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I'm a former franchisee of Liberty Tax and I am writing in this forum to give a warning to anybody considering a Liberty tax Franchise. My tale of woe started a few years ago when I made the error of joining the Liberty Tax system. I am an accountant for a fairly large Boston area corporation and have some reasonably good tax experience along with a few tax clients. I wanted to have my own business and to do the income tax thing full time for myself instead of someone else. I thought Liberty could have been the answer. After visiting them in Virginia Beach, VA and being wined and dined by the company, I made the dumb decision to pay $25K for the rights to a territory along with a 19% royalty fee based on gross sales paid every year.
You can't make money with this concept because of the excessive franchise fees. If I had gotten at least the smallest amount of support for what I paid, I think I could have lived with them, but I did not! After numerous complaints, oral and written, that were completely ignored, I decided to let the franchise lapse. They came down on me like a fly to manure! They tried every bit of harassment in the book from opening a new store down the street from my old location,spreading the rumor that I was in jail, telling my existing clients that I had passed away (evidently, I got better), sending lawyer letters and having me followed by a private investigator. Why did they go through all this trouble? Because their franchise agreement has a 2 year, 25 mile radius non-compete clause in it! They felt that I should not be allowed to do business with my old clients even though they had no right to their business.
These are slick hucksters that are only concerned taking money from unsuspecting franchisees. Pleas be warned about their terrible and unfair practices!