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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

  • SanFranDan(Danielle)

    Whoa. We’ve hit 1800 posts. What does that mean for the future of LTS?
    Nothing, I hope. Hope there is no future.

    I hope they sink and drown. They stink.

    Right now the new franchisees are gearing up. However anyone else that has found this thread and has read through it, hope we’ve enlightened you a bit about why NOT to join this franchise. It would be such a shame for you to lose your $$ the same way we have, so please back away and find something else!!

  • Don't Be Fooled

    The Liberty Tax Unhappy Franchise thread will be the biggest IN THE UNIVERSE, these snake oil salesman like to say.

  • What does Tax Slayer, Turbo Tax, HRB and Jackson Hewitt have that Liberty dosen’t?
    Advertising! How is anyone going to know about the new Loan product? it’s so secret that they haven’t given their franchisees the details. Liberty’s concept is a one trick poney and that trick could be stopped by the new Consumer Protection Bureau.

    John Hewitt made a point about how taxpayers are going to be hurt by the delay to file the returns. It will also hurt Liberty in the sense that they can’t start fee intercept to get back all the operating loans they provided their struggling franchisees. Without a loan product and fee intercept Liberty would have a melt down.

  • dunnoyet

    My wife was hired as a prep and when the office manager quite she was offered the higher paying position. The franchisee was rather a ditz and airhead, showing very low professionalism, mark of ignorance? Not bringing all of the required equipment to do the job, not informing the new office manager what her responsibilities were, not allowing much of a learning curve for the new employees, lying about starting pay and telling every new employee they are being hired full time when there isn’t enough hours for barely part time ie 20 to 27 hours a week.

    This was done by the franchisee.

    Now from Liberty, the new office manager has had very good support from all phases of the Liberty system, Administrators, tech support, payroll, human resources, etc.

    The disorganization was on the part of the franchisee and not the company itself.

    I’ve own two companies in my twenty years working in Logistics so I do have some, not much perhaps, but enough knowledge and insight to remain profitable in business.

    It appears that most of those people attempting to purchase the Liberty franchises may be better off not owning a business of their own because of poor business skills, ethics, practices, etc.

    There are several franchises which are very profitable and many which fall flat and from what I’ve seen from the company itself it is not because they do not offer adequate support, its because of poor judgment and lack of proper business skills on the part of the franchisees.

    So learn from your experiences, do a good self analysis of your own skills and do not continue to blame to others for what may well be faults of your own.

    Good luck.

  • At Dunnoyet
    I really think you do not know what you are talking about. Liberty does not provide any form of advertisement for the brand but yet franchisees are charged 19% royalty.liberty recommend that franchisee should be out marketing and find a reliable manager to manager the office. I use to do my own B2B and P2P.

    If you were so successful running a business, why would your wife seek employment at liberty Tax for around $9/hr? You can not come on this board and criticize Zee. If you think you have good business acumen why don’t you go ahead and buy Liberty Franchise?

  • Fanchisee

    Hi everyone please don’t shoot me. I am a current franchisee. Many of the things being posted here are correct.

    What happens when you go to EOT is you get sold on the business in the box — it is JUST NOT SO. You have no idea what you are getting into. Most of the AD’s are a waste. An utter waste. I truly believe JH believes in the business but has lost touch with the struggling franchisees.

    @Dunnoyet you really have no idea what you are talking about. While yes many people should not own tax businesses, many people should not own businesses, period. They have no skills , the most important is people skills. Many people can not communicate with people. To be in this business YOU MUST have people skills. Not everyone fails because they are inept but because the business itself is doomed from the beginning. You are set on a path and when in my humble opinion it’s one of destruction.

    The problem as I see it is they sell you a pipe dream. Only you don’t know you are being sold a pipedream. You are told about marketing but fail to tell you that YOU are doing all the advertising. Sounds easy to say knock on 50 business doors a day, hand out doughnuts or pretzels etc. Sounds easy to try to get business in by simply handing out coupons etc. They fail to tell you how much money a year THEY aren’t spending and how much YOU are.

