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?
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@momentumsells – Welcome to realityville where you are losing your shirt and life all for the Liberty scheme. It is all for the Hewitts and as Mike says “that is how we Hewitt” to each person signing on the dotted line!
Also I don’t know about anyone else, but this is the worst tax season in 5 years. Anyone else noticed?
Momentumsells:
Excellent post. For anyone out there that does not understand the post, DO NOT SIGN UP TO BE AN LT FRANCHISEE! We hope that these posts are helpful to you in what NOT to do.
You will save your money, time, aggrevation and everything else. HE is the biggest slimeball that has ever lived and HE needs to be brought to Justice—SOON!!
I want him to squirm. How the hell does he think he can run a company in this manner and still not get caught? He is more than a slimeball. He is a rip-off artist in the most basic sense. Make sure the company falls too, not just him. He made it into a stock company for a reason, the bastard.
I cannot believe the IRS hasn’t noticied in his 42 + years of dealings with them. Throw him in jail FOREVER and throw away the keys.
This was the worst experience of my life, lasting too many years and still not over yet. I am broke, but will build myself back up and know that whatever I do with the rest of my life, it will be honest, trustworthy and respectful. And away from the CROOKS of our world, JTH and his legal crew in Virginia Beach. “Crooks” is putting it mildly……….words cannot describe the filth and venom I have for this man.
Buying everything in sight to make sure he wins. Buying his Entrepreneurial Magazine award, buying the Judges verdicts in Eastern District Court……..it gets uglier and uglier.
Thank goodness I am away from this CULT and I stopped drinking the kool-aid awhile ago. That’s why he’s after me…….I figured out his scheme years ago.
Is anyone up this year or at least even with last year? Every time I drive past a Block, JH or Liberty, they have one person or are empty!
@balancetrend – Same here in our area. I am not even close to last year’s numbers because they were probably ‘fraudulant” or borderline frauds. HR is advertising where I live like madmen. But I think with little results. The HR near my office has never had anyone in their waiting area and the HR near our Office Max was empty during Super Mega Peak in the middle of the day! Suppose to be one of their biggest stores nationwide…..
What are your numbers like? Did you get an email from your AD to cut all unproductive employees and expenses. I just Laughed!!! Dumb Arses!
@SanFran – All I can say is..”Step away from the Kool-Aide stand!” I am glad you did. We will get together someday with everyone once Liberty goes down!!!
We are SLOWWW, and am almost ready to close until April 7th, THE SUPER MEGA PEAK is still happening at the free places. As we are out and about, asking people have they filed, most are saying yes and are doing it online for free….THIS INDUSTRY IS DEAD…. THANKS TO LIBERTY AND EVERYONE ELSE THAT DOES FREE RETURNS…NEXT TIME ASK YOUR LANDLORD IF YOU CAN DO A FREE RETURN IN EXCHANGE FOR RENT!
@Mike – Yup dead as a door nail. Luckily I have other ventures that are keeping me busy. Maybe your landlord will take some popcorn, a waver and my if he can send you some “friends” he will accept that in lieu of rent! HA!
The first peak is done and over most likely forever and ever. H&R is next to come down.
The end of tax franchising is upon us! Momentumsells has some very interesting observances. Whatever Liberty and Hewitt say and do are outright lies. My experiences with them was quite similar, unfortunately. I know of several accountants that are saying they are quite busy. The reason being is that they don’t cater to the “under served” population that Liberty does. A few of them in my area have even said they have gotten some old Liberty customers and had to restate several years of horribly prepared and downright fraudulent returns. Liberty’s and Hewitt’s corporate culture promotes their franchisees into going bankrupt as well as causing them untold trouble when the IRS catches up to them in the fraudulent tax returns that they produced. I am amazed that there is no protection for franchisees under federal law and people like the Hewitts can invent newer and more complicated schemes to bilk people out of cash. Imagine lending franchisees money on an asset (territory) that only exists in the minds of the company. Imagine charging an advertising royalty fee that does not provide advertising. Imagine still a royalty fee based on a right to use a trademark that has little or no recognition or credibility in the market place. Where is our federal watchdogs who are supposed to be protecting the consumers? I know that the judiciary in Eastern VA strangely is anti Liberty Franchisee most likely due to “influence” (spelled MONEY) that Liberty provides them. The only peak of the season is for Liberty to charge 12% interest on loans to the franchisees to stay afloat under a dismal tax year. Talk about usury, not to mention thievery! Is anyone aware of the kickbacks that corporate receives from the banks? Any one aware that a stock company has no liability to its investors and even if it did, the resources the company once held are long gone into the pockets of the original owners? Does the SEC know of these violations of rule 10-b? My advice to all Liberty franchisees is to close up now. If enough of us stop the money train to Hewitt and Liberty, maybe the message will finally be heard!
