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?
.
Surprisingly, fairly busy yesterday…anyone have any numbers to share…what are the blewitts saying about remaining returns and the IRS being down?
It’s good to here your busy. Depending on your client base the season seems to start later then it had in the past. Brokerage stmts are still coming out. I know for the retail chains 1st peak should be ending but with all that is happended with the IRS accepting returns late you would think that would push back filing. The stricter enforcement of EIC may also have affected the early filing results.
Liberty taxes are the worst..they are liars and criminals..they told me i was goin to receive 5030.00 dollars for my federal..couldnt track my refund,so i kept adding it up one at a time by 50 dollars, come to find out i was suppose to get 5230.00..my checks been deposited in there bank the 12th. Sounds like money laundering to me.try to get my check and he lied to my face and said they didnt receive it..if i dont get my check soon i intend on calling district manager,i.r.s, and the law.i will never in my life go back to liberty taxes.
We were ok busy. Some of the return’s cannot be filed till towards the first of March. EIC has just been hammered this year and last. People are down from last year and that was a junker of a year.
I saw where someone shared a Walmart inner email. This was the worse first part of February in 5 or 7 years. Not sure if this was legit, but if it was, most fraud’s spend their refund’s at Walmart. Too bad it is hurting the economy.
I just crack up when someone comes into an office and surprised that it cost’s money to file in our office. Well, I am a for profit business not a non-profit business. Except when you have a Liberty Franchise, then you are a non-profit business. Too bad the IRS is not too forgiving on have losses on business for more than 5 years in a row. It is probably why the Franchise agreement’s are 5 years, because, they can’t have the IRS know that Liberty Franchise’s don’t make any money after the 5th year!
@Guest4 and 6YRZEE;
I don’t think you are plants. I think you are here for a reason. You both know what led you to this site. Look at your reports, bank accounts and the buzz of lawsuits going on against John Hewitt and the gang. It is real. Stop looking at the inflated reports and saying you are doing well. You have not locked your GRR (gross receipts reports) for the month. How in the heck would you even know what you are on track for? Wayyy to much staring at your znet grid and believing in achieving.
For the DOJ and the IRS to travel the Country and knock on doors—-kindly, just Wake Up!! Start doing some homework.
Are you out of your minds to open 2 new stores that are on track for $70k? You just killed yourself. Nothing you do now will ever give you the upperhand.
It does not matter how HARD you work, how long you are a top gun of the company. I am very sad for you, because I use to be just like you. I came on here and posted in denial about these people when I was a top gun. My stores NEVER declined over 5 years. Down numbers NEVER happened to me. I was good at everything. I did everything right. I posted as you did. I am not going to be like one of these guys who post. All the motivational training in the world will only sustain you so long. You were intellegent enough to get here, you will be clever enough to see the truths. Believe one thing, you are as much as a clown to Corporate as the costumed wavers they tell you to hold auditions for and not put on the payroll.
Most readers of this site do not post, they read and watch and consult. Show your lawyer. There are more readers and visitors than there are posters and you should take notice of that. It is now the #1 site. Take notice people are posting, people are mad, people have info to share and people have shared very intimate info in earlier posts.
You can certainly share your concerns as well and yes, I mean concerns. It took people years to realize they were losing it all. Look back and read some dockets. Soon you will be reading depositions of people you know right now in several states as well as names you knew a few years ago. Let the feds worry about what kind of commercials or “media” you will see you paid for.
Nobody in here wishes you a bad tax season or financial ruin. The point is, you ARE in financial ruin and you don’t know where to look to see it.
Well, it seems there are plenty of people ticked off now. Welcome all new posters to the real discussion board where we don’t ban people for asking or telling anything.
@NC Hillbilly and others: Jerry Arrington works with a team and the DOJ, yes they are very busy but they WILL call you back.
