LIBERTY TAX SERVICE Franchise Complaints
UnhappyFranchisee.com asked: Are LIBERTY TAX SERVICE Franchise Owners Happy? If you’re familiar
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?
.
Anyone want to comment on the great deal that “John” has cut with Walmart and how they are now looking for ANYONE to run them. Very simple optomistic math and you know that these will be a money drain on anyone who agrees to take them on. Of course, the cost for Corp to run them will be paid by the Zees and will dilute the value of the product in the store fronts.
Walmart because of it’s size is a tough negotiater with its vendors. I imagine Liberty has promised to do certain things like free 1040ez prep, reduced prices etc. Those cost will be born by the franchisee. I know when they went in to K-mart the franchisee had to buy the Kioske and at that time it was around 3500.00. Anyone care to share the specifics of the deal that Liberty is offering it’s franchisees?
No. Share the deal that Jackson Hewitt has and share their profitability or lack thereof. They are still in Walmart stores charging high prices.
I’m not involved with either Liberty or Jackson Hewitt. I know Liberty monitors this board so franchisees don’t like to speak but I wanted to see the cost of opening in a Wal-Mart store. i.e. equipment and kioski cost, rents, etc….
Well it looks like Liberty Tax clamped down on their franchises posting to this board.
If you are a potential franchisee please review the messages on this site before signing anything. If after you have read all the messages and still want to give this ago you should understand that you really don’t have enough time between now and the start of tax season to get everything in place in time to open your doors.
1) you will need an efin number this can take 6-8 weeks and if your not an attorny, CPA or EA you will need to provide your fingerprints
2) site location – are there any acceptable spots in the area you want to open a franchise.
3) Obtaining a lease and getting a certificate of occupancy
4) Unless your alread trained to do taxes who are you going to get to work for you!
5) Marketing – Liberty will want you to market, both for clients and rapid tax class
These are only a few of the issues I can think of. In the time I was with Liberty I saw them sell franchises into late November and that really is not sufficeint time to prepare for the tax season.
Buyer beware!!!!
Have you thought about expanding? Below is a list of opportunities and reasons to consider:
· Liberty Corporate has partnered with lenders and is working tirelessly with the lenders to get state approval for loan products. If your state is approved, we anticipate you will likely be the only tax business in your territory with this option and thus have a competitive advantage over all other tax preparers!
· Due to the downturn in the economy, franchisees are getting very flexible terms on lease agreements, such as free rent, reduced rent, free build outs, non-compete clauses, exit exclusivity clauses, and other amenities!
· Mom and Pops are projected to see a record number of closures this year, opening up a multitude of acquisition opportunities!
· Need some funds? If you are looking to expand, Liberty has financing options that could help you!
· Want more cash? If you know someone looking to become a franchisee, our referral program puts $3,000 in your pocket for every lead that becomes a franchisee!
· A second office in your existing territory may be a great option!
· With our mapping and demographics Buxton tool, your Area Developer can help you analyze and identify viable locations and where to market to potential customers.
· Another franchisee may purchase the territory you want if you do not take action!
We are in a prime position to grow! You still have time, but it is running out! Take advantage today!
Expansion options include:
· Rent-to-Own – This program offers flexible terms and operating capital for those who qualify.
· Territory purchase – Options include a standard territory purchase or a $0 franchise fee territory purchase.
· Within your current territory – You may be able to open a 2nd storefront or a retail location such as Wal-Mart, Family Dollar or Ace.
Next Steps… Contact your Area Developer to review what is available in your area! You can also visit the Growth tab on ZeeNet for more information (https://www.libertytax.net/Operations/expansions/Pages/default.aspx)! If you already have a territory or location in mind, please create an issue so that we can provide demographics, maps, territory descriptions, and financing options.
Ok. Make sure you stay away from the debt. If you can’t afford to go into business without 100 percent debt, find something else to do. The interest rate alone will …….. Make you pass out!
If you are considering buying a Liberty Franchise, consider this-IF THESE TERRITORIES AND THIS COMPANY0- ARE SOOOOO GREAT AND SOOOO VALUABLE WHY ARE THEY BEING SOLD???? IF YOU HAD SOMETHING SOOOO VALUABLE WOULD YOU GIVE IT AWAY AT A DISCOUNT??? I DIDN’T THINK SOOO!!!
the reason they are selling territories so cheap is because the need more guaranteed royalties via the contract. its a scam.
what happened to danny . its like he fell of the face of the earth.
what do you mean they enter your office when you are not there? and not authorized to do this?
