LIBERTY TAX SERVICE Franchise Complaints

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

• Not sure how anyone looks at 11% growth a win when you added 10% more offices. Still doesn’t make it a good investment.

• Frustrated,

  Nobody expected you to say anything good anyways…. If growth had been 70% what would you have said then?

• Frustrated,

  Weren’t you the one saying that there is no way they added 10% more stores since they have been closing a bunch…. Seems like you want to have it both ways….

• John Barilla

  I actually had a decent year, but it does not hide the fact that anyone who buys a franchise will get nothing for their $40K plus 19% royalty. I never even heard from my A/D during the season, the advertising that was supposed to happen never did, and the few times I tried to contact Tech Support, they gave me answers that were clearly wrong. That tells me the growth that happened was because the franchises themselves were more effective, not Liberty.

  Rather than criticizing me, how about telling us what you get for your 19% and how it is worth that much.

• Isn’t it clear that LT wants us to do free returns only because it gets the number of returns up for the purpose of saying Liberty did more returns than H&R or JH. It is clear though that the 50% return rate that they said we would get is non existant. As for the advertising fees they charge where is the money being used? I see no advertising to promote the preperation side of the business. If you ask me the fees are being used to promote Franchise sales only. What they refuse to believe is that their way to attract business on the local levels do not work in all territories. Yes the Liberty wavers might work in small towns and the B to B also but I have franchises in the New Orleans area and people wear costumes everyday, nobody even takes notice of them. All I’m trying to say is if you buy in be prepared to be on your own as far as advertising goes. I’ve been with Liberty for two years and this may be my last tax season. I wish I would have read this blog before going to Virginia and hearing all the BS that was feed to me.

• Free returns produce repeat customers primarily wanting free returns.
  My second year office produced 700 returns. No RALS. Just ERC’s and cash loans up to $100.
  We prepared more than the nearby Liberty office opened at least seven years.
  Yes we had a waver.
  For all intents and purposes, any “Busy Bee Tax Service” would have been as successful as ANY new Liberty office.
  RALS are going as we all know. Look at HRB’s share price. Started the season at $12.49. Today it’s $17.51. And HRB did not offer RALS.
  What does that say about Liberty as the only RAL provider. Not much really.
  Commercial software costs $1200.
  ERC’s are available from any of the major companies.
  Leave Liberty… wait a couple of years and start your own brand.
  BTW. My old Liberty friends (with the exception of ONE) all made less money than last year.

• Hello… Perhaps one of you could help me, I have been trying to contact the main office in Kearny Mesa,CA for my last pay check ( 2 weeks pay for sign holding and waving as a Liberty Tax Statue of Liberty ) I cannot get ahold of anyone by phone and our offices are closed. Did they flee the country with the pervert from Tempe Arizona or what? Please send your comments to 5663 Balboa av ,San Diego,CA 92111

• I just finished my second year with LTS with no profit made. When I purchased my 2 franchises I paid for one and financed the 2nd prosponing the opening of the 2nd store until the following year which was approved by LTS at the time of purchase. They did not tell me that they would be collecting all the fees though during my first year therefore the money I was generating for operating cost of my first franchise was being eaten up by these fees for the 2nd and I made no money and actually had to invest more money to keep operating and to keep my business during the off season. My second franchise has very limited commercial rental space available in it. I spent all off season looking for an office to get approved. I located one finally in October and notified my AD to approve the site. After 2 weeks of no response from him I finally got an e-mail stating he was no longer my AD and someone new was. I was never contacted by anyone from LTS to notify me of this change and was upset as when I went back to the office I was trying to get approved the owner had rented it out from under me. There was no other office available to lease in this territory so I could not open up. Liberty did not even care and charged me $3500.00 dollars for not opening and charged me all the fees and interest due which again made my cash flow non existant and I made no money the second tax year. If anyone thinks LTS cares about their Franchisee’s being sucessful you better think again. All I hear from them is that I musn’t be using their marketing strategy correctly. The new AD spent less than 1 hour the whole season with me and this was his comment about why I’m not making it. Just to let you ya’ll know the original AD opened 10 stores in my area the same year that I started and he has informed me that Lts now owns them all after his 2nd year. WOW. Now this year I’ll have 10 corporate stores in my area if I decide to continue with this , Three corporate stores have already closed previously in our area, I guess they weren’t using the correct Marketing strategy, who knows.

