LIBERTY TAX SERVICE Franchise Complaints

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

• ^^Trish: Did you write that on their contact page? Great, so I don’t have to contact them, correct? Thanks, that’s awesome.

  Thank goodness for the Internet, ADMIN, Trisha Grabert and the rest of you all who have posted over the years and most of all THANK YOU to Jerry Arrington and the Dept. of Justice.

  I knew all along in my gut that this man was a dishonest SOB. I hope he gets what he deserves and more. Looks like they really will lock him away. What a con-artist and to get away with this for so many years.

  This is huge. We collectively have done this!!! What a fabulous feeling. Can’t wait to start reading news articles. This sounds like it will be very big once it hit the news wires. YEA, YEA,YEA!!!

• It figures that Hewitt would be a racketeer. He certainly acted like one and made a lot of do things ‘or else’.Many thanks to ADMIN and all of the other contributors to this website in what hopefully will be the downfall of this company and its leadership. For once we all managed to stand together and beat up the bully. Anyone thinking about even entering the Liberty system cannot ignore the fraudulent practices of this business. The Tax business has changed and the days of ripping off customers, the IRS and franchisees are over. May John Hewitt and Liberty Tax have a very painful lesson in bankruptcy and fraud, like they did to all of us franchisees.

• I hope Screwitt, is SHIATTING HIMSELF OVER THIS LAWSUIT!!!, Got a call to open a Liberty, I asked how they got my number, they are calling any and all phone numbers associated with ever working in a Liberty office. If I was an owner and they were calling my employees, I would be PISSED knowing how hard it is to get a good/manager/preparer etc. Anyway, where are all the LIBERTY SUCK UPS? ARE THEY BEING SCREWED LIKE THE REST OF US?

• I got a call from them the other also. The gal at the other end of the line did not speak English too well, of course. I asked her where she was getting the names to call and she said I was listed as an ex-employee of Liberty. They can’t even get their lists right-knowing an employee from a franchisee to an employee of the franchisee. Looks like Screwitt ( I like that name for him) is getting very desperate to build his empire since he has exhausted all of the outside prospects. Thanks to this website people are getting a lot smarter and doing research into this crooked company before they invest. I only wish this was available when I originally bought in because it would have been a different story for me-I wouldn’t be broke.

• @TexasTee – When trying to figure out due diligence, which they are very evasive and cunning, there was nothing online but great praises. This site existed, but there nothing on them until about year after I signed up. Had I known, I would of never purchased the second territory and would of kicked them to the curb a lot sooner. I am sure it would of been same for others. Of course the lawsuit in NC was not even starting when I got in. Wish I wasn’t broke and tired right now! The Zee’s I met in my area were not forthcoming, except one who would drop hints now and then very carefully, so at least one was much more honest. Another was just purely unhappy after one tax season, so that to was a red flag.

• Here is the link Trisha was talking about – Go to the bottom past all the legal jargon:

  http://www.google.com/#sclient=psy-ab&q=trisha+grabert+liberty+tax+lawsuit&oq=trisha+grabert+liberty+tax+lawsuit&gs_l=hp.3…18831.26239.1.26567.10.9.1.0.0.0.547.3034.2-3j5j0j1.9.0…0.0…1c.1.17.psy-ab.er3TLlBefjs&pbx=1&bav=on.2,or.r_qf.&bvm=bv.47883778,d.aWM&fp=850c3bf0c555a43f&biw=1280&bih=633

• http://www.leagle.com/decision-result/?xmldoc/In+FDCO+20130327H36.XML/docbase/CsLwAr3-2007-Curr

  Try this one.

• Franchizee:

  I think, but not 100% sure, that this case that you posted the link to, from South Carolina, is the case that precipitated the BIG one to come. Trish, please correct me if I’m wrong.

  I would be very curious to know how many current and ex-franchisees have been contacted and interviewed by Jerry Arrington and his crew. I guarantee all of them across the country were on the same page!

  JTH has got to be an expert in the legal system after all these years of suing franchisees left & right……..if they sneezed the wrong way…….I bet he doesn’t go down without a long fight. Hope it’ll be an expensive one, with the IRS winning and capturing all his millions.

  You can imagine how many eyes will be on the news in the next several weeks. Trish, when you can, tell us more!! :)

  Sean: if you and/or Jonathan Fortman were involved in this in any way………..THANK YOU SOOOOOOO Much!

