Is RONI DEUTCH TAX CENTER a Great Franchise Opportunity?

Is RONI DEUTCH TAX CENTER a Great Franchise Opportunity?  Or is it the next great franchise scam?

Depends on whom you ask.

The Roni Deutch Tax Center franchise website boasts franchise industry awards and growth rankings:

Roni Deutch Tax Center is ranked #4 on Franchise Times list of "the Fast 55", a listing of the fastest growing franchises less than 5 years old. Roni Deutch Tax Center was also recently named as an AllStar Franchise by AllBusiness.com, Inc., a Dun and Bradstreet leading online resource for businesses. This award recognizes Roni Deutch Tax Center as being one of the “best of the best” top 300 franchises in the country for 2010 as chosen by the AllBusiness.com, Inc. editors and experts. Roni Deutch Tax Center was also selected by Franchise Business Review as one of the top 50 franchises for 2010.

Roni Deutch Tax Center franchise claims “instant name recognition and brand awareness” as a key benefit

According to the Roni Deutch Tax Center franchise website, “Becoming a franchise owner minimizes your risks and gives you the best possible chance at success.”

A key part of that success, they claim, is positive brand recognition. “Instant brand awareness and the credibility behind that brand are some reasons for why a franchise business may have a higher rate of success than an independent business owner.”

“The name “Roni Deutch” has a 51% brand name recognition,” claims the sales copy. “As a Roni Deutch Tax Center franchise owner, you will benefit from instant name recognition and brand awareness.”

That name recognition and brand awareness is partially a result of the aggressive Roni Deutch broadcast media strategy.  The site boasts:  “During tax season, Roni Deutch also attracts additional clients to tax centers by regularly appearing on CNN, The Today Show, Fox Business, and more.”

How positive will the Roni Deutch brand image remain?

There is no doubt that Roni Deutch has built strong name recognition in the past decade through heavy media advertising.  However, BP also has tremendous name recognition.  It’s doubtful that there’s a single BP franchise owner who sees that as a business benefit.

BP is a great example of how a particular franchise brand can be a blessing that quickly becomes a curse.  Could Roni Deutch be another?

Earlier this year, Roni Deutch was hit with a $34 million law suit by California Attorney General Jerry Brown.

According to the California Attorney General’s web site, “Tax Lady Roni Deutch is engaged in a heartless scheme that swindled people with tax problems. She promises to significantly reduce their IRS tax debts, but instead preys on their vulnerability, taking large up-front payments but providing little or no help in lowering their tax bills.”

According to Attorney General Brown’s office, Deutch promises to reduce customer’s tax bills while actually increasing the taxpayer’s debt by putting them in “in an endless loop of requests.” Brown claims Roni Deutch pads her bottom line at the expense of the taxpayer.

And that heavy media exposure?  Brown claims that Deutch’s TV ads are “misleading,” featuring fictional testimonials that promise impressive results.  The claim states that “most clients never obtain a tax debt resolution” from Deutch.

WHAT DO YOU THINK?  ARE YOU FAMILIAR WITH THE RONI DEUTCH TAX CENTER FRANCHISE?  IS IT THE NEXT BIG FRANCHISE OPPORTUNITY… OR NEXT FRANCHISE DISASTER? 

SHARE A COMMENT BELOW.