FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Liberty Tax Service.
Based on 2025 FDD · 1 filing in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Liberty Tax Service franchise shows an estimated initial investment of $50K – $71K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $25K franchise fee · 19% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Liberty Tax Service requires a total initial investment of $50K to $71K (midpoint approximately $61K), with an initial franchise fee of $25K. The ongoing fee burden is 19% (14% royalty plus 5% advertising fund). This is in line with industry norms of approximately 15.5%.
Liberty Tax Service does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Liberty Tax Service operates approximately 1,813 franchised units. However, the brand has been contracting with a 6.1% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 10.0% is in line with industry norms of approximately 7.2%.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2026). 174 loans across 41 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Liberty Tax Service, answered from FDD and SBA data.
The total initial investment for a Liberty Tax Service franchise ranges from $50K to $71K, according to their Franchise Disclosure Document.
Liberty Tax Service charges a 14% royalty fee on gross sales.
The initial franchise fee for Liberty Tax Service is $25,000.
There are approximately 1,813 Liberty Tax Service franchise locations as of 2023.
Profit data for Liberty Tax Service is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
Liberty Tax Service has an SBA loan default rate of 10.0% based on SBA 7(a) loan data.
Whether a Liberty Tax Service franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
Home services franchises can beat trendier concepts when they combine recurring revenue, route de...
FDD Item 7 breaks down every cost to open a franchise. Read all 23 line items, stress-test the ra...
SBA 7(a) franchise loan approval rates by brand, default rates by sector, and what lenders want i...
Compare franchise financing options: SBA 7(a), SBA 504, ROBS 401(k) rollovers, bank loans, franch...
SBA 7(a) franchise loans explained, including the October 2026 SOP 50 10 8.1 update, eligibility,...
5 data-driven questions every Liberty Tax Service franchise buyer should ask.