The sooner these criminals are closed down, the better.
Has anyone listened to the conference calls? What are they saying about the rest of the tax season?
@Mike – From the head honchos – No comment!
@Zee-too funny, the MOST EXPERIENCED CEO EVER is speechless!
@Mike – Hey I am thinking of becoming a “stand up comedian” for doing EIC and being a stupid Zee! Hey maybe I could finally make some money…..Basically, just return to your normal peak hours oh and they are having the largest amount of returns coming through everyday…hummmm…I am dead and so are others, oh wait they are filing “dead people’s tax returns?” Okay, I am done..
@Zee- I cant wait for the Interim Tax season results Block will announce return count through Feb 28th results on March 7th, Usually John Blewitt tries to one up Block a couple of days later, wonder if he will this year, probably a lot of Uh, Uh , Uh Uh,s!! One thing for sure at -heads will roll, someone has to be blamed for the tax season results!
@Mike – I don’t think Block is doing any better. They are going head to head with Turbo Tax according to the TV commercials. It is bleak out there and I can’t wait for more whinning to happen. My crystal ball is showing not good results. Did you get the email from IRS today about all the ID theives they are picking up in all major US cities?
Has anyone heard from their AD on number’s for Super Mega Peak? Why are ICA’s being stopped? What is the info on that?
@franchizee- I got out a few months ago, walked away with a little debt, but am soooo glad I walked instead of taking my AD’s advice to take a personal loan (not a liberty loan) to get me through the first peak, and we all know how that is turning out. Had I tried another season my personal debt would be triple what it was before I terminated my agreement. Best decision I ever made to terminate!
Sorry that others Zees are having a hard time. :-(
@balancetrend – Glad to hear you are out. I will be this season but for sure next season. So far, this season is looking like it is going to win. Can’t afford the royaties and garbage! I am not having a hard time, because I saw it coming, but am upset that I called it and it came true. Keep us informed of the coming’s and going’s in your area. It seems that it is nationwide phenomon (sp)!
This was the first day that Block had a few customers when I passed this evening. It’s a lot to think about when the massive advertising didn’t make massive crowds.
Turbo tax has the customers and they are or where stuck trying to finish the return. I think turbo tax will hire more ‘experts’ to handle the customers ‘help’ request. And that’s how they will continue to grow. Their next move is ‘CPA’ in box for $350.00.
More than Block effected.
Customers still coming in, just no major growth – just even
Good luck!
Good morning all! Have you had your Jimmy Dean Breakfast? You are all Awesome. Let’s orbit!!
@Mike: Uh Uh Uh had me cracking up. You definately know John Hewitt. For those who don’t, he has a speech problem.
@zee: No comment! HA not a bit surprised. They have their hands full right now.
@Momentumsells: You are awesome!!
@Sharon: What are you going to do to get out of this mess? Have you called a lawyer?
@guest: How are you even? Higher fees?
@Scammed1: I see you have followed the documents as I have on all the filings. Did you notice some required forms missing as I did. How did that pass through? You noticed the pattern of transactions recently and bone fide bull? Yes I understand completely what is going on.
@SanFran: You know they have big trouble coming from your area as well as New York and other places, right? I want to be invited to that party. Connect with me on facebook and send me the invitation to the event when you post it. I want in on that Roadside Party.
If you are a franchisee, do not make the mistake of doing a circus roadside party. They do not work in this type of season. Save your expense. Being open 6am to midnight was ridiculous. That was not an oversight or bad guess for John, it was a way to keep you on the tit by racking up expenses so you cannot pay your bills. He does not mind taking your stores back and reselling them 12 times. Ask how many times your store or others near you have been sold. Ask where all the old top guns went. Where are they now?? Why can’t they be reached. Get their history books out on them. Yes some are still there for show and paid to coach, but where are the most of them and why such a turnover of them? How many can show you a real profit after 5, 8 or even 10 years? Is buying and expanding to own more stores profitting? NO!!