Found this on http://www.freelibrary.com – Scrappy Tax Prep
“I’m with them basically holding their hand for the first tax season,” Hughes said of franchisees. “I’ll help them find a site, help them negotiate lease terms, help them get their office set up, arrange computers and that sort of thing. And then we’re also responsible for supporting them on an ongoing basis.”
found this on some website….like how he says he is “holding their hand the first season”. how many feel like they had their hand held? He admits that Liberty is responsible for supporting them on an ongoing basis.
has anyone ever filed a lawsuit against their AD?
The only thing the AD s or anybody else from corporate for that matter, “held on to” was MY wallet- They wanted to make sure they got their fees and royalties. Don’t ever believe these people as someone who is interested in your business. Their interest is in their business which is maximizing the amount of fees they squeeze from you.
I to was a former Zee, in the franchise contract that is signed by the franchisee gives the AD a get out of jail card. You can not hold them responsible for anything.
Liberty has no power to clamp down on anyone. However, franchisees know that all of the nonsense on this site is attributable to a single piece of scum individual. Amazing the nonsense a low-life with no ethics or morals can cause.
To anyone wanting to buy a Liberty Franchise:
I’ve said it a few times, but it needs to be repeated:
RUN, do not walk, RUN in the other direction. DO NOT plunk down ANY of your money for a Liberty tax Franchise. IT has to be the worst franchise on the face of the earth.
You will be entangled with them for life. They will squeeze every last cent out of you, and then spit you out.
They will do everything in their power to make you sweat, lose your life savings and then squeeze you for more.
This man is a lion and will eat you alive. I can’t wait till he gets what he deserves. One thing is for sure, he will NEVER be on that tv show called “Undercover Boss”. That’s for people with a heart, a brain and a soul, which this man has none of.
I heard the john was allegedly a thief, then i became a franchisee and it was confirmed.
Why do you say so?
Look behind the man the myth the legend and his son. R these moral ethical people u want telling u how to run ur business. No personal untruths here check it out for yourself. how someone takes care of their own house speaks volumes. if unfair in past relationships 2 people think he will b fair to u. Yes RUN dont WALK! their are many people on this site – dont b fooled thinking one wants 2 bring down the fake legend when many have lost $ & r posting on this site.
Remember, Hewitt does not nor did not prepare a tax return! He is a marketer of Snake oil. Keep that in mind when you are considering getting involved with these thieves. Buyer beware, don’t get ripped off like I did.
Is Robert Koons the retarded the real Robert Koons?
I wonder how many new stores Liberty sold. Some of this detail will be in their 2nd qtr report which hopefully will be released by the end of November.
For all you new franchisees I hope you have your efin and ptin numbers. I know once you signed on the dotted line the support you need is dependent mainly on your on resources.
Just wanted to say hello to the UnhappyFranchisee Posters and the Admin who has done a fantastic job with this site. Everyone here CAN speak out and it is great that they are. Have no doubt your identity is protected under screen names to avoid Corporate misconduct. The Admin has taken great measures to ensure security so that we can be open in this forum, unlike the Corporate Discussion Board where senior or new franchisees are banned for simply asking if they can disable their signature pads until the Tech department figures out how to make them work.
In times of doubt, urgency, losses and stress, this is real support and an effort for true resolve.
Not everyone agrees on some topics, but everyone agrees to be open here to the extent of their own protection using practical logic and giving accurate information of their experiences and concerns. It is unfortunate and negligent that Liberty Tax Corporate and Area Developers could not offer proper support that we paid for and failed us on many promises.
Liberty Tax has lost many fantastic franchisees who took pride in promoting the brand and the man who was a great conspirator and facilitated such a scheme, (IMHO as people are presumed innocent until proven guilty).
With mostly great people recruited, even some vulnerable, this company could have been a legendary success, but many now feel they were hoodwinked into an American Greed story and the numbers are large.
To address a few posts, there are contract mistakes, workarounds and legal actions you can take against anyone when you are wronged. You may challenge anything and anyone in a proper fashion and with proper venue and representation.