• Until JTH starts to feel the pain that the rest of us are feeling, it will be business as usual. His ego is way too big for him to admit the system doesn’t work, and most people are fed up with LTS. I am currently in contact with a lawyer who is looking into potential litigation. I should have more info in the near future.

• Those of you that are currently in the system and it looks like there are a few of you, what ever you do, don’t sign the Mutual Termination Agreement, if you do than you have NO further recourse! Also, make sure to post these “comments” on H&R Blocks yahoo board. It seems like a lot of zees and Hewitt, post there as well. Good luck and please post any lawsuit advancements, I am sure there are many who want to see that go through.

• I have heard that the reason he intercepts for the prom note first is that he would have a hard time collecting those fees in court. He is forcing you to have an A/R balance that he could easily collect in court. If I were you I would term the 2nd one now..and not open the first store again if they don’t relent on the remaining prom note. If you do they will do the same thing until they get their full payment for the 2nd store that you will never open. I wish to God I would have seen this site before I went to Virgnia Beach. Then I would have known why lying bastards these guys are.

• Let’s again for Bill’s sake, look at the facts. LTS has a horrible franchise business model. It can be seen season after season. LTS takes 19% of your gross and supplies you with mediocre software. LTS does no advertising whatsoever, leaving you with creating your own customer base with what’s left after your 19%. The vast majority of stores are either just breaking even or losing money. EIC is going to be reduced, and the IRS is paying refunds in most cases within a 8-10 days so there is little need for RAL’s if they even exist anymore. . LTS could care less if you succeed or fail. Need I go on.

• These are great posts, these should be posted on their fa ce book as well to let possible new zees have the opportunity to see what lts is all about.

• I just attended the Liberty Tax Service seminar this past weekend. After leaving the presentation I had a feeling of “is this too good to be true” It sounded way to easy. These posts have been great. I had a feeling that the franchisees that they brought in were hired guns. Not one negative thing to say about the franchise. I was told the average margins are about 20-25% and the way they made it sound you could easily make 100k in your 1st year. The seminar almost seemed like a cult. They were hanging on every word of JH. Thanks for the info. If anyone else would like to share their views

• I copied and pasted an entry of mine from a while ago because I see it is still relevant based on the seminar lies. Sure, make 100k your first year. What about expenses? If you go to these seminars and ask questions about expenses, you get blown off. Its nice to have a 25% margin, so your gross profit is now $25,000 without royalties, rent, wages, etc. Here is the repeat of a prior post, all still valid.

  I have been out of LTS for a few years now, but the negative information posted here still rings true. All of the people who post that the failures in LTS didn’t follow the system, or weren’t good business people, or didn’t put effort in are dead wrong and full of garbage.

  I bought in and followed the system (despite my AD not doing a thing), had my waivers, did marketing constantly and even got free radio ads for my area done…lost over $250k in running the business and my initial investment over 3 years. I am currently a successful business person that runs a small company and is not afraid of hard work, so don’t give me the stuff about you can succeed if you try and follow the system.

  Sure there are a few success stories, even a blind mouse finds cheese every now and then. John made a lot of personal promises as did his AD, but when I needed help to try to make it work, his manhood seemed to escape him and I never heard from him again. His is not a man of his word and I have no respect for him.

  In the real business world, deals are made and discussions are had to benefit the whole company. LTS will throw you away as quick as possible so they can re-sell your territory to the next wide eyed person who buys the snake oil. They like to tell you in the sales pitch, work 4 months out of the year and make $100k. If you want $200k, then get two territories and so on. I knew coming in that it was a gross number and not a net number, but alot of my fellow trainees didn’t. I came in expecting to net about $25-40k per store (after two or three years, not up front) and build up a few over a 5 to 10 year period. Problem is it cost so much money to run the store, after 3 years my losses were to big to recover from, especially owning multiple territories up front (which was a big mistake I made thinking that would work).

