LIBERTY TAX SERVICE Franchise Complaints

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

• You can’t really do too much. The royalties are what makes Liberty Tick. Without these payments, a P-note won’t happen. They know better than to lend you money when they don’t have a reasonable way to recover it…you could just walk away.

• 2400 posts about this franchise and their CEO. Are we any closer to closing the company up for good? Putting the CEO and all the “big Wigs” in jail yet?

  Trish: Heard anything new from Jerry Arrington or any one else??

  This is one of the most unethical companies in America to date. The CEO has bought his way toward any award he’s received. Trish has stories upon stories of how he’s cheated his way toward scandal after scandal.

  Now that tax season is over I certainly hope that anyone looking at this website and is even thinking about buying into an LTS franchise that the 2400 posts on this website, almost all negative, will be a deterrent and they will NOT go ahead with a purchase. It will bankrupt you, lose your money, have employees steal from you, get NO help from AD’s or corporate……..it was the worst experience of my life and if you sign on to be a Liberty Tax franchisee, you will REGRET it big time.

  Is a class action lawsuit still possible?? Franchizee: What are your plans next? PLEASE don’t sign another 5 year contract…..

• @Guest:

  In my last two years as a franchisee I had a similar situation in which I was unable to pay my royalties. I just let it sit in the Liberty A/R account (at 18% mind you). They sent me docs for a note payable that they wanted me to sign take away my homestead rights (basically lets them take your home and anything you own) which I never signed and never gave back to them. They kept pressuring me to sign and I just never responded to them. They are still getting 18% on the A/R account versus 12% on the N/P. I never got any notices to cure or nothing but maybe that has changed since I left the system a couple of years ago. Bottom line, I wish I would have never gotten involved with them. They take your money and are glad to do so but don’t get anything in return except for an operations manual and some kool aid. If you have an opportunity to get out, I’d encourage you to do so as fast as possible. If you’re considering purchasing – make money elsewhere – YOU CAN DO IT ON YOUR OWN!

• @SanFranDan – We are still awaiting to see the contract but hedging not signing. I could do this from my home and make about the same.

  @Guest 1787 – Have you been doing a tax business on your own? Do you still owe them money? Have you been taken to court?

  It is just more trouble than it is worth and only “they” are making any money.

• IF YOUR ARE CONSIDERING BUYING A LIBERTY FRANCHISE, JUST LOOK AT ALL THE PEOPLE ON THIS BOARD THAT HAVE BEEN FU@k.D BY THE LIBERTY SYSTEM, WILL YOU BE NEXT????

• ‘Tis the season for scoundrels like Liberty Tax to sell their lame franchise ideas to the unsuspecting public. They are armed with statistics that are totally spun to their advantage. A nice way of saying they are liars. The public must be made aware that these hooligans are out there yet again and will undoubtedly try to deceive more people into their franchise system. Don’t let this happen to you. We have all been screwed by Liberty and want to warn others so they don’t get cheated.

  John Hewitt and the rest of his “Hitler’s Youth” are nothing but bullies and crooks. Be Aware-They are out there!

• Liberty was advertising on one website I go to frequently stating they are a “family friendly company”. Now there is some false advertising. Take all the family’s money, assets and time which must be in their mind a ‘family friendly’ situation.

• @Franchizee – yes, I just started doing them out of my home for half the price. I made more money last year than I did in 3 years as a Liberty franchisee. No royalties, no rent, no guerilla marketing, etc. It was great. I sold my stores at a loss but was at least able to get out while I still could. I was not taken to court or anything else. I was very fortunate to get out the way I did.

• @Guest 1787 – I am glad to hear you were able to get out and still have income. How were you able to contact your prior clients? I am working on my marketing to keep my current clients and then expand after the two year mark. Thanks for the encouragement.

• Yeah, I saw the stupid ads on the internet for LTS………..NO Tax experience necessary!

  Ha,ha,ha,ha! No BRAIN necessary either! Just a large wallet!

  Family friendly?

  Are they kidding? What makes LTS family friendly? Oh yeah, NOTHING.

  They are an equal opportunity employer, they rip off anyone and everyone!

  They make me want to barf…..