The poster who was questioning the documents of recent lawsuits against the Hewitts is welcomed to email me. With some aggressive research, you will find many plantiffs and defendents regarding this company. You will also find where some went wrong and some went right in getting justice. If you have been wronged, do not give up.
To those who would like to discuss the legal interviews and complaints being worked on and have a complaint, please email me if you would like to be included.
Those still waiting to be contacted, I thank you for your patience. I am pleased with the progress and the number of people who have come out of silence. We all know this takes time with such a large number of people needing their statements taken. You will get another phone call from me, before the firm contacts you as they schedule your interview. Those who would like to only be a witness may also contact me.
FYI- I have not heard from Rob Koons for a few months. Last I spoke to him a couple months back, he says he HATES Liberty, John Hewitt, Danny Hewitt as well as many others in the Corporate office. He is still a franchisee and is keeping his head low in order to make it one more season without them stealing his territories, as he owes his father’s mortgage back to him.Then he is running for the hills and running his own company with better software and never looking back, even if he makes no money by leaving the Liberty “cult” in his words. After several years, he has still not seen a profit and still in debt to his ill father and to Liberty and cannot get out fast enough. I do not feel I should hide this information from you all and I feel no pity for him. He did not hide his involvement well enough with turning and burning of many of his own franchisee recruits for personal gain of selling his stores to young, broke and even terminal prospects. There are at least three franchisees who were booted here which he gained their stores within a very short period and he became an Area Developer for a short time in the process of being that trusted mentor.
I have also been contacted via facebook by a franchisee from Detroit and he did not seem pleased about an opinion being expressed openly about what is “going on over here” regarding the female tax preparer who is being prosecuted and sentenced for tax fraud. He expressed his anger, then blocked me. I do not think he is a happy franchisee.
Have a great evening everyone and keep posting and supporting this site and each other.
-Trisha
If you are a veteran and considering purchasing a Liberty Franchise run for the opposite way. Being a retired Marine and Liberty Zee for 5 years I saw many veterans lose their life savings in a very short period of time. This is not a franchise that you want to be part of. Do do not believe or trust anything that you are being told. Stear as far away as you can.
Liberty is out in full promotion to sell the “Dream”
Before you buy a Liberty office READ ALL THE COMMENTS ON THIS BOARD!! Don’t buy into the HYPE!!!!
IF YOU ARE CONSIDERING BUYING A LIBERTY FRANCHISEE, READ ALL OF THESE POSTS!!
Trisha;
It is great that you are dealing with this clown. I have not been on this site for awhile, but still have the same opinion, it has just been reinforced so many times over and over. I have talked to at least 100+ franchisees, most have left the system, and a few who still have their stores but are making no money. Strangely Liberty still has me on their mailing list and want me to purchase one of their stores. Good Luck. I would rather have a root canal. Run away as fast as you can. This is nothing but a scam, and the more you look at it, the worse it looks.
It is truly a nice and useful piece of info. I’m glad that you just shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.
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So now they are selling whistles for $20,000.00 hahahahaha run dont walk away from these people. This is coming from someone that it going on the 4th season.
Trish:
PLEASE keep doing what you do. I cannot think of a WORSE company to get involved with than this one.
To whomever is reading this forum and wants to invest in a LT Franchise…….SAVE YOU MONEY and your headaches and your stress. IT. is a dump of a franchise.
Whoever is praising this company, just wait till you finish the end of your 5 year contract and then see how you like them apples.
So what will happen at the end of 5 years? At the begining they sound like it is just a simple renewal of the same terms. PLEASE share any insite.
AT THE ENDO OF THE 5 YEARS THEY WILL FIND A WAY TO NOT RENEW YOUR CONTRACT AND THEY WILL RESELL YOUR TERRITORY TO SOMEONE ELSE. THEY HAVE SOLD SOME TERRITORIES 3 TIMES IN A SPAN OF 6 YEARS DO THE MATH
That is exactly right! Basically, thanks for all your hardwork in building the business, passing out donuts, doing whatever you can (because you think you are building a long term dream) working your TAIL off to do what you can to get customers in the door. So now you have spent your life savings, and your heart and soul wearing the costume and dancing around like a fool, because you are commited. Then five years later, in swoops the crows, they sell it to someone else since now they can churn the territory. You sign the Mutual Termination Agreement, because “WE CAN DO THIS THE EASY WAY OR THE HARD WAY” atleast that’s the words some have been told. So you are scared of the Lawyers and you give in, they sell your store to someone else and you think back and remember when for a brief moment that you were a HERO and a TEAM Player and how they gave you cheese and wine and loved you soooo? Forget it!!! Those days are over!!!