    I’ve been involved with Liberty since 2007 and am trying to figure out how to extricate myself. The thing that people don’t realize is Liberty aproves EVERYTHING you do. You can’t advertise without their permission. You can’t have a location without their permission and you can’t pee without their permission. You nmust open and close your doors at a specific time. You mustuse their software, You must use their computer vendor – WHO SUCKS!!! BTW. There is alot of musts. I must deal with an AD who is an ex zee himself but saw the light and figured out for less work he can be an AD and not give support. But whom I must pay for his services — what a laugh. One of my Ad’s is NEVER around and is in fact employeed as one of Liberty’s attorney’s and the other lives in never never land.

    When I came into Liberty while I had no outside business experience meaning being the owner I was a manager before. I also had tax prep experience so had some basics of what was required out of me. Liberty picked my location claiming any good zee could pull 1500 returns out of the territory. Fast forward to today and let’s see I’ve moved 2 times and have NEVER pulled 1500 returns out of the return and trust me I’ve worked my rear off trying to. It is NEVER going to happen that’s the harsh reality. We bought 3 territories – one is up for sale. Has been so for 2 years I believe. Now based on what they said that would make me a bad zee. However getting 1500 I think is a matter of the luck of the draw. You need to get the right territory AND you need the right location not to mention you need to have an AD who wants you to be successful and works to help you succeed. The average zee seems to get no more then 700. Most of the zees I know are getting between 250 and 400.

    I no longer care whether I am viewed as a good zee or a bad zee. EVERYTHING i know I learned on my own. One thing I do know is I have a 90% retention rate on my clients. By my clients I mean people who come to me for me. I’ve worked extremely hard. I’ve stumbled alot and I’ve learned alot. I’ve learned that while I was promised a great deal, it was an empty promise for me. I’ve gone through 2 Ad’s both are not someone I would ever hire. None of them have ever given me support and quite frankly I resent paying advertising fees for no advertising. Understand the zee does ALL the advertising and all the marketing. And I do mean all.

    Instead of criticizing the zee perhaps you ought to be more understanding. Every zee was thrown in the deep end with a weight and told to swim. The surviving ones either came with a knife or they managed to get tossed close to the side of the pool and grabbed the side.

    We’ve Reading all of this is making me nervous.

  • Fanchisee

    does anyone have ideas on how to extricate yourself from them?? Do they only go after the zee or the zees family too?

  • You are right dunnoyet. People think they become a Franchisee and have to do no work and yes they do take 14% royalty fee (of your net fees) and 5% advertising fee. Which you do receive a % back for marketing. In my search that was pretty low. A lot was 22% or more.
    Not all Liberty’s are going to be the same because they are not owned by the same people. Every business owner is gonna have to work hard to get their business up and going. It’s the bad franchisee that give a bad name for the rest.
    It all comes down to how you staff and market. If you staff with people that have no idea what they are doing then you will not be successful. If you do not get out in your community and advertise you will not be successful. That is in any business.
    I am on my 4th year of being a franchisee and love my job. I did not get into this to get rich quick and that is where people go wrong. I work in the office i go out and wave and i also go out and market. If your looking to get into a business find one that you like to do because if don’t know how or don’t like it that will show..
    Sorry to hear all the bad Experiences everyone has had. I have a great AD and maybe that makes a difference.

  • Fanchisee
    If you need anything i would like to talk with you and see if i could help you or maybe my Ad could he is great! Your post wasn’t on here when i wrote mine. It must of been in the waiting to post. They do buy back offices. I don’t finance through them so i’m not sure how all that works but if you need someone to bounce stuff off or if i can help just let me know..

