Business Description

We're #1! LIBERTY TAX SERVICE is the fastest-growing international tax service ever! In 10 years, LIBERTY TAX SERVICE has grown to the size H&R Block and Jackson Hewitt took 13 and 15 years respectively to reach. There's a growing market of taxpayers, and approximately 63% of them outsource the tax preparation task to paid professionals. LIBERTY's growth is fueled by a proven operating system that has been fine-tuned by the leadership and field support staff's 500 total years of experience. Founder/CEO John Hewitt has worked 38 tax seasons, including 12 years with H&R Block. Accounting Today magazine has named Hewitt one of the accounting profession's top 100 most influential people for 6 consecutive years. The International Franchise Associate has honored Hewitt as its "Entrepreneur of the Year." No prior tax experience is required to put this proven system to work.

Franchisor Background

Year Established:  1997

Franchising Since:  1997

Operating Units:
Franchised Units:	2,296	97.2%
Company-Owned Units:	65	2.8%
Total Operating Units:	2,361	100.0%
Geographic Distribution: U.S.: 2,069 87.6% In 50 States Canada: 292 12.4% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 2,361 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	187
2. Ontario	141

Registered in Following Registration States: Hawaii, Minnesota, South Dakota, Virginia, Wisconsin

Financial Requirements

Investment:
Minimum Net Worth:	$100K
Cash Investment:	$34K
Total Investment:	$33.3-63.9K
Average Total Investment:	$57K
Fees:
Initial Franchise Fee:	$34K
Average Franchise Fee:	$34K
On-Going Royalty:	Varies
Average Royalty:	-1%
Advertising Fee:	5%

Average Number of Employees: 4-6 Full-time, 2 Part-time

Space Needs (in square footage): 400+

Preferred Sites: Free-standing Building, Storefront, Strip Center, Regional Mall

Other Sites:

Encourage Conversions? No

Earnings Claims Provided?: No

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	5
General Business Experience:	5
Specific Industry Experience:	2
Formal Education:	1
Psychological Profile:	1
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	5 Year(s)
Term of Renewal Period:	5 Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	Yes, for 10 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	Yes
Franchisee Association/Member:	No
Size of Corporate Staff:	407
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	Yes
Local Advertising:	Yes
Marketing Materials:	Ad Slicks, Brochures, Catalogs, Coupons/rebates, Direct Mailers, Emails, Promotional Items, Radio Ads, Site Signs, Television Ads, Trade Show Exhibits, Videos
Additional Services:	Grand Opening, In-house Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases, Sales Strategies
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Included in Fees
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Not Applicable
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees
Training:
1. Virginia Beach, VA - Initial, Intermediate, Advanc	3 Days
2. Various Cities - Intermediate, Advanced	3 Days
Expansion Plans
Projected New Units Over Next 12 months: 300-500 U.S.: Yes, All United States Canada: Yes Overseas: No	Request Franchisor Info   Submit an online form to receive information from Liberty Tax Service.