Just Sayin”
Don’t be so naive. This company is filled with lawyers upon lawyers upon lawyers. Have you ever seen how many lawsuits are coming out of this company? Please!
It is by far and wide the most dispicable company and the man at the helm controls it all.
Do you really think people understand how one sided the franchise agreement is when they are enticed to sign it???
This man is a con artist at best. That is putting it mildly. He is in the business of preying on people and taking all their money and then suing them for the privledge.
Hope he burns in hell soon. I hope this board deters anyone at all from signing on with these bastards.
To Miss Trish,
With all due respect, I do not know you nor you know me, but I am curious as to why you have left the Liberty system? You seem to offer a lot of information about everyone else, yet you do not reveal what has happened to you. Do you care to share? Is it something others should be aware of?
Almost all people leave the Liberty system, all you have to do is ask “what is the average tenure with LIberty?” But if you do be prepared, because that question is not reserved for those that are “team players.” SHHH!!
I, too, left the system some time ago. Hewitt and his cronies try and succeed in annoying, deceiving and plundering their franchisees. The first sign of trouble with the franchiser is the criminal obsession they have with their royalty fees. If you are a second late in sending them their royalties, they send you a notice to cure. When I had a dispute with them regarding the royalties, they not only censored my comments on Z Net but insisted that I pay the full amount so they can decide if they will refund any royalties. Guess what? they never refunded any money given to them. I never got any support or advertising for the royalties I paid. The only thing I could see where my money went was to the elaborate parties put on by Liberty at the end of Tax Season. That is also to say that the royalties seemed to support the lavish lifestyle of the founder, Hewitt, and his various girlfriends.
After I left, I can assure you that I was harassed by the legal department on almost a daily basis. They went as far as to threaten my customers with legal action if they did not stay within the Liberty system. Liberty also initiated an investigation into my customer’s by the IRS which I am still sorting out now. This is a most vindictive and greedy corporate group I have ever encountered and I am seriously thinking of just leaving the tax business altogether because of these predators.
How come the IRS has not investigated them? The way they taught us to prepare tax returns is criminal.Showing us how to inflate or deflate income in order to get the most Earned Income Credit has to be against the law somewhere. Probably not in Virginia, but everywhere else. Aiming at a market of unsophisticated people and taking advantage of them does not seem to be a morally ethical business model to me.
All of us former Z’s have to revert into the shadows in order to avoid the long arm of the Liberty legal department. I left because of an unethical business model and the Gestapo tactics that were employed by the corporate storm troopers.
Stay away from this group of charletons, save your money and do Due Diligence on the company. You will get the information you need and don’t be bullied into giving up your hard earned money.
You may be angry but it’s not possible to threaten a customer with legal action if they don’t stay with a tax preparer. There you go forgetting that many other people are involved in the system and have done nothing wrong.
guest13:
Liberty indeed threatened customers whether or not it was legal. The fact is they like to legally intimidate people by the mere threat of a lawsuit and its subsequent costs. It will remain to be seen how many of those still with the franchise will remain with the franchise in a year or 2 and how many have done something wrong or were wronged by Liberty.
Did anyone listen to the Liberty conference call? You would think the MOST EXPERIENCED CEO EVER, could talk about his company without a script!! Maybe next time he will use a tele-prompter!!! Hahahahah!
Tha man at the helm of Liberty Tax Franchise….the great satan.
It appears as if more people every day are getting burned by being associated with this franchise than ever before.
This man has 42 years of ripping unsuspecting people off and robbing them blind. I guarantee he doesn’t know how to even file a tax return. He is the world’s best con artist.
Anyone thinking of becoming a LT franchisee………save your hard earned money and run in the other direction. ANY franchise you look at has got to be better than this one.
^^Experinced CEO??? Yeah, experienced with stealing people’s money.