• @Franchizee: I can honestly say that I did not market to my customers I acquired through Liberty. If they like you, they will find you and word will spread. I had customers prior to joining Liberty and they were easy to keep but it’s gratifying knowing that people trust me and want me to do their taxes because of who I am and not because of LTS and were willing to seek me out. I’ve heard that story multiple times on this board of customers finding them even after they have left the LTS system. Good luck, you will be successful without LTS in your life.

• I agree with Guest1787, when I left my old firm to go to Liberty client’s who I didn’t solicit followed me there and the same thing happended when I closed Liberty and took a job at a local accounting firm.

• If you have skills, customers will find you. Ex-franchisees who are not tax preparers could have a harder time, but a good preparer can always make some money. Still need people skills. If you are in the system, learn the system because you’ve already paid for the training. Then back up to look at what can be used. 200 customers @ $200 each can profit $35,000 net. Get more customers, get more profit. Not bad if working on your own.

• Liberty is looking to have current zees open on Dec 26th – Last tax season it was Jan 2. With the people who left, when are you opening your tax offices?

  Also it must be bad with Liberty. There are more complaints about office’s not being open the minimum 8 hours a week and zee’s not posting their hours on their office’s nor on their phone message machine. What is going on in other’s areas with this situation? I am open close to the 8 hours but sometimes it is just too tortureous!

• No point in opening before January unless making holiday loans. For now, the more stores not open, the more money for others.

  Franchisee – look for customers, they are out there until July.

  I’m still getting some work and customers pay out of pocket after season.

  Flyers in local stores salons etc. Wear your t-shirt when you go to lunch on the days you’re open.

  Good luck!

• According to the scuttlebutt, Liberty want’s current Zees to open on Dec 26th full time. Last year, they tried for Jan 2nd. Of course the fantastic convention is starting tomorrow or so…..Watch the IRS open again on Jan 30th, so people are wasting resources and money just to get a tax return or two for John John.

• I went by 3 Liberty’s only one was open on the posted off season hours, but I am still open five days per week, and covering payroll and rent. Maybe, I will put a flier on the door of the ones that are closed, only a mile from my office, hmmm think I will do that tomorrow…..hmmm….probably most in the community already know that they don’t honor the posted hours though…..so maybe so, maybe not…those “guests” that love Liberty soooo much what do you think? post on the closed offices or not? or should I call the 800 number and complain…….no, I would not do that to someone who CAN’T AFFORD TO BE OPEN!!!

• They will surely be getting their notice to cure letters from the attorneys at headquarters.

  Hewitt would tell them they should be open, that way they could afford their overhead, and get him so money to fee intercept. But I guess when you’ve gone broke and the power is off, the internet has been disconnected and you can’t afford the gas to get to your office, there’s not much hope in being open.

  Stay away from Liberty, it is a recipe for disaster.

• Our AD sent an email a while back reminding to make sure you are open 8 hrs a week, post your hours and make sure your phone has a message and by all means, return your phone messages….Also, make sure you have a competent person to help anyone who happens to walk in…Ya, sure, will do that captain Bly.

  On the call this week, Liberty Headquarters, have been checking up on Zee’s because Heather said so and you better be open for goodness sakes or else…

  Whatever dudes. No money, no opening anytime soon. They have a new thing, where they give a list of things to do every month, which is mainly, spending any money you have or borrowing to do these things which is wasting your time, energy and resources.

• I live in a major metropolitan area, and can tell you that most have a sign stating open by appointment only. And as a matter of fact, I happen to know they approved a 4 month rental agreement during tax season for one franchisee, and she is working from her house during the summer. From my experience, that is a lot better way to handle the summer traffic. Few could come during the days you were open, and most wanted something right away, so you ended up working odd hours plus your eight.

  Again, for anyone looking at this franchise, make sure you realize the numbers you get from Liberty are lies.

• I would definately not work from home. No separation between you and the customers.

• If you work from home, do you really want Liberty’s riff -raff knowing where you live?

• Definitely would meet at a local coffee shop if necessary.

• Dear ADMIN (Sean):

  Thanks again for starting such a useful website. Why is it, though, that the owners of these Franchises sit back and get filthy rich off of everyone else’s money and the government doesn’t do anything about regulating it? Are they getting a piece of the money too????? Of course…….

