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SUBJECT DOSSIER · FDD 2026

Liberty Tax Service - Unit

Other Franchises · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

Liberty Tax Service - Unit discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets1,663
Disclosed lawsuits32
Closure signals28 ceased
Investment
$49,700–$71,400
Total fees
19% of sales
Outlets
1,663
Closure signals
28 ceased, 62 terminated
Lawsuits
32
◢ FINDINGS
ITEM 20
28 outlets ceased operations
149 franchised outlets closed in 2025; 62 terminations, 38 non-renewals.
ITEM 03
32 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

What their own earnings claim actually says

1,411 franchised offices: average prep fees $164,860, median $139,486, average returns 586, median 494. 38.41% above average.

Is Liberty Tax Service - Unit worth it? — how it compares to 266 similar franchises

Ongoing fees19% of salessteeper than 94% of other franchises franchises
Startup costfrom $49,700cheaper than most (median $142,905)
Disclosure honestyGrade Ctypical for the category
Closure rate1.7% of outletsabout average
Disclosed lawsuits32more litigious than 99% of peers

Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a Liberty Tax Service - Unit

The franchisor's framing: 1,411 franchised offices: average prep fees $164,860, median $139,486, average returns 586… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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Liberty Tax Service - Unit franchise — frequently asked

How much does a Liberty Tax Service - Unit franchise cost?
The FDD lists a total initial investment of about $49,700–$71,400, including a $25,000 initial franchise fee.
How much do Liberty Tax Service - Unit franchise owners make?
1,411 franchised offices: average prep fees $164,860, median $139,486, average returns 586, median 494. 38.41% above average. We grade this disclosure C for honesty.
What is the Liberty Tax Service - Unit franchise failure rate?
149 franchised outlets closed in 2025; 62 terminations, 38 non-renewals.
Is a Liberty Tax Service - Unit franchise worth it?
It depends on the numbers, not the pitch. Liberty Tax Service - Unit scores C on disclosure honesty, carries about 19% of sales in ongoing fees, and discloses 32 legal matters. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Liberty Tax Service - Unit or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.