  My family has been suffering for 11 years to be exact. My children have grown up listening to this conversation around our dinner table. I bet there are sooo many of us out there that cannot wait to see his downfall. The first time in 11 years I have a sense of calmness over me. We have hit rock bottom and now it’s our time to come back up to the top of the roller coaster and be happy once again.

• @SanFranDan: It is the North Carolina case. Is Trish talking about another case ontop of this? That would be interesting.

• @SanFranDan – Boy you were an early zee with this company. Your disaster happened about the time we started on this nightmare. I love how Liberty is free with our money when it comes to leases on properties, payroll and all the stupid guerilla marketing they do to “supposedly” to bring in business or as it is usually fraudulent tax returns. Only a fraud would want to have their taxes done with a bunch of clowns and jokers.

• ^^Yeah, an early one. We did our “due diligence” and were “impressed” with his credentials. After all, he came from H & R Block and also started Jackson-Hewitt……it seemed impressive at the time.

  WHAT AN UNFORTUNATE, EXPENSIVE MISTAKE THAT WAS!

• Sanfrandan: dido for me. Looked at the company for two years. Based on
  his previous success, his company message (community service oriented etc.)
  Sounded like a great opportunity. Went to the meet and greet with a women cpa
  who already had a practice. She told me it was a bad idea and I ignored her
  warning. I should have remembered the adage if it’s “Sounds to good to be true”
  Still kicking myself.

• ^^Well, at least you had SOME warning! :( We had none. Lots of expertise personally in this area but kicking myself about not just going at it alone.

• We were duped the same way. Listened to the sales call and Screwitt stated that a recession does not affect this business in any way shape or form, because everyone needs their taxes done. Ya, that didn’t pan out. Plus too many folks having finger’s in the pie. He also used a lot of Christian jargon, which I am always skeptical of the person in business. He also implied that he was married, and a family man.

• Liberty’s John Hewitt, “Grandfather of Tax Industry”, Stands Trial for Racketeering, etc.

  The “Grandfather” of the tax industry to stand trial for a number of illegal acts. Apparently, birthing an industry requires one to pretend that the protective laws governing and regulating our large corporations does not apply to them. In this case, we certainly have a “pattern of racketeering activity” which only requires two acts within ten years of one another. The court order is below.

  IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION

• John Hewiit and his cronies are world class salesmen, period. Once he gets you on the initial sales call and brings you to the meet and greet, the hook is set.

  There are paid cronies there that will tell you what a great company Liberty Tax is and that they are happy and making money, doing lots of returns. It’s all a well-orchestrated plan that is highly effective at getting you to sign on the dotted line. It’s no different than a well trained car salesman. The problem is you lose many more thousands of dollars, lose your life savings likely file for bankruptcy.

  Stay away from this company, you will regret it. AGAIN, they are professional salesman, do fall for their BS. Keep your emotions in check and don’t fall for their lies of working 4 months a year, being your own CEO, living the American dream…it’s all catch-phrases that work surprisingly well. I wish I had stayed away.

  Years ago, this website wasn’t around when I “found” Liberty Tax, I wish it was.

  If you are a current franchisee, I advise you to get out at all costs, cut your losses and begin again. Stop throwing good money after bad, you know you’re going broke, there is no light at the end of the tunnel and you are fooling yourself to think “next season” will be better. GET OUT, stop bleeding money and live life happy. There is no happiness in bankruptcy, debt and constant worry.

• @Don’t Be Fooled – Thanks for that info about the well orchestrated meet and greet. When my partner was there, a zee was selling his store’s for close to a tune of 1 million dollars (supposedly) and was a happy camper. He had 8 stores (going by memory) and was in the Northeast. This past year once Trisha started posting, looking back, was that a scam and a set up for people to see? Was it staged and has anyone else saw that similar situation or know anyone that has. Because trying to sell this hunk of junk is near impossible, because there is nothing to it. There is no clients because every tax season you basically start at ground zero! There are no returning revenue because you don’t if people will come back or not. There is not annuity as they like everyone to think. There is no 8 mos off because they just came out with a monthly list of 10 or more things you should do, so this next tax season will be the best. Just spend more money! You should be open as many days per week as you do tax returns. Zero for me then!