The esignature pads are the devil. Clients just sign sign sign and lucky if the preparer even tells them what they are signing or gives them a copy.
I witnessed a single mother of one, student, one w2 charged $410 a couple days ago at a Corporate owned Liberty Tax.
?? If you are even, is it because you are making up for less returns by hiking fees? We pretty much know that answer and it was always what was taught so that is not a surprise. Zees feel they have to do what they need to do. Cost of overhead is higher this year due to low volume so the pressure is intense and tempting and very much allowed and not regulated by Corporate and in prior years, encouraged by Corporate.Not sure how they are sugar coating it this year but I hear the “private trainings” and “mentoring” is still taking place. Of course their defense is they cannot make us charge less per form because it is our businesses, so they only recommend certain default pricing, right? But then you get the AD side talks and people mentoring you to the rescue to get your numbers up…not your return count in times like this. We have already determined that Liberty zees are not truly charging by the form, it is just meant to appear that way in the system. The form scale can be formatted to whatever you think you can get out of your market. Then you have preparers with their bonus in mind and they can right click and override fees as well, so all that is meant to be unrestricted and encouraged by Corporate. So people are vamping up to the $100 Cash in a Flash bonus to get old and new clients in the door for a gimmick. The higher the ante, the less that folks will notice your high prep fees on top the recovering of the $100 by adding $110 or $120 to the non-interest bearing portion of loaning part of their own refund to them upfront. How exactly is charging an extra $10-$20 on top of CIF not considered interest again? Oh it is considered interest and acting as a bank without disclosing an APR on top of CIF. That too has already been recognized as wrongful practices. Anyone feel the same???? I still have the emails from Corp and Area Developers telling me to charge extra to make up for the client’s who become non-pays because they have leins on their accounts from IRS, Child Support and School Debt that don’t tell us upfront when they collect our Cash in a Flash money. Don’t you???
Why were the ICA loans stopped? (applaud for the sources of info from within)
Maybe because the FEDS ARE DOING THEIR JOBS and listening to us who call them and stay in contact. HAHA, refunds came faster than the IRS announced and that just really makes the ICA product unnecessary, besides the fee issues. Wonder how that fall in the quicksand felt for John Hewitt? (no comment, wiggle wiggle uh uh uh) Wonder if he realizes we know he held back some efiles so that it made the product look needed after he saw refunds come as fast as Jan 31st?
I have the highest respect for Agent Jerry Arrington with the IRS investigations unit. He is our Clint Eastwood, MAKE HIS DAY 828-242-2122 cell (he texts too) or 828-225-8408 and schedule an interview with him ASAP! He is works this case 24-7 and by the time he is done, John Hewitt will pay for every time he laughed and boasted that they will never catch him.
My old AD used to always send out the numbers, I heard this year nothing has been sent out. Things must be going great!
I remember Danny coming to visit me my first year and giving me his “close the sale” pitch. I’m a CPA, the tax return needs to be accurate and complete regardless of the fee charged. Well, Danny’s approach was, “Ok, I can reduce the fee by $65, but that means I have to take away the Schedule A, which will reduce your refund by $850”. And the scripted response from the customer should be, “Oh no, dont do that, you are so great and wonderful, thank you for saving the day and charging me more money just to do my tax return correctly” Typical sleezy car salesmen stuff!
What happens when the Sch A is fraudulent? This is what Danny and John like to instruct Zee’s to do. Get those extra fees by making up more deductions! Give me a break…
@banlancetrend
That is why Danny Hewitt, Annie Fuller, John Hewitt and Liberty Tax/ JTH is under high srutiny and lawsuits based on unlawful practices. Notice I put John Hewitt last as he threw them under the bus first on the lawsuits claiming they were “rogue” and he had no idea about these conference calls, meetings or visits (even the meetings he was present for!). He suddenly lost rosters of boot camps at hotel conference rooms and lost conference call replays and lost emails and lost data when the IRS asked specifically on certain events reported.
Their closing the sale tactics and training has not only affected customers, preparers and franchisees…but the bigger picture, it has affected the Treasury with astronomical numbers of overpaid refunds based on a client’s answers when probed in these preparer interviews. Liberty Tax has done a poor job backing these client’s on audits which IMO now proves intent to wrongfully lead and prepare fraud or inflated returns without the preparer even realizing what the results will be.