  The only people making money off LTS are the corporate executives. Look at the past 3 years jth financials and you will see net income of over $44 million along with stock options being granted to executives. Get the picture that execs are making money off the zees backs (which is why you are responsible for marketing your own territory, no out of pocket for the corporation). You can be more successful by getting a job, working hard, and climbing the ladder the old fashioned way. If you invest your money with LTS, you will be regretting it for years to come.

• Hondo-great post! Call current and former zees in your neighborhood, especially find out if there are any corporate offices and see if they follow the “system.” Is it do as I say not as I do?

• Hondo:

  Please give us your insight as to specifically what you said and heard. Any specifics would be appreciated. It is time these liars were brought to justice.

• I’m not a franchisee, I’m an unhappy customer! I am an unemployed single mother, I have always done my own taxes before but since I had a 1099 for a paper route I did for 3 1/2 months and I had never done that before I decided to have them done this year, and being new to town and not familiar with businesses in the area I chose Liberty because I knew where they were from their statue of liberty guy who stands on the sidewalk, and I had heard of LTS back at home in another state… HUGE HUGE HUGE mistake!!! They wouldn’t tell me how much it cost til they finished preparing it & had all my paperwork in their possession, & they charged me $544, that is literally 1/4 of my entire fedral return!! Then on top of that I went to fill out some paperwork & grabbed the folder with my tax stuff, and all I have from them is a reciept & a bunch of disclosure papers, but NOTHING with any of my tax return info or any of my original documents…
  So YEAH, I’m sure owners like that are REALLLLLLY happy with LTS, but if you are a nice and decent person and have a hard time being an evil thief then you are probably gonna go bankrupt..

• Ashley, no matter what you paid $5 or $500 they have a “satisfaction guarantee” see thier website, demand all your money back. Obviously you are not “satisfied.” You can call 800-790-3863 and ask for John Hewitt he is the CEO I am sure he would refund your fees. If he doesn’t, post it on their Liberty facebook until you get some resolution.

• Ashley,

  One, you should never feel pressured to pay for something that someone will not price up front. I am a Liberty Z and do not price up front but make it is very clear to clients that if the value does not match the price they are welcome to go find someone that will do it for the price they want and at least they will be educated and know what they need to look for.

  Consumers are confused on shopping for tax professionals and I understand why. Price has zero to do with what type of preperation you are going to recieve. If you shop based on price you can pay $50 and get crappy Preperation or you can pay $500 and get just as crappy Preperation. On the other hand you can get great preperation at either price. The key and the difficulty is finding the professional you can trust. This takes alot of time and a little luck. Referals can be a big help but you can get referred to a place that gets you a huge refund and the reason is the place is committing fraud.

  So I do feel bad for the way you feel. Liberty is primarily a franchisee ran operation and each individual franchisee can set there own prices. Each franchisee hires there own preparers and the quality of preparers differ widely just as they do with other places.

  My suggestion is to educate yourself and go out and speak to as many tax people as you can doing your homework and ensuring the person you are speaking with is giving you honest answers and someone that you will be able to trust. As far as what you should pay that is up to you. I expect many of the $50 tax return places will soon be gone with regulations coming soon. No matter what find someone you trust and someone who will be around and whos value and price matches up.

  If you doubt the accuracy or if you think things may of been missed on your current return, many places will take a second look but there again you have to ensure the proffesionalism of who you are going to. Liberty Franchisees are not thieves but there is a wide range of talent and performance between stores and it does not take being a thief to make it. Sure theres a ton that goes into succeeding and there are issues franchisees are experiencing. But alot of these same issues are going on in many other companies.

  Good Luck and I hope you are able to find the professional you need.

• Ashley:

  Please call the office where you had your return done and talk to the owner. I hope you get satisfaction.

