LIBERTY TAX SERVICE Franchise Complaints

5,730 thoughts on “LIBERTY TAX SERVICE Franchise Complaints”

• Mr Refund,

  Did you ride the short bus and a helmet to school as a kid? What are you talking about? Illegals are some of the best tax customers we have….

• Why would I suggest some things for Liberty to improve upon when I want to see them burn in hell?

• Mike: because it would give your argument some credibility. Antonio has made some really interesting points about things that could be done and aren’t. Points like his are hard to dismiss as whining without substance.

  Speaking of no substance, mr refund, a catchy domain and crappy clip art don’t make a business and certainly don’t make you a businessman. Thx for the laugh though

• 100 million Refund$ are nice to focus on.

  Let’s all do some Liberty TAX refunds like 3 of em.

• Anon, I will only continue to warn others of this scheme, when John, et al are gone and they go to confession than I would be more than happy to help Liberty grow it’s market share and offer my thoughts for improvement, until then not gonna happen.

• Mike writes “Why would I suggest some things for Liberty to improve upon when I want to see them burn in hell?”

  Thanks for your honesty and for pointing out the problem with commenters who have already failed. Guys like Mike have failed and just want to see the whole thing go down in flames – franchisees and all. They don’t care if all the current franchisees lose their businesses, savings, homes, etc. It will be worth it so that Mike & Friends will be vindicated. They act like they care about warning new franchisees but really just want revenge at all costs and don’t care about who gets hurt.

  At least Antonio and Frustrated offered some suggestions and possible demands that make their views more credible. Any LT franchise salesperson can easily dismiss Mike’s “warnings” as the ravings of one who wants everyone to fail so he doesn’t look bad by himself. Misery loves company, aye, Mike?

• Any LT “snake oil” salesman can dismiss these warnings true, however with the number of “failed” zees in our area you would think that if 8 out of 12 offices in my city have opened and failed LT would do a better job at screening out these “failures” as opposed to telling them they didn’t follow the system. If four out of 12 remain and that is a success then you are right, Liberty is awesome! Oh and by the way these four are up against the ropes, they have fee intercept and are swimming in debt, and this is the “system” that LTS wants them to follow!

• I guess none of this really matters since Mr. Refund aka 1800MrRefund aka McRefund will be putting Liberty Tax, Jackson Hewitt, H&R Block & even sweet little Roni Deutch out of business by next tax season! ;)

  The end is near.

• How to increase your clientele, hire strippers as tax preparer, and give dime bags as gifts.

• Mr. Refund??!! Who are you? Nobody’s heard of you before?
  In fact, I’m not sure if anyone has heard of you except for you.
  Mr. Bu!@$&!# sound more appropriate.

  Try acquiring that domain name. Chances are you’ll be successful. Honesty pays you know!

• Mr. Refund has been escorted from the building for blatant self-promotion and general annoyance. The Mgmt.

• Thanks Admin…. How about Frustrated, pretty annoying too, don’t you think?

• Shouldn’t that be F&D requesting Barilla’s banishment? Seriously, you don’t contribute anything positive or constructive to this board.
  As Kramer would say:

  “Look at him. This is a lonely man looking for companionship… widower… maybe a virgin… maybe he got hurt a long time ago. He was a schoolboy. There was a girl It didn’t work out. Now he needs a little tenderness. He needs a little understanding.”

  or better yet:

  “Look at you. Why don’t you do something with your life? Sit around here all day, you contribute nothing to society. You’re just taking up space. “

• Antonio,

  I am starting to think that Frustrated is your boyfriend.

• The website is UNHAPPYFRANCHISEE, let’s keep the discussion about Liberty Tax as opposed to each other, this way prospective zees will be dissuaded from buying, and learn the truth about this company and that should be the purpose of this discussion.

• John Barilla:

  You sound like a smart guy.

  What colors are your Mercedes?

• How many 1040 did Lt e-file for 2010?

• To any interested in LT franchises:

  I would suggest anyone interested in joining Liberty Tax as a franchisee should look through the businesses for sale ads first. In the last two weeks, I have seen operating territories for sale at significantly less than the $40K franchise fee, and equipment was included. It also suggests what you can look forward to when you attempt to sell after losing your shirt.

  It would also be good to look at the numbers for last season. While LT touts their increase in filed 1040’s, several entities are showing significant drops in both filings and revenue.

  I guess they didn’t follow the system. What a shame.