Here is contact info: jerry.arrington@irs.gov
828-225-8408office
828-242-2122 text/cell
-Trisha
Trisha, you are very correct on your above post. At first you believe you are on the top of the world, high return count, and John Hewit encourages you to pruchase and open another territory. They have you believing just a couple of tax returns will pay for it. Next the bombshell drops and you realize you are operating in the red, you are on the verge of losing everything. Your credit cards, line of credit on your home, your overdraft is maxed out, and you have exhausted your retirement accounts suddenly you realize you are now a victim and no way out.
Then your AD convinces you that John Hewitt will continue to loan you money to keep your operation going and only a few more tax returns will get you back on your feet. Sounds good, but then when tax season arrives and you experience Liberty’s Fee Intercept program, all income from bank products is intercepted and applied to your promisary notes. DOJ wonders why the early tax clients are are paying such a high price, it is JTH’s system promoting high prices, to allow them to fee intercept larer sums of money.
Now you have very little to no funds to promote and grow the business from February until the final peak which for most offices is the April 12th – 15th. On April 16th you realize that you no longer can walk away, you are now in debt over your head. You are forced again to borrow additional money from JTH again. JTH is not about income taxes, JTH is a loan shark predator preying on both consumers and the franchisees. Everyone will become his “victim”.
Wheter you are a succesful franchisee or a troubled franchisee, JTH is after all of your money. Just try leave to Liberty, and you find out that his large team of lawyers are laying in wait. Like sharks they can taste your blood, sweat and tears in the water and they are coming after you. They know your pockets are empty and you cannot afford to hire a legal team. Along with JTH legal sharks, you find that he has quite a few federal judges in his pockets.
You will find the information that former and current Zees have posted on this site for over the past 3 years will be very familar to your current or future situation.
Like Trisha, I have been in contact with both the IRS and DOJ.
YES!
Trisha and NCHillbilly:
Exactly right. This has been a nightmare to the max. We have also been in contact with Mr. Arrington and his team.
NO ONE should be treated in these manners. NCHillbilly stated it correctly by saying that JTH is NOT about taxes, but rather about being predators. Well said!
That is exactly the reason why, when we were with the franchise that we never got sufficient answers to our everyday tax season questions or problems. They are a front for robbing people blind. Absolutely has the Eastern District Court Judges in his back pockets too. NO QUESTION.
When I tell you we have spent THOUSANDS of dollars defending ourselves against doing nothing wrong, it is true. Much more than $100k has gone down the tubes and still not in the clear yet. Why? Because these money grubbing pricks have nothing better to do but to train their lawyers not to stop at anything. To keep going and going and going.
I really hope that the people who have found this website will please post their experiences too. I guarantee that most, if not all, will be negative.
Thanks for the above. I will contact Jerry via emai today. I am hoping to give some info that we have on Liberty and their multitude’s of wrong doings and illegal practices. We have not borrowed from Liberty, but don’t want to stay with them, because they are wrong about ruining people’s lives.
I like the way the Trisha and NC have explained the system and it was as I suspected. I have not borrowed money from them, so I am not in the understanding of the workings of being a top gun or do you become a top gun just by borrowing money? There is a top gun in our area going for broke and I am sure they will not make it in a couple of years. Believing all John has to say. This person has been in the system twice as long as me!
Also are the number’s on the Zee net correct or are they inflated? I have never checked?
I am a former 5 yr franchisee. I followed the program but never seemed to make any real money. I was elidgeble for EIC on my personal returns but believed I was going to make enough to get ahead. I was able to expand because I took over 2 failing territories when the formrer owners paid me to take their franchises and assume their debt. Then pay them later . At the 5 year mark a local TOP GUN approached me to buy my offices if I financed them for 6 years. He made a small down payment with annual payments. Well the 1st payment came due and he found any reason not to pay. I went to my AD and he said Liberty was not concerned and I had to work it out with him and his Attorney. Well to make along story short to avoid a prolonged legal battle I accepted a large reduction in price for a cash settlement. So now I feel free and my life is going on . But am now retired with a lot less retirement income but I now sleep good at nite without the worry of Liberty.