  Unfortunately this points to another weakness with purchasing a LT franchise. While the franchisor typically does not dictate pricing, creating a realistic pricing schedule would be of value. After the first couple of returns in 2011, I quit using the LT pricing schedule. It was unrealistic to the point of ridiculous. Simple one W-2 returns pricing out in the $200’s. C’mon, no one should pay that, and no franchisee should charge that. I reviewed three Block returns this year, in each case, the LT pricing schedule was in excess of twice what Block charged. Now you can say that with 50% of coupons running around, you may need to do that, but again, why would a franchisee be distributing 50% off coupons. I say this again, stay away from these clowns. They do not know their business, they rip everyone off including their customers and franchisees, and will stop at nothing to make sure they take whatever they can get. Ugly, ugly, ugly.

• To Honestly on May 5th, “I expect many of the $50 tax return places will soon be gone with regulations” is that what John told you? Is he single handedly putting all the CPA’s out of businesses? Why don’t you ask him this June at your convention about what will happen to all of the 70% of Liberty offices that are in RAL markets what they will do for revenue when they can’t offer RAL’S?

• Frustrated,

  Maybe you should be charging the recommended price and do the 50% coupons and then you would be successful and not have cry on here everyday about how you lose money even though you follow the system. Basically you just admitted you do not follow the system….

• John Barilla,

  How old do your comments really get. Remember, not just disgruntled franchisees read this page… potential franchisees do too so an argument which holds water is better than snide or demeaning remarks. You sound like a Yankees fan.

  If you have access to zeenet, checkout the top 100 offices report. It’s under reports> performance reports> if you’ve never checked.

  The 25th office prepared 1774 returns
  The 50th office prepared 1414 returns
  The 100th office prepared 1230 returns.

  It doesn’t take a genius to figure that of the ~4000 offices that at least 3700 offices must have prepared less than 1000 returns. And let’s not even consider the volume of free returns which bloats those figures. (and we know you are required to file at least 100 free a season).

  At this rate of descent, compared to the DMA report of offices with growth of 40% or more across at least 10 major markets, it’s clear that 2000 offices or more prepared 400 or less tax returns this year.

  What does that say about the 600 you were expected to do in your first year when the majority of offices had completed at least their 3rd year tax season?

  If you were honest, you’d see the pattern. If you did well… great, but if the whole network is suffering then longer term it will affect your business.

  I have read most of your comments and clearly you were accepted as a franchisee because of your gullibility, and not your clarity of mind.

  Walk a mile in another franchisees shoes before you think LTS is the pot of gold at the end of the rainbow. Because it’s not.. it’s an option but the lack of honest disclosure is where they fail you.

• First of all, it is obvious Frustrated and Antonio are the same person……

  When did I ever say LTS is a pot of gold?

  All i ever said is Frustrated comments make are inconsistent and its hard to respect him with his comments…. First he says he follows the system then he says he didn’t because the system is stupid…. Which one is it??? The Yankee comment shows how ignorant you are, stereotyping all Italian Americans as being from NY….

• I’m Italian! So what are you talking about and why mention Italians!.Again your assumptions are false and misleading. Your comments suggest those who don’t succeed didn’t folow the system. Hence, all who did must succeed. Tell that to the 3000+ who aren’t breaking even. Clearly you are one of the 3000 or from corporate.

• Once again, where did I say that all that follow the system succeed? All i said is if Disgusted is going to say that he follows the system in one post and then on another argue that $200 is too much to charge for a tax return and it is ripping off customers and does not feel that he should distribute 50% off coupons, then obviously he does not follow the system and I felt like I should point out that he is not credible because he is all over the place….

  I really think he should not have invested in a franchise, like that he could have done his own marketing, charged $50 per tax return instead of $200, not have to paid the 14% in royalties and then he would filed bankruptcy and blame someone else for his bad decisions….

• Why are there more complaints about Liberty than JH? Why are there so many complaints on Liberty’s f ace book? Can’t wait to see the number of zees filing bk next season, maybe they all will file a complaint with the FCC and put the rats back in the sewer.

• Mike on May 7th, 2011 9:15 pm

  Why are there more complaints about Liberty than JH? Why are there so many complaints on Liberty’s f ace book? Can’t wait to see the number of zees filing bk next season, maybe they all will file a complaint with the FCC and put the rats back in the sewer.

