LIBERTY TAX SERVICE Franchise Complaints
UnhappyFranchisee.com asked: Are LIBERTY TAX SERVICE Franchise Owners Happy? If you’re familiar
with the Liberty Tax franchise, please share a comment below.
Entrepreneur magazine has ranked the Liberty Tax Service franchise #3 behind McDonald’s & Subway. However, some commenters who claimed to be former Liberty Tax franchisees left stern warnings on the Franchise-chat forum.
This post was originally published
BostonTax wrote:
I’m a former Liberty Tax Franchisee
I hope you are ready for a little enlightenment! I held a successful Liberty Tax Franchise for 5 years until I decided to let the franchise agreement lapse. I did this for a few reasons:
1. The royalty fees were outrageous! 14% went to normal royalty while and ADDITIONAL 5% went for so called advertising royalties. The ad royalties were supposed to be put back into your local market to build the brand name. This was never done! All advertising in addition to the ad royalty I had to pay for because it did not fit into Liberty’s concept of advertising. I don’t know exactly what the concept was because our AD could not give an answer and the approved methods changed by the week.
2. Corporate was totally unresponsive to the needs of the franchisees. The AD system is designed to recruit anyone who can write a check for 100K. No other skills or ability required.
3. The minute you are behind in a royalty payment, they send you a notice to cure. After that, if you don’tpay, they try to terminate your franchise agreement.
4. Upon termination, Liberty enforces through legal proceeding a 2 year, 25 mile radis non compete clause that is in the franchise agreement. This is enforceable in the Eastern Division of the Federal District court, where, at least 2 Liberty friendly judges preside.
5. Liberty does not recognize chargebacks for bad debts as an adjustment for your royalty fees. All royalties are based on your gross, not your net collectable. This was an ongoing issue with them and the accounting department did not have the ability or the inclination to resolve!
My best advice is do not go with these guys, they are bad news. If you like to have people collect royalties and provide no support, then this is the franchise for you! It is very expensive to get into, the initial fee is around $32K just to buy the territory plus those pesky royalties. You can’t make money on this concept.Most of the surviving franchisees I’ve talked to in the last 2 years have experienced great difficulty not only in making a profit, but in the corporate support or lack thereof.Remember, 19% of your gross is getting kicked back to Liberty, which is excessive by any standards. Please do yourself a favor and call former franchisees ,those that are currently getting sued (they are very likely to talk, as I found out), and current ones to try to get the straight poop.
Barbara Green wrote:
I too was a Liberty Tax Franchisee and I agree with everything you said.
The only reason for purchasing any franchise is because the business model is a proven marketing success as evidenced by the profitable franchisees. That is why you pay a license fee of $25,000. Being profitable is not in the cards for a Liberty Tax franchisee. Liberty Tax’s market/ business model is aimed at individuals who have very simple tax returns, i.e one W-2 and standard deduction which is why they were very successful in Norfolk, Va. That market is full of military people with one w-2.
Liberty will sell anyone a franchise at any location, in any georgraphic area, even if there is not a chance in hell of the franchisee being successful.
At one time, I too owned a Liberty Tax Franchise for one tax season. It was only one season because of the behavior of the Regional Manager who called me on January 15th demanding and screaming “Why had I not generated 200 tax returns and that maybe this business was not for me. I was stunned and confused since employers are given until January 31st. to give w-2’s to employees. Apparently, he thought that I was in Norfolk, Va. where that is possible.
It only goes downhill from there. The bottom line is I lost all of my investment in this businees (approx. $80,000) because I closed it rather than becoming a victim of this unethical company. NOthing would make me happier than to be a part of a class action lawsuit.
WHAT DO YOU THINK? DO YOU OR HAVE YOU OWNED A LIBERTY TAX SERVICE FRANCHISE? ARE LIBERTY TAX SERVICE FRANCHISEES HAPPY? WHY OR WHY NOT?
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Funny how the morons with Liberty post on Blocks posting trying to increase Blocks numbers!! Block doesn’t have unhappy zees only liberty. Don’t comment there keep it here where they belong. LIBERTY TAX SUCKS!!!