• I observed how Hewitt said he was a family man- More like the Manson “family”. He was developing a cult and had the full support of a legal system that he bought and paid for behind him. If I hadn’t lost so much money, I would laugh at all of his claims. I did not know what a crook he was at the time I got involved. Too bad. At least I can warn others of his practices and his fraudulent methods. I know that I have personally dissuaded 9 prospective franchisees from joining. This is at least some solace. Screwitt should go to jail, but I wonder how far he has paid off people in the judiciary and the IRS? Lets see.

• @TexasTee – At the meet and greet, was it possibly staged? Going on a bus ride to nearby Liberty tax offices, which were probably owned by Liberty themselves? John also paraded a young boy stating it was his son. Is that correct, that he has a young son? I think everyone should write about the meet and greet so prospects can know if it is all staged. Also the first training, is all staged. Thanks

• The Dog and pony show was staged. The meet and greet was filled with corporate dweebs that surrounded each prospective franchisee. I was not allowed to even talk to other prospects at the dog and pony show and if I attempted to do so, I was immediately surrounded by the same corporate dweebs and given more BS. Too bad hind sight is 20-20. As for training, I can definitely confirm that that was as staged as you can get. You could get any of the information taught to you from a basic bookkeeping text, Marketing for dummies or on the internet on how to run a business. As for Hewitt’s young son, the poor kid, is this one of a few that he has had with one of his numerous liaisons? I always remember that he had some sort of young kid around at all the parties he gave in VA in my five years with Liberty. Hmmmm.

  Between the busing to favorite locations and the obvious lying corporate lackeys, I still can’t believe that I fell for his line. When I noticed another Liberty across the street from the one we were touring, I did ask the question why it was so close. The answer they gave me was that it was a different territory and that the manager will be happy to tell me that it made no difference in her sales how close the stores were. The more the merrier. Yes, in retrospect, this was an elaborate stage that as long as the Liberty people kept you boozed up and away from other prospects, your judgement remained clouded and you are screwed.

• That is the same experience many years later. Unable to talk to anyone. Did you see anyone selling territories for a lot of money and signing off in corporate office?

• I called it a Dog & Pony show too. No other way to describe it. Very orchestrated, very smooth. What I can’t believe is how long he has flown under the radar and been allowed to get away with it. For years & years & years.

• Check out the Feds crackdown on 7-Eleven franchisees.

  http://www.unhappyfranchisee.com/7-eleven-franchises-raided/

  Not condoning what these franchisees did, but the DOJ needs to look first at the franchisor. 7-Eleven franchisees pay $190K upfront but get no equity even in the inventory… just a split of profits. Then SEI nickel and dimes them down to $9 an hour, then opens up more stores nearby to further squeeze them.

  Sound familiar?

  DOJ is praising the 7-Eleven franchisor SEI for cooperating, when they created the situation in the first place.

• When I started, it was confusing as to who owned what territories. You would see a lot of corporate people buying and selling to each other and to Liberty. I believe this was done to churn up the price of so-called existing territories so that a new one was more attractively priced. You gotta hand to these clowns, they sure know how to squeeze every nickel out of you, legally and especially, illrgslly.

• Interesting, Sean. The same thing needs to happen with JTH and the Judges he paid off in the Eastern District Court of Virginia. 7-Eleven may be cooperating, but that will NEVER happen with JTH. He will go down kicking and fighting, blaming everyone but himself.

  The stress of owning a franchise, with employees ripping you off, is hard enough, but when the Franchisor doesn’t cooperate and looks the other way and blames the franchisee for their problems………..that’s Liberty. I HAVE Liberty now, because I am AWAY from that s—hole of a company.

  I just want to see this case in South Carolina get bigger. It needs to be broadcasted nationally. Have the DOJ and Feds raided his corporate office yet? :):):)

  Gee whiz: wonder what happened to guest whatever number he could come up with at the moment??!

• That guest owes royalties and has no money to pay for them, or they (Liberty) took his franchise from him…..I am sure he will be on here shortly to sing the praises of this clunker junker of a company! He needs to buy my territory, oh ya, it ain’t worth the paper the contract is written on!

• Why is there NO mention of the South Carolina case in the Yahoo, Finance, TAX section of LTS, under the Headlines or Press Release sections???
  Hmmm. Don’t want the stockholders to know the TRUTH?!!
  Hope they (Jerry Arrington) have lots of help to go after all the principals, buying and selling millions (of OUR money)
  You’re gonna see everyone squander their millions before the company shuts down.

