Liberty Tax Service franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.31 ↗

Franchise fees and ongoing costs

Franchise fee

$25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

14% · 14% of Gross Receipts, due 5th of month; minimum royalties: yr1 none, yr2 $5,000, yr3 $8,000, yrs 4-5 $11,000 (trued up May 5 for 12 months ending April 30)

Marketing contribution

5% (basis not captured; see original filing)

Technology fee

Not captured

Other fees

Holdover fee: additional 2% of Gross Receipts monthly if operating under expired agreement; Easy Advance transmitter/handling fee $25 per approved loan; interest 12% on amounts over 15 days past due

Working capital (FDD Item 7)

Additional Funds - 3 months: $3,000 to $4,500 (government fees, supplies, utilities, security deposits, internet, professional expenses before and 3 months after opening)

Fees sourceFDD p.27 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.31 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median prep fees (Net Fees) and number of returns per franchised office

Reporting period

Tax season 2025 (prep fee activity Jan 1 - Dec 31, 2025)

Sample

1,411 franchise-operated offices (83.2% of 1,696 franchise offices; active in both 2025 and 2026; excludes processing centers and seasonal offices)

Reported average

$164,860

Reported median

$139,486

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.60 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

1686

Year-end outlets

1537

Net change

-149

Derivation

ending minus starting outlets

Openings

22

Terminations

62

Non-renewals

38

Other closures

28

Reacquisitions

43

Transfers

54

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.61 ↗

SBA loan history

Loan activity

21 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$472,500

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

9 loans

Historical charge-off share

8.89%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

12 / 135

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Liberty Tax Service franchise cost?

single franchise agreement (single territory office): $49,700 to $71,400 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.31 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Liberty Tax Service owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median prep fees (Net Fees) and number of returns per franchised office. Sample: 1,411 franchise-operated offices (83.2% of 1,696 franchise offices; active in both 2025 and 2026; excludes processing centers and seasonal offices). Period: Tax season 2025 (prep fee activity Jan 1 - Dec 31, 2025).

Item 19 performance sourceFDD p.60 ↗

What's the SBA charge-off rate for Liberty Tax Service?

8.89%; numerator / denominator: 12 / 135. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $472,500; window: FY2023-FY2026 YTD through 2026-06-30; sample: 9 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