Liberty Tax Service

What are the primary reasons Liberty Tax Service has initiated 36 plaintiff cases against franchisees, and what were the outcomes of these cases?

Can you provide details on the 15 cases where the franchisor was named as defendant, including the claims and resolutions?

The system has declined from 2,104 units to 1,764 units in 3 years. What specific operational or market changes led to this 19.3% unit reduction?

In 2023, closures spiked to 201 units and terminations reached 119. What factors contributed to these elevated exit numbers compared to other years?

How does Liberty Tax Service define and track the distinction between closed units, terminated units, and units that ceased operations for other reasons?

The advertising fund rate of 5.0% is above the typical range of 1.5-4.0% for this franchise category. How is this fund allocated and can franchisees see an itemized breakdown of marketing spend?

What specific cure periods apply to different types of defaults, and can you provide examples of defaults considered non-curable that would result in immediate termination?

Given the 2-year non-compete clause within 25 miles of the territory, how has the franchisor enforced this restriction post-termination, and are there any pending cases related to non-compete violations?

Can you clarify the mandatory arbitration requirements that apply to franchisees in Indiana, Illinois, and North Dakota, and what forum applies to franchisees in other states?

What are the specific personal guarantee obligations required from individual signatories, and have there been cases where franchisees were held personally liable for post-termination obligations?

The franchise agreement includes 15 non-curable defaults. Can you provide the complete list and clarify what constitutes the most common non-curable violations leading to termination?

How many of the 2 pending litigation cases involve individual franchisees versus class action claims, given that franchisees waive class action rights?

What financial support or assistance programs are available for franchisees struggling with profitability, particularly given the recent unit decline trend?

Can you provide copies of the Item 19 financial performance representations and clarify the average unit volumes by system tenure and location type?

What specific encroachment protection mechanisms exist to prevent the franchisor from opening competing units within 25 miles of existing franchise territories?

Since there is no renewal fee charged, how does the franchisor encourage renewals given the declining unit base, and what are the historical renewal rates?

Has the franchisor implemented any new business model changes, training programs, or marketing initiatives in response to the declining unit count in 2022-2024?

What recourse do franchisees have if they believe the advertising fund of 5.0% is not being spent effectively on their behalf?

Can you provide a breakdown of the 532 units lost over 3 years by geographic region to identify whether closures are concentrated in specific markets?

What are the typical reasons franchisees cite for transferring units, and how many transfers have been denied by the franchisor in the past 3 years?