Liberty Tax FDD Summary
Type of Business
JTH Tax, Inc. d/b/a Liberty Tax Service offers a franchise program to operate tax return preparation offices utilizing special marketing techniques and operating procedures. They offer franchises to operate income tax preparation offices using their marks “Liberty Tax Service,” “Liberty Tax,” and “Liberty Income Tax,” any further marks thy develop, and their proprietary business methods and marketing techniques in a specified geographic territory. They are a retail income tax return preparation business, which primarily attracts customers from the low to middle income brackets.
JTH Tax, Inc. 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. JTH Holding functions as a holding company, which owns JTH Tax, Inc. and JTH Financial, LLC. Their principal place of business, except for Liberty-Canada, is 1716 Corporate Landing Parkway, Virginia Beach, Virginia 23454.
Option 1- $40,000 franchise fee: The total investment necessary to begin operation of a Liberty Tax office is $56,800 – $69,900. This includes the initial or resale franchise fee that you must pay to us, which is $40,000.
Option 2- $2,500 security deposit: The total investment necessary to begin operation of a Liberty Tax office is $19,300 -$32,400. There is no initial or resale franchise fee but you must pay to us a $2,500 security deposit and a higher royalty rate for the first five years.