  • Guest

    It would be good to just have some advertising. The time has more than come for television and radio. HR block is tearing up the airwaves and it is effective. I think most franchisees would just like some decent advertising. It’s easy to tell people mass media ads don’t work so you can convince them to keep paying for their own marketing. The high expenses lower your profit and make it very hard to sell if you want to move own. It’s time to spend some money on advertising.

  • Franchizee

    Liberty is a scam. There are ways around the system as long as you are not the one owning the next tax business. You have a 2 year no compete, but as long as you don’t own something they cannot do anything. You have to set up a season of transistion, and if you are not able to do it this season, get prepared for next season. Keep everything you do under your cap and don’t let anyone know what you are doing. Set up your EFIN’s, get in the phone book, get a new software and work it from your home or another office location. Set up new bank accounts. The AD’s are dumb as a box of rocks and quit marketing for John John. You will write the same amount of returns without lifting a finger…..Kick back and start your transistion and keep your mouth shut and smile and tell Liberty how much you love them…And in December send back their crappy contract and sign it off….Scan your files now because they will want them back to protect yourself.

  • Franchizee

    One last thing, you can’t owe them any money, make sure there are no loans outstanding……and your royalties are paid in full.

  • @Sha

    You have been with liberty for only 4 yrs and you think they are good. Just wait and see. What the real Zees are saying is that in this age and time why would John take 19% royalty and not advertise for the Zees. What you do not know is that it does not worth it paying 19% for something you can get for free. For Example when one buys Drake software. Drake provide better support than Liberty. Do you think when you go around passing candies people come to your store because of Librrty? They come because you were out there yourself doing the work. Liberty does not have brand recognition. After you stay with them for over 5 yrs you will understand where I am coming from. Every single Zee would better of on their own.

    @Franchisee

    Do not contact Sha he/she might be John’s plant.

  • Current ZEE

    To guest -Well said and right on the money
    I am sure Sha is a plant or naive but probaly a plant. I agree with Franchiszee about how to exit .But litigation is on the horizon no matter how you do it

  • If you are trying to get out of Liberty, and you are in your current/last season, tell all of your fellow zees what Liberty is doing, and I would get all the phone numbers and when you have to give up the files to Liberty, did you hear of the game 52 card pick-up?

  • Connie Stewart

    As a former franchisee, I am appalled by what the employees of the London, OH, office are doing. They are going into businesses and telling the employees and shoppers to go into the H&R Block and have them complete their returns so they know what the fees are. They are then told to tell the tax preparer that they forgot something and will have to come back later, taking their W2s and paperwork with them. They are then to go into the Liberty, who will make them a better offer on the fees. How unethical!!! How would the Liberty employees like that scam pulled on themselves? Knowing John Hewitt, I cannot believe he would sanction such an underhanded action!

  • Franchizee

    The “mutual termination” contract states it wants the files, but never states the condition of the files…..Shredder anyone???? Big black plastic bags…..I am contacting the IRS regarding an EFIN’s responsibility for the three years and they taking the files and the bank regarding the EFIN’s responsibility for 5 years on having files on hand. Anyone know that answer or legal question?

  • I have been with them 6 years. 2 before i bought. Well i think the plant comment was a little much. I was just stating my Experience and was truely reaching out to help someone if i could That is just how i am. may have been naive from time to time. I mayself do what works for me in my area. I’m open when i want to be open i market when and where i want. Yes you can do this without the LIBERTY TAX logo but most people will not go to just anyone. H&R is 5 years no compete. I had a guy in my class on his last year. Oh and by the way i have never even met John..as for advertising it bothered me at first but not so much anymore. If you give your client a great experience they will do your advertising for you. I have a very cheap way to market that works for me at low cost..We get secret shopped by h&r and jh all the time. I don’t do that i know some do the secret shop. i could careless what everyone else is doing. My son built my computers that i have in my office they are not from liberty vendors… good luck to all of you

  • You will eventually care about the advertising unless you are in near or in a large city. Times are changing very fast and more people will find it easier to use turbo tax or something like it. This will reduce the fees and the customers. We need brand recognition and it will take mass media advertising to get further. HR Block is the competition because Jackson Hewitt is still on it’s last leg. You can’t just keep working to hold your customers and we can’t keep paying for everything. Need some advertising.