  Trish! Come back & update us! :)

  Franchizee: I left after the 5 year contract was over. I’ve had LOTS of legal issues with them ever since, long story. LTS turned around and sold my territory to some poor shmuck for like $300K………..I couldn’t believe it. That gal must be barely holding on. Her store is still there, I think it must be corporate owned at this point. I’m positive it’s there for show, must be losing $ each tax season. H & R Block across the street.

• I usually just browse the comments, and largely agree in silence, but decided to post for once.

  The calls to the old/current employees to purchase territories wasn’t by corporate, they are much too careful and crafty for that. They have staff of the AD’s call. Yes, it’s them competing against us, and yes, it pissed me off. I was wondering if it violated the terms of their contract (I was hoping for an easier out), but it appears it only MIGHT if it was corporate. The fact that the AD’s do the dirty work shields them from liability (kind of like when they paraded Annie Fuller around and then declared her rogue). Don’t think I can use that angle now…

  Also wondering if the racketeering thing sticks, if THAT would allow us out of the contract? I doubt it, as it appears that even sale or bankruptcy of the parent company would let us out. By the way, I don’t think this SC thing will stick. I don’t like John much, and think Liberty provides zero support, but I don’t think they are criminal (just highly incompetant). I heard the Annie Fuller spiel over calls, but as much as I dislike corporate I have never in 10 years been told to inflate or fabricate anything on a tax return. Closest thing would be the closing the sale mumbo-jumbo that is supposed to combat blowback about price by showing how much each form gets them and telling them we can remove it to lower price but it would lose $xxxxx of refund. Never said to add said forms if they didn’t qualify. If anything, I think they were overly cautious this year for things like EIC, to the point that it made us uncompetitive compared to HRB and JH.

  I’m not nearly in as bad a place as most on here. My Liberty business makes a profit, just not as much as I’d like. I would like to exit at the end of my current term, but don’t want to give up the business and can’t move it 25 miles away. My spouse is NOT in the business, never signed the Liberty forms, etc. Could my spouse “run” the business for 2 years until I can? I’d sell, but I still want to do taxes, and wouldn’t ethically feel right selling to someone when I know that 85% of the clients come because of ME, not the Liberty brand, and the the new owner would be left with a greatly diminished store. I also wouldn’t want to compete against the new owner.

  What’s a person to do in this situation? Giving these blood-suckers 19% for essentially nothing but tax software is really making me ill. I’d prefer to walk away and go independent, and let corporate TRY to either run a corporate office or sell to a new zee and get smoked by me. Until I can figure out how to get out and still keep the business though, I’m stuck, as I won’t simply walk away, get nothing, and let them profit from all my hard work.

  Sorry for the rant…

• There are several reasons why the SC case could stick. 1. Jury trial. Jury’s tend to love the little guy, because it could of been them being ruined. 2. This is a case brought by Liberty client’s not franchisees, so yes, it could have huge implications on Hewitt. There are emails from our AD stating how to inflate prices on forms to make up the difference if it is a lower than average tax year.

  Also it could stick depending who has come forward with information and documentation to take him down. The big thing is the jury where in the past Liberty does not allow any jury’s so It would prove they win every case!

• Anon,
  I agree with you. Think most did nothing illegal. They could have avoided trouble if they had paid the interest and penalties. H&R Block and JH charge by the form. It’s standard . It’s nice to be close to the business but it’s a problem when trying to get out. Are you sure your customers don’t care about your connection to the company, since they think that’s their backup? Yep, the 19% sucks but the 12% sucks more.

• Guest is right. I have done my survey and you have a percentage that come to your office for the “guarantee” portion of the service. You will need to question deeper to make sure. However, even if you wrote 1/2 of what you do now, you would make money.

• Liberty has definitely encouraged inflated prices and refunds. That is what racketeering is all about. My AD who was an idiot, made sure that everyone in my area understood what it meant to have large fees and what it took to make them. After all, he got a a percentage as well as Hewitt and his scoundrels. You can’t tell me that what Hewitt and the rest of his corporate thieves did to encourage high fees would be allowed by the court. It is no wonder the contract we sign with him does not allow jury trials-he knows full well the jury will view us as victims of his scam. Indeed, the SC suit is from customers of Liberty which, I agree, would have more clout with a jury.

