ATAX
Key figures
| Initial franchise fee | $17,500 |
| Total investment (Item 7) | $59,150 – $89,000 |
| Royalty (Item 6) | 14% of gross sales |
| Headquarters state | NY |
| Legal name (Item 1) | CUMENT- UNIT ATAX LLC |
| FDD issuance date | 2025-04-24 |
| Franchised units (Item 20) | 111 (Item 20, p.59) |
| Brand website | https://www.ATAX.com |
About ATAX
We have a proven business model and formula for success that led ATAX to operate one of the country’s largest independent tax preparation businesses. Get access to on-going training, support, weekly webinars and one-to-one coaching. Our franchise opportunity is based on a successful business model, with a wide range of services and a year-round revenue streams. Financial Assistance: The franchisor may in its sole discretion provide financing for all or a portion of the initial franchise fee t...
Due diligence dossier
Every figure below is as disclosed in this brand's own FDD, with its FDD citation. FranchiseKI adds no analysis and estimates nothing.
Risk & history facts
| Litigation matters disclosed (Item 3) | 6 (Item 3, p.13 of the FDD) |
| Bankruptcy (Item 4) | No bankruptcy disclosed (Item 4) (Item 4, p.18 of the FDD) |
Litigation summary (Item 3): Disclosed matters include a 2025 pending investor fraud and fiduciary suit against ATAX, Hewitt, and Loyalty; a 2025 affiliate arbitration involving Ledgers; a concluded franchisee trade-secret case with a 2026 $350,000 judgment for ATAX; and older Liberty Tax/Hewitt contract, employment, and derivative cases that settled. The Item 3 excerpt cuts off mid-matter. (Item 3, p.14-20 of the FDD)
Ownership & operations
| Owner-operator required | Yes (Item 15, p.45 of the FDD) |
| Absentee ownership allowed | No (Item 15, p.50 of the FDD) |
| Typical time to open | 4 months (Item 11, p.33 of the FDD) |
Territory description (Item 12): The franchisee receives an exclusive territory defined by zip codes or natural or political boundaries, normally covering 30,000-33,000 residents. The franchisor will not establish a company-owned or franchised outlet selling the same or similar goods or services under the same or similar marks in that area, while reserving other channels and affiliate rights. (Item 12, p.44-45 of the FDD)
Training: 0 VA 31 Hours of Classroom Hours of on-the- Location Subject Training job Training (Note 1) Virginia Beach, Q&A with John T. (Item 11, p.33 of the FDD)
Ongoing support:
- Operational assistance with operating problems
- Marketing assistance and support
- Computer hardware and software specifications
- Additional training or seminars the franchisor may offer
- Operations Manual access
- Site-selection criteria and site approval
- Corporate website listing the outlet’s contact information
- Advertising fund administration and print-material templates
Source: Item 11, p.37-40 of the brand's FDD.
Company facts
| Headquarters | Virginia Beach, NY (Item 1, p.8 of the FDD) |
| Parent company | Loyalty, LLC (Item 1, p.10 of the FDD) |
| Initial term | 10 years (Item 17, p.47 of the FDD) |
| Veteran discount | Offered (Item 5, p.19 of the FDD) |
| Advertising / brand fund fee | 3% of gross sales (Item 6, p.20 of the FDD) |
Questions to ask the franchisor
Generated from what this brand's FDD data does not disclose — ask ATAX directly:
- What liquid capital does the franchisor require of a new franchisee? It is not disclosed in the FDD data we hold for this brand.
- What minimum net worth does the franchisor require? It is not disclosed in the FDD data we hold for this brand.
- What does the brand's recent unit history show over the last three years (Item 20)? Ask about openings. Ask about closures. Ask about transfers. We have not extracted a unit-history table for this brand.
Territory — what the FDD says (Item 12)
Under this brand's Item 12 rule, the franchisor grants an exclusive territory: while your agreement runs, the franchisor may not place another franchisee — or operate a competing company unit — inside your territory's boundaries (subject to the carve-outs in the FDD). Areas inside an existing franchisee's territory are therefore not available to a new buyer.
The FDD's own words (Item 12): “territory is NOT exclusive - the FDD states you will not receive an exclusive territory. We have not operated an ATAX Area Representative business of the type you are being offered, but we do support unit franchisees, similar to what you will do under this franchise, and have”
Next steps with ATAX
Put ATAX on a shortlist. Compare it side by side with two other brands. Check it against your budget in the PerfectFit Quiz. Or talk it through with a vetted consultant. That conversation is free to buyers; call (385) 475-5319. Only the franchisor can confirm current terms. Only the franchisor can confirm territory availability.