  • Franchizee

    With all the requirements and regulations with the IRS and the people that Liberty typically attracts in the first peak this season is pretty much doomed. It will be interesting to see if anything comes of it. What I have noticed that, once people don’t receive the EIC or have enough family and friends who have taken a tax class from a Liberty or H and R Block, they live you asap. They don’t come back until a crisis happens, such as multiple IRS audits, or they finally invest enough and have no clue what they are doing. Liberty has done a huge disservice to the smaller offices by offering free returns and had my offices received even half of those returns, I would be a happy zee. But they are so hell bent on “free” he single handedly wrecked the paid preparer business….Who gives a care about what AOL did in 1999, we left them once the phone companies were able to compete within a short amount of time….Never looked back.

  • Franchizee – I expect that free returns will go away except for free 1040ez. This season late filing is going to break a lot of offices, no matter who runs them. No money from the IRS until February.

  • It should be an interesting season for the company. The loan products is what build Jackson Hewitt and now Liberty. Last year Liberty gave franchisees over $50,000,000 in operating loans. It needs the loan product in order to charge the high fees and it needs it to have fee intercept to recoup the loans made to the franchisees. Liberty has already tested a customer line of credit and now has finanicing in place to role it out in 24 states. It will be interesting to see how it goes. I believe in the current enviroment i.e. consumer protection agency it could be a disaster.

  • Franchizee

    Is anyone aware of the first date of deposit from the IRS? The loan product is so terrible for the “poor” and I am surprise they can get is for any state. I am hearing that Zee’s are suffering and if IRS moves this date again, we could be in early March. I guess that is one way of the IRS to take control of this industry!

  • franchisee

    @Zee From my understanding if you are the EFIN holder then you are the ERO if you are then you are responsible for ALL files. Since Liberty will not pay for the EITC fines I’m fairly sure they are NOT the responsible party. But I too have the same question

  • You really don’t need the files, unless you want them or really need them- I would rather just print the phone number list. If you scramble the files by year, customer, office etc. its WAY more interesting, and labor intensive…….! If you are a CAA you have to keep the ITIN. Good news though, courts just ruled in favor of the little guy not needing to get all of the IRS requirements to file a tax return,,, sorry Hewitt….of course some courts dont rule in your favor!!! hahahahahahhaha!!

  • Franchizee

    @franchisee – That is what I have read about the files and the when you sign up for the bank product’s it is in the testing that the EFIN must keep files on hand for 5 years. That is the most recent certification. The reason for the files is mainly to keep the client’s (not customer) information safe and protected for identity theft and when reading the “privacy form” by Liberty, it does not disclose to the client that their files could be transferred to another franchisee or to Liberty’s home office. According the IRS the EFIN is like a ssn for the business and must be protected and not given to anyone because fraud can be used by anyone with that number. I agree with others, it is not Liberty that brings people back unless they are frauds and don’t want the same person doing their tax return. It is funny about the files and mixing them up!! Too funny. In the agreement we would have to sign that if their is an error, then we are responsible for the first $150. Ya, right.

  • Franchizee

    @franchisee – That is what I have read about the files and the when you sign up for the bank product’s it is in the testing that the EFIN must keep files on hand for 5 years. That is the most recent certification. The reason for the files is mainly to keep the client’s (not customer) information safe and protected for identity theft and when reading the “privacy form” by Liberty, it does not disclose to the client that their files could be transferred to another franchisee or to Liberty’s home office.

  • MzFriendly

    I have just received a large judgement, and I didn’t want to blow the money. So I was really considering becoming a franchise owner of Liberty, seeing how I currently work for them. However, because my current boss expects me to work 75 hours a week on a $475 salary, and all of the comments on here. I’ve decided to take my money somewhere else. Thanks Everyone!