Where is Robert Koon? He does not post on ZNET discussion board any more. Liberty Tax Service is a scam. Prospective franchisee beware.
^^Ace:
Thanks for writing and telling your story. You are so lucky that you got out “relatively” unscathed.
Someday I’ll get to tell my story too and you people will be amazed at what our family has endured. That is why I am seeking justice for this man. He has put myself and my family through an utter nightmare. And I know there are sooo many others out there too, suffering at the hands of JTH and LTS.
Whenever I see a costumed waver, I just want to vomit. This man and this company need to be brought down. I can’t wait for the end to come. Yeah, I’m the one that will be having an enormous celebration party and by the looks of it here, I’m in good company.
To HEAR YE HEAR YE TO ALL FRANCHISEES,, TODAY IS PRESIDENTS DAY….spend money on having your preparers calling people in the white pages with Presidents names and then give them a FREE RETURN, I repeat, spend money by paying someone to smile and dial and then offer FREE RETURNS, trust in Danny-one day you will make some money off those free returns-it’s a great concept!!!!
It really works!! John gets credit for return counts (so he can tell everyone how fast Liberty is growing!! You borrow money to make payroll and pay John interest for said money, you get excited because somone actually walked in the door, you give them candy, soda or water…you are salivating at making a couple of hundred bucks…then the client says–but my name is Washington!!!
It is a great system-John wins all the way!
I have not posted on this site for awhile, but continue to do research and find of course that Liberty is nothing but a bunch of lying thieves. I was told that I must stay open 9-9 everyday. I have yet to see any Liberty open past 8:30, in many cases they close at 7 PM, some even earlier. I was told I must have my store open year round. BS, there are a ton of stores that put on the door, open by appointment only, if they are even there at all. Most don’t even answer their phones past May because they cannot afford anyone to work. I like everyone else borrowed money, and had no money to spend on marketing. Well, I dug another hole. I was told I must have a store front. Again, BS. I have pictures of over 5 stores that are actual houses with a sign out front. Again the kind of BS they sell you. I used John’s pricing on the first few returns and got written up in the local paper for how I had gouged the public. I could go on and on. I was lucky enough to get out without having to declare bankruptcy. Never again. Never again. Never again. My territory was resold by Liberty. When I went and visited the new franchisee, I told them that I ran out of money. I told them facts about the neighborhood, about how many returns I did, and what I thought their chances of success were. They have put their life savings into this opportunity. If you think I did not get sick after I left, you are crazy.
Thievery and usury are Liberty’s motto. I too was wrapped up in the farce of buying more territories to increase profits. The truth is that the more territory you buy, the bigger the loss you incur. This is not to mention that the only time I saw my AD was when he noticed my numbers were down or I hadn’t filled out the BS budgets to corporate’s delight. The pressure is constantly on by the AD’s and Liberty to keep buying territory at ever increasing prices! Who sets these prices, anyway? Are these a function of the free market system? Those of us in the system know the answer to be NO!. LTS and Hewitt set the prices in order to set up debt in order to squeeze of hard earned cash in order to inflate their P and L! I thought ponzi schemes were illegal. I thought it was illegal to inflate or “adjust” tax returns to provide “value” to the customer such as increased EIC. Yet, the Hewitts and LTS are continuing the deception and ripping off franchisees. With the IRS investigating them, its no wonder they are running scared, selling off their stock and setting up off shore banks. I wonder where all the consumer advocates are now? This is a monumental ripoff that is going on in a grand scale that not only deceives the customer but the franchisee as well. Kudos to the IRS for once for trying to stop these racketeers, that is, if they can stop them!!!!! I also wonder if anyone is looking into the court system in VA to see what kind of shenanigans are taking place there?
I’d like to find out what happened to Robert Koons and John Barilla….the the biggest Liberty cheerleaders on this site. Also whre is Danny Hewitt these days?