  JTH is the most ruthless man in the Franchise industry……..well, next to David R. of Tulsa, maybe not! and yet he is still the head of this ridiculously slanted Franchise……when will justice be done???

  The CEO’s of these companies are getting rich and so are the lawyers and judges! Everyone except the little guy who plunks money down in the first place…..as soon as they sign on the dotted line all their liberties and freedoms are taken away from them.

  These companies need to be exposed in the media and soon. I’m SO waiting for that day to come. Can you enlighten us as to when this may happen???

• SanFranDan writes “Why is it, though, that the owners of these Franchises sit back and get filthy rich off of everyone else’s money and the government doesn’t do anything about regulating it? Are they getting a piece of the money too?????”

  We live in a country where Wall Street bankers can bet against their own clients and make MORE money when they lose their investments. Why have they not been held accountable? Why have the taxpayers been called upon to bail THEM out? Because Wall Street bankers have aggressively used money and political influence to create a rigged game.

  Franchisors have been organized and not stingy when it comes to fighting any initiative that might upset the imbalance of power when it comes to the franchise relationship. On the flip side, franchisees have been unwilling to organize on a meaningful scale, and for the most part go away quietly once they’ve been throttled. You who speak out, vent and warn others are a very small, but extremely important minority.

  The Internet has given us an unprecedented opportunity to take a sledgehammer to this rigged game. I believe that it will be the anonymous commenters and whistleblowers on sites like UnhappyFranchisee.Com and BlueMauMau that will expose the worst of the worst and cripple their ability to sell franchises in any meaningful way. I am hoping the good franchisors recognize how this will benefit them, and help run the predatorial scammers out of town on a rail. I am not patient enough to hope that the government or regulations will change things in any meaningful way. It’s up to us.

  Keep commenting, sending me documents and information we can use to keep getting the information out. Believe me, it’s working. And if any among you can make a contribution to the UnhappyFranchisee.Com operational and Legal Defense Fund, your contribution would be MOST appreciated!

  You can contribute here by Credit Card, or email for the address: http://www.unhappyfranchisee.com/support-franchise-fairness/

  Coming up on 2500 Liberty Tax comments!
  Keep’m coming guys!

• Hi, I have a friend who owns a Liberty Tax Service on the East Coast This is her 1st year and she is always telling me that I should leave my tax business and start up a franchise LTS.

  I do pretty well for myself as a Independent Tax Consulant and really am considering hiring some part-time help because I can barely handle the clients I have now. Anyways, my friend told me that she did so well this year that Liberty Tax Service got her a brand new automobile worth almost 80K. They are sending her to siminars, paying for hotels, vacations, etc… What do you think the catch is if there is any? I don’t know what kind of system she has going on but it appears to work for her.

• I don’t have time to answer this in any detail, but my answer to you would be:

  STAY ON YOUR OWN AND HIRE PART TIME HELP.

  ONCE YOU JOIN LTS, THEY WILL “OWN” EVERY PIECE OF YOU. YOU GIVE UP ALL RIGHTS AND FREEDOMS AS A HUMAN BEING.

  Did you read the last 2400 + posts? And you are STILL considering it?????
  NOT a smart idea. Your friend may be only telling you part of the story and I would be quite wary of anyone getting anything from them for “free”. It just doesn’t happen.

  It is much easier to expand on your own than to join this cult of a company. Do I think there is a catch?? Most emphatically YES!!! Do not get involved with this company. You will be forever sorry.

• Make sure you ask her detailed questions because her story does’nt add up. Even if she was working for the company, it does’nt add up. There is a finder’s fee for you if you buy a store. Ask her about that. Maybe she means she was able to pay her car note. If she is an owner, she pays her own bills with any profits.

• @Sarah – Having a $80K car does represent having money. Most anyone can qualify for a car payment as long as your credit is not destroyed.

  There is definitely a finders fee usually up to $5,000 for a new zee. Also it does not add up with the “freebies” from home office unless she is the “new” Annie Fuller in training, then maybe it is true. Trish could possibly shed light on that practice.

