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
Liberty Tax Service quick facts
- Is Liberty Tax Service a franchise?
- Yes. Liberty Tax Service offers franchises through a Franchise Disclosure Document. At the end of 2025, it reported 1,537 franchised and 126 company-owned outlets (2026 FDD, Item 20, PDF p. 61).
- How much does it cost to open a Liberty Tax Service franchise?
- The Liberty Tax Service Franchise Disclosure Document reports separate estimated initial investments by format: $49,700 for charge as incurred suppliers, utilities, etc. total for a single franchise agreement — 49700 (2026 FDD, Item 7, PDF p. 31); $49,970–$71,400 for total for a single franchise agreement: $49,970–$71,400 (2025 FDD, Item 7, PDF p. 35). These formats are not combined. Each 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% (2025 FDD, Item 6, PDF p. 31). 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 1,663 outlets at the end of 2025 (2026 FDD, Item 20, PDF p. 61). Existing locations do not indicate territory availability. Details
- Is Liberty Tax Service a good franchise to buy?
- Franopolis does not rate or recommend franchises. From the reviewed FDD: Item 19 includes financial performance figures; check which locations and period they cover; Item 20 lists outlet openings, closures and transfers; Item 6 includes a brand or advertising fund contribution on top of royalty; Item 20 also lists current and former franchisees you can contact. Review the full FDD with a franchise attorney and accountant before deciding.
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 101 in 2025, to 1,663 (United States, as labeled in the FDD, Item 20).
From reviewed FDD figures only. Not a recommendation or projection.
Liberty Tax Service head-to-head
Closest peers in the same subcategory, side by side from reviewed FDD figures. Not a ranking or recommendation.
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.
1,411 locations
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 −442 outlets, 2022–2025
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 1,764 to 1,663 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 |
These figures describe the franchisor company, not individual franchise locations.
What changed from 2025 to 2026
- Estimated initial investment: $49,970 – $71,400 → $49,700
- Franchise fee: $25,000 → $10,000
- System size: 3,528 → 1,663 units
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.
Related research
Brands in the same subcategory first, then the wider industry, ordered by shared business format, overlapping investment range, Item 20 outlet count and search interest. This is not a ranking or recommendation.
Jackson Hewitt
Jackson Hewitt Tax Service
Toro Taxes
H R Block Tax Services
Keystone Insurers Services Group
PACCAR Leasing CompanyHead-to-head comparisons
At a glance
Business history
Not reviewed
Owner participation
Not reviewed
Territory language
Litigation disclosure
Not reviewed
Bankruptcy disclosure
Not reviewed
Agreement term
Not reviewed
Reader notes on wording
Our automated check found that these summaries may not match the FDD's exact wording. Read the FDD excerpt itself; it is the authoritative text. Core cost, fee, Item 19 and outlet figures are not affected.
Item 12 · PDF p. 54 · 2025 FDD
Our summary: Exclusive territory: No. Franchise agreement restricts franchisor from operating a physical Liberty Tax location within the territory, subject to stated exceptions.
“You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, from other channels of distribution or competitive brands that we control. However, your franchise agreement restricts us from operating a physical location of an income tax preparation service business using the Liberty name and marks described in this disclosure document within your Territory as described on Schedule A of your franchise agreement.”
Note: The supplied quote was not located on cited PDF page 54.
Item 20 · PDF p. 65 · 2025 FDD
Our summary: Company-Owned 2023: 114 → 72
“Company - Owned 2023 114 72”
Note: The cited page does not establish the Table 1 systemwide start/end row.
Item 20 · PDF p. 65 · 2025 FDD
Our summary: Company-Owned 2024: 72 → 78
“Company - Owned 2024 72 78”
Note: The cited page does not establish the Table 1 systemwide start/end row.
Item 20 · PDF p. 65 · 2025 FDD
Our summary: Franchised 2024: 1813 → 1686
“Franchised 2024 1813 1686”
Note: The cited page does not establish the Table 1 systemwide start/end row.
Item 20 · PDF p. 65 · 2025 FDD
Our summary: Franchised 2023: 1991 → 1813
“Franchised 2023 1991 1813”
Note: The cited page does not establish the Table 1 systemwide start/end row.
Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.
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