Liberty Tax Service
Franchise research report · reviewed 2026 disclosure data
Researching Liberty Tax Service franchise opportunities? Every figure below is cited to the FDD.
- Franchising since
- 1997 Source: franchise.org
- Headquarters
- Virginia Beach, VA United States Source: franchise.org
Liberty Tax Service franchise specializes in income tax preparation and related financial services, operating seasonal and year-round locations across the Unite
Headline figures
Quick facts
- How much does it cost to open a Liberty Tax Service franchise?
- The Liberty Tax Service Franchise Disclosure Document reports an estimated initial investment of $49,700 (2026 FDD, Item 7, PDF p. 31). This is the franchisor's disclosed estimate, not a quote. Details
- What is the Liberty Tax Service initial franchise fee?
- The disclosed initial franchise fee for a standard single unit is $25,000 (2026 FDD, Item 5, PDF p. 26). Other fee options (for example multi-unit or conversion) are listed separately in the report. Details
- What ongoing fees does Liberty Tax Service charge?
- The disclosed ongoing royalty is $14 (2026 FDD, Item 6, PDF p. 27). The brand or advertising fund contribution is $2 (2026 FDD, Item 6, PDF p. 29). Other recurring fees are listed in Item 6. Details
- Does Liberty Tax Service disclose financial performance (Item 19)?
- Yes. The Liberty Tax Service FDD includes an Item 19 financial performance representation (2026 FDD, Item 19, PDF p. 60). Figures apply only to the locations and period each one covers. Details
- How many Liberty Tax Service locations are there?
- The FDD reports 3,326 outlets at the end of 2025 (2026 FDD, Item 20, PDF p. 61). Existing locations do not indicate territory availability. Details
From reviewed FDD figures only. Not a recommendation or projection.
What the disclosures show
- 1Opening costs are estimated at $49,700 in the 2026 FDD (Item 7); several initial fee options apply.
- 2Item 19 reports other measures for 1,411 Franchised franchise.
- 3Outlets declined by 202 in 2025, to 3,326 (United States, as labeled in the FDD, Item 20).
From reviewed FDD figures only. Not a recommendation or projection.
Costs · Items 5–7
What does it cost to open?
Estimated opening costs and the fees payable to the franchisor.
Startup Investment — Item 7
Total estimated initial investment
2026 FDD · Item 7 · PDF p. 31
Standard single-unit franchise fee
2026 FDD · Item 5 · PDF p. 26
Discounted and multi-unit options are separate; see all fees.
Ongoing Fees — Item 6
Selected recurring charges; payment bases and conditions remain attached to each fee.
- OTHER FEES* Fee Amount Due Date Remarks Royalties — 14%Main ongoing fee
28 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.
Financial Performance — Item 19
What results are disclosed—and for which locations?
One reported population. Revenue is not owner income.
Locations counted: not stated in the reviewed record
Other measures · 1,411 locations
- Who is counted
- 1,411 franchise-operated Liberty Tax offices that operated during tax season 2025 and remained active into tax season 2026
- Period
- Average
- Excluded
- Processing centers, seasonal offices, and offices not active into tax season 2026 were omitted.
- Method
- Arithmeticmean/median;prepfeespreparation+transmissionlessdiscounts;returnscountfederaltransmitted;1411of1696franchise(83.2%)of1780USoffices.
Outlet Changes — Item 20
How has the outlet count changed?
United States, as labeled in the FDD · counts as of 2025 of each year.
2026 FDD · Item 20 · PDF p. 61
Net −444 outlets, 2023–2025
Year-end counts reported in Item 20. The scale starts at zero; the labels between the dots show each year's change. Openings and closures for 2025 haven't been pulled from the Item 20 tables yet, so no turnover or churn is shown.
Questions to investigate
Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.
For the franchisor
Which line items in the 2026 Item 7 estimate ($49,700) vary most by market, and why?
Which initial fee option would apply to my situation, and what conditions or discounts affect it?
Which locations are included in the Item 19 figures, and which were excluded?
Reported units decreased from 3,528 to 3,326 in 2025. What drove the change?
Is a territory available in my area, and how is it defined in my agreement?
For current and former owners
How did your actual startup costs and timeline compare with the Item 7 estimate?
How many hours a week do you work in the business, and in what role?
How do your results compare with the Item 19 figures, and what explains the difference?
What support from the franchisor has been most and least useful?
For your advisors
Ask a franchise attorney to review the territory, renewal, transfer and termination terms.
Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.
Sources & vintage history
Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.
Citations (2026 FDD)
- [1]Estimated initial investment — Item 7 · PDF p. 31
- [2]Standard initial franchise fee — Item 5 · PDF p. 26
- [3]Item 19 — Locations counted not stated in the reviewed record · PDF p. 60
- [4]Outlet counts — Item 20, Table 1 · PDF p. 61
"PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page. Source document: FDD
Territory & operations
1,722 addresses in Franopolis's imported location list. Coverage may differ from Item 20 outlet counts.