SanFran,
So you think the CEO of Mcdonald’s knows how to flip burgers better than the $2 an hour burger flipper that is why he is the CEO? You just proved your business mind there….
Mike, teleprompter remark proves you are Fox News viewer so we will take your advice with a grain of salt…. Do you really think you have any effect on whether anyone would buy a franchise from Liberty??? This site was there 3 years ago when i bought my franchise, you had zero effect on my decision, actually you proved why most people that start a business fail. It is because you have no business trying to start a business in the first place. It made me feel better that the people failing are just morons. Go get a job as a tax preparer at HR block and stop contributing nothing to this site.
Stugotz,
You are too funny, this site has saved many from becoming a franchisee, because you live on this site proves it. Liberty’s days are numbered, they can’t survive the mounting debt. I love how they keep calling me to open a Liberty in a Walmart, explain that one!!
Stugotz:
It seems to me you are a plant from LT corporate or a flunky of Hewitt or both. There are many of us who, being reasonable business people, were deceived by Hewitt and his group of clowns. Yes, shame on us for being fooled, but shame on you for perpetuating the lie of LTS.
SanFran has the point and gets the nature of this con artist named Hewitt. If we, as a group, can prevent anyone from being cheated like we were, then I would feel like something has been accomplished.
As for flipping burgers, I would think that Hewitt is flipping something else at you as he laughs his way to the bank!
Stugotz:
I have been posting on this website the last few months to warn potential franchisees and current franchisees about the dangers of this company and the man at the helm. If I was able to dissuade just one person from signing on with this company, I have done my job.
The company and the man that controls it SUCK big time. That of course is my opinion and the opinion of many, many others on this forum who feel the same way as I do.
I have never dissed another poster and I won’t. My goal is to warn people to look into this company with their eyes wide open and see what a scam this company really is. I don’t appreciate you dissing me because of my comments.
If you feel otherwise about this company, you are entitled to your opinion as I am. I have had nothing but negative experiences with this company from the start. Disgusting AD’s, NO support on any level, even with a very high business level background. I’m purposly not saying much about my background, but I am VERY qualified. The experience I had was nothing short of a fleecing. It was and continues to be one of the worst experiences in my life and I wish nothing but the worst possible outcome for the man at the top.
I will reiterate again my previous posts: If you are thinking of signing on with this franchise, RUN, don’t walk, RUN in the other direction. Hopefully many potential franchises read this and know how sincere I am and pray that they don’t part with any of their hard earned money. If they do, they will be truly sorry.
Now, keep your dissing comments to yourself.
SanFranDan: Keep posting. I got out in 2009 and like many on here had the same experience as you did. I post on here hoping I can help potential franchises avoid making the mistake I made in getting involved with this company.
Liberty released its second quarter earnings and it shows that total revenue declined by 17% in the second quarter. Unfortunately it shows 227 new franchises where sold. Should be an interesting tax season. Wonder what kind of support Liberty is giving these franchises to prepare them for the tax season. EFIN, PTIN, past test to prepare returns. Who will be the prepares????
According to the financials the IPO didn’t take place because of market conditions and it didn’t need the liquidity. Liberty still hopes to have an IPO in the forth qtr of the year so Major Shareholders can sell their stock. I’m betting that Liberty will not have a good tax season.
Fraud promoting fraud!
From the Federal Trade Commission (FTC Federal Government organization) to the International Franchise Association (IFA Organization created by FRANCHISOR’s and those who PROFIT from franchising) and it’s sister organization’s FranPac (created by the IFA to BUY-OFF organizational support), Vetfran (established by Don Dwyer Sr. (A FRANCHISOR) and the IFA in 1991 to promote his franchise opportunity (His franchise opportunities) to Veteran’s as a support after the Gulf War or Minorityfran (created by the IFA to promote franchising to minorities) Is there any end to the fraud of franchising or are there SO MANY people PROFITING from the fraud that VICTIMS are ALLOWED to be VICTIMS so the others who profit can still keep filling their pockets?
Who profits from this FRAUD?
Attorney’s:
If your a victim of franchise fraud have you noticed how hard it is to find an attorney? Why is that? Didn’t an attorney take an oath to protect American citizens whether they represent a Plaintiff or a Defendant?
What is the NUMBER 1 thing that attorney’s list as a reason not to represent a franchisee? MONEY!!!!!!!
