How much revenue does a LIBERTY TAX SERVICE franchise make?

According to the 2025 FDD, the average gross revenue for a LIBERTY TAX SERVICE franchise is $151,872. The median revenue is $129,445.

How many LIBERTY TAX SERVICE franchise locations are there?

As of the 2025 FDD, LIBERTY TAX SERVICE has 1,686 franchise locations. The company has been franchising since 1997.

Can you get an SBA loan for a LIBERTY TAX SERVICE franchise?

Yes, SBA loans are available for LIBERTY TAX SERVICE franchises. Historical data shows 170 SBA 7(a) loans have been approved for LIBERTY TAX SERVICE franchisees, with an average loan amount of $203,226. The historical default rate is 8.2%.

Is LIBERTY TAX SERVICE a good franchise to buy?

LIBERTY TAX SERVICE shows several positive indicators: established brand with 1,686+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

LIBERTY TAX SERVICE

Liberty Tax Service offers franchises to operate retail income tax preparation offices using proprietary marks, business methods, and marketing techniques in specified geographic territories. The business model involves seasonal tax return preparation services, primarily from January to April, with franchisees required to comply with IRS regulations and offer ancillary products like refund anticipation loans. It targets low to middle-income customers, competing with H&R Block, Jackson Hewitt, online services, and nonprofits.

1,686

Locations

$50K–$71K

Investment

Since 1997

Franchising

ServicesVirginia Beach, VABP LTCT LLCwww.libertytax.comDisclaimer

Franchise Costs

Franchise Fee

$25,000

Item 5 of FDD

Initial Investment Range

$49,970 – $71,400

Low: $49,970High: $71,400

Item 7 of FDD

Royalty Rate

14.00%

of gross sales

Brand Fund

5.00%

Item 6 of FDD

14% royalty + 5% ad fund

Financial Performance

Item 19 Financial Performance

Average Gross Revenue

Median Gross Revenue

Data Based On: Data based on 1,599 franchise owned Liberty Tax offices that operated during tax season 2024 and also remained active in systems into tax season 2025. This excludes processing centers and seasonal offices, and represents 89% of the 1,791 franchise locations available as of February 15, 2024.

Extracted Item 19 Section

How LIBERTY TAX SERVICE Compares

Key Insights

Lower investment than 76% of Business Services franchises
Top 10 largest franchise system in Business Services
Lower than average SBA loan default rate in Business Services

Franchise	Investment	Fee	Royalty	Locations
LIBERTY TAX SERVICE Current	$50K – $71K	$25K	14.0%	1,686
Bimbo Foods Bakeries Distribution, LLC	$14K – $607K	N/A	N/A	6,454
THE UPS STORE (TRADITIONAL)	$216K – $609K	$30K	5.0%	4,500
JACKSON HEWITT TAX SERVICE	$71K – $105K	$25K	15.0%	2,744
CRUISE PLANNERS	$2K – $21K	$11K	3.0%	2,655
SERVPRO (UNIT)	$259K – $380K	$100K	10.0%	2,286
Business Services Average 188 franchises	$118K – $284K	$46K	10.4%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 188 Business Services franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States

1CA

184

2TX

181

3NC

110

4FL

5OH

6NY

7IL

8PA

9MA

10MI

11VA

12SC

13GA

14MO

15TN

+36 more states

SBA Loan History

Historical SBA 7(a) loan data for LIBERTY TAX SERVICE franchisees (2010 – 2025)

Total Loans

170

Average Loan

$203,226

Total Volume

$34.5M

Default Rate

8.2%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

1,787 franchisee contacts on file from official FDD filings.

Name	Address	Phone	Email	SBA Loan
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active

1,787 Contacts Available

Unlock all LIBERTY TAX SERVICE franchisee contacts with verified contact information

Due Diligence

Litigation (Item 3)

Franchisee Cases28

Primarily franchisor lawsuits against former franchisees for breach of non-compete covenants, trade secret misappropriation, trademark violations, tortious interference, and unpaid royalties/fees; includes debt collection actions, a few franchisee counterclaims for breach of contract/wrongful termination, and franchisee-initiated disputes over area developer agreements.

Bankruptcy (Item 4)

Bankruptcy HistoryYes

Former parent NextPoint Financial Inc. filed for debtor relief under Canada's Companies' Creditors Arrangement Act on July 25, 2023, and Chapter 15 petition in US Bankruptcy Court on July 26, 2023, as foreign representative of the franchisor and certain US affiliates; assets sold January 2, 2024.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

N/A

Non-Renewals

N/A

Reacquired

N/A

Ceased Ops

N/A

Transfers

N/A

Sold to Franchisees

N/A

Projected New

N/A

Frequently Asked Questions

The total initial investment to open a LIBERTY TAX SERVICE franchise ranges from $49,970 to $71,400. This includes a franchise fee of $25,000. Ongoing royalty fees are 14.0% of gross sales.