  Probably because Frustrated/Mike/Antonio are the same person….. Probably because JH franchisees are beyond unhappy that they have given up…. They are filing bankrupcy and won’t exist anymore!!! What can they going to do? File a lawsuit against a company that does not exist?

• Listen, I have never understood why so many of the same people come on here trying to damage Liberty while they are still operating stores. I guess there goal is to hit it rich by lawsuit which if you look at how many times that is done in franchising I suggest going the lottery route, it provides much better odds.

  I do not like franchising as a whole and think it is about to go through a huge transition. Franchisees and Franchisors will always have a combative relationship just because the goals and priorities will never be the same and in many situations they will be polar oppisite causing mistrust and conflict. Because of the very nature of Franchising only a few will ever, at least where we stand now, find that sweet spot where they can operate and not allow the conflict to get in there way and navigate the choppy waters to make very good money. Most will allow all the conflict and issues to sidetrack them and they will at best attain average numbers.

  Now the question is can a person make money with Liberty? The answer is yes!! Liberty has a good base system and only gets messed up when people start talking about it and complicating it. The tax business will provide huge opportunities in next couple of years and I do not know another industry right now that has this much opportunity. I guess you can hope to jump on the lawsuit wagon or you can start figuring out how to take what you have and succeed even with the challenges and there are many inside of the Liberty System. You can make great money and attain flat out amazing profit margins owning Liberty Stores. I am not saying to start listening and following everything you hear on calls or communications from Liberty. I am saying as a business owner seek out the answers and figure out what you need to change to achieve huge results depsite of some of the challenges.

  I could sit here and complain pointing out all thats not fair but do not see the point and dont believe the ship will ever come in on the lawsuit issue. I do believe that a Z can take advantage of the current opportunities and make some great money even if it does take adding some possibly many sound business strategies to Libertys system.

• Mr. Barilla:

  First of all, I have never posted under any other alias, and doubt anyone else has either. I will set the record straight for you. The first year I purchased my franchise, I followed the system to the letter. Lost 10’s of thousands of dollars. Should have walked away, but I have too many assets and do not believe in not paying my debts. Year two, I opened with a limited system because I had no money. Lost money, but not what I did the first year. This year I opened again because I had to. Yes, I have tried to sell, but no buyers. There are areas where the system does not, and will not work. When I purchased my territories, I was under the mistaken impression that Liberty Tax was a well managed, would help me understand the tax business, and be there when there were hurdles. Nothing could be farther from the truth. Everyone I have met in the system, and there are many, are disgruntled with Liberty Tax. Why ? Because they are not making the monetary returns that LT talks about. Most are either breaking even, or losing money. They see LT taking 19%, and doing well, while they are working their butts off, and making little to no return. Many have their stores for sale, but cannot sell them, are working full time jobs, and still dealing with a business that is doing nothing for them. Are there areas that you can make money in income tax, yes, but as more and more competitors move into areas, LT does not offer anything that Joe’s Income Tax cannot. Hence they have paid $40K and paying 19% for nothing.

• You will put your heart and soul into this money pit. In my area another Liberty just closed recently. I knew this zee for many years and they just wanted to stop working for free. All you are doing is buying yourself a job, most of the zees that grow are because of the cannibalism of clients from those that go under.

• Does anybody out there have an AD called steve D. He was nowhere to be found this season. heard from him after season, and all the blah blah blah. so much for the 19% in royalties for assistance. We should all group to gether and sue lts for at least our franchisee fees and screw the rest they can keep the customer list

• Sounds like my last two A/D’s, but they went by different names. Maybe all three are the same person, what do you think J. Barilla ?

• You had an AD? What’s that??? Actually they turn over pretty quickly I am on the 7th one that I very rarely saw. It just shows what a POS, LTS IS.

