Liberty Tax Service - Unit Franchise
Cost, fees, owner earnings, closure rate and litigation for a Liberty Tax Service - Unit franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Liberty Tax Service - Unit discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
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.
What a Liberty Tax Service - Unit franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 14% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 19% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $49,700 – $71,400 | Item 7 — franchisor's own low/high estimate |
14% royalty, 5% ad fee on Gross Receipts; $5,000 transfer fee; 10% commission fee (min $5,000) if franchisor sells franchise.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Liberty Tax Service - Unit system size and owner turnover
| Total outlets | 1,663 |
| Ceased operations | 28 |
| Terminated by franchisor | 62 |
| Transferred to new owners | 54 |
| Closure rate | 1.7% of outlets |
149 franchised outlets closed in 2025; 62 terminations, 38 non-renewals.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Liberty Tax Service - Unit worth it? — how it compares to 436 similar franchises
| Ongoing fees | 19% of sales | steeper than 96% of other franchises franchises |
| Startup cost | from $49,700 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 1.7% of outlets | about average |
| Disclosed lawsuits | 32 | more litigious than 100% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
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.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
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 are the Liberty Tax Service - Unit franchise fees?
- Liberty Tax Service - Unit's FDD discloses a $25,000 initial franchise fee, a 14% royalty on gross sales, a 5% advertising-fund contribution, for roughly 19% of gross sales in recurring fees before rent, labor, or debt service. 14% royalty, 5% ad fee on Gross Receipts; $5,000 transfer fee; 10% commission fee (min $5,000) if franchisor sells franchise.
- What is the Liberty Tax Service - Unit franchise profit margin?
- Liberty Tax Service - Unit does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 1,411 franchised offices: average prep fees $164,860, median $139,486, average returns 586, median 494. 38.41% above average. Recurring fees alone take about 19% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Liberty Tax Service - Unit franchise failure rate?
- 149 franchised outlets closed in 2025; 62 terminations, 38 non-renewals.
- How many Liberty Tax Service - Unit locations are there?
- Liberty Tax Service - Unit's FDD reports 1,663 total outlets, with 28 that ceased operations in the most recent reporting year and 54 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Liberty Tax Service - Unit have complaints or lawsuits?
- Liberty Tax Service - Unit discloses 32 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- 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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Compare Liberty Tax Service - Unit to similar franchises
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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.