Liberty Tax – Area Developer FDD Summary
Type of Business
JTH Tax, Inc. d/b/a Liberty Tax Service offers a franchise opportunity to you as an area developer, to solicit and service franchises on their behalf, pursuant to an area developer agreement for a specified territory.
Corporate Information
JTH Tax, Inc. d/b/a Liberty Tax Service is a Delaware corporation incorporated on October 23, 1996. They do business as “Liberty Tax Service.” On September 23, 2010, they incorporated JTH Holding, Inc. in Delaware. In July 2014, they formally changed the name of JTH Holding to Liberty Tax, Inc. Their principal place of business is 1716 Corporate Landing Parkway, Virginia Beach, Virginia 23454. They have offered area developer agreements since June 2001.
Investment
The franchisor offers two tiers at which you may purchase this franchise. Tier 1- If you sign up to receive 50% of the initial franchise fees and royalties from your Territory, the initial franchise fee is $.34 to $2.50 per person in your Territory. Tier 2- If you sign up to receive 50% of the initial franchise fees from your Territory and royalties from your Territory over a certain amount (as will be specified in your Area Developer Agreement), the initial franchise fee is 5¢ to $2.00 per person in your Territory. The precise amount you pay per person will be negotiated based upon pertinent market factors as described below in Item 5. The minimum initial franchise fee is $100,000. The total investment necessary to begin operation as a Liberty Tax Service Area Developer is a minimum of $110,200 to $123,400. This includes the initial franchise fee that you must pay to the franchisor.