@Mike – I have yet to meet anyone who is happy as a franchisee in any business. Most are so far indebted, that they have to be “happy” because the alternative is bankruptcy. I would say that H&R Block franchises are not as happy as one may think, but they are most likely stuck and just secretly wish to leave the fold and do once an opportunity present’s itself.
Also, at least H&R actually purchases the franchise’s back from the franchisee instead of letting them crash and burn unlike LTS, who just bleeds a franchisee dry. That scenario would be more likely the case with H&R lack of complaints.
Texas Tee: Your advice is spot on…. Could someone explain what the contract says regarding renewal so that it tilts everything in favor of the company? It appears that even if you have a successful franchise you can’t sell it because of these terms you end up either being forced out or reluctantly re-signing.
Buyer Beware!
The problem Bill, the renewal contract is kept under wraps. It is hard to see. They want you either sign blindly or let the contract lapse. Very disturbing to say the least. Also other zees will not let anyone in the fold see the contract, like it is a coveted jewel or there could be a clause in the new contract not reveal it’s real intentions. Either way, they are not disclosing the contract.
Thanks Franchizee…For potential franchisees this is just another example of why you don’t want to sign with this company,
Looks like Instant Tax Service is on its last legs if not dead already. ITS’s website says nothing, but unless they appeal, I guess their gone. It would be interesting to know what rights their franchisees have to continue (or not) in business.
http://www.justice.gov/tax/2012/Dayton%20complaint.pdf
http://www.forbes.com/sites/kellyphillipserb/2013/11/10/fourth-largest-tax-prep-business-in-the-country-shut-down-by-feds/
In the Forbes article the Judge sited the following:
ITS marketed its franchises to practically anyone who could afford to pay the fees, no matter whether they were otherwise qualified. According to the complaint, ITS touted its franchise to potential owners as so simple that, “[n]o tax experience [is] necessary!” ITS claimed that it would train franchisees all they needed to know: they received just seven hours of training related to tax instruction. ITS also ignored its own background checks, setting up a franchise in at least one case with a known felon.
The sales culture sounds a lot like Liberty. Don’t know if Liberty ever sold to a felon but my guess is they have.
Buyer Beware!!!!
PLEASE PLEASE PLEASE LET LIBERTY TAX BE NEXT! :(
Liberty had an area developer that is a convicted felon. Just ask Hewitt!
LTS is going to start doing background checks with new contract.
Franchizee:
Too little too late. They still take anyone that’s breathing that has a wallet. Hope IRS and DOJ start breathing down their necks if they haven’t already. Hope they will be accountable for ALL their actions, they have plenty of crap to admit to. Somehow I feel he always stays one step ahead and can’t wait for them to catch up with him for good.
SanFranDan: The Instant Tax case is interesting in that it put responsibility on
the franchisor for the actions of the franchisee. There are some parallels between Liberty and Instant Tax concerning selling franchisees to people with no tax experience and providing limited training. However, when I was with Liberty I got the impression that they wanted you to charge as much as possible but I never was instructed to do anything illegal.
The best way to punish Liberty is to stay on message and warn people of the pitfalls of joining this company.
@Bill – Since you have left, they have been trying to shore up the “ethical tax preparer”, John is really against on his calls to over charge for tax prep. They have been offering more webinars to train people, but you still have old ones who have to charge huge amounts because they are not making the money as they were once several years ago.
Now, with these changes, they may slip through, but the SEC will hold their feet to the fire, so for them to be a public company, they have to clean up their act. SEC will weasel their way into the tax prep business due to using “bank products” as their shoe in. Once that happens it will be hard just like other areas where the feds are regulating other occupations. By doing the back ground checks, it is probably part of the being a public company. The SEC is very concern about LTS deceiving the public more than they are about any zee getting messed over by the company.
Bill & Franchisee:
Here’s hoping that the SEC will delve into and scrutinize Liberty’s practices in the way that they train and used to train franchisees. I know of several instances where franchisees were taught by Liberty to maximize tax refunds through EIC. I don’t know how widespread this practice was by Liberty, but it seems as if there are enough people out there that have had this experience. Some even on this board.
