Which tax franchise is best to own?
Several tax franchisees on the Liberty Tax discussion thread recommend: No franchise.
If they had it to do over again, they would have started an independent tax preparation and gone it alone.
UnhappyFranchisee.com commenter finally gone wrote:
If anyone wants to see if franchising or in this case a tax office is the right move for you I suggest you do this. First compare buying a franchise to opening your own store using the same amount of funds. Take the Franchise Fee you were planning on paying and set it aside to open your own business so for example sake lets say 40000. Take 10k or so to pay yourself while you educate yourself about the business and build yourself a real business model. It may not take the 10k but for example purposes it is just a number but take the time needed to educate yourself the right way. This may take 3 months or even a year but learn the business.
Then go ahead after your education period and start the process of opening your business. The cost your going to spend to open your own branded tax office in reality is not going to cost you any more than you were going to spend opening a Franchise Store and since you were seriously considering it you should have the capital to do this without touching the remaining 30k you put aside by not purchasing a Franchise.
Now your ready to open and go through your first season. I know some of you are asking what about software and support? It may amaze some of you but you can purchase top of the line software with excellent support in many cases for nothing just because if you are going to offer bank products and are going to be doing a decent amount of returns the software company will waive the fee because the amount they will be paid via the bank for your production. Even if you decide your not offering bank products software with support is not that expensive at all.
Now were off and open. Take 10k to 15k of the money you were going to pay just for the franchise fee and use it to promote your business and your services. If you did your homework during the time you took to educate yourself this will be easy. You could spend more but that’s up to you. I would split it between my first and second year. You should by now have a good idea what works and what doesn’t if you did your homework.
Now here is where the numbers really start making sense. If you are a Franchisee your only getting 75 percent of every dollar your making. Why?because your paying royalties and advertising fees and those get paid no matter if you received anything from them or not. If you do 100k in fees under your own brad your 25k better off.
It is not that hard to realize that taking your money and getting yourself educated and prepared is by far the right way to go but you need to do budgets for both and look at what your really paying when you sign a franchise agreement.
I hope this gives you at least a starting point to make an informed and logical choice. Because the difference between these 2 options can change your life. In Franchising they tell you your in business for yourself but not by yourself and that is so appealing. They do not tell you what that means. It means when you try to do something to help your business succeed they can and will tell you what is acceptable and it matters none that what they tell you may harm you or stunt your business growth. It means that anytime they wish to interfere and change things they can and you paid them allot of money to give them this right!
Frustrated & Disgusted agrees, writing:
finally gone, you are so right.
People think that buying a franchise also buys them a proven system that will increase sales faster than would have happened otherwise.
I have over 20 years of corporate marketing background. There is no such thing as a proven system. What creates demand in one area, does not always work in another. Giving away $50 Cash in a Flash [A Liberty Tax promotion] in one area may flop in 10 others. I tried CIAF and it fizzled big time. Wavers can bring in some customers, fail in another. Local marketing to businesses had minimal return.
What always works is true word of mouth by giving good service and having satisfied customers. Every business owner will attest to that. That can easily be done with or without franchise help.
Hence, build your own brand, your own business by creating satisfied customers.
What do you think?
Is buying a tax franchise a waste of money or a smart way to start a tax preparation business?
ARE YOU A TAX FRANCHISE OWNER OR FORMER FRANCHISEE? ARE YOU FAMILIAR WITH TAX PREPARATION FRANCHISE OPPORTUNITIES? SHARE AN INSIGHT BELOW.
TAGS: tax franchise, tax franchise opportunity, tax franchise complaints, Liberty Tax franchise, H&R Block franchise, Jackson Hewitt franchise opportunity, tax preparation franchises, starting a tax business, unhappy franchisee