Whether your a victim of a fraudulent scam or a victim of felonies committed against your franchise attorney’s will state to you that “It will cost TOO MUCH money that YOU DON’T HAVE to go up against your franchisor.” After all you are broke because you bought something that over 5 years 76% of other franchisee’s who invested in FAILED. They just didn’t advertise that detail in the F.D.D.
Advertising:
Advertising is a business which promotes the agenda of those who pay them to do it. But what if the advertisements are FALSE? What if they promote a scam? Does the person advertising have any responsibility in the promotion of fraud? Or are they protected by a coalition of forces to promote a SCAM! Forbes recently posted an article stating Snap-On was the #1 franchise opportunity in franchising but a Snap-On franchisee denounced the ranking saying it was “A lie” and that they were promoting “Fraud” to those who might invest in a Snap-On franchise. Did Forbes lose any money? Do they profit from advertising these false rankings of franchisor’s?
Franchising Experts:
Experts like Lonnie Helgerson who sits on the Vetfran committee but profits from selling a list of Veteran’s, who are interested in franchising, to franchisor’s through his own consulting firm. He advises Veterans to invest in a franchisor (the franchisor’ who pay him to find more recruits) but does not identify with those who might be victim’s. Instead, he refers to victims as FAILURES! Without investigating the allegation’s of the franchisee.
SBA Loan’s: (Tax payer money)
Beth Solomon was hired by the IFA (A non-profit organization established to promote fair business practices in franchising for ALL its members) to promote more FUNDING for SBA Loans from our government. Mrs. Solomon is highly touted for her ability to lobby and promote the interest of its organization (IFA) to obtain more tax payer backed loans for its SCAMMING INDUSTRY! When called about one of its franchisor members behavior and to find out “WHY” the IFA allows its members to operate in a fraudulent manor without revoking any memberships for dishonorable behavior her response was “Some people are cut out for this opportunity and some are not.” She gave this response but DECLINED an opportunity to see evidence and witness the behavior of this franchisor through NUMEROUS DOCUMENTS which could be provided to prove this member of her organization had acted in an inappropriate manor.
Federal Government:
The Federal Government is charged with the protection and interest of “We the people of the United States of America”! But when it comes to protecting its citizens against fraudulent opportunities and in promoting false business practices of those who offer these fraudulent business opportunities does the Federal Trade Commission (FTC) do anything for the American investor? If you are a victim of a franchise scam and you call to complain against your franchisor to the FTC what can you expect from an organization who’s primary purpose is the citizens of the United States. Nothing! The FTC will take your complaint and then do nothing! If you call back and ask what is going to be done to bring justice to the felonies your franchisor committed against your franchisor the FTC will state to you that it is EXCEPTED that franchisors can commit inappropriate acts against one franchisee and as long as there are not NUMEROUS complaints or criminal acts committed against MULTIPLE franchisees, your franchise collapse will be a sacrifice for the greater good. Greater Good? What is the Greater Good? Those who profit from franchise fraud!
A COALITION exists in franchising! This coalition outweighs the fraud that these franchisors offer to franchisee investors. The COALITION is the GREATER GOOD! Won’t you please buy a franchise today so The GREATER GOOD can keep getting fat on fraud?
Bill, many thanks for your support!
I can’t believe the hassles and frustrations I have had with this franchise. From them actually advising me to commit tax fraud to AD’s that have no clue what taxes are to a corporate culture that squeezes every last cent out of you and you have nothing to show for the effort!
Relentless makes some interesting points. I believe that there is some sort of money conspiracy with at least this franchise and the federal government. Why else would they have a non disparage clause in our contract or all litigation has to go to a particular court or you are not allowed a hearing by jury or no arbritration in disputes? My expeience is that this is a litigation driven company that eventually will leave shareholders holding the bag as John Hewitt retires to his private offshore haven.
In conjunction with its 2012 Investor Day, JTH Holding, Inc. (TAX), the parent company of Liberty Tax Service, is introducing its initial fiscal year 2013 earnings outlook. The Company expects net income to be in the range of $20.0 million – $21.5 million, an increase of 15-23% over the prior year. These estimates include the following full-year assumptions, among others:
Total office growth of 11-13%;
Total revenues in the range of $131 million – $136 million; and