That’s just the beginning and the tip of the iceberg in their questionable training practices. I know of others and I defintely know without a doubt that all software was bugged. I can actually write a story on their deceptional practices. Many things were done that were illegal or not on a moral playing field.
All I want is justice to be served and for that guy and his whole legal dept. to be held accountable for the in- humane treatment of hard working franchisees and the total lack of respect given in many, many situations. And their hand out for payments on every piece of paper imaginable. I lost so much money with this franchise, and I was a “successful” franchisee with multiple offices.
I will highly recommend anyone looking at this franchise to save your money and spend it elsewhere.
SanFranDan,
I have been reading all your posts. I really recommend you to consider electro-shock therapy for you.
affanapoli: I hope you have more to offer than that!
My guess is your a franchisee and your worried that what is said on here will hurt the value of your store/territory when you want to get out (which is probably now). The reality is the deal you signed has significantly tied your hands. The contracts are written so you can not get out unless your able to find a corporate approved buyer. But the reality is if you have a profitable store they would rather squeeze you out and then sale the store themselves then approve one of your buyers. These contracts are so one sided that even when the franchisor goes into bankruptcy and cannot perform, the franchisees can not walk away. Look at Jackson Hewitt.
Buyer Beware!!
Bill,
I have never heard of a franchisee trying to sell his business and corporate not approving for no reason. Can you please let us know what you are talking about?
Sorry Bill, not exactly true. Multiple stores in our area are now sold to new owners. Anyone buying needs to know what they are doing. Opinion that the company needs to watch out for some of the new buyers. Might be facing cross-selling. They might push you to buy from their suppliers but they don’t let you cross-sell if they know it. Real sensitive about the company name and logo.
Testaipira: I can only speak specifically about the South Jersey area and I can
honestly tell you that I have not heard of anyone who sold his/her territory. All
turn them back to Liberty. If the store has a client base of 400 + returns Liberty will by priority try to find a new franchisee to pay for an existing store, offer creative financing to a current franchisee to take over the store or run it themselves until they can find a buyer. The closes territory to me that did over 400+ returns is in Mays Landing at the Festival Mall. This territory has had three different franchisees and I believe is now back being run by corp. .
In my area the only territories being sold are either new territories or zee to zee current stores. So far no one has purchased a seasoned store that was not a zee.
Guest2: you and like many of the other pro company people who post here. You make general statements with no supporting facts. In this case all you need to say is the area your referring to. Unless you think that much information will give up your identity as guest2 to corporate!
You’re right. I have no desire to identify myself. But; five stores have been sold in my area since July. All are fees near or over $100,000. I don’t know the terms of sale. I’m not pro company I’m pro good information. This site has saved me a few bad decisions. That’s for sure. Not just for liberty but for curves as well.
That’s a great point. Former franchisees don’t want to say who they are because they are afraid of being sued by screwit and the current suck ups to srewthem are afraid to say who they are because they will be fuktd by hewitt. Quite ironic and should be a warning to all that are thinking about buying a liberty franchise! !!!!!!!!!!
THE LIBERTY TAX FRANCHISE IS ONE OF THE WORST FRANCHISES ON THE PLANET. THEY TREAT THEIR FRANCHISEES LIKE DIRT. I WAS A FRANCHISEE BACK AT THE BEGINNING OF THEIR FORMATION FOR 5 VERY LONG AND BEYOND STRESSFUL YEARS. I WAS A “SUCCESS’ DUE TO MY OWN HARD WORK AND DETERMINATION, NOT FROM ANYTHING THAT BEING A FRANCHISEE WITH LIBERTY TAX SERVICE WOULD ENTAIL.
THEY WERE AND STILL ARE MONEY GRUBBING IDIOTS THAT HAVE A CORPORATE “FRONT”. THERE IS N-O SUPPORT WHATSOEVER IN ANY CAPACITY.