You really should add your testimony to the class action suit in SC. Call the Ellis firm in South Carolina. You will get plenty of information from them to prove you are not alone in what you witnessed. You should also talk to Jerry Arrington about their IRS and DOJ cases addressing these issues you are describing as well. This would have stopped long ago if people were not under fear to talk to the IRS, but feel free to talk to the private law groups representing the People. It would be nice to see all of you sitting in a court room with me as federal witnesses called to the stand or even just to hear your stories named out in the Courts. Just talk to them about it. I sure did.
Let me share a contact number with you all for the South Carolina Class Action case. Mr. Ellis (private attorney) 1- 803-732-0123.
-Trisha
@Trisha – I have noticed after looking on Zeenet, that the top guns are new names, not old ones. The old one’s seem to be in the B section not A section. Sometimes; a zee will be top gun one year and many years, they fall and show up somewhere if not anywhere near the top. So far this year, there are no numbers being posted, which is not what we are typically used to. I have the Liberty magazine from last year and there are people missing, you don’t know where they are, unless they are on this website under assumed names.
I wonder if there are any old AD’s on here posting, so we could have the inside scoup of the AD world view?
I know John does say Uh, Uh a ton, did not know that was a speech problem. Maybe he needs a teleprompter like our POTUS!
I am still awaiting some payments on check’s given to clients, but my fees have not hit my back account. They are holding money several days longer than even last year!
VERY unhappy zee…. WANT OUT!!! Opened this season in a new location, staff of one me…. Last season did everything AD and Liberty told me to do. In the hurt locker for 40K. Does anyone have a franchise Attorney to recommend in Southern California. What happens if you walk away???? OH it get’s worse, as I still owe the previous owner 20K. Grapevine gossip is the previous owner is trying to sell his office…
Well, some cities (e.g. Chicago) have enacted laws with some bite. Full disclosure before starting the tax work is a must. Up-front pricing is required. Every infraction can cost up to $750. And the cities badly need the money. Chicago requires that a handout, with numbers to call and a list of possible violations, be given to the client before any work is done. Just failing to tender this document can cost the business $750. And Chicago does not care if you call the bank product a fee (as opposed to interest); Chicago is going to treat the fee as interest and give out tickets. Also, the city does not care who pays the fines. The owner and the preparer can both be ticketed. The tax franchises and corner shops are going to start closing.
@dirty, do you owe the 40k to liberty? When I did my termination the agreement was that the liberty debt was forgiven in exchange for giving the office back. Sounds like your situation is a little different though because you bought from a seller and not from liberty. Did he give you bad numbers before you bought or are you just seeing a huge drop this season?
@dirty- It depend’s who you owe money too. I am in the same situation and don’t owe money, but will have to close shop because there is nothing going on, that I can’t do with a desk in an office, not an office. If you can stop the bleeding of funds try now, everything in your power. If you do a mutual termination agreement, any money owing Liberty will need to be paid. I am not sure if I am going to make enough money to even pay the royalties this year…..
Anyone in really bad shape? This free cr@p has really taken the business away. I guess as John says, “It’s your annuity, it will pay off some day.” Well today is someday and it ain’t paying the bills!!
“Anyone in really bad shape”? ME.
When all is said and done over $200k paid to lawyers and initial loan repayment. I have nothing to show for it except aggrevation.
As soon as you leave, they will find a way to sue you no matter how small & insignificant. Look at all the Litigation out there started by LTS. This company SUCKS. It has turned my world upside down. Thousands of unsuspecting people all over the country have signed up with them and gotten ripped off left and right.
Jerry Arrington, if you are reading this……..this is too much for you to handle on your own………you need a huge team of people working 24/7 to get this man, his top advisors and his legal team. Can’t wait!!!
@SanFran – Is your litigation over yet? Hoping so many leave, that they have to pick and choose who to sue…..Say 1,000 offices close????
The way things seem to be going this season, I’m guessing the office closings will be in the hundreds!
It is still on-going several years later. Just when I think it’s over, they find a way to pull me back in. Saying too much will give away my privacy. It has been the most horrendous experience of my life. How they are able to get away with this is beyond me.