  The minute that there is a jury trial for these clowns is the minute that the public will realize how one sided and deceptive they are. It is more difficult to buy a jury as opposed to a VA judge.

• In an earlier post, a franchisee was complaining about Liberty/AD employees contacting them and their employees on buying a territory. The reason for these phone calls is that Liberty has a great opportunity this year to expand into a large number of Walmarts across the country. They will be replacing H&R Block in all of the Walmarts that H&R Block once serviced.

  This will give John Hewitt a great advantage in selling new territories resulting in additional income both from sales and royalties. Not only will this add additional income it helps John Hewitt in selling more territories giving him the tools to brag about being the fastest growing tax company. As both former and current Zees know John Hewitt is all about numbers.

  Besides keeping this board updated with factual information to assist the DOJ and IRS in their investigation. There are other ways to take this giant monster down.
  Contact Walmart headquarters and point them to the legal cases that are currently underway. I dont believe Walmart will align itself with a company that is currently under investigation for racketterring and class action lawsuits across the United States.

  Walmart’s address is as follows:
  702 SW 8th St
  Bentonville, Arkansas 72716-8611

  As any good leader will tell you to be successful, you must attack your enemy from all directons.

• The SC suit is not going to be a criminal case. The courts have decided that this will only be civil. All suits have been dismissed against Danny Hewitt. This has been going on since 2010. Originally Annie Fuller was named as a co-defendant, but made a deal to testify against JTH. Later she recanted everything, that is one of the reasons that it was not a criminal case.

  Below is the website that you can read the outcome of the original trial that started in May.

  http://www.federaldirecttax.com/blog/libertys-john-hewitt-grandfather-of-tax-industry-stands-trial-for-racketeering-etc/

• Are you kidding? Not criminal? How’s that possible?

  If any of you think you can get away from this company “freely” after a 5 year contract, you are sorely mistaken. I am still, to this very day, facing fall outs from my 5 years with that company that ended 6 years ago. Stuff you would never imagine to have an affect on you is happening to me.

  They are lousy, rotten bastards that will stomp on you and squish you to death. I can’t wait for them all to burn in hell.

  Jerry Arrington and DOJ officials: if you are reading this…….please, please, please do not let them get away with this. They are professional con artists and I want the world to know this. I’m dying to get them investigated by a news magazine, Sean, how to do that??

  Trish: How do you know the company will be shut down? Do they need a criminal case to shut them down?

  I will not falter until those bastards are ruined and behind bars.

• ^^NC Hillbilly:

  I forgot to mention………what a great post you wrote. We ALL should definitely write to Walmart and discourage them for signing on with LTS. Great info, thanks.

• Anyone have any advise for getting out and the best way to do it? SanFranDan, you mentioned you got out 6 years ago and are still experiencing fallouts…Can you or anyone else elaborate?

• @SanFranDan – Do you think it is the current Zee that has helped contribute to your problems by ratting on you or spying on you? Did you owe them any money through royalties or loans prior to leaving. It sounds like some have left with very little problems.

• Franchizee:

  I know exactly the reason why I’m having difficulties. I am not making it public on purpose as I will be easier identified.

  It has everything to do with JTH himself and his superior, “I’m holier than thou”personality and not current zee’s. I owe them no money. No royalties, no loans.

  Like I said, it’s a long story but suffice it to say that everyone should watch their backs when leaving. Just don’t pretend they won’t be watching, because they most certainly will be. Someone mentioned putting the business in his wife’s name……not gonna cut it. They watch you like a hawk. That’s where the “cult” comes in. There is absolutely no room for putting your own stamp on this business. They crack down on you with “notices to cure” if you don’t dot your i or cross your t.

  They bent over backwards to take everything away from me. Including pre-existing clients I had for years before I ever signed with them. Breaking away was waaay harder than people think. They will spend a ton of money to make sure your life is miserable.

• @SanFranDan – Thanks for the update. We plan on taking the Liberty Computers off line prior to leaving and never using them online again. Have been purchasing computers to replace them. Took the notice about the spyware and junk on their computers to heart, thanks to you. As to the cult following, I believe that is possible. The larger zees call the little office’s and try and cause trouble or set up false appts. Or act like people are looking for you via the web and it is all false. Had that with another large company stating we were no longer in business when we were. All it did was piss off the client and they end up with a tarnished brand eventually.

