LIBERTY TAX SERVICE Franchise Success Story

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• No Lani, you just have to meet certain criteria, I am not sure if it's the same for everyone, but you cannot do business within 25 miles of your territory or you have to wait for two years - at least in my case. I believe it's a pretty standard non-compete clause. Most businesses use them when they have trained someone in a specific industry and that person has the potential to use that knowledge to leave and start up their own business. I don't feel that it's unusual, out of the ordinary or unfair. Plus, I now live 1300 miles from where my territory was, so I don't really have any concerns with it, personally speaking.

• I am a current LTS zee, this will be my second year and I have gone "all in" so to speak. I originally purchased 2 territories, only opening one with intention to open the 2nd this year. Well I lost my ass, I didn't do nearly as many returns as I HAD hoped, and I even paid extra for a marketing specialist to come out and help. Key in that last statement is "as many returns as I HAD hoped" LTS will let you grasp at straws letting you believe you can do as many returns as you think possible, that part is BS, but live and learn I say, I just hope to continue living. However, with all that said, I also believe in "Go Big or Go Home" so this year I bought 2 more existing franchises and plan to open the 2nd of the original territories I bought, total of 4 now. To do this I borrowed from LTS, I have nothing to lose at this point, I have no kids, no house, and no family to fall back on and I owe a very significant amount of $$$ now... can you read between the lines? We'll see if LTS contacts me about this blog, I never read anywhere in my contract that said I couldn't discuss my personal business with the world. Why did I buy in even more?? Simple, I want to make a load of $$, the only way to do that is self-employment, I didn't have a Million $ idea or a degree from Harvard, just the ability to work hard. My territories are in small towns out west and I knew hard work was key. Harder than I thought? A little, but I know it's going to work out because I kick ass!
  Now, any of you DB's out there that think this isn't an honest post, you need to just forget about franchising, or whatever your goal, and seek a job with your local waste management. JD out

• J Dunn:

  Nice rant! I'm not sure what your message is but it dosen't sound like a ringing endorsement of Liberty. I

• Contact John Palmer if you want to know the real deal about Liberty. He was most helpful and gave me a list of people to contact. A phone call is a small investment to make.

• I own a small tax practice in east texas and I am flooded by Liberty tax, Jackson-Hewitt, and H&R Block. These places cant hold a candle stick to me and my practice cause like many people have said all the franchise wants is profit. Well I produce 1200 e-file(not including paper) tax returns a year many of which are sch c returns, and the best thing is is that I have no francise fees nor royalty fees, so while all these little places are poping up one year and leaving the next I just sit here and take all of there customers. I cant understand why anybody would want to open a franchise like LTS cause while you may make a little money you will not make the amount you would if you just opened your own with your name on it. After all why pay somebody to tell you what you can do yourself, just answer me this. How much does Liberty Tax or any other tax franchise actually help for your $50,000++ investment PER YEAR?? I would just get a partner who knows how to run a tax office and give the money to him instead of the ONE guy who opened all the franchises? I can tell you one thing I have learned from all of these places trying to buy me out (and believe me they ALL have at one time) and that is nothing competes with the REAL owner standing there welcoming in the customers and thanking them for there business. Better than a guy renting the name Liberty Tax and never being there cause he has to own 5 stores to make a good living. I'll just stick to my one office which produces more than any literty, jackson hewitt, and H&R Block combined in my closest 50 miles. My customer know my name not from the sign out front which dosent have my name but by talking to me personally and that my friends is why these places will continue to fail.

• @Texas: This is exactly my thoughts. Why pay $50K to someone to get their expertise while I could use those $50K as my 2 years of expense to start my own NO NAME Brand.

  Liberty tried their best to sign me up. They booked me for their session but one visit to their local store gave me the entire picture. Local Store owner owns three stores with another partner. Both works at the stores as Manager and draw $15-$18/hour (local manufacturing plants pay similar rates for not using brain...) She also told me that she take "some" money out at the end of the year as a profit. Which I figured was not huge. So I figured if I want to quit what I do today for living and go in this franchise business I need to own 5 stores to quit my day job!!!

  Do, I need such headache or I start my own 2in1 Business. I am thinking Computer Shop at Front and Tax Business at the back with Money Transfer facility. Opps did I give a million dollar idea for free :)

• I have read all the negative comments and from it sound like most of you have never operated your own business in a corporate level. I do not have Libert Tax Locations, but am currently researching . I currently operate 9 franchise locations from a different industry and am doing very well. I have seen many people fail. There are no gaurantees and yes you will not make a intial start up cost the first year... thats not the point. Google, Apple, etc still have debt they are paying off. You pay $40,000 to learn how to fish and you eat for a life time.If you are looking to get rich the first year on any business you are kidding yourselves. keep working for someelse or be famous and rich those are you other 2 options. Thats why our goverment allows small businesses to take a loss for at least 5 years.That is your cushion...by the way the only reason I am looking for a different franchise oppurtunity is because working for 5 months instead of 12months and I do not have to worry about employees stealing, to me that is priceless. good luck with the computer shop and money transfer and

  and making your business to a household name. That alone will cost you $100k in the next 3 years.You will be paying a franchise fee without even knowing.
  mkaing your business to

• There are all sorts of ways to steal in a tax business. You definitely have to worry about employees stealing.

• To all:

  There are over 700+ negative comments about this franchise on this site. They range from bad to horrible. You give Liberty 19% of your gross, 5% of which is supposedly for advertising, and spend another 15% of your gross to advertise your business. That combined with the high rent for storefronts, and preparer wages, you are lucky to come out with a profit. Most franchisees don't make a profit their 4th or 5th year let alone 1st or 2nd. Yes, there are the exceptions. Some have low income territories, and can find low rent store fronts on major intersections. That is the exception, not the norm. My advice, stay away or start your own. It is not that hard, and well worth it in the end.

• There is a reason for all the negative publicity associated with Hewitt and the Liberty Tax Circus. This company is primarily interested in selling you a franchise-that is it. No support. No Advertising. No knowledge. Lousy computer software. I am a former franchisee and speak from experience. I succumbed to their presentation of falsehood that I could grow my established tax practice. Yes, I have experience running my own tax practice and yes, it was successful. Successful until I stupidly signed the franchise agreement. It has been a money losing proposition ever since. The only thing I did wisely was to retain my preexisting customers and specifically excluded them from the Liberty system. Liberty did indeed try to steal these customers, but were not successful-Thank Goodness! As a result, I'm broke and disillusioned by all franchises and I can't even open up an office close by to my customers because of a non-compete clause in the franchise agreement.

  If this doesn't persuade you to steer clear of this organization, I don't know what will. If that is the case, I guess you deserve each other. Don't say you haven't been warned.