  First year, does not translate in being successful with Liberty. It may be that she has a good location and is the only Zee in a highly populated area. Also, she may not of done the return’s correctly which will translate into no business within three years of ruining people’s lives and word is spread far and wide.

• Sarah, your friend might not be revealing all her cards. For example, you never hear of a male promoter such as Annie Fuller. I am not accusing anybody of anything, and I certainly not sexist, but John Hewitt is well known to be “generous” to those of the female persuasion and does expect reciprocity. He recruits females for the purposes of adding to his harem. Please be careful!!!! The whole organization is a bunch of crooks, con-men and sleazes. Look at all the posts here! Most people would not give a care or take the time to post commentary unless they were really affected in some way. Liberty Tax exercises all methods and vices to secure John Hewitt a lifeline of money and carnal companionship.

• I have been with Liberty for 9 yrs,. And for sure this was great for the first five.
  I had to get my own financing as 40% plus 12% plus 2.50 per return was outrages
  YOU DO NOT MAKE MONEY AND WORK HARD AND SACRIFICE YOUR FAMILY LIFE. I TRIED TO GET OUT OF THE FRANCHISE AGREEMENT . ANY IDEAS HOW TO GET OUT AND START ON YOUR OWN. ? THE SOLUTION TO LIBERTY GREED IS FINDING A WAY TO GET OUT OF THIS FRANCHISE AGREEMENT. ANY IDEAS ARE WELCOME

• First take a good look at why you are losing money now. Will you have a profit now that the 12% financing is gone?

• @Julie – You have to set up another company behind the scenes. Start moving your personal clients to your new company. If you are doing 500 returns per year, you could move approximately 25% or so per year. Get a phone number in the phone book, and work from your home. That way you could take that money and keep it separate, unless you are obligated to show your tax returns to LTS, then it may not work. If you don’t have to show your taxes, you could probably pull it off.

  Think outside the box and start tomorrow on a plan on moving your best client’s to your own tax office or just work 25 miles from your current office if at all possible.

  If that is not possible, cut all crazy expenses and tell them you are doing it and don’t do it. Unless you have an AD that lives in your back yard, they will not know. Keep your unhappiness to yourself and don’t reveal your hand and start working for yourself ASAP.

• Very good advice from Franchizee. Also, list your better clients as $0 (free Tax Returns) while they actually pay you. This is also an “unwritten law “when dealing with Liberty.

• @scammed – Yup – Also make sure you ditch all vendors associated with Liberty especially the credit card vendors. Liberty has access to info if you use their vendors. All vendors that are recommended are actually given info about your office.

• Unhappy people:

  What Sean is saying in his wise post of June 2nd is that it’s great to write all these posts, but it’s even better to rally around and support each other.

  There should be a way for our collective voices to be heard…….nationally, besides this forum. This forum is the beginning, but I firmly believe we can all write to Sean, the founder of this website and considered the ADMIN, with our support, our donations and our commitment to stick together and topple this CEO and lock him in jail.

  I am reeling after several years of major lawsuits and court dates and judgements. I hope to be working again in a totally different capacity very soon but have depleted all my savings just trying to pay bills. Liberty Tax took away everything I had and more and created a monster in me as far as wanting to bring that man to justice.

  NO ONE deserves the type of treatment that Liberty Tax uses on everyday good and decent people buying into a desire to own a Tax business. The horror stories I experienced were unreal.

  Please……people that wrote posts over the last few years……..come back and post again. Let’s figure out a way to bring closure to this awful man and this awful company he produced. It would save many people lots of heartache. Anyone reading this posting for the first time………spread the word……….do not plunk down your hard earned $$ for a Liberty Tax Franchise. It is the most unethical company in the country and the man at the helm is the worst piece of garbage there is.

  Sean, help us figure out how to expose him for what he truly is……a con artist in the largest sense of the word and he preys on and rips off people left and right every minute of every day.

• @SanFranDan and ALL readers/posters,

  John Hewitt stands TRIAL next month for the racketeering.
  ***************************** I WILL be there ** *************************************
  Congrats to the lawyers involved and the people who stood up and contacted Mr. Arrington.

  Plenty of other surprising news to come. I was just told there has been a record number of terminations of franchisees as well as people walking away.