  What happens if you wait out the 2 years? Probably what people could do is have the wife set up another company to compete with your current office until that is established and tell them goodbye. Can you work for another office without problems like some of the other people have done in past.

  How do you think they are watching an office. We got the computers, but are some of the past zee’s using their computers for their new offices?

  Thanks for the update.

• I am away for a few weeks. Please carry on your discussions, I am not discussing my personal situation on this website.

  Please focus on JTH and how to help Jerry Arrington, Trish and the Dept. of Justice get this man and this company.

  Thanks.

• Thank you people so much for warning other people away from this. My husband and I were seriously considering doing a Liberty franchise. We were scheduled to go to Vegas in a couple of weeks to see the dog-and-pony show, as you put it. Then we found this site. You have probably saved us a lot of money. What you are doing is a true mitzvah. Thanks again.

• @Richanne – So glad you have this website to warn you and yours. Please spread the word and give out this site to anyone inquiring about Liberty Tax. It is truly a money pit and only money for the Franchisor, JTH, Inc. dba Liberty Tax.

• Richanne: Great to hear that! These people are shysters and have no qualms about stealing all your money! They are just goniffs…

• @Libertyville – Update. We now have the “planting season” formerly known as the “off season”. Get of your duff’s and your vacation which you were promised originally and get to work. You can’t have your time off, you must work your planning season, so you can reap your harvest in Jan-Apr.

  **So to anyone interested in Liberty, there is no longer the 8 mos off** – FYI

  Also, go and spend more money with Fanatic University, so you can be a top gun! Yee haw, get off your lazy duff’s and spend more money you don’t have and support another zee and AD with your hard earn cash, so that person can be rich, unlike you lowly zee, who must slave away, to help these others, so you will be successful. Spread the wealth and health to this Zee and AD.

  This is most recent update!

• I hope people check this website out before they invest in Liberty. I have gotten at least 3 telemarketing calls from Liberty offering me to join them. After I stopped laughing (or crying, depending on the call), I asked for the franchise offering. It has yet to arrive.

  This is a new tactic by Liberty to get in on existing tax businesses and attempt to steal their customers. Please do not even bother to respond to these morons!

• Franchizee: thanks for sharing the innovative ideas Liberty provides you with for your 14% royalty and 5% advertising fee.

  Liberty is now in the season where they make their money selling franchises. It’s great to see that people are coming here and using the information provided to avoid franchisors live Liberty tax.

• I wonder when the SC trial is supposed to begin? Hewitt has been awfully quiet lately, maybe he is preparing his legal briefs as opposed to getting into everyone else’s?

  Since this is a civil case, the burden of proof is not as heavy in a criminal one. Don’t let this fool you because a criminal case can develop if the IRS and Justice departments can get together and honestly pursue Liberty Tax and John Hewitt.

  With “hunting season” , as the franchise sale force calls it, is open, we should advise all prospective franchisees to not become victims of this scam. You get no value for the money contributed in royalties and the purchase of your territory. There is no support. They have no clue about tax laws and what is right and wrong. There is no indication of a marketing plan other than a costumed statue of Liberty character outside your door. Prospects need to ask very hard questions of these people, knowing that they are liars. The best thing a prospect can do is to hang up the phone when the telemarketer calls about buying a Liberty Tax Franchise.

• I signed up with them last year with 2500 deposit and 30%royalty.
  The lady from corporate who got me in was a Lier!!!

  I asked her if I don’t like the Business what is my obligation next season and her answer was that you can leave anytime but you will not be refunded $2500 on which I agreed.

  There was so much pressure to apply for EFIN no fast after EOT that I did not realize that there is minimum royalty involved whether you make money or not …….and it is till 5 year.

  I did not pay attention to agreement just trusted the verbal words and have landed in mess.

  Help me to get rid of this Franchise ?

• @Sharon – Typically you can walk away as long as you don’t write any business without any royalties. If you go past a certain date in January, then you may owe the minimum royalty payment due to being in the tax season.

  What holds most people in the business are two major forces.

  1. You borrow to purchase a territory and owe them money

  2. You have a 3 year lease on a space and can’t get out of the lease without owing money for the rest of the term of the lease.

  If you have not opened, you should be able to send them a letter certified to cancel the contract and they will send you a mutual termination agreement. Check into that first before going much further with them and especially before the tax season starts again in January 2014.