I WOULD BEG AND PLEAD WITH WHOMEVER IS LOOKING TO SIGN ON AS A FRANCHISEE TO TAKE A SECOND, THIRD, FORTH LOOK AND THEN BACK AWAY AND GO ELSEWHERE. YOU WILL SAVE YOURSELF A LOT OF GRIEF, HEARTACHE AND DEFINITELY MONEY.
THIS FRANCHISE IS JUST SO NOT WORTH IT.
CEO Who? Fastest Growing What!
Here is an excerpt from Forbes Magazine talking about how store front tax services could help individuals with Obamacare:
Storefront tax preparers can connect customers to health insurance markets through in–person contact. Or people could link electronically through a website such as Intuit INTU +0.18%’s TurboTax.
Brian Haile, Jackson Hewitt’s senior vp for health policy, predicts more people could end up buying through their connection with tax preparers than any other portal. “It’s a no-brainer,” he told me, “The Affordable Care Act is a series of amendments to the Internal Revenue Code and we help customers with their taxes. We can make this far more accessible for folks.”
I’m hardly the first person to think of this. My Urban Institute colleague Stan Dorn has been exploring this idea since 2011—long before the HealthCare.gov site crashed. And now tax prep outfits are taking steps in this direction.
Tax preparers won’t act as insurance brokers themselves. Instead, they are partnering with commercial online health marketplaces to ease enrollment.
For example, Jackson Hewitt is working with the online marketplace Getinsured to enroll people. Jackson Hewitt will calculate subsidies and potential penalties and, if customers choose, transmit that information to Getinsured. If the Jackson Hewitt customer wants to buy coverage, all she’ll need to do is pick an insurance plan. Jackson Hewitt can even fill out all the paperwork for people to enroll in Medicaid. It says it will not charge for any of these insurance-related services.
Because Jackson Hewitt has 2,800 locations in Walmart stores, it could be an especially important link to the uninsured.
H&R Block HRB +0.39% announced in September that it is partnering with the commercial online health exchange GoHealth to help people enroll through Block-branded online chat and phone support. Block also announced that it will have insurance agents located in its Arizona tax offices as part of a pilot program.
Intuit has created a product called TurboTax Health to assist buyers and has entered into its own partnership with the commercial online marketplace eHealth EHTH -0.05% Inc.
Three of Liberty’s biggest competitors are forming relationships with insurance exchanges but nothing about Liberty.
For potential franchises this should clearly show the lack of branding that Liberty has and the poor quality of it’s management team.
Buyer Beware!
No posts for 5 days, Bill, and then you & I post at the same time. I think we are both sick of everything and anything to do with this franchise. I am soooooooooo glad to be done with them. Even more so now that they are talking about hooking in healthcare signups. Jeez, what’s next?
Not only buyer beware………..buyer, just back away and look elsewhere!
Info – Just helped a relative go through the enrollment. It took us an hour and a half. Got all the way up to the ‘select and pay’. Saved and logged out because need more info on difference in plans.
Can’t spend another 2 hours with customers during tax season.
That’s why Block is running a pilot. This is going to be costly customer service.
I also understand that some states will require anybody helping others to get insurance would be considered insurance agents. This could pose a problem for passing the insurance seller’s exams and the regulating authorities in each state. Do you think a Liberty preparer with all of 6 weeks training is going to also be able to handle this kind of paperwork? I don’t think so.
Guest 2: Two existing stores for sale in NJ can buy both or buy them individually. There located in Woodbridge and Plainfield. Asking price for both is $129,096.00. A lot less then $100,000 a store.
JTH just submitted 8-K for financial disclosure exhibits that they will show investors.
The exhibits states some of the following:
2012 – 154 million returns filed, 60% of returns are by paid preparers., 77% of returns are prepared by other (CPA, EA & Mom & POP) 18% by HR Block, 3% by Jackson Hewitt and 2% by Liberty.