• Just got back from convention, there was kool aid running freely all three days. All they kept saying was number one 20/20, what they should have said is that everyone is blind and nobody is seeing there business with 20/20 vision, so it is so easy to rip zees off. by the way somebody asked about the sucession plan for john, and that zee was quickly escorted out of the building. by the way had to pay to attend the convention aka registration fee.

• I too was at the convention and also witnessed the zee that asked about the sucession plan be escorted out. guess he wasnt swallowing the kool-aid LOL. I do have to agree that john is the face of liberty and back bone. I couldnt fathom who could get us to swallow the kool-aid like john. i guess we shall see. and paying to attend the convention is bullshit, dont we pay enough already via royalty fees.

• ITEMS FOR SALE 14 Blue matching armchairs – $600.00 5 Blue desk chairs with wheels – $225.00 3 Hon Preparers desks – $ 300.00 1 Hon Reception desk – $ 300.00 Computers and printers with all keyboards, screens, cables etc – $ 2,500 3 HP preparer’s computers with screens, keyboard and mouse 1 HP processing computer with screens, keyboard and mouse 2 HP 2015 Printers 1 HP 3005 Printer 3.5’X7’ Outdoor sign – $1,100 Package deal available. Must be picked up in Lancaster County PA or you pay shipping.

• Office and territory would be a great fit for a marketing person. Allen, Texas is in the fastest growing area of North Texas. Total price with everything including signage, 6 computers, 4 desks, and office furniture is 50K. Walk-in with an experienced staff including Level 3 preparers and an Enrolled Agent.

  ——————————————————————————–
  Chris Given

• College Station is the home town for Texas A&M University. The purchase of this territory includes a processing computer, printer, desks, chairs, preparer’s computers, wall decor, and other misc items, along with experienced preparers. Please call or email for more information. – I WILL PAY ALL EXISTING EXPENSES THRU DECEMBER 2011!!!

• 5 year office in Brownsburg, IN and 3 year office on the west side of Indianapolis for sale. Will make a great deal with all inventory, signs, computers, etc. Will sell together or separate.

• They have a good marketing plan to suck zee’s in but no marketing plan that works to help their zee’s after they sign. Can’t recall anything they helped with after opening my locatgion 2 years ago. They intercept your fees and don’t care if you survive or not. It’s a bad franchise to invest in. Please if you are considering investing in Liberty do some more research, wish I had.

• Frustrated,

  How many different Alias are you going to use today?

• I am sure there are hundreds if not thousands of Unhappy Franchisees from Liberty! They all signed the Mutual Termination Agreement that is why there aren’t more postings on this board.

• Stugotz… As an Italian I would remind you that using the Italian word for
  “D!ckH$^d” as your username is in poor taste. Even if you are one.

  Admin is smart enough to know the IP addresses to eliminate aliases.
  As he has done often before.

• Sorry to disappoint those who think I use more than one alias, the people you are seeing on these posts are other frustrated and disgusted Liberty Tax franchisees who also think they were lied to by this organization. I guarantee you there are many more who have been taken by this organization. Just look at the most recent numbers and realize that those who did less than 400 paid returns probably either came out even or lost money. From what I can see, that is a large percentage of offices. Why would anyone invest a bunch of hard earned money in an organization that has this type of track record.

• If you do 400 returns, you might make 20-30,000 per year after the off season rent and other expenses, but do you really want all that headache and hastle for that? Don’t buy a Liberty Scam Office!!

• If you do 400 returns, you also might lose $20-30,000! There is no way to make a dime at 400 returns, especially if you follow the system, IMHO.

  You’ll project too many returns, over hire early, give away 100 freebies (the ‘system’), not get paid on dozens of returns due to IRS liens, child support owed (no debt indicator), spend a fortune on donuts, wavers, etc. Now with the RAL business going away, the model really won’t work.

• Mike
  Think about what you just said. 400 returns will give you $60K in revenue (100 free returns). Average rent for an A location is $1000-1500 per month, royalties of 19%=$11400, marketing costs of $10-12K and tax prep costs of $15K. That looks more like $8-10K not $20-30K, and you haven’t paid your utilities.

• NEws us update liberty is selling franchisee with not franchisee fee only royalty fees, what does that tell you. not as many people swallowing the kool aid anymore.

• Broke and Poor Zee
  Interested to hear more about the no fee franchises. Can you share some more information?

• Are there any specifics? There has got to be a catch somewhere.

• Hello

  The specifics of the $0 franchisee offer is listed on the internal ZeeNet portal for all franchisees to see. So it’s finally been proven Frustrated and Disgusted in not a current franchisee because if he was he would know the details.