• Honestly, you write:
  Franchisees and Franchisors will always have a combative relationship just because the goals and priorities will never be the same and in many situations they will be polar oppisite causing mistrust and conflict

  Let me suggest as I have said over and over, JTH is using your money to build his empire. It is that simple. By having someone purchase a franchise, sucking them dry by opening and promoting their business, then selling it to a new franchisee who does the same is not franchising, it’s about as dishonest as it gets. If that is what you subscribe to, you are as crooked as JTH is. Having different priorities is one thing, telling people they will make money when they clearly will not is lying, cheating and stealing. That is what the LT franchise is all about.

• Totaly agreed-Frustrated. Just last season the AD said “it’s about bringing people in and then consolidate” which means get a bunch of new people in the system, use and abuse and then take over. This area developer is Gene H. and it he aint no comet! He said that is Liberty’s goal.

• Hello… I’m the Liberty Tax sign holder from Kearny Mesa,CA. I just wanted the forum to know I finally received my last paycheck I was waiting a month for. My company owner here didn’t flee the country like I originally suspected. Ha !! Ha !! On a serious note may all of your luck change for the better with control over your franchises. As we begin to do more for each other some day money will be a thing of the past, but as long as it’s here for now we might as well band together and support each store and increase efficiency not only for payroll matters but for ease of business—lets get $50 coupon books in the offices,start to process returns in high volume, offering a nominal fee just above what someone would pay online for e-file, in office food, soda and treats, maybe an American flag or two and we will be well on our way to controlling our finances on the way to not needing tax services or money in the future. May God bless all good people , Thank You.

• I was also bamboozled I followed the system johns top 10 gave free pizzas out the ass and doughnuts within a 2 mile radius of the store. Maybe got 5 returns out of that and spent thousands on free food.

  Needless to say I had to full time wavers and a marketing person. I had coupon holders in all the gas stations and taliban stores. Did radio ads and also did a block part as they recommended for visibility. I also participated in the christmas parade and gave away bam bams candy ballons and coupons. I started my marketing in december I figured the early bird gets worm. Well I got no worm. I ended up with 62 returns and 13 were free after sinking an additional 37000 in operating expenses for the 4 months.

  I kept calling my ad for assistance and he would suggest different ideas which I did but only put me further into debt. At the end all I did was SPEND MY MONEY TO FURTHER LTS AND PROMOTE THEE NAME. If I would have known this I would have just had 1 preparer in the office and that would have been it. Would have lost a hell of a lot less money.

  All I can remember from EOT was that they made everyone believe they could do as many returns as they wanted. Well that was a lie. The only way to recoup ur money is to sell out to block by showing them the LTS system. You know the free doughnuts and costumes. I did have a noncustomer make a comment once and it did make sence ” why would you have someone that uses costumes prepare your taxes”. Looking back kinda makes sense

• In the meet and greet with John and the request for consideration which occurs prior to that a question is asked on the paperwork similar to this:
  “Do you a job?” This question is posed so that LTS may consider your ability to survive the off season.
  It is already understood that Liberty agrees that your first year projections should be 600 returns.
  Well if that were correct and assuming 100 free then 500 net returns multiplied by at least $150 per return would realize $75000. Less $15,000 for franchisee fees, $25,000 for rent/utilities and $25,000 for payroll and $5000 for marketing.
  This would leave a first year profit of approx. $10,000. That wouldn’t bee too bad for a first year office. I was a top twenty 1st yr office and I had a net loss of over $40,000!
  Of the 300 or so new offices, the
  20th office prepared 501.
  50th office – 391
  75th office – 336

  Take off the freebies and you see a whole different story!
  What does that say about the other 225 new offices?
  How can anyone hope to make money… any before Barilla rears his ugly head… look at the 2nd year offices:
  20th – 700
  50th – 576
  75th – 515

  Wow…. So the 75th second year office of 400+ new offices according to entrepreneur.com – less 100 free prepared only 415 paid returns.

  And the third year office in 75th place prepared only 580 returns!

  Good times….

• I am one that believes that there is great opportunity in the tax preperation business but will warn anyone that believes that you can build a tax practice on buying and delivering food products and with costume wavers outside alone without any business savy not to buy or go into any business. This business is tough and takes understanding what makes your potential clients respond and more importantly have the ability to execute a plan to make it happen. Yes you can use Johns Top 10 to be very succesfull but if you cannot do the many other things it takes to build a business and have a natural understanding of business and being able to judge when things you are doing is working or when you or wasting your time to stay away!