On average Liberty sells territories of 30,000 people or around 10,000 returns. Using the data Liberty submitted to the SEC we know 4,000 returns will be self-prepared leaving 6,000 to be prepared by paid prepares. Based on Liberty’s market share it would do a 120 returns. Liberty argues that it is going after the other 77% of returns prepared by “others”. My question is how does joining Liberty give you an advantage over the others? You can’t beat them on price because you need to cover the same costs as they have plus pay a 14% royalty and 5% advertising fee.
Provided better service? Service is important but it’s at the individual franchisee level and has nothing to do with the franchisor. Better proprietary software? No, Liberty use a CCH product that is just adapted to their specification.
For individuals wanting to open a tax practice who have the experience take it from the people on this site, you have a much greater chance of success doing it on your own. For people without experience, income tax preparation is much more complicated then Liberty lets you believe and you would be wise to work for someone else before wasting your money on this franchise.
Health insurance industry is way too complicated for a non agent. Not sure how they will pull that off, since insurance is a “state” compliance and no one can talk about insurance plans without being an agent licensed in that state.
Insurance is more complicated than taxes on many levels. Every company, product are different along with all the underwriting guidelines etc. Taxes are complicated and have changes, but at least there is a program to take care of it a majority of the time.
What is interesting is the large market as independents and other compared to the “box” stores.
Bill, I’ve seen those new jersey listings. Franchisee, you are right. But I do believe even independents will need to know something about the ACA. Just don’t think it works as part of the tax prep. Get your return done and get your insurance help. Bring lunch and dinner.
@guest2 – Yes you will need to know about ACA but only to respect of using the website. Any insurance consultant will be against the state laws etc. There is a reason that all states require a very specific license per different lines of business. A person selling home and auto could not talk life or health insurance unless they have that license. It will especially true with health insurance licensing. A tax preparer could refer to a health agent, however that agent could not compensate that person due to strict insurance laws of no rebating nor paying them part of the commission unless they have an insurance license. It will be pretty much a charity situation on the tax preparer end.
I want all the Liberty’s and Blocks to go after the ACA clients, get them signed up for ObummerCare and then send them to the free places to get their taxes done!! Crowd those desks with the non-payers and let the payers go to the mom and pops! Oh then after peak give every teacher, police, janitor, bus driver, nurse, etc. etc. a FREE return so you can hit your 200 free return goal! YOU WILL MAKE LOTS OF FREE MONEY!! HAHAHAHAHAHAHAAHAHAHAHAHAHHAAHAHA!!!
Too funny! I bet John John will be so happy with all that free stuff, but you forgot, they get $50 cash before it turns to free.
The renewal contract is strictly one sided, meaning company sided. They are requesting that for 2 years after you leave that no tax business be in the same location if it is not LTS. What a bunch of commies. There is a ton more, but that is all I saw and of course can do a background check at anytime they want to. I am still awaiting for my contract which should show up in middle of December or so.
Also, I suspect anyone who had this contract as a new franchisee would have to have their brain examed. I am wondering if the first 5 year contract is very easy and when they renew LTS puts the screws in because they would never sign anyone to this company with the current contract. They are banking you are up to your eyeballs in debt with them and in current leases where you have no choice but to keep on truckin’ with them.
Franchizee:
Back away from the contract!!! Please do not re-sign. Yucch. You can make a break now before you get in too much over your head.
I CANNOT WAIT FOR THE IRS AND DOJ TO COMPLETE THEIR INVESTIGATION AND ARREST THAT SOB WHO HEADS UP THIS FRANCHISE. MAYBE FOR ONCE HE WILL SEE THAT HIS MONEY CAN NO LONGER BUY HIS FREEDOM.
I WOULD LOVE NOTHING MORE THAN TO SEE THIS FRANCHISE CLOSED DOWN DUE TO UNSCRUPULOUS ACTS OF TERROR AGAINST HARD WORKING FRANCHISEES.
The worst thing I’ve ever done in my life was to sign the 5 year contract and the best thing I ever did was to walk away from the Tax business once & for all. This company took away everything from me as it has to hundreds, if not thousands of other people.