  • Franchizee

    Good for you MzFriendly! You can start your own or just invest and do something else. There is no time off from Liberty, there is always something you have to do or they throw a fit. Even during the off season…

  • Current ZEE

    MzFriendly If you like the business then take what you have learned and start you own. You will be just as successful. I can’t wait to get out of my agreement Liberty just takes and takes. Now they are taking $25.00 for every loan we do. I have instructed our preparers to not offer these and offer a bigger discount for payment up front

  • Scammed1

    It is amazing that Hewitt has figured out yet another way to squeeze franchisees as well as customers! $25 loan fee? Isn’t that illegal in most states? Seems to me that is acting like a bank: giving out loans and charging fees. Sheeeez, what will liberty and hewiit come up with next?

  • Franchizee

    Does anyone know when we should receive our first money from the IRS? I guess we are suppose to be excited about the “super peak” however, who cares if there is no money anytime soon…Only time will tell.

  • It looks like the IRS is not publishing a E-file refund cycle chart for 2013. Based on last years chart the span is 6-13 days. This year will be longer because of the amount of returns that will be transmitted in the first couple of weeks. Also expect delays on EIC/Child credit returns. I would anticipate checks no earlier then 2/15/2013.

    Is Liberty providing any operating loans so franchisees can meet their payroll and other obligations? More stores to bite the bullet in 2013!

  • Trisha Grabert

    Hi everyone! I am back from the Bahamas and I see people are still being so helpful in telling truths and saving lives for future victims of this franchise.

    I am very happy to see you all determined to tell your story and answer questions.

    I am catching up on posts and I see no one has posted John’s home phone number to contact him? He is easy to reach. He is dodging of course so take it to the discussion board and to all your local franchisees to get answers from Corporate on anything. Get documentation, not enlightenment and sales tactics and loss prevention. He leaves his door unlocked also as he has always welcomed us all into his home, did he not?

    To the Illinois guest, If they change your locks–Show your business card and change them right back. They will send a calvary to squat in your office. If you have the lease, kick them out of your office space. They will tell your landlord you have the flu or sick or out of town and convince them they are their to renegotiate a lease on your behalf, especially if you are financed so keep good communication with your landlord and warn them you are the only decision maker. Do not let them take your files, your office equipment–nothing. You PAID for it. You have the receipts and proof of ownership and right to claim those expenses on your taxes. Do you think they are going to steal your 30k of equipment and claim 30k of income on their Corporate return as a gain….No. You do not agree to sell the stuff to them, they do not own it, you do. Files and all…you paid for every folder and the ink on every pack of paper. Do not sign anything. They will be answering for everything they do and have done. Don’t let them push you and stand your ground. Take your office back. Take their sign and sell it, you own that too. Take them to court in your state for every state statute they violate aside from contract, but notice, they will jump right on a plane and run after putting some local people in there to change your locks when you are not looking. Follow your State laws and Statutes and know your rights. Sue your landlord if they make the mistake if changing your lease prematurely or by misrepresentation, then let them sue Liberty. Time is money, don’t let them walk with anything that is yours. Their contract can be argued where venue will be held whatever time that will take them if they dare go for it under the circumstances they have much bigger to worry over than us zees.

    Yes they purchased Metabank was a question I saw.

    Yes they are being investigated and litigated by many and majors. Everything is being monitored by the feds regarding John Hewitt and Liberty Tax. I encourage everyone and anyone to contact J. Arrington at IRS who works this case on the criminal and IRS civil level. On the damages, you need an attorney on contingency. John pays his attorneys pennies, they are not strong. His company is not in a good position at this moment so hit him with your best suits now. Contact ZESB as advertised above, they are legit. Take individual suits, but keep in mind, you want fast action and want this stopped….cooperate and volunteer to advocate to the investigators at the IRS and tell all.

