Liberty Tax is making illegal Franchise Performance Representations (FPRs) by claiming to have created hundreds of millionaires, according to Anon Source. What do you think?
(UnhappyFranchisee.Com) According to our reader Anon Source, Liberty Tax is making false and illegal claims that it has created hundreds of millionaires.
It’s not the first time that Liberty Tax has pushed the boundaries of good taste… if not legality.
UnhappyFranchisee.Com once reported Liberty Tax to the FTC for the prohibited practice of using employment websites to troll for franchise leads.
They stopped for a while, then went right back to it.
While the claim of creating 800 millionaires and promising low costs and high margins may fall into the grey area short of an outright, illegal Financial Performance Representation, we think Anon Source makes a good point.
As a supposedly respectable financial services brand, Liberty Tax has never been accused of avoiding crassness… as evidenced by some of its more unsavory Lady Liberty “wavers.”
We welcome rebuttals and other viewpoints, which can be shared below or by emailing us at UnhappyFranchisee[at]gmail.com.
What do you think? Share a comment below.
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To Whom It May Concern,
Liberty Tax is making illegal financial performance representations in their marketing materials as well as telling prospects this and other FPR’s that they have consistently used over the years.
John Hewitt claims he has created 800 millionaires which is not true.
They are currently distributing the attached flyer along with the Wall Street Journal all over the International Franchise Expo in New York that says:
This man has created over 800 millionaires, will you be next?
Discover what John and Liberty Tax can do for you.
What the ad should have said is that were 500 store closings last year and over 5,000 franchisees who have lost money and closed in this scheme over the past 15 years.
They are continuing to make these false claims of making millionaires that are as clearly illegal Financial Performance Representations in Google ads as well as right on their homepage of their franchise sales site.
You can go to Liberty Tax Franchise and see on their homepage that they are claiming to have created hundreds of millionaires which is 100% not true and 100% an illegal FPR as it does not say that in Item 19 of their FDD.
Additionally, they have produced little if no millionaires so it is false advertising.
The majority of their existing franchisees are losing money, you can see this in their financial statements filed with the SEC and you can look at their Item 19 which is purposely made to be confusing and hide the failures.
At Liberty Tax Franchise Complaints you can see thousands of comments about how much money is being lost and yet they are continuing to lead prospective franchisees down a path thinking they’ll be profitable (which most aren’t) and even be millionaires.
You need to stop them.
5,000 failed franchisees over 15 years at approximately $50,000 per franchisee is 250,000,000 is lost money due to this scam.
These are hard working people who invested their life savings with John Hewitt who is a convicted felon (many years ago in upstate New York).
Just look at how many terminations they have every year. They use all the sleazy tactics in the book at their sales seminars as well as their salespeople.
You can search for the following keywords in Google and see the ads which I have attached here as well:
- Tax Franchise
- Best Franchises
- Starting your own business
- Starting a small business
- Start your own business
- Businesses for sale
- Business Opportunities
- Best Business to Start
They actually are advertising on Google for over approximately 1,400 keywords with these ads generating 3,600 or so people going to their website from that traffic source alone each month.
They spend approximately $14,000 per month on this source of advertising alone.
Plus they are getting traffic from other sources so many other people are seeing these illegal financial performance representations.
– Anon Source
LIBERTY TAX SERVICE Franchise Complaints (4500+ comments)
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Tags: Liberty Tax, Liberty Tax franchise, Liberty Tax franchise fraud, Liberty Tax fraud, Liberty Tax millionaires, John Hewitt, JTH Holding Inc., liberty tax complaints, Liberty Tax franchise complaints, Nasdaq: TAX