I’m sure you all love your Notice to Cure letters when you aren’t open 12 hours a day giving out free returns and burning your own cash.
John Hewitt and his crew are salesmen, pure and simple….good at selling a dream that never materializes for most. In fact I don’t know of any successful zees, ever. Most have filed bankruptcy and only stay open for one or two seasons, they can’t afford to throw money away.
Liberty was the worst financial decision I ever made.
@Don’t be fooled:
Those tools are on this site just posting under H&R Block’s supposed “unhappy franchisees” Screwitt, must have banned posting on Liberty’s unhappy zees, so they probably got scared and continue to detract from this spot and put info under Block and sometimes JH, I find it hilarious! Glad to see you and Frustrated on the board!
Just was reading and thinking if I was a Liberty franchisee I would be PISSED, on Liberty’s facebook there is more free advertising for Turbo Tax then for Liberty, John must be getting a kickback for all the customers recommending Turob tax then Liberty…..hahahahahha, John I chewitt……..!! Go to their fb, and have a great chuckle…John, must be shie-awting himself!!!
Still here losers (Trisha, San Fran, Bill, Frustrated, Mike, Franchisee). You know i was busy with something called tax season? My 3 offices are up 54% and I am hoping to finish up 60%. Profit about $100k for working a hard 6 week period. Not bad. Also, all my offices are under 4 years old, imagine what the future will be like as they keep growing. For you guys, I am sure it will involve bankruptcy.
Remember the motto, “Losers will always be Losers, Winners will always be Winners”
@John Barilla – Never count your chicken’s before they hatch, everyone who are business’ owners knows that. Also it is not over until the fat lady sings, which means, you don’t own your franchise agreement’s Liberty does. You don’t own swat, but working for the “man” and making his dream’s come true. You carry all the “risk”, financial burden, and work to make John happy. If you are making money, I guarantee, he will find a way to take it from you, because it “ain’t right” if there is money in your account. Of course you are bragging about it and you are now a “target”.
According to the Franchisor of Dunkin’ Donuts, being a franchisor is great for some I stated above. The franchisee does all the work, take care of the personnel problems, carry the debt of the store and pays all bills, all along of sending their profit’s to the Franchisor. It is a great deal. We have been all sucked into the “American dream” of owning your own business. We only own the debt which is now the “American dream”. Yee Haw.
I bet John has been wined and dined with John too…..Tell us that story because he only like’s the sucker’s he can manipulate!
John Barilla says “Losers will always be Losers, Winners will always be Winners”
Shills will always be shills.
Brown-nosers will always be brown-nosers.
(This is fun)
Crooks will always be crooks.
Arrogant franchisor blowhards will always be arrogant franchisor blowhards…
Rip-off tax franchises will always be rip-off tax franchises…
(give it a try!)
I just went by my nearest Liberty office…they were so busy that they closed…hahahahahah…!!!
I heard from a reliable source that John Hewitt is at the International Franchise Association in Las Vegas, and he was just railing today against all the comments being posted on UnhappyFranchisee.Com about him and Liberty Tax.
Make no mistake, JH is an avid reader here, but not exactly a fan.
Guest-wow, any idea what he said? If true that is great news! When you turn on the lights where are the cockroaches? Let’s ALL keep shining the light!!
Wow, just Wow – I wonder if John Barilla is John Hewitt. Hi John!!!!! If you are reading. Just give a shout out!
I have always suspected John Hewitt is the one posting under the name John Barilla because everything he write on this board does not make sense. Liberty Tax is a scam.