  Liberty has allowed so many to open offices when they had no business in being a business owner let alone a Liberty Franchisee. In business it takes skill, some luck, and the ability to not quit despite the doom and gloom that will more than likely hit you the first couple of years. Its hard work and takes a ton of humility and the ability to not only blame someone like Liberty but to take responsiblity for your own mistakes and mis steps and the ability to look at all of these and formulate a plan to learn from these mistakes and to move on to success.

  Good luck to everyone.

• We need to start a revolt, i bought a new territory and this was my first year. they lead me to beleive that i could do as many returns as i wanted. that was a lie. I did between 200-250 returns and many of those free. i have lost so much money and the wife is threatening to leave me. I dont know what to do. i followed the system but the system sucks. the guy down the street an independent did close to 1000 returns and had to pay no franchisee fee or royalties. He had wavers dresssed as uncle sam and did b to b and coupons but under his own name. LTS Sucks

• Antonio

  Liberty Tax Service uses the same business model as Jackson Hewitt.
  If we look at JH financials they provide an average number of tax returns per office by number of years in the network.

  fiscal 2009 fiscal 2010
  1st 205 166
  2nd 235 234
  3rd 274 253
  4th 305 277
  5th 348 297
  6th 405 334
  7+ 558 482

  Yet Liberty starts a first year store off with a bogus 600 return which they use for every store regardless of location, demographics or franchisee ability. Then using this number they give you a projected staffing chart which if you follow just cost you money. John Hewitt just willfullly present misleading facts to sell their franchises. Unfortunately franchise law is written to protect the franchisor and not provide any real protection for the franchisee.

  The 4/30/10 financial stmts for Liberty Tax Service shows they issued $32,488,000 in operating loans to it’s franchisees so the franchisee can stay in business. This averages out to $10,000 a store. Which supports your position that there is not enough cash generated during the tax season to make these stores profitable.

• I think the post from first year Z in NC proves my point. Liberty has its issues yes, but because a guy or female believes that they can just do any amount of returns they want by following any system and then becoming irate just flat out amuses me.

  I am not sure what you were told NC but I am guessing you have limited business experience if any at all and would of struggled with any type of business. As far as the guy down the road that is fine but there are just as many independents out there not paying royalties that are going broke.

  I think whats the most important thing is for everyone to realize what the truth is and what is personal opinion.

• NC Z I want to appoligize for the “amuse me” comment. I do understand where you are coming from and would like to offer some advice.

  1. You must limit your expenses to only the items necessary.

  2. Find a Z who understands how to operate a Liberty Office, they are out there and they can be found. They can help you seperate fact from myth.

  3. I think you may be better off than you think. As far as your spouse well thats one of those things that needs to be addressed going into any business. It is very hard to succeed when your spouse gives you no room to make mistakes and expects only success from the very beginning.

  I am not going to defend Liberty in what you were told because I have no clue. I can tell you that you can quit now and accept the losses, or you can do some real investigating and find out if you can pull it out next year at least to the point where you can sell the office or recoup some of your losses.

• I hate to interrupt the pity party, but does it occur to any of you that you bought a franchise OPPORTUNITY? Note the word is “opportunity” as opposed to “guarantee.” You decided to launch a business VENTURE. If you want a promised ROI put your money in an FDIC insured account and reap the big reward. Don’t start a seasonal small business in a highly competitive market.

  You all signed a big fat franchise agreement that said you didn’t rely on any sales numbers or projections that weren’t in that agreement when you purchased your LTS franchise. Now you all claim you were “bamboozled.” Take some responsibility for once.

  The comment by “new francise zeew” on May 13th, 2011 1:40 am is classic.

  “I was also bamboozled I followed the system johns top 10 gave free pizzas out the ass and doughnuts… I had to full time wavers and a marketing person. I had coupon holders in all the gas stations and taliban stores… I ended up with 62 returns and 13 were free after sinking an additional 37000 in operating expenses for the 4 months.”