    Everyone here has done a great job in posting giving so much information publicly. This is a fantastic site to get the information out there and reach people. You can use tort attorneys but it will take years for either party to get in court. During those years, people die, lose touch, lose records and Liberty counts on that. Don’t give them the satisfaction of piling a hate club on their legal staffs desk. Contact the IRS and ask for Jerry Arrington and this would have been over months ago. Do not be afraid to speak to the IRS, they already know what you have been through and what trainings and pressure they put on people in general. Add yourself to the witness list.

    YOU DO HAVE A RIGHT TO TESTIFY, they will summons you. You want to tell the feds no or Liberty paperwork no? Retalliation is to be expected so do what you need to to set your own business up. People have the choice who they want to do their taxes. Good Luck with Liberty chasing hundreds of people who take their sign down and file with a smile. They have went after people before, but circumstances were different, seek legal advice and be the expert on who you hire. Be the expert on loopholes. Be the expert of moving it and improving it. The customers need you and the franchisees need you to “Set the Standard”.

    Liberty will never be #1. They will be known for selling the Eiffel Tower more than twice and be shown on American Greed or the like and we will have the satifaction of learning he did not steal one more child’s college tuition in a family’s five year plan..not one more mortgage foreclosure or divorce caused, not one more pension lost and not one more victim believing they did something wrong. The system is wrong, a scam, a scheme, a con. Believe in yourself and stand up for yourself.

    I wish no harm, only protection for all those zees still stuck in their game. Be proactive, record everything and react on everything. Place questions on the discussion board on znet. You may get banned, but why?? Because they are protecting the truth. Make them answer. Give them a notice to cure today and get answers.

    A special thanks to the ADMIN and all posters for exposing the truth. I am back and I am not back to play by the rules. Justice is there for the taking. Let’s get some!!

    Oh, let me add in case they have a legal dollar to try me one……everything I stated is “IN MY HONEST OPINION” ;-)

    Yes 52 card pick up is a blast Mike! ;-) And so is voluntary waving in bozo clown suits in front of stores, honk the nose if you been screwed!! City ordinances apply.

    -Trisha

  • Franchizee

    @Trisha – We are scanning the files before giving the 1040’s to home office. According to the Bank Agreement – ERO/EFIN has to keep everything in order for 5 years….What has other’s done before? We are apparently coming onto Mega Super Peak… Yawn……………..Taxslayer can do a 1040 for $9.95, of course I have had to amend those return’s years later, but it does not pay the bills this year..

  • Franchizee

    Thanks Bill, that is my earliest estimate on payments.

  • Guest

    I’m guessing that many returns will be processed slow and money will be slow in coming. Many stores will have no money for bills including the moms and pops.

  • Trisha Grabert

    @Franchizee

    You are actually taking time to do something for them? They have those files at their Corporate office on electronic database so…why do they need your 1040 copies? Waste of time…You will get nothing but a request letter via UPS. No need to respond. When the IRS asks them for files, they swear that everything is lost…like conference call trainings, etc. Do what your lawyer advises only if it keeps you up at night. Focus on yourself. Your time is valuable. I have had threat letters, those stopped right away once I became a federal witness. They would have stopped anyhow. They don’t need those files to resell your office to the next victim at all.

    -Trisha

  • Trisha Grabert

    @Bill,

    Only the IRS knows for a reason when the cycles times will be. Last announcement they made was 11-23 days and that is optimistic.

    -Trisha

  • Robert William

    Liberty HQ getting ready to kick thier Franchisees off the Fiscal Clift. See the message below.

    We are aware of cash flow concerns surrounding funds for the February 8 pay date (pay period from January 20th thru February 2nd). At this time, Liberty is unable to guarantee financing to Franchisees for this payroll. However; we are working to obtain funding for this. It is our recommendation that Franchisees who require funding, work to secure their own financing from outside resources.