  My sincere condolences to those harmed by unilateral and unwarranted terminations as well as the ones who had to walk away and cut their losses.
  We are all here to support you through such a difficult time.
  Surprisingly, familiar names were delivered terminations in recent weeks and months from Corporate, but it is up to them to share their stories publicly.

  I am always in contact with Jerry Arrington and all is going well. He works around the clock and his team remains passionate and faithful to getting their man and bringing justice. He is strongly encouraging any calls NOW from anyone interested to contribute information. Past and present franchisees needed:Jerry.arrington@irs.gov or call his phone at 828-242-2122. He is backed by the Department of Justice; much progress has been made. Congrats Jerry and Kathy. Thank you for your help!!

  My apologies for absence on the board recently, but I am always on task and thinking of you all.

  “You own everything that happened to you. Tell your stories. If people wanted you to write warmly about them, they should have behaved better.” — Anne Lamott

  -Trisha

• Do you have any links to the news?

• @Trisha – Is this recent development’s on Hewitt’s saga regarding the trial?

  It would be nice to hear of Zee’s who lost their contracts. Can you give any insight as to the terminations? Like not paying their royalties or they were not completing their payments on FAC? I did notice on the Top Gun’s, hardly anyone I have ever heard of. No old people up there. Is there something in the wind or is it an anamoly?

• Seriously?!!! This is the BEST news I have heard re: LTS in years!!!

  Details! Can you provide us more details?? Oh, how exciting!!! Hope it’s for more than just racketeering. There is a whole list of infractions. Racketeering is just the beginning.

  I will never get back the years I spent being abused by this Franchise, or the thousands of $$ spent on Lawyers, but this news is oh so sweet and a long time in coming! Yay! Happy dance!!

  Trish: Thanks SO much for updating us and please tell us more! SO glad you will be there too. I wish I were a fly on the wall in that room! :)
  Hope there will be a ton of press there to record the proceedings. Hope this is the beginning of the downfall of JTH and the end of LTS. Awesome news.

• I found this posting on Yahoo under the finance section, the message board for “TAX”

  “Weird call yesterday. Caller said he’s calling all Liberty employees inviting them to open their own franchise. Special deals are being offered.
  Told him since I work for my son, I didn’t think my son would like the competition, and that ended the call. Now I wish I had heard a bit more to see if it was a scam or real. Can a big company like Liberty “steal” employees away from their franchises like that? Or was it an honest call just showing opportunities exist?

  Gives some support to Trisha’s comments about franchisees being terminated or walking away.

• Liberty is a racket. We do support for some former Liberty offices who now work independently, just like you can, and they make way more not having to shell out all those royalty fees. What is it during their talks that are sooo convincing that you sign away, through financing, 25k that you don’t have? I sat in on a Liberty conference with some bigwig who was talking about expanding their efforts aggressively. It was mainly about the franchisor losing market share to “mom and pop” tax offices, and how they plan to combat that. In this market, you’re going to be more successful by building a solid, trusting clientele based of your own credibility, dependability, and ambition. You can do it, just don’t ask Liberty for help.

• Next time you or anyone else gets that call, please write down the phone number from your caller id and post it for franchisees to see. I would expect that to be a hoax.
  I don’t think dumb enough to call employees. Excellant way to let store owners out of their contracts.

• If you have found the discussions, support and information at UnhappyFranchisee.com helpful or useful, could you please leave a comment here?

  http://www.unhappyfranchisee.com/support-for-franchise-owners/

  Thanks, and thanks for your participation and support of the site.

• @Bill and guest,

  Yes, they have called employees and offered them positions and even asked them if they wanted their own store. I do not believe it is a possible hoax at all. It is much cheaper than paying Franchoice and other broker fees for recruiting prospects who will need financing. They already encourage you to put a hundred students in tax school every year even if you don’t need any new employees. They are already trained and you will be training more to replace any that you lose of course.
  John once told my own sister, Conny, who was a manager, “if she (pointing at me at dinner) does not sell you one of her stores by next season, you call me and I will make sure it happens”. He said this right in front of my face as though it is just the right thing to do. I knew it was not good for her to get in the debt trap I was in, even in growing stores.I convinced her it is not what she thinks. For one, as a sole proprietor, they never allow us the financing to put ourselves on payroll so her children would be doomed if she ever expected to pay her house bills from owing a financed store unless she had other income. I never understood why he would think I would want to get rid of my first store and that I would go along with it to watch my own sister sink her family. John is very confident that he gets what he wants with or without your compliance.

