H&R BLOCK Dumps EXPRESSTAX… & Franchisees?

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• This would be perfect for Mike and F&D.

• John Barilla,

  You obviously have been in the tax industry for sometime so I am asking you a real question. What net profit margin/percentage (after royalties etc. ALL expenses) should an average Liberty Tax office make in their 1st, 3rd, and 5th year? Just a straight forward question, hopefully you can provide a straight forward answer. Thanks, and I look forward to your analysis.

  Mike

• I would expect revenues of $50k year 1 and obviously a loss depending on what month you took over the lease. I would expect to have revenues of $100k in year 2 which should be near break even probably still a little loss. Year 3 is when the investment should start paying off with revenues of $140k. By Year 5 you should not be less than $200k. I would expect a profit margin of 40% at that level. Therefore $80k of profit for the rest of your life for working 90 days a year, really hard for about 30 of them. If you can somehow have 3-5 of these office you could make $300 to $400k a year.

  Now what do you two tards think? (Mike & F&D)

• John,

  I think you are on crack pipe!! If someone could make 300-400k a year and only work 90days a year, Liberty would not be waving the $40 franchise fee, people would be lined up for this miracle! On the contrary, they wouldn't even be selling franchises; John I Screwitt, would be pocketing that money for himself. He is not that charitable, don't be such a fool.

• Mikey,

  They are waving the franchise fee if you pay more royalties so stop making stuff up. Also, did what i just explain seem like it would be easy. I am saying you have to invest $40k and lose money for 2 years for each location. At that pace it would take several years to make $300k. It is definetely not easy and not everyone that buys in will make it, only the good ones and obviously you were not one of them and neither is your clone over there, Frustrated. He is in year three and bankrupt. Get a life Mikey, you come across as so pathetic!!!

• Johny,

  Then you are accusing Liberty of using deceptive advertising. Just like you, Liberty claims you can work hard for 3 months and basically semi-retire. If you are so good, tell us how many offices and returns (paid) that you completed last season and prove that Liberty is a great investment.

• You are the fool for believing it was going to be so easy to make money. Just write a check for $40k and boom you are rich. Don't you think everyone would have done it? Tell me some better alternatives out there, because i looked at all of them and decided to go with this one.

  I have a full time job that pays the bills, as Liberty does not require that much of my time, really January and half of February are the only crazy time for me. The last 5 days of tax season are also crazy.

  I have two office and just completed year 3 with $150k in revenues in one office. The other office is in the same territory so i did not have to pay $40k again and i just completed my first year with $60k in revenues. I expect both to be at doing $200k each in their fifth year. If will need to more territories to eventually have four to six offices each doing $200k and $75k in profits, while busting my butt for six weeks a year. Yes i will still be working the rest of the year but not as hard. Assuming this all works out, (it may or may not) I will have a business that grosses $1mill and profits about $300k and probably worth $1.2mill. None of this will be easy and if i don't make it will not while like you and the other tard on here. Any questions?

• Thanks for proving the point that Liberty is a bad investment. You are going into your 4th season in just a few months, you still have to have a full time job because you are upside down with Liberty. Thanks for proving that Liberty is a bad investment, invest $40k, more like 65k atleast with furniture etc, and if your gamble pays off you might make some money in your 5th year. Atleast you are honest. and I respect you for that.

• John Barilla, what percentage of Liberty offices do you think are grossing $140k in gross receipts in their 3rd year? What percentage gross less than $80k their 3rd year? How many new Liberty offices actually complete 1000 returns by their 3rd year? You realize that if you don't do 1000 returns by then they can cancel your franchise, right?

  Now, with regard to the folks who hate JTH, well, if you failed it is human nature to blame anyone else but yourself. I know the type. A guy spends 20 years hating the corporate world. He hates being told what to do. If he could just find a way to be his own boss, and not put up with the bs he's had to contend with, he'll be happy. So he gets laid off and buys a Liberty franchise. He still hates being told what to do, because he believes he's smarter than everyone else. And so, he fails. And it is all Hewitt's fault. Sadly, I've seen that kind of scenario repeated many times.

• Joseph,

  Great questions for John, we'll wait for his answer. In the meantime, there are approximately 3600 Liberty offices. The top 100 offices average about 1500 returns more or less, with office number 1 around 3000+ returns and office number 100 around 1100+ returns, I could be off a bit but close enough for illustration. John can give you the exact numbers. Keep in mind most of these office are probably older than 5 years and Liberty is about 14 or 15 years old. Therefore, approximately 3400 offices do less than 1000 returns and could be potentially in violation of their agreement and subject to confiscation by Hewitt. Of course, he wouldn't do this at THIS time, but it does make duck hunting pretty easy!! Liberty is a bad investment, especially if over 90% of the offices are failing Liberty's own requirement! Johnny, please correct my numbers and math for a more accurate picture..