    Liberty will likely not know the availability of funding for financing, if any, until around February 4. If you believe you will need financing for this payroll, please go ahead and apply for February payroll so we can determine the scope of entities requesting assistance. You will need to apply by January 31. It is important that you follow these steps:

  • WOW, I can only imagine, what those poor zees are trying to tell their employees, “I can’t pay you because Liberty said they don’t have the money, and I need to take out a loan but I already did to get this franchise” or something to the same. SHAME SHAME, the MOST EXPERIENCED CEO EVER, didn’t see this coming, or maybe he did and the poor franchisee like the rest if left to fend for themselves, HEY ISNT RENT DUE ON THE FIRST?? DONT FORGET TO PUT THAT IN YOUR FAC!!

  • balancetrend

    I used to question whether or not I made the right decision when I mutually terminated my agreement, I walked away with a little personal debt because of it, but that is nothing compared to what I would be dealing with now had I gone into another tax season with these jokers! And to make me feel ever better about my decision, I just found out that the local Walmart located a mile from my old office is putting an H&R Block inside its store!

  • Franchizee

    @Trisha – That is the point, they are receiving only info they have. Of course every pertinent info is blacked out…..Like a CIA file. @Balancetrend, congrats on leaving them. I bet you don’t miss the BS that is going on now, oh right nothing is happening but Zees racking up bills with no money.

  • Current ZEE

    Instead of a lifeline they tossed an anvil and I can’t swim

  • SanFranDan(Danielle)

    Trisha. You’re back! :)

    I am SOOOO excited about the prospect of this company losing their shirts. They have been the utmost nightmare in my life and I cannot wait for them to have their same just due that they have caused in so many people’s lives. SOON, please!!

    This company has been a thorn in my ass. I have so many negative adjectives in my mind. I want the leader of this company to have a painful torture. Again I use the term snake oil. He has disrupted so many lives that counted on his franchise to make a living. Now he has destroyed so many lives and taken away everything.

    How do I get the thousands back I’ve already spent on Lawyers? He is slick and disgusting. I want him locked away for life. PLEASE continue to post on this website. Thank goodness for this website because I never in my life want this to happen to anyone else. I have no words to describe the venom I have toward this man and this company.

  • Don't Be Fooled

    And a kicker to consider, especially any current ZEE’s is the fact that Liberty has more then likely over inflated your projected number of returns and you are WAY overstaffed at this early part of the year , and the rest of the season. Your budget should reflect about 200 returns for the season, not some pie-in-the-sky pipe dream they told you you will do, based off of Block’s nearest store.

    I feel bad for any and all new ZEE’s, you are likely going to be in a bad financial situation very soon.

  • Don’t be fooled I agree. I never understood what they stood to gain by not providing realistic budgets. I mean in some areas they might have benefitted by having some poor franchisee build up name recognition and return counts so when you kick them out they could sell the territory to a more established franchisee or another sucker. But in this area in South Jersey it’s been one and done for most territories.

  • Franchizee

    @Don’t be fooled – That is what our predictions are too, this is being played way out. It is like he is hoping he is correct. Last year was a disaster with the delay’s in refunds. Nothing is happening in my office, some other office’s are doing some files, but apparently down by 60-70% which means probably more. My office’s have never even come close to the numbers they have sent out, never even close.

  • Franchizee

    @Bill – Are you writing much return’s this year? We are not, but the AD won’t send out any info on number’s since last year, since it was a very bad season after 02/15/2012. We ran our office’s the first couple of years based on their predictions and of course, wasted a ton of money on everything and plus payroll. Last year we tighted up and thank goodness we did or it would of been a worse situation. This year, very little money being spent….Just waiting to see if Liberty survives. H&R in our area has been closed most of this tax season, because they are SMART! No returns, no money….

  • Very interesting. I thought I was seeing things but the H&R in my area was closed most of the season until last week.

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