  I will be happy when he finds out the Feds really have him now and he will never laugh in their face again.

  Be patient on upcoming news and be assured that anyone who has not called Jerry Arrington is going to wish they “got in on the investigation” and add to the witness list before they shut down Liberty Tax for good. I strongly encourage those who have been waiting to call now and proudly add yourself to the list.

  :-)

  -Trisha

• Saw this ad posted today in the local classifieds. I have to ask myself the question – if you were making that much money in 4 months I wonder why he’s so anxious to be leaving the “faster growing tax business in America”??? Buyer BEWARE!!!!

  We are pleased to offer two highly profitable Liberty Tax Franchises for sale. Buy one or both! Be a part of the fastest growing franchise in the country!
  We have some great financial options available.
  Pay cash and get a 27% discount! 75,000 each or 130,000 for both.
  or
  The owner will finance!!! With 20% down, you can get one business for $90,000 or two for $170,000.

  Financials:

  Gross Revenue – $162,407

  Rents – $37,860

  Gas/Electricity/Water/Sewer/Phones – $5,800

  Pay-Roll – $31,000

  Royalties – $30,857.33

  Office Supplies – $3,000

  Gross Revenue $162,407 — $108,517.33(Expenses) = $53,889.67

  Or pay a manger to run the offices – $15,000 and net $38,889.67 hands off.

  No experience necessary — Liberty Tax

  Financing Available —

  Great Semi-Retired Business

  Simple Business to run.

  Corporate will help solve all your problems.

  Follow the Franchise Model and enjoy 8 months off.

  Financials were taken off the Liberty Tax website — Buyer must be approved by Liberty Tax Corporate to be able to buy the offices. Approval is simple

• He is really mad about something or just looking to get out. Stores will probably sell at $100,000 to $130,000 with seller financing and proof of $54,000 profit. Independant would be making $75,000 to $80,000. Won’t get $170,000 or cash sale, because he just told buyer you’re paying a 27% premium for no good reason.

• Who would want to sell such a great and easy business as this ad states? No one in their right mind would walk away from such a great deal. This person is going broke every year!

• Trish: Tell us more when you can! :)

  I just googled John T Hewitt and saw that he is being voted on as a 2013 Small Business Influencer. Yucch. How can we let those people know he is not worthy of such an award? It’s got to be something he’s paying for…..he’s paid for every other award he’s received.

  Look under http://www.influencers.smallbiztrends.com and see what you find. I didn’t notice if there’s an 800#, but I’ll look again. I will be happy to call them and tell them that their guy is false and not a positive influencer at all, but rather a loser.

  I can’t wait for the press releases on this guy and his trial!!! I’ve already notified my friends and family to forward all articles to me, I don’t want to miss any of it! :):)

• @ALL and SanFranDan: There was a contact page. All we can do is inform those organizations who may not know or research current issues that Liberty Tax and John Hewitt have faced and are involved in. Corporate has not made any public response to denying the severity of the facts.

  “John Hewitt of Liberty Tax should not humilate your organization with an award. Please contact Jerry Arrington of the IRS who is involved in a major suit to shut Liberty Tax down because of his offenses with help of the department of justice. They are forecasted not to open next year according to progress of the case. Jerry.Arrington@irs.gov Also, he is currently involved in a racketeering case in South Carolina at this very moment and in quiet litigation nationwide. Very serious case with the IRS above all. They believe HE is responsible for millions of underpaid tax dollars by facilitating fraud through training as well as many other factors giving them a solid case after years of investigation. If he purchases his award through your organization, the government WILL find out. Feel free to share this information publicly as unhappyfranchisee.com has been monitored by the Feds as well and it has been very helpful in their investigation. Thank you for your attention in this matter. We pray victims are not lured in to purchase a franchise that has been promised a kill date coming soon by officials.” -Trisha Grabert

  -Trisha Grabert