• $86,000 Net @ 400 paid returns @ $215.00 Avg
  – $18,000 Rent
  – $15,000 Office Payroll
  – $8700 Marketing Payroll & Supplies
  – $3720 Electric / Phone / Water / Gas / Internet
  – $16,340 Royalties + Advertising
  – $500 Insurance
  – $2610 Employment Taxes

  $21,130 net profit or 24.5% of revenue

  Do you broke and poor franchisees understand controlling costs versus revenue being generated?

• Quote:

  $86,000 Net @ 400 paid returns @ $215.00 Avg- $18,000 Rent- $15,000 Office Payroll- $8700 Marketing Payroll & Supplies- $3720 Electric / Phone / Water / Gas / Internet- $16,340 Royalties + Advertising – $500 Insurance- $2610 Employment Taxes $21,130 net profit or 24.5% of revenue

  With a skeleton staff, and myself working 60+ hours per week my payroll for preparers was $25,000 and $7700 for wavers.
  Assuming your entire payroll was only $15,000 and no bonus and you were open the required 14 weeks x 73 hours per week at $10 per hour the payroll would be $10,220 and that’s assuming youm had ONE employee. Amazing how well you did with just you earning $21,130 and your 1.5 employees managing for 400 paid returns.

  And considering I spent $4,000 on coupons, marketing B2B plus valpak + $2000 for client envelopes, printer cartidges, etcc and other office supplies that would leave you with $2700 on wavers or 4 weeks of full time wavers.

  You’re amazing!

  BTW here’s the free franchise info:

  Expansion Special: $0 Franchise Fee Territories in Select DMAs

  This deal is being offered from June 1, 2011 through August 31, 2011 in select DMAs and allows franchisees to purchase un-owned, undeveloped territories for a refundable deposit of $2,500. Territories purchased under this offering are subject to a 25% franchise royalty with higher minimum royalty amounts. Participating franchisees are required to open an office in the newly purchased territory by January 8, 2012.

  Subject to AD approval, qualifying franchisees are eligible to purchase unopened territories in select DMAs under the following terms:
   The Franchise Fee is $0.

   Territory purchase is subject to a $2,500 refundable security deposit. The security deposit is refunded upon the completion of the 5 year franchise agreement or the sale of the territory (refund of deposit is first applied to any monies owed to Liberty).

   The territory must be open by January 8th, 2012. If the territory is not open for any reason by this date the territory is terminated and the deposit is forfeited.

   For 5 years, Zee pays a royalty of 25% of Gross Receipts subject to the following minimums:

  o 1st Year, $6,000
  o 2nd Year, $9,000
  o 3rd Year, $12,000

   Zee is subject to a 5% Advertising/Marketing royalty.

   At the conclusion of the initial 5-year franchise agreement term, the royalty structure will revert to 14% of Gross Receipts.

   Completed paperwork and the security deposit must be sent to the National Office no later than August 31, 2011.

   This offer is transferrable with AD and Corporate approval. The royalty structure during the initial 5-year term transfers with the territory. The security deposit also transfers with the territory.

   Interested Franchisees in selected DMAs should contact their Area Developer.

  Unopened territories in the following DMAs are eligible for this Expansion Special
  Availability of territories in selected DMAs is limited

• Needless to say… the numbers will follow:

  1st year – $86,000 x 25% royalties + 5% advertising = $25,800

  So how will that affect your bottom line?

• Spending 25k for preparers sounds like a terrible use of money. If your volume was low why did you schedule your people and spend 25,000?

  Here’s some advice $15,000 can run your store and handle 400 paid returns without a problem. What were you doing 60+ hours a week while you were paying the wavers and the office staff?

• If you brought in 86k in revenue and your rent is 1500/mo or under you have no excuse why you can’t turn a profit.

  Open this thing called excel and analyze the costs and make some decisions to decrease costs vs revenue generated.

  Don’t spend more than 1-2% on office supplies, Tip #2.

