Liberty Tax Service

  • JTH Tax, Inc.
1716 Corporate Landing Pkwy.
Virginia Beach, VA 23454
USA
  • (800) 790-3863 / (757) 493-8855
  • (800) 880-6432 (Fax)

LIBERTY TAX SERVICE is one of the fastest-growing international tax franchises. LIBERTY has been ranked on Entrepreneur’s annual Franchise 500 every year since 1998. Any given year, there is a ready market of taxpayers, and, because tax laws change frequently, many taxpayers turn to professional preparers to complete this annual task. LIBERTY’s growth is fueled by a proven operating system that has been fine-tuned by the leadership and field support staff’s more than 600 combined years of experience. As a result, no prior tax experience is required to put this system to work. Founder/CEO John Hewitt has worked more than 45 tax seasons. Accounting Today has named Hewitt one of the accounting profession’s Top 100 Most Influential People – 11 times! The International Franchise Association has honored Hewitt as its Entrepreneur of the Year.

Franchisor Background

Year Established: 1997

Franchising Since: 1997

Operating Units

Franchised Units 3,668 93.8%
Company-Owned Units 242 6.2%
Total Operating Units 3,910 100%

Geographic Distribution

USA 3,910 93.8% In 49 States
Canada 259 6.2% In 10 Provinces
International 0 0.0% In 0 Foreign Countries
Total 4,169 100%

Multi-Unit Operators

Multi-Unit Operators N/A
Franchises Owned by Multi-Unit Operators N/A

North American Unit Density

Density Units
Texas 417
California 376
Florida 289

Registered in the following Registration States

California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District of Columbia

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Support and Training

General Information

IFA Member Yes
CFA Member Yes
Franchisee Association? No
Size of Corporate Staff 458
Site Selection
Assistance
Yes
Lease Negotiation Assistance Yes
Financial Assistance Yes, Indirect

Marketing Support

Co-Op Advertising No
National Advertising Yes
Regional Advertising Yes
Local Advertising Yes
Marketing Materials Ad Slicks, Brochures, Catalogs, Coupons/Rebates, Direct Mailers, Emails, Promotional Items, Radio Ads, Site Signs, Television Ads, Trade Show Exhibits, Videos
Additional Services: Grand Opening, In-House Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases, Sales Strategies
Other Marketing Support Member of SBA Registry, Financing Referrals, Equipment Financing, Lease Negotiations, Managerial Training, Mentoring, Sale-Leaseback, Business Plan Template.

Ongoing Support

Central Data Processing Included
Central Purchasing Included
Field Operation Evaluation Included
Field Training Included
Initial Store Opening Included
Inventory Control Included
Franchisee Newsletter Included
Regional or National Meetings Included
800 Telephone Hotline Included

Training

Virginia Beach, VA-Initial, Intermediate, Advanced 5 Days
Various Cities - Intermediate, Advanced 3 Days
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Financial Requirements

Investment

Minimum Net Worth $50K
Cash Investment $58.7-71.9K
Total Investment $58.7-71.9K
Average Total Investment $65K

Fees

Initial Franchise Fee $40K
Average Franchise Fee N/A
On-Going Royalty 14%
Average Royalty N/A
Advertising Fee 5%

Site Information and Requirements

Average Number of Full-Time Employees 4-6
Average Number of Part-Time Employees 2
Space Needs (in square feet) 400+
Preferred Site Types Free Standing Building, Storefront, Strip Center, Regional Mall
Other Site Types Allowed Kiosk
Encourages Conversions No
Item 19 (Earnings Claim) Provided? Yes
Listed in the SBA Registry? No
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Franchisee Qualifications

Financial Net Worth 2
General Business Experience 4
Specific Industry Experience 2
Formal Education 1
Psychological Profile 3
Personal Interviews 5
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Terms of Contract

Term of Initial Contract 5
Term of Renewal Period 5
Passive Ownership? Allowed, but discouraged
Area Development
Agreements?
Yes, for 10 years
Sub-Franchisor
Contracts?
No
Franchisees Allowed to Expand Within Territory? Yes
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Expansion Plans

Projected New Units Over Next 12 Months 258
USA Yes, All United States
Canada Yes
Overseas No
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Request Information for Liberty Tax Service

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