I’d be a millionaire today if I were a Liberty Tax lawyer. They are kept busy suing people 24/7. Someone out there surely has to notice that they sue for anything & everything whatsoever. Interesting how the same few judges in VA find for LTS 100% of the time. Hmmmmm.
Jerry Arrington: Take notice and keep doing a fabulous job of collecting info. to hang them all on. Trisha: Come back and give us updates!
Does anyone know if the contract’s get worse the further along people are with this company? It seems to be easy the first 5 years and then it becomes more restrictive.
Yes, of course the contract gets worse. The entire Liberty experience will get worse. I mean common sense here people. Liberty wants you to fail. According to this site less than 10% of franchisees make it. If Liberty had its way that would be closer to 0% makes it.
I mean how else do you think they have become the fastest growing income tax prep company over the last decade, of course by hoping all franchisees fail and making it as difficult as possible fro them to succeed.
How else do they consistently show an operating profit and tons of free cash flow and an increase every year (most years show double digit growth)? How else is the stock at an all time high?
This sure sounds like a failing company to me. It certainally sounds like a company that is out to get all franchisees (the very ones making them all this money by the way). Yea you guys are right, Liberty doesn’t want to help you succeed…..that makes perfect sense……… The only ones who don’t make any sense are the ones on here spewing out garbage.
Let me guess I am a plant, a corporate spy, a liar etc. Don’t take my word for it and certainally don’t take these bozos word for it, do your own research and decide if it is right for you. If the company pleases most of the people most of the time, which I believe is the case, they are doing it right. Obviously their are some failures. With this many franchisees how can it not be. But guess what, some people might actually do good with this. Hint Hint……..I bet its far more than 10% that you would have people believe.
Actually I’m the fastest growing tax franchise
4 years ago ihad o e office and did 1 return
3 years ago I franchised and sold 1 office and did 2 returns for a 100% increase
(This blew liberty out of the water. I took marketshare from them.)
Then….get this, I sold 4 more franchises 2 years ago and we did 4 more returns for a whopping 200% increase.
Top that liberty
And guess what….my company is profitable as I made 40k on each of those franchise sales. And guess what…..it’s a good investment for the franchisees too. How could it not be? After all if liberty is good for franchisees because they are the fastest growing tax service….well mine is even better! My growth put liberty in the dust.
See how that works? Fastest growing by percentage only.
That’s not the whole truth.
We personally know of dozens and dozens of ex-franchisees that were conned, screwed, scammed, whatever you want to call it. Sure there are always “happy” franchisees, or those who are unhappy but have also resigned themselves to the fact that they are screwed if they leave since they have already invested so much time and money into it to leave. No one really knows any one’s personal situations. They all vary.
You also don’t have to touch a hot stove to know that you will burn yourself. I am one person who is speaking for many of the ex-franchisees who left and who probably have never posted their stories here. And I am speaking of my own personal situation which was INCREDIBLY stressful. Someday I may tell it and then you will all be shocked. In the meantime, I can absolutely come on here anytime I want to (thanks ADMIN) to warn others to do their due diligence and then to back away.
People will do whatever they decide to do. Some will warn them, like me, and others will sing their praises. Hopefully those people have listened to both sides of the equation and have decided that there are just too many unhappy franchisees for their comfort level and will back away and move on to other business opportunities.
I have heard of many happy franchisees with OTHER companies. LTS is NOT one of them. Never will be.
SanFranDan, some of us would like to hear your story.
Liberty has always lied with their statistics. You don’t hear about them being the most profitable franchise. You don’t hear about them having the most market share. You don’t hear about them doing advertising, supporting their franchisees or having decent training. What you do hear is their lack of training, their lack of advertising, their lack of support. It seems that Liberty is a perfect ponzi scheme designed to line the pockets of their management and screw everyone else. As for the stock market, remember how good ENRON was? What about JC Penney? A lot of stocks like this one who start believing their own propaganda, are doomed to be in the company of many other failed enterprises.
^^Up Hill Battle:
I have no way of knowing if my situation is unique enough to identify me or if it has happened to many others. I will have to protect my identity and will not tell what happened, at least for now. Suffice it to say, it was a life changing experience.