• Guest…

  Are you seriously nuts?!! lol

  You just quoted earlier:

  “$86,000 Net @ 400 paid returns @ $215.00 Avg
  less expenses of $64,870
  left you with a $21,130 net profit or 24.5% of revenue

  Do you broke and poor franchisees understand controlling costs versus revenue being generated”

  Based on the new offer from Liberty you’d be paying $25,800 in royalites and advertising NOT the $16,340 you quoted. Which leaves you with $11,670 or 13.6% profit NOT 24.5% of revenue.
  And your payroll is a lie. One waver per hour for every hour you’re open at even $9 per hour = $9198. Your total for all marketing including office supplies, B2B, coupons, advertising etc… is only $8700. You’ve obviously missed a few things.
  And while I am out doing the B2B, youre leaving the office with one preparer
  I’m an accountant… you clearly are not.
  And what was I doing? Marketing. Liberty suggests the owners markert and the preparers prepare taxes. So you forgot the bonus of $4300.
  So your $15,000 – the bonus of $4300 leaves you with a total weekly seasonal payroll before bonuses of $11,700 which is ONE person at $10 per hour for every hour you’re open.. What do you do during peak? Tell five people to wait?

  I made $52,000 from $102,000. Your numbers indicate $11670 profit from $86,000. Bad numbers. Walk away.

• Guest:

  I don’t spend much time looking at ZeeNet. I find that it is a waste of time. You definitely spend too much time on it. These are not real numbers. They were clearly contrived to prove your point. Anyone who has run an office knows that there are 1490 hours in a year, which means you had exactly one person per hour. How convenient. You gave no bonuses, you didn’t have training at the beginning of the season, unless your utilities are paid for by your landlord, there is no way you only spent $3720. I have never had an office with that low utility costs. These look like what Liberty would use to lie to franchisees on what it costs to run an office.

• Guest:

  You fell for the JTH kool-aid hook, line and sinker. I took my trusty spreadsheet, put the numbers in an voala’, out pops very similar numbers to those you put here on the website. Unfortunately what you failed to realize is that Liberty uses per return numbers to arrive at labor costs, not labor hours like a franchisee has to use. This is not an auto repair shop with set labor rates. You have to be open regardless of whether customers are there or not. In peak periods, you have two preparers, and if they are not preparing returns, they are making phone calls, or checking returns. Maybe you would like me to spend some time showing you how a real office works. You would be amazed how different it is from the Liberty Tax spreadsheet that was obviously put together by someone who clearly has never run and office.

• Guest

  This is very interesting to me. I have been exploring LTS and in building my financial model have struggled with how to model the labor expenses accurately. The answer from Liberty has been to model 4-4.5 total labor hours per gross return count. However this would seem to me to be over simple especially for offices completing under 500 returns. You still need to have preparers and marketers and wavers whether you complete 5 returns today or 15 returns but the labor hours will be grossly different.

  Can any other posters provide REAL examples of labor hours and return counts-especially for first and second year offices?

• Chris,

  Liberty tax is based on the same model as Jackson Hewitt Tax Service. According to Jackson Hewitt’s financials the average 1st year store in 2009 did 205 returns and in 2010 did 166 returns. The 2nd year store in 2009 averaged 235 returns and in 2010 averaged 234 returns.

  The model both companies uses is best suited for densely populated low income urban areas. These individuals are under banked and rely heavily on bank products which allows for them to pay the high fees that are charged. This business model is currently suffering due to the high number of unemployed within this demographic and the goverment’s attempt to stop bank products.

  There is one big exception between the two, Liberty provides no television advertising and has no where near the brand recognition of a Jackson Hewitt or a HR Block when it comes to the general public.

  If you already have the tax knowledge there is really nothing this franchise can provide you. Invest and believe in yourself and use the money your saving to build your own business. Two books to read “How to build and Accounting Practice” and Gorilla Marketing (the only think of value I got out of Liberty)

  If you don’t have the tax knowledge there is really nothing this franchise can provide you, especially the tax knowledge.
  L

• Bill:

  What a great explanation. This is a business that anyone can start and own. You will do well to either get your tax knowledge at a local Vocational School, or hire someone who has the knowledge who is willing to teach you. There is a lot you will need to research on your own, as Liberty’s software will lead you in the wrong direction too many times. You can purchase TaxAct, or several other software products for $1000-1500. If you were to take the $10-15,000 JTH wants to steal from you and put it into a waver in an Uncle Sam costume out in front of your store, hire a good looking sales person to run around businesses and give out coupons, and do some direct mail advertising through AdPak or similar, you will build a business faster than you can imagine. And at the end, the money is all yours, not John Hewitt’s. He will be pissed, but he is a scam artist anyway, so don’t feel bad.

• Chirs:

  Please note, you can quit Liberty any time before you have finished EOT. My suggestion, run like hell.

• lets revolt, give me death or give me liberty LOL LOL

• It should have been, get me out of Liberty or give me death!!! HAHAHAHA LOL ROFLMAO