Totally my Bad for taking my taxes to Liberty Tax Service. Not sure what “service” they provide except they did manage to seperate me from a substational amount of $$. Seriously, $455.00 for a basic tax return?? Yes, we have mortage interest, my husbands student loan, and two dependent grandchildren. Pretty basic stuff. The initial “preparer” spent maybe 40 minutes getting our info in the computer. Oh, and he put my DOB with my husband’s name and mine with his and misspelled our last name. Now I’m waiting for our paperwork to be “assembled” . . . (in a) “certain order” Really ? It’s been 4 – count them four days – What kind of order do you assemble a person’s tax papers? And what f****ing difference does it make??
the second “preparer” insisted we take the ” referral coupons.” I did because our name was on them. First thing I did when I got home was to cut them in fourths to be used as scrap paper – then shredded. NO WAY would I EVER recommend ANYONE to use this business!!!
Wish I had gone to this website before I took my taxes to Liberty. Fool me once shame on me. And it WILL NOT HAPPEN AGAIN
JTH:
I hope you fry in hell. I can’t wait till the IRS carts you away in handcuffs.
The only winner you are is in the game of ripping people off. YOU are the total loser here and I hope you go to jail for the rest of your life.
Just think at how many unhappy LTS franchisees that are out there today and are not posting? Literally thousands, ex and current.
You could have had a real successful company brand where franchisees had a real stake in owning a piece of something. But you coniving little idiot had to ruin people’s lives instead of running a class act. Greedy bastard.
I can’t wait for everything to blow up in your face. You and your greedy lawyers are dispicable. No one likes you. You have many, many, many enemies who wish nothing but for harm to come your way. I’m at the top of that list. I’m waiting for your downfall. Everyone in Virginia Beach is waiting for your downfall. It can’t come soon enough.
Liberty is still a ripoff company no matter how you cut it! The Hewitts and their gang of outlaws continue to take advantage of franchisees as well as customers. Training someone to do taxes in a week is an insane practice. We all bought into this thing but our job now is to warn people about this system of planned rip-off. If Hewitt is head of this franchise association, what does it really say about the association? He is not only their president but their ripoff advocate. I wonder if there are any shareholders out there that are not brain dead and realize what a scam artist he is. Maybe he should be Bernie Madoff’s roommate?
Kathleen:
Thank you for writing of your negative experiences. JTH will sell anyone that’s breathing a franchise. In fact, the less experience, the better. That way he can prey on them to part with their money faster.
This is a first class schlock operation that takes everyone’s money and they get headaches in return. He is a scam artist and that’s putting it mildly.
I think I’ll pipe in with what is going on. All the Liberty tax stores in my area are very quiet. I saw one Liberty character openly selling dope on one of the street corners. This might be how the franchisees are making ends meet. Maybe this company is not much different from the scum selling drugs on the street. It seems the scum are running the Franchise, the franchisee’s and the tax preparers. Typical Liberty operation- identify with your customers by being one of them. No wonder no smarter taxpayers come to these tax stores. Turbo Tax has no competition from these guys.
What is the best software to use once you leave Liberty? Anyone?
@Franchizee-I use Taxwise, it’s the software that Liberty used before Libtax, it’s not too bad, what I like is that the IRS uses it so it makes training easy, don’t have to buy any materials for tax class-it’s all online free!! Another reason, NOT TO BE A FRANCHISEE save your money.
@Mike – How is the support (tech and tax)? Thanks for the info.
@John Barilla
One very simple question that even a moron can understand. HOW DO YOU KNOW YOUR NUMBERS ARE UP WHEN YOU HAVE NOT EVEN LOCKED YOUR GRR AND SEE YOUR TAX RETURNS THE IRS WILL NOT PAY ON DUE TO BACK DEBT, SCHOOL LOANS, CHILD SUPPORT, ETC? Have a nice time cheerleading all month and get a crane rented for lifting your jaw when your NUMBERS DROP to reflect your ACTUAL numbers after all is calculated you MORON. You really believe in those fake reports and grid on the Liberty intranet site, don’t you?
YOU DON’T HAVE A WAY TO KNOW YOUR NUMBERS YOU FOOL! However, if you have figured some magical way to calculate your productivity and monthly p and l in advance, go ahead and share all your statistics and my financial analysts will show you how to use it as toilet paper.
