Toro Taxes

Franchising since 2015, Toro Taxes expanded from 181 to 205 locations between 2023 and 2024—a solid 13% growth, backed by projections for 44 new units. Corporate owns 14 stores, leaving most as franchisee-operated. However, Item 20 flags concerns: 31 terminations and 5 non-renewals amid just 1 transfer suggest churn, potentially straining franchisee retention in a competitive tax services field. Six Colorado franchisees pursued arbitration over alleged FDD disclosure issues and financial reps, settled without liability admission—watch for patterns in future FDDs.

Economics shine on entry but dim on output: $40,000 franchise fee within $17,835-$79,150 total investment, far below peers, suits semi-absentee tax pros. Fees hit hard at 10% royalty, 2% brand fund, plus $200/month bookkeeping software and up to $250/month tech—eroding thin margins. Item 19 shows average gross revenue at $68,227 but median $42,099, implying top performers skew averages while most scrape by, especially seasonally. No profit data disclosed, but low median signals caution for scaling via optional business/insurance arms; viability hinges on location and multi-service uptake amid high ongoing fees.