They will find a way to sue you no matter how many leave at once. That’s why the entire Corporate office is filled with Lawyers. They probably have each territory down to a science of what lawyer will handle what areas. They will hire more lawyers before they let anyone get away from them. That’s why it’s a cult. Not normal. Beyond normal. Your entire world will turn upside down.
My problem was being too naive to think that they would leave me alone. Protect yourselves people. This man is a WOLF and will eat you alive.
Does any one have an estimate of how many customers the presence of a store front is good for? (Without doing any additional advertising.)
@Uphill Battle- It depends if you are in an Urban area with a lot of EIC or in Suburban area with high end clients. Most likely 200-300 on the high end up to 400-500 several years into the contract. Also it depends how many Liberties are in your area and have already ruined the name by doing bad returns, too many free returns or just too many in a small area.
SanFran – What are the stats if you don’t owe them money and you don’t take their clients of being sued? Have people been sued because their over the 25 mile non compete clause? Just wondering.
You are probably right about having a number of lawyers per region, then territories. I bet AD’s are in worse shape than the average zee, just my opinion.
Liberty’s so called expert marketing does not work. A storefront would probably attract about 300 customers at most. Coupons don’t work. Door hangers don’t work. Free returns don’t work since the customers come back next year expecting the same price! You get what you pay for, in this instance.
Uphill Batttle: Liberty’s name brings nothing… It’s more about the business model that Jackson-Hewitt was built on and the same one Liberty uses which is to locate in an urban area with a large low-income population. When Jackson-Hewitt was a publicily traded their financials listed what the average store did based on its age 1-5 years old. a 1st year store was around 200 returns and stores older then 5 years where around 600 returns.
Liberty’s primary business is selling franchises not tax prepartion. John Hewitt is a salesman. He understands human nature and tells us what we want to here. “Only work part of the year”, “be your own boss” etc….
@Bill and Scammed – You both are right. If I could get to 300 or so, I would have some chump change. It seems the only people interested in Liberty (by name) are the frauds who want their send a friends, cash in a Flash and/or both depending on what they can get away with, they are called customers, or just plain old frauds. Take your choice. Now, with good, hard work, you may get some good clientele, however it is after you weeded out the frauds and hopefully someone refers your business.
Do your own, you will be better off, and work a lot less hours for “the man”. Of course Bill and Scammed will know that John states you will write 600 the first tax season, but we all know, if you go over 100 or so, you are doing well. John really goes for the “human nature” of greed and too good to be true. It is!
@ All: It was and is WAY TOO GOOD TO BE TRUE don’t think for a minute that you will be profitable with Liberty-only two ways to be profitable:
1. CHARGE HUNDREDS 500 dollars + to people, that might get you through one season.
2. do a boatload of returns, that wont happen with no brand loyalty or massive advertising.
There are no winners but the FRANCHISOR!!
Also at Liberty ville, if they think you are making any money, they come down on you to buy more territories or open more stores in your current territory to water down your profit’s, because this is not set up for the franchisee to have any money only the franchisor. If you have money, then there is something wrong with your store…….That can’t be right, so you need to build your empire and you become a “Top Gun” and John wines and dines you to extract you from your hard earned cash or has the AD do it for him.
@Bill – You are partially right that this business is for franchising, but also the tax preparation is a front for some kind of marketing machine. Have you ever really heard on any of the calls or the AOT or IOT “so called training” any real tax prepartion information? Nothing at all!
They don’t train you on how to write tax returns, only how to market and use sleazy sales tactics to process a tax return. Are the people who are interested in Liberty some kind of machine invented by someone, who has a way of taking money from the franchisee and it comes back to Liberty clean somehow through cash in a flash, send a friends, and lending, bank fee etc? Makes one wonder…..
Is it reasonable to expect 100 clients just from having a store front (not a franchise)?
Thank you for your input.
I think the Liberty brand does bring in some customers, the problem is when they see the price, you lose quite a bit. If you have your own store front, I think the retention and satisfaction rate will be higher, it will just take longer to build up your business. In the long term, it will pay off to have your own place than to own a Liberty franchise. No minimum royalty, no required trainings, no ridiculous marketing scams, no overpriced equipment!
Franchizee:
Too much information on why I am being sued and stalked. Suffice it to say your recent posts are on exact target.