Yes, ^^TexasTee: It does sound like a ponzi scheme. There is NO redeeming value to their contract or their company. It is 100% ALL about them, NOT the perspective franchisee. DO NOT SIGN.
This man with all this “TAX” experience, eh hem, I mean “marketing/rip-off” experience needs to be investigated. I know he is now, but c’mon. He has been able to get away with his actions for so long…………isn’t it time he is finally brought to justice? And not settled with his millions?
Someday Screwitt will run out of other’s money. I think the reason he finances many of his zees, because the failure rate is huge. If the SBA financed LTS, then they would be on the blacklist and his scheme would of been found out much sooner. Also, what bank in their right mind lend tens of thousands of dollars to a 2.5 month business? A business that is “part time money” with full time bills. Some of the zees pay more in payroll than business working all year long.
Most zee’s would leave LTS if they could take their business and go on their own. Most will tell you they are happy because who is going to admit a mistake of judgment and being hoodwinked by this company. Also they make sure everyone has to borrow every year so they can be the “puppet master” of every zee. Then you have to be on the crappy calls and have to do what they say. Have to jump through this hoop and that hoop.
Of course there are happy ones, but all would leave if they could.
Why I even bother to respond amazes me, but you are the only one lying. Liberty has grown by overall return count more than any other tax prep company consistently over the last several years. Don’t even worry about percentages. I’m talking by return count. Does Block do more returns than Liberty? Sure they do by a rather wide margin. Of course they have been in business since the early 60’s with almost 4 times the amount of offices Liberty has, so why wouldn’t they do more. Guess what, McDonalds sells more hamburgers than Wendys also. Does that mean Wendys doesn’t make any money? absolutely not.
Look you guys have a one track mind, and are obviously an angry franchisee that has failed at the Liberty system, but honestly, guys give it up. It is nieve to think that everyone (or even the majority) fail at this. In fact, truthfully it is quite the opposite or this company would not be growing and as successful as it is today. Oh yea, the amount of money they make off territory sales is miniscule to the overall picture. Anyone with half a brian knows this. The make 14% Royalties. If you can get an average (and I say average many successful offices do way more) office that does $150k gross, thats 21k a year for them. Again, let’s apply some common sense here, do you think Liberty would be better off selling the territory to a bozo and him grossing less than $50k a year and staggering on for a few years and then having to resell it again in a few more years after sitting on it a while, or getting someone successful in and consistently producing 20k+ income a year for the company.
I know guys in your warped mind you believe Liberty is set up to just churn territories and screw all franchisees and that is how they are acquiring all these vast fortunes. Just look at the financials of the company, it is easy to see where the profit is coming from. Go ahead and respond to this with how dumb I am and how I am totally wrong, or you could just acknowledge I am right and let the truth set you free. haha BTW not that it’s any of your business but I own multiple offices and clear 200k/yr. Yes I said clear my gross is over 600k yr. So at least one successful franchisee exists believe it or not.
GO LIBERTY!!!!!
Again anyone who is serious about this company please do your own research. Don’t take my word for it, and please please please don’t take these bozos word for the truth.
Yes, why you even bother to respond amazes me too.
nieve = naive
brian = brain
And who’s the dumb ass here??? Congratulations on being the ONE LTS franchisee that is happy. Good for you.
Yes, please don’t take ^^his word for it. Too much is at stake to sign and lose thousands of dollars.
Happy one over here too….. 6 offices. Average Net Fees are $200k and average profit is $80k so i clear $480k busting my butt for 4 months out of the year and then working 20 hours the rest of the year.
Yay for you??? Who cares.
Again: This is UNHAPPY FRANCHISEE, not let’s taunt the 99% of the unhappy folks.
Truth is coming up when we’re waiting on tax season to start. Gonna be a bumpy ride. All will borrow money from somebody because no money until mid-February. Sorry, don’t believe you on the $480K, but if it’s true, I’m sure you expect to need it for January and Februay. Lots of cost to keep stores rolling til payday.