These are contract disclosures, not confirmation that any territory is currently available.
Legal & agreement
Franchisor financial statements
| Fiscal year | Measure | Reported value |
|---|---|---|
| 2025 | cash and cash equivalents | $11,825 |
| 2025 | loss on disposal of fixed assets | $52 |
| 2025 | effect of exchange rate changes on cash, net | $27 |
| 2025 | property, equipment, and software, net | $15,696 |
| 2025 | intangible assets, net | $88,932 |
| 2025 | income | -$11,816 |
| 2025 | interest expense, net | -$9,665 |
| 2025 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$21,545 |
| 2025 | current receivables, net | $13,644 |
| 2025 | current operating lease liabilities | $2,678 |
| 2025 | long-term obligations, excluding current installments, net | $72,371 |
| 2025 | goodwill | $39,939 |
| 2025 | investing activities issuance of operating loans to franchisees | -$442 |
| 2025 | other current assets | $1,894 |
| 2025 | other current liabilities | $605 |
| 2025 | total liabilities | $98,925 |
| 2025 | service and other | $88,038 |
| 2025 | cash and cash equivalents at end of year | $11,825 |
| 2025 | supplemental cash flow disclosure cash paid for taxes, net of refunds | $683 |
| 2025 | accounts, notes, and interest receivable | -$1,341 |
| 2025 | net cash provided by operating activities | $6,523 |
| 2025 | other non-current assets | $344 |
| 2025 | total assets | $178,602 |
| 2025 | current installments of long-term obligations | $1,366 |
| 2025 | assets held for sale | $122 |
| 2025 | total current assets | $27,485 |
| 2025 | non-current receivables, net | $679 |
| 2025 | operating lease right-of-use assets | $5,527 |
| 2025 | payments received on operating loans to franchisees | $706 |
| 2025 | purchases of company-owned offices, area developer rights, and acquired customer lists | -$18 |
| 2025 | accounts payable and accrued expensesMore than one value recorded for this year — open the FDD source before comparing | $19,033 |
| 2025 | total current liabilities | $23,682 |
| 2025 | non-current operating lease liabilities | $2,618 |
| 2025 | other non-current liabilities | $254 |
| 2025 | member's equity member's capital | $79,677 |
| 2025 | total member's equity | $79,677 |
| 2025 | total liabilities and member's equity | $178,602 |
| 2025 | total revenues | $88,038 |
| 2025 | selling, general, and administrative expenses | $68,954 |
| 2025 | depreciation and amortization expense | $10,710 |
| 2025 | impairment expense | $20,190 |
| 2025 | total operating expenses | $99,854 |
| 2025 | other | $246 |
| 2025 | loss before income taxes | -$21,235 |
| 2025 | income tax benefit | $310 |
| 2025 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$21,545 |
| 2025 | provision for doubtful accounts | $1,732 |
| 2025 | depreciation and amortization charges | $10,710 |
| 2025 | gain on bargain purchases and sales of company-owned offices | -$1,601 |
| 2025 | deferred income taxes | $1 |
| 2025 | income taxes | -$374 |
| 2025 | other assets | $494 |
| 2025 | accounts payable and accrued expensesMore than one value recorded for this year — open the FDD source before comparing | -$1,593 |
| 2025 | deferred revenue | -$218 |
| 2025 | purchases of property, equipment, and software | -$3,526 |
| 2025 | net cash used in investing activities | -$3,280 |
| 2025 | repayment of other long-term obligations | -$29 |
| 2025 | net cash provided by | -$2,268 |
| 2025 | net increase in cash, cash equivalents and restricted cash | $1,002 |
| 2025 | cash and cash equivalents at beginning of year | $10,823 |
| 2025 | cash paid for interest | $10,034 |
| 2025 | accrued capital expenditures | $116 |
| 2024 | loss before income taxes | -$3,021 |
| 2024 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$3,340 |
| 2024 | income taxes | -$197 |
| 2024 | other assets | $243 |
| 2024 | net increase in cash, cash equivalents and restricted cash | $4,947 |
| 2024 | accumulated other comprehensive loss, net of taxes | -$144 |
| 2024 | total revenues | $88,586 |
| 2024 | selling, general, and administrative expenses | $70,759 |
| 2024 | other non-current liabilities | $235 |
| 2024 | purchases of company-owned offices, area developer rights, and acquired customer lists | -$402 |
| 2024 | net cash used in investing activities | -$3,604 |
| 2024 | loss on disposal of fixed assets | $10 |
| 2024 | gain on bargain purchases and sales of company-owned offices | -$675 |
| 2024 | operating lease right-of-use assets | $4,897 |
| 2024 | other non-current assets | $289 |
| 2024 | total assets | $202,653 |
| 2024 | current installments of long-term obligations | $1,504 |
| 2024 | cash and cash equivalents | $10,823 |
| 2024 | current receivables, net | $13,611 |
| 2024 | assets held for sale | $122 |
| 2024 | other current assets | $1,757 |
| 2024 | total current assets | $26,313 |
| 2024 | property, equipment, and software, net | $14,619 |
| 2024 | non-current receivables, net | $903 |
| 2024 | goodwill | $66,966 |