-Trisha
@Dont be fooled:
To answer your question of what happened to Rob Koons. He owes debt still after I believe 8 seasons and closing and reselling a few stores. He is in a desperate attempt to pocket some money to get his father’s money back which was mistakenly vested by refinancing their home! He saw my termination coming, he saw his is next and trying to stay under the radar. He has very private information on the Area Developer scheme and John and told me he intends to whistleblow it all AFTER he gets his dad’s money back. That, we all know, is NOT going to happen. If he is still operating, it is just so that he absorbs this season’s huge expenses more than any other year. They like to wait until the end of April at least to get rid of you as you swim hard to rack up fees. He told me he has NEVER profitted and every year he tries to get better and make it happen. I was his neighboring franchisee and brought to Stacy Barnes by him who put me on a plane to meet John Hewitt in the first place several years ago. He is living off his wifes nursing income, he will be alright. We were good friends for a long time. We had a dinner with John Hewitt in Louisville Ky along with the other franchisees in my DMA. John managed to embarrass him by telling him he holds the record for the most bans on the discussion board because he should leave the mentoring up to his trainors or run his comments through him first. Rob just ate poo on his plate that day. He cannot stand John. At one time, they told him not to come back on unhappyfranchisee because it raises this sites ratings and he is not helping, let Corporate plants do that as well. All first hand info told and texted to me so, I thought you should know for everyone who remembers the excessive advise given on the Liberty private discussion board for owners. As Rob always said, “It is what it is…such is life.” ( As well as some other choice words saying that John is a greedy high ego bastard) We all found that out, but Rob was suppose to let us know how he intends to outsmart and “mind-screw” John. I always keep my texts over the years from the whole crew. ;-)
-Trisha
I don’t believe that John Barilla is John Hewitt. I’ve met John Hewitt and he is intelligent and cunning (and crooked), nothing like the nonsense that Barilla spews on this site. Hewitt protects himself too well and wouldn’t stoop to inane comments on this site. Maybe he does read some posts on here, but I highly doubt he posts anything of his own.
@Trisha – Is the grid on Zeenet rigged? Do they match up at all? Hope Rob Koons get’s out.
@Trisha,
Ever heard of accounting? You should try doing that and you would know your numbers without having to read a grid. You just proved who the real moron is.
You can track your numbers all you want, but at the end of the day it is Liberty and Hewitt and IRS who determine what you are actually making. Your expenses you know-but not necessarily your revenue. John Barilla, you should know that if you were a decent businessman!
the one in newport tn is a joke!!!! sign said $50 for filing now…….took 2.5 hours to do my return and 5 days to get my $50. the little fat ass guy that did my work didn’t no shit from apple butter(might be why his breath smelled so bad fro 5 feet away) claimed he taught in a college somewhere. his helpers that i knew had been servers in places i had worked before, i should have ran when i saw one i know too well. and on top of all the lack of tax knowledge the little bug eyed self proclaimed owner hit on me! sickening to say the least. heard him on his cell phone(all while trying to do my return) talking about if they were going to be able to do payroll. again i should have ran. tell all your friends and family to stay away from these places as it seems that a background in taxes or accounting is not a requirement to work at one of these places.
With this company, it seems your expenses always outweigh the income once you pay the royalties.
Just wondering how the LT structure works. Was told if i bought a franchise that I would be my own boss. If I had in fact eaten the cheese how would I receive my money? I hear these horror stories of owners having to borrow money to make payroll, how can that be when some people will pay debit/cash/check? Sounds like I would have been a pawn for someone else who would decide when I would be funded. Please elaborate honestly so I can make my decision prior to next season.
