Liberty Tax Service
Key figures
| Initial franchise fee | $25,000 |
| Total investment (Item 7) | $49,700 – $71,400 |
| Royalty (Item 6) | 14% of gross sales |
| Franchised units (Item 20) | 1537 (Item 20, p.61) |
| Brand website | https://www.libertytax.com |
About Liberty Tax Service
TERRITORY (Item 12): protected — The territory is non-exclusive but protected from other Liberty-branded physical locations; it typically covers an area generating 7,000 to 8,500 paid federal tax returns, with restrictions on franchisor competition within the defined geographic area. OUTLETS (Item 20): 1663 total (1537 franchised + 126 company-owned). ITEMS 1-23: Fee: The standard price for one new Liberty Tax territory is a $25,000 initial franchise fee, of which $10,000 is paid as a deposit after you have held Royalty: After you open, the two ongoing brand charges are a 14% royalty on Gross Receipts and a separate 5% advertising fee on the same receipts. Investment: For one new franchise agreement, Liberty estimates you need about $49,700 to $71,400 before royalties, advertising fees, and interest. Training: Before you open, you and any general manager must finish a minimum 3-day classroom Initial Owners Training plus 12-15 hours online, and a one-day Territory: You do not get an exclusive territory and can face competition from other franchisees, company outlets, and other channels. Operations: You do not have to own and run the office yourself, but someone must. Term: The franchise term is 5 years and can renew for another 5 years if you are not in default, with no renewal fee and no increase in royalties or Financials: Liberty does give a financial performance representation for prep fees and federal return counts, not a full profit picture. Legal: Liberty is an active plaintiff against former franchisees for contract, non-compete, trademark, and debt claims, and it also discloses older cases Outlets: The franchised office count has fallen every year in this disclosure, from 1,991 at the start of 2023 to 1,537 at the end of 2025, while Liberty Tax Service franchises operate tax return preparation offices using special marketing techniques and operating procedures.
Territory — what the FDD says (Item 12)
Under this brand's Item 12 rule, you do not receive an exclusive territory. The franchisor may sell additional franchises in the same area. It may also operate company units there. Or it may sell through other channels. No area is reserved for you. No area is closed to you by another franchisee's exclusivity either. Placement is the franchisor's decision.
The FDD's own words (Item 12): “protected — The territory is non-exclusive but protected from other Liberty-branded physical locations; it typically covers an area generating 7,000 to 8,500 paid federal tax returns, with restrictions on franchisor competition within the defined geographic area.”
Where Liberty Tax Service operates today
Per the brand's FDD outlet table (Item 20, Table 3 — franchised outlets by state, latest fiscal year): 1169 franchised units across 43 states.
Projected openings (Item 20, Table 5)
Franchise agreements the FDD projects for the next fiscal year:
Source: Financial-Services_Liberty_Tax_Service_2026_on10xx45.pdf, Item 20. Counts are the franchisor's own disclosures.
Why two unit counts? The Key figures above cite 1537 franchised units (Item 20, p.61) — the franchisor's reported franchised-unit total. The map above sums Item 20, Table 3 (franchised outlets by state at fiscal year-end), which totals 1169. The two Item 20 figures are compiled on different bases, so they need not match.
Availability
Because this brand grants no exclusive territory, there are no territory-based exclusions: no area is reserved for an existing franchisee, and no area is reserved for you. Whether a new unit is placed anywhere is the franchisor's decision under Item 12.
Next steps with Liberty Tax Service
Put Liberty Tax Service 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.