| 2024 | intangible assets, net | $88,666 |
| 2024 | investing activities issuance of operating loans to franchisees | -$159 |
| 2024 | payments received on operating loans to franchisees | $546 |
| 2024 | current operating lease liabilities | $2,151 |
| 2024 | accounts payable and accrued expensesMore than one value recorded for this year — open the FDD source before comparing | $20,094 |
| 2024 | other current liabilities | $1,414 |
| 2024 | total current liabilities | $25,163 |
| 2024 | long-term obligations, excluding current installments, net | $73,605 |
| 2024 | non-current operating lease liabilities | $2,572 |
| 2024 | total liabilities | $101,575 |
| 2024 | member's equity member's capital | $101,222 |
| 2024 | total member's equity | $101,078 |
| 2024 | total liabilities and member's equity | $202,653 |
| 2024 | service and other | $88,586 |
| 2024 | depreciation and amortization expense | $10,004 |
| 2024 | total operating expenses | $80,763 |
| 2024 | income | $7,823 |
| 2024 | other | -$361 |
| 2024 | interest expense, net | -$10,483 |
| 2024 | income tax benefit | $319 |
| 2024 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$3,340 |
| 2024 | provision for doubtful accounts | $1,779 |
| 2024 | depreciation and amortization charges | $10,004 |
| 2024 | deferred income taxes | $69 |
| 2024 | accounts, notes, and interest receivable | -$867 |
| 2024 | accounts payable and accrued expensesMore than one value recorded for this year — open the FDD source before comparing | $1,019 |
| 2024 | deferred revenue | -$442 |
| 2024 | net cash provided by operating activities | $7,603 |
| 2024 | purchases of property, equipment, and software | -$3,589 |
| 2024 | repayment of other long-term obligations | -$28 |
| 2024 | net cash provided by | $994 |
| 2024 | effect of exchange rate changes on cash, net | -$46 |
| 2024 | cash and cash equivalents at beginning of year | $5,876 |
| 2024 | cash and cash equivalents at end of year | $10,823 |
| 2024 | supplemental cash flow disclosure cash paid for taxes, net of refunds | $552 |
| 2024 | cash paid for interest | $10,967 |
| 2024 | accrued capital expenditures | $376 |
| 2023 | income taxes | -$201 |
| 2023 | supplemental cash flow disclosure cash paid for taxes, net of refunds | $505 |
| 2023 | payments received on operating loans to franchisees | $609 |
| 2023 | depreciation and amortization expense | $30,768 |
| 2023 | total operating expenses | $180,336 |
| 2023 | purchases of company-owned offices, area developer rights, and acquired customer lists | -$579 |
| 2023 | repayment of other long-term obligations | -$37 |
| 2023 | net cash provided by | -$4,598 |
| 2023 | income | -$79,442 |
| 2023 | income tax benefit | $9,948 |
| 2023 | provision for doubtful accounts | $3,650 |
| 2023 | accounts payable and accrued expenses | -$2,092 |
| 2023 | net cash provided by operating activities | $12,916 |
| 2023 | investing activities issuance of operating loans to franchisees | -$389 |
| 2023 | service and other | $100,894 |
| 2023 | total revenues | $100,894 |
| 2023 | selling, general, and administrative expenses | $79,996 |
| 2023 | impairment expense | $69,572 |
| 2023 | other | $1,324 |
| 2023 | interest expense, net | -$10,397 |
| 2023 | loss before income taxes | -$88,515 |
| 2023 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$98,463 |
| 2023 | net lossMore than one value recorded for this year — open the FDD source before comparing | -$98,463 |
| 2023 | depreciation and amortization charges | $30,768 |
| 2023 | loss on disposal of fixed assets | $718 |
| 2023 | gain on bargain purchases and sales of company-owned offices | -$1,683 |
| 2023 | deferred income taxes | $9,168 |
| 2023 | accounts, notes, and interest receivable | $3,740 |
| 2023 | other assets | $1,048 |
| 2023 | deferred revenue | -$813 |
| 2023 | purchases of property, equipment, and software | -$4,401 |
| 2023 | net cash used in investing activities | -$4,736 |
| 2023 | effect of exchange rate changes on cash, net | $10 |
| 2023 | net increase in cash, cash equivalents and restricted cash | $3,592 |
| 2023 | cash and cash equivalents at beginning of year | $2,284 |
| 2023 | cash and cash equivalents at end of year | $5,876 |
| 2023 | cash paid for interest | $9,465 |
| 2023 | accrued capital expenditures | $173 |
These figures describe the franchisor company, not individual franchise locations.
SBA-backed loans to franchisees
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Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.
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At a glance
Business history
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Owner participation
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Territory language
Litigation disclosure
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Bankruptcy disclosure
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Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.