  “I kept calling my ad for assistance and he would suggest different ideas which I did but only put me further into debt. … All I can remember from EOT was that they made everyone believe they could do as many returns as they wanted. Well that was a lie.”

  Guess what? All the adults in a 2 mile radius of his shop had someone do their returns – just not the crude bigot who gives pizza “out the ass” and refers to his prospective customers as terrorists.

  Anyone who claims he believed “they could do as many returns as they wanted” would have lost his money to the next magic bean seller anyway. Many of you should admit that you want the return of owning a business without the risk or the responsibility.

  Look on the bright side… at least you’ve got someone else to blame for your decisions. That’s something.

• For those of you who haven’ t yet figured it out………..People like Honestly and Guest have received some type of favor or kickback from LT, hence they are defending a bad investment from a company that has no business being in business or selling franchises. This organization does not understand the tax business which is why they are getting the comments above. To all thinking of buying at Liberty Tax franchise. STAY AWAY. THESE PEOPLE ARE A DISASTER AND YOU WILL END UP LIKE THE PEOPLE WHO HAVE LOST THOUSANDS. I GUARANTEE IT.

• Frustrated and Disgusted you are comical. I am not defending anything and your message looses its validity when you claim that any Z that does not blame Liberty for everything is a company plant or is being paid. Liberty has done many things I dont like and I do not defend them but I also do not blame them for everything.

  As far as them doing favors that just shows how much you know about how Liberty operates. Trust me they would not do anyone a favor or pay them for posting, they do not want any posts on here at all!

  If you want your message to be heard you need to stop being so radical and realize that Liberty is not at fault for everything including the assassination of JFK or the disappearance of Hoffa. Would I suggest someone with no experience and that has no business knowledge to run out and buy a Liberty, No!, but I wouldnt suggest they buy any franchise. I believe that this entire and very lengthy thread needs to be a word of caution and tell people that they need to do tons of soul searching and investigating before buying any franchise.

  If you do buy and fail then I also suggest you be prepared to take the blame not blame Liberty. The information is out there and anyone that still thinks opening a tax office is 100 percent guaranteed to show profit first year is just foolish. If you do your homework and believe you can make it then go for it and it is possible to make a profit but it will take work and more than delivering food products but you should know that if you did do your homework.

  I do not disagree with many of the items you say Frustrated but I grow tired of you claiming that people are plants or being paid. I think if you would put some of your natural talent toward obtaining a profit instead of trying to damage Corp you would be happier. I do not say that to defend corp either. I state that because the way your going about trying to damage them is not going to work. Yes some of there practices will be called into question and may result in fines or people leaving but if I was you I would spend more time on your own financial future. It is not impossible to get a store to respectable profit levels. It is not easy but not impossible.

• Just this last season, on one of the “New” Zee conference calls. Cory H_G__S said that “you (meaning all new zees) should have 3 budgets, one for 600 returns, one for 800 returns and one for 700 returns.” this way you will be prepared for one of the likely scenarios– he is a propogandist! It should have been 200,300,400 which would be a lot more realistic. (DONT FORGET NEW ZEES are required to get 200 FREE RETURNS NOT 100!) When I heard this conference call, I said to myself ‘wow a lot of new zees are going to be very disappointed at the end of the season!!

• Re: Honestly – It is clear you have bought the JTH line of rhetoric hook, line and sinker. Unfortunately I have heard it all before. Blame it on the franchisee who didn’t follow the system, or has poor business skills or etc. , etc. etc. However you want to justify it in your mind, you will live in fantasy land forever. I know different because I have met and talked to many, many franchisees. These are smart intelligent people with good business skills who wanted to own their business, either for personal or professional reasons. They were lied to at the Meet and Greet, they were given theoretical BS when they went through EOT, and when they went through their first year, they realized that this was a scam. A big one. Unfortunately the franchise laws make it difficult to individually fight back. I am going to make every effort to shut this scam down, so other people don’t get financially hurt. I would like you to do something, go look at yourself in the mirror and ask whether you have sold your soul to the LT devil.