@curious – The early season filers use bank products, which means you wait for the IRS funding (unless the owe back taxes, child support or student loans, which means you may not get any money on those people), which is about 2-3 weeks. You don’t know if you will be paid until usually weeks later. With the early season filers, they are past broke in most cases, so they can’t pay you up front. Depending how much capitol you have, you may need to borrow for payroll, Cash in a Flash etc. Some borrow just to purchase the territories. Sometime’s you may hit the jack pot and get a real good store with lots of revenue, but most don’t, so it is a cr@p shoot. If I had the is website prior to purchasing, I would not of or would of not believed all they told me, which I did not. If it is to good to be true, it is! Lot’s go broke in the long run. Start your own.
Oh and if you borrow from Liberty, once the bank products start paying, they will do an intercept fee and you still won’t have any money.
@Curious if you are planning to make money, Liberty is NOT the place. With large royalty fees that they charge you whether you collect your fees or not, or the inane marketing expertise they give you, or, much worse, the way they teach you to do fraudulent returns, you should be quite scared to be even near them. You can start your own tax service with about $1500 in software, you doing the preparation and processing and a small office with a desk somewhere. Total real start up cost is about $2500 tops! Don’t be hooked in like we were by the song and dance that Liberty puts on for prospective franchisees. Remember, they are in the business of selling you a dream that you wish to believe, not a legitimate system that supports you. About opening a store next year, why would you trust these thieves to help when you have a lot of collaborating comments here that are telling you to stay away? Look at the early postings going back a couple of years. Contact some of these people, I think John Palmer is still around, he certainly helped me! This is not a business model that allows the franchisee to make a living. You will not even be able to make payroll after all your fees are intercepted-Notice that Liberty is always the first to get paid. Borrowing from a thief usually ends up making you a thief. STAY AWAY FROM LIBERTY TAX AND JOHN HEWITT.
@Curious; The business model that Liberty uses is basic. Locate in a highly populated low income neighborhood. Prepare basic returns, charge high fees and get the high fees paid to you through the use of bank products. The problem with this business model is the following: 1)They did alway with the most profitable of all bank products the refund anticipation loan 2) the IRS has started to aggresiviely enforce compliance 3) online products are taken market share 4) a more savey consumer & free tax prep by volunteer groups 5) IRS requirements for tax preparers.
Thanks for your insight. I did in fact look further into older posts, and it seems that I will be more fortunate than others by having this knowledge. I am sad to hear that so many have been taken advantage of. If the proper authorities do what is right maybe some may get some money back with a class action suit. Now it seems I will have to change my phone number so there predators will not be able to contact me. So I can be pretty sure that my rural area (less than 30,000 pop county wide) with at least 6 other tax practices in operation is a sure failure with their predictions of a 500 client business? Thanks again for any help you all have provide.
@curious – Probably at least 100 plus, if all the stars and planet’s are alined!
@John Barilla,
Please address me by my first and last name. I am easily found and admin has permission to verify with you that I am not posting under other people’s names you accuse. You have yet to share your accounting details in full. Glad I redirected the tired word of Loser you like so well to now include moron. You are easily influenced when your ego is in the way, which explains how you got recruited to be a Liberty franchisee so easily.
@curious,
500 first year clients in that market you described IMHO is highly inflated. Pfft! 150 returns is lucky on first year at a glance. By the time you hit 500 on perhaps year 3 or 4, minimum royalties coming and expenses will have you as a sitting duck. Good choice to build your own brand by reputation and referrals.
-Trisha
The money back guarantee policy applies to the user @pissed off. The franchisee or Corporate will hear your complaint by calling their home office. You should get an apology from a customer service rep who will contact the manager they refuse to give you a name or email for. Expect a callback within 24-48 hours and keep your ticket number from the call and stay on them to get a refund of your tax prep fees. They will force any franchisee to refund the fees per policy…supposedly. In my experience, they do not hesitate at all if that franchisee is already in debt to Corporate. They will pay it to you for them and send a bill with interest to the franchisee. It may be mailed to you via overnight.
Where are the Liberty Company spokespersons to come HERE and apologize to these customers and franchisees who have questions and complaints?
Congrats on 3000 posts which Liberty Tax is aware of; yet refuses to address current problems, openly.
-Trisha