Liberty Tax Service charges a royalty fee of 14.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Liberty Tax Service franchise is approximately 19.0% of gross sales (2025 FDD). This includes the royalty fee, a 5.0% marketing/advertising fund contribution, and other recurring charges.

Liberty Tax Service has been involved in 35 litigation cases over the past 3 years (2025 FDD). There are currently 2 pending cases. There are no class action lawsuits pending.

Yes, the Liberty Tax Service franchisor has a bankruptcy filing in their history (2025 FDD). Prospective franchisees should review FDD Item 4 for complete details.

Liberty Tax Service offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.

Liberty Tax Service currently operates 1,764 locations (2025 FDD) (1,686 franchised, 78 company-owned). The system contracted by 6.4% over the past year. The 3-year compound annual growth rate is -5.7%.

The 1-year franchisee turnover rate for Liberty Tax Service is 9.1% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

The initial franchise agreement term for Liberty Tax Service is 5 years (2025 FDD). The total potential term is 5 years.

Liberty Tax Service's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 25 miles of the former location (2025 FDD).

No, Liberty Tax Service's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.

Liberty Tax Service provides 32 hours of initial training over approximately 1 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, Liberty Tax Service provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.