What is Liberty
Tax Service like and why is Tax Preparation a great industry to start
a business in today?
Liberty Tax is the fastest-growing retail tax preparation
company in the industry’s history, specializing in individual tax preparation
in over 3800 brick-and-mortar locations. Each office provides computerized
income tax preparation and electronic filing options. Other services include audit representation,
a money back guarantee, and free tax return checking. Liberty Tax provides an online filing
preparation option for do-it-yourselfers through its eSmart Tax platform.
An income tax
franchise is a business to start today because taxes are a certainty of
life. There’s a ready market of taxpayers.
This year over 60% of taxpayers will outsource the tax preparation task
to paid professionals, up from 51% in 1994.
How has your
industry changed in the last 10 years? 20 years?
Paying taxes remains a certainly of life, but filing
methods, tax changes and evolving regulations are constantly affecting the tax
industry. In the past 20 years, e-filing
revolutionized the tax industry. It’s now the norm and most popular method of
tax filing due to its efficiency and speed.
The IRS reported nearly 101 million e-filed returns during the latest
tax season, and almost one billion total returns have been filed since 1990.
In the last ten years, do-it-yourselfers have embraced
online tax preparation methods, creating the latest tax revolution. The tax industry is undergoing more imposed
regulation of tax preparers by the IRS with new certification procedures.
What trends do you
see in the tax preparation industry over the next 5 years? Next 10 years?
More IRS regulations of tax preparation firms and tax
preparers, more banking regulation, and more online and filing options.
What is the
biggest concern about the Tax Prep industry that a franchise candidate should
be aware of and investigate?
One of the biggest concerns is the increasing IRS
regulation of tax preparers and how the tax companies are phasing this into
their operations.
Why do you think Liberty
Tax stands out in the industry?
In the last 14 years, Liberty Tax Franchise
has emerged from a start-up company to the fastest growing tax company in the
industry’s history. As Liberty’s brand
recognition increased, our company gained accolades for our affordable
franchise opportunity, commitment to customer service and unique culture. Factors of our continued success include:
Low start-up costs and the resourceful Liberty Tax Team:
There’s ongoing and continuous training and support in operations, marketing,
and in the tax and technical areas of running a Liberty franchise. The headquarters and management staffs have
over 600 years in the tax industry.Most Experienced Tax Industry CEO: Liberty Tax CEO John
Hewitt has 42 years of tax industry experience, the most of any CEO in the tax
preparation business. .Accounting Today has named Hewitt one of the Top 100
most influential persons in the tax industry ten times. The International Franchise Association
honored John Hewitt as Entrepreneur of the Year.Liberty Tax Service is the only top three tax company to
demonstrate overall system growth during the challenging economic climate of
2011. Throughout this decade, Liberty Tax Service has demonstrated solid gains
in an industry formerly dominated by tax giant H&R Block and, for eight
straight years, has grown by more returns than both Jackson Hewitt and H&R
Block combined.In its summer 2011 issue, Small Business Opportunities
magazine ranked Liberty Tax one of the "75 Hot Franchises to Get into Now."In June, G.I. Jobs named Liberty Tax Service on its
elite list of "Military Friendly" franchises.In May 2011, Entrepreneur magazine ranked Liberty Tax
Service the "Best of the Best" franchise in the tax industry.In January 2011, Entrepreneur magazine ranked Liberty
Tax Service #1 of the tax franchises on the Entrepreneur "Franchise 500."Liberty Tax Service is the only tax franchise on the
Forbes "Top 20 Franchises to Start."
What makes Liberty
Tax Service more attractive than your competitor’s?
Affordable start-up costs for a top-rated franchise. Financing may be available for approved
prospective franchisees. The continued
ability to offer franchising as an option for those seeking self-employment,
and a range of available territories in the United States and Canada.
Liberty Tax also offers franchise incentives through its
membership in the International Franchise Association’s VetFran and
MinorityFran programs.
Describe your ideal
candidate. Do you think your requirements are any different than your
competitor’s?
We are looking for highly-motivated franchisees who share
our vision and determination to be #1
in this great industry. It helps that we don’t require a tax background, but
are seeking franchisees with strong management skills and a commitment to
delivering excellent customer service.
We are all looking for the best candidates. Liberty Tax is determined to
bring the best on board by keeping the opportunity affordable and attainable.
What’s the
strongest skill you require in a candidate?
Strong managerial skills and the willingness to follow
and believe in our proven system as a guide to success.
Describe the
working environment of your franchisees.
Most Liberty Tax offices are storefront locations. Some
are located within large retail establishments, and we do have some mobile
buildings.
Why has Liberty Tax
Service been successful?
Proven leadership by industry leader, John Hewitt and the
vision to navigate the constant changes of the tax industry. Liberty Tax started with an already
successful entrepreneur ready to take the risk again in the tax industry. Our business model features a fresh approach
to tax preparation with a winning combination of superlative customer service and
cutting-edge technology.
Our company and the Liberty Tax team stand ready to
weather industry changes. With a tax preparer certification process in place
since 2007, Liberty Tax Service is poised for stricter standards for tax
preparers that are being phased now in by the IRS. Liberty Tax took a proactive approach toward
professional standardization by creating its own innovation three-tier skill
examination for its preparers. With the
acquisition of eSmart Tax in 2007, Liberty Tax has been providing an Internet solution for individual
tax preparation that is user-friendly, well-supported and affordable. The
eSmartTax acquisition expands Liberty Tax Service’s existing product offering
by allowing customers to prepare and file individual tax returns on the Internet.
Liberty’s strategy is to utilize low-cost aggressive guerrilla
marketing to build a brand in record time.
Our costumed Lady Liberty characters are helping to build a brand name
recognized for "setting the standard, improving each day, and having some fun!"
What advice would
you give someone interested in buying a Tax Prep franchise?
Thoroughly research the opportunity to see if it’s a good
fit for you. Do diligence by studying
the franchise disclosure document, and talking to franchisees and members of
the management and headquarters teams.
The tax industry is an intense seasonal business, and not for
everyone.
How much
experience in tax prep should a franchise candidate have should they consider
buying a franchise in your industry?
While tax preparation and tax industry experience
certainly are assets, no previous tax experience is required to become a
Liberty Tax Service franchisee.