certain areas. They will negotiate a price for the number of spots and divide the cost between the zee’s. They look for a radio station that reaches the most first peak taxpayers. The most popular stations are Hip Hop and Hard Rock.
    It is not national and Liberty does not pay for it.

  • Franchizee

    I have heard several radio ad in my area. LTS only spouted out their 800 number and going online to find an office near you. It is a very generic ad regarding the $750 easy advance, which me as an independent could offer through Republic but chose not to play the game. Too much fraud and headaches with those groups of people.

    When I was a zee, they had much better ads and played them more. I am on a station that should be their “demographics”, but without my input, they are using other stations.

    As I have been going about my business, none of the offices have been that busy yet especially the H&R in my area. Still slow awaiting for the W-2s.

  • John Barilla

    I see the same 3 losers still posting on here , LOL!!!

    On a serious note, $750 advance working really well in my offices. Getting more customers than ever, just happy to be getting their money so much faster. Going to be a good year. Sorry guys!!! Wish I had better news for you that we were all failing like you 3 failures….

    Also, seems like Jackson Hewitt is now doing $50 CIF and have sign spinners, feather flags, lawn signs and baloons everywhere. Imitation is the most flattering compliment???? Bye bye now, got lots of customers to help.

  • SanFranDan

    ^^Oh boy, he’s back, yay!!!
    Must be Tax Season. There is no need for any further comment. :(

  • Franchizee

    It looks like John is out on probation for good behavior!

    LTS is a bad investment and if you decide to go in with them, you can be associated with John the Gorilla and his nice tactics to anyone who disagrees with him and his precious LTS.

    Thanks John for showing LTS true colors and the people they attract.

  • SanFranDan

    ^^A-W-E-S-O-M-E !!

    In a perfect world, the franchise would be shut down completely, the CEO and all home office employees would be jailed and all franchisees past & present would get full refunds. :) (Except Barfvilla, of course) :)

  • out and glad

    Thanks for the information Dr. Zhivago.

    Did you notice that Martha O’Gorman stated “We have internal controls that scrutinize the tax returns filed from our franchise outlets before the returns are transmitted to the IRS or the state. Furthermore we have created a position of Chief Compliance Officer overseeing an internal audit division that monitors anomalies in returns and sends alerts when there is activity that needs to be addressed.”
    The first problem is that they have had internal audit for over a decade. Second is that they have internal controls to scrutinize the returns before they are transmitted.
    Since the State of Maryland has found the problem, is Liberty saying that they are part of the problem by transmitting the returns without looking into them?

  • LOVE IT..I would imagine that there likely will be others…how many has it been now? Oh and Barilla, glad to have you back!

  • Franchizee

    My first and second season with LTS, they sent me lists of taxpayers with EIC. Being the beginning of the tax season, I “had a high amount of EIC returns”, like well duh??? All of the returns were valid and nothing was out of place.

    After the first two seasons, never heard from them. They should be stopping all of those returns and having people going through them prior to transmitting to the IRS. Of course, that does not help the Zee making promises to taxpayers.

    Obviously, their internal controls did not catch any from Maryland and the IRS had to step in.

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