Unfortunately for me, I lost all this $ before this current IRS investigation. I am beyond thrilled that he is being investigated now, but it doesn’t help me financially or professionally.
The few posts that you wrote last night are exactly correct in every way.
I can also say that I am the reason I was so successful, not LTS. At the time I was a franchisee, there was NO brand name recognition. I did it all myself and was successful in obtaining my own clients. It had NOTHING to do with the LTS name.
Again, the worst expereince, ever. That “company” needs to close down soon for good. That man needs to go to jail for a million years. Then maybe I will feel like some justice has been done.
4th year zee. My office is on pace for $170k net fees this year. I have opened two more offices, on pace to do $70k each on those this first year. This is great franchise, obviously 30% of people are going to fail. Most of the posts on here are from those guys. San Fran, Mike, Bill are the same person but keep posting under different aliases. Get a life!
Thanks SanFran – Just what we have been noticing and only the first zee’s in a territory end up writing the bulk of the business the rest just barely make it. Each office get’s exactly half of the one above them. If you don’t do the marketing scam’s then you write even less in the early season!
We will party someday!
Guest4:
You are out of your mind. I am extremely real and not a guy. Nor do I post by any other name. What does “Get a life” mean to you? You actually sound like the other “Guests”. Maybe I should tell you that you’re one in the same too. See how stupid that sounds?
I did really well when I was an LT franchisee too. If you’re happy, then I’m happy for you. However I know that harm is coming your way. Although I don’t wish harm on you, it will happen, that much I do know. 4th year? Yikes.
Guest4: I know nothing about your situation as you know nothing about mine. Let’s keep it that way. Franchizee: Your posts are on target and very correct. Most of the posts here are negative. If someone is having a good experience as an LT franchisee, yay for them. However their success will be short lived.
Guest4: The average returns based on Libertie’s financials shows the following breakdown: 2008 = 540, 2009 = 528, 2010 = 508, 2011 = 506, 2012 = 496.
Operating loans per store averaged in 2010 = 9,201.00, in 2011 = 14,668.00 and in 2012 = 16,249.00. These figures show a trajectory that is headed in the wrong direction.
Unlike the figures above, I have no way of verifying your information. You don’t indicate where your located. What’s your average net fee?
I do want to thank the founder of this website….thank you very much for this forum on which we can voice our frustrations, opinions and concerns. This has been the most horrendous experience in my life and the life of my family. I will move on from this stronger than before, but with a lot of bruises for being a bit naive and too trusting. This company and this man MUST go down. He has turned my world upside down. And whoever is happy as an LT franchisee, please protect yourselves against all the legal issues that will arise as you depart from this cult of a company.
@San Fran-look at all the postings on Liberty’s own website- THE IRS, JESSE JACKSON, AL SHARPTON, ACORN the EITC COALITION AND OTHERS should ask those people on Liberty’s facebook, ask them if they had the fees disclosed to them, it looks like many many people did not have a clue what they were being charged for the tax prep or bank fees etc. until after the fact. $400, 500 plus dollars for simple EIC returns, WOW is that what brought down RALS, HIGH RATES?
The Hewitts are crooks of the highest degree! They taught us not only how to make fraudulent tax returns, but showed us how to raise the fees on these things without ever giving the customer full disclosure. As for Guest4, I’m glad you are still drinking the kool-aid and hope you have some of the elusive success that prevails within this franchise. When you start writing those checks for the franchise fees on the additional stores, you will realize that there is very little, if any, left for you. When I had my first store, it was very profitable. When the subsequent stores were added, I had to use the profits to prop up the other stores, causing a huge loss. Still trying to get out of that debt today. The last store I had only managed to do about 50 tax returns in the first and last year of its existence. That is with all the superior marketing and following the plan to the letter. Liberty even chose the site for this store even though I was in disagreement. Any reasonable person will realize that this system is a scam created by John Hewitt.
TexasTee,
You did 50 returns for the season? I did 50 returns yesterday between my 3 stores. Also, Mikey thinks EIC returns are easy returns? Do you suggest we should charge $100 for these returns? Is that why you went out of business, because you thought you knew best and decided to charge $100 for an EIC returns since it is so easy? San Fran, this whole website is about your sorry story that has gotten so old to read about. Do you think it is possible that you are a little bit obsessive compulsive about this? Please lower your medication.