LIBERTY TAX SERVICE Franchise Complaints

5,730 thoughts on “LIBERTY TAX SERVICE Franchise Complaints”

• Another note about this franchise:

  LTS “requires” that your computers are purchased exclusively through a company named “Zones”. With your Zones computer system, your computer are built for exclusive use for LTS. Which means, there is a “back door” program built in to each computer purchased through Zones.

  For non technical people, every time you plugged the computer into the internet, a signal is released to LTS telling them you are on line. It was usually through just the processor (main computer for processing and sending efiles), however, they have expanded to the whole computer system. With that signal, if at anytime someone is working and looking online, they can at anytime start your computer remotely (as long as it is plugged into a network system) and go through your whole computer system.

  Also with your computer system, they give you a router programmed. What does that mean, they have better access to your computers, because the router is programmed with LTS. How would I know this, one may ask? My router broke down and I went to Office Depot and replaced the “exact” same router and what a MIRACLE, it did not work and I was forced to order from Zones the same router.

  So, if anyone that has a LTS franchise, what should you do? When you decide to leave LTS, unplug all computers from the network and never put them back online.

  Next, throw away the Router. It is deadly and they can still access your systems.

  Change your DSL phone number, for LTS has that also.

  When you are not at the office, especially during off season, either detach the all the network cable from all computers or better yet, what I used to do is turn off the electric on all equipment when not being used. It is amazing how they can’t access anything when their is no power but can access with power if the network cable is on.

  This is how I suspect most people get burned by LTS, because LTS says it is okay to keep the computers and use them personally all you want.

  And now you know why, they want everyone to use all their systems after leaving LTS. Most do, since the cost of equipment is so outrageously expensive! Store them away.

• #tinfoilonmyhead

• Too bad Henry does not know where in his computer to verify the information. Most likely computer illiterate! Do you know where the back down is located on your LTS computers? Anyone out there.

  Take your computer to a computer expert and they will show you if you can’t figure it out. They are manufactured with a back door access for ever.

  Don’t take my word for it, look in your Zone computers.

• Sorry but there’s hundreds of us that don’t have Zones routers. Also all of my computers didn’t come from Zones. No problems. Multiple locations.

• They take your money for the territory you buy
  They take your revenue – 19%
  They have access to your computers, when on-line (according to previous comments)
  They keep your customers that you produced with your money
  They prohibit you from operating a tax business within a 25 mile radius of your territory – when you quit – you cannot sell your territory – no one will buy it
  They prohibit you from saying negative things about them – although their financials have enough negative information nowadays

  So, what is soooo good about owning a Liberty Tax territory? Henry knows, he was going back to the good life but just could not keep himself from coming back to this site. Cheers!, Henry! Maybe you can give us a list of what the good life is about.

• Easy: All the $$$$$ I keep!!

• When I was a Zee, it was not mandatory that you buy from Zones, but we were told there would be no technical support for the computers if you didn’t.

  “All the $$ that you keep”.. good for you. . But that’s not the issue. The issue is whether the business model is profitable for the MAJORITY of the Zees. Especially the new Zees, looking at new territories.

  Also.. what is “lots of money”, how much profit.. define success.

  None of the surrounding territories where I was located were very successful. Ultimately some showed a profit, certainly not worth the amount of time and energy and initial losses and stress. Also NOT worth the 19% you fork over to LTS for NO marketing and area developers whose only qualification is some $$$.

• We purchased Zone computers because it was recommended and they required the processor to be at least purchased from Zones.

  Zee Out is right there is no technical support anymore, but the last year I was there, they were providing it to all zees.

  The point is, unlike Guest and Henry spouting out nonsense, this is a reality if you purchase this franchise.

  Just like having an employer and using their equipment, cell phone, copiers and computers, they track your movements. It is common knowledge just google it if people are being watched.

  When it comes to Henry Bloch and others, remember, they be the “CEO” of their franchise, which means they don’t have clue of the day to running of this franchise.

  Most of the people on this forum actually ran the business and worked the day to day operations. Their are people to who well in this company but it is few and far between. Basically a cr@p shoot.

• Anon Source claims that a number of Liberty Tax franchisees are committing tax fraud by lying to get Earned Income Tax Credits.

  He/she says John Hewitt knows all about it… and he/she names names.

  What do you think? Read and comment here:
  
  

  LIBERTY TAX Franchise: Earned Income Tax Fraud?

• The IRS pays whistleblowers handsomely. But Anon Source says “nah…I’ll just post stuff on the internet.” Have you thought about the hundreds & hundreds of tax preparers that would have to be involved in this? Yet no one’s dropped a dime? On a scheme this large? Doesn’t pass the smell test. #tinfoilonmyhead…

• Another opinion piece from Anon Source on the claim that John Hewitt has created 800 millionaires:

  LIBERTY TAX Illegal Franchise Earnings Claims?

  Could you be next????

• All it takes is one processor at each location to alter each tax return. Bloch, why do you feel the need to defend Liberty? Also, how do you know if Anon Source has not blown the whistle already? Jail time is a scary thing and these are serious charges. I would not make light of this, fraud has already been uncovered twice this year with Liberty franchisee’s.

  Why would anyone want to buy a territory from this bunch? If becoming a millionaire is so easy, why have the corporate stores decreased in number, just like the franchisee owned stores? You would think the store openings would be multiplying like crazy if doing so would make one a millionaire.

• Well I recognize names on the “EIC” Fraud list. Anyone who has done tax returns knows that only fraud will give you large numbers. People in the community will flock to the fraud office every year to get the same results.

  IRS has to realize, that it is a joint effort on the offices and the public to steal from the taxpayer. Most of this EITC people know it is wrong and just don’t care until they are caught. I had people who I got their EIC corrected and paid off their bill with the IRS and the following year, go and try and claim kids that are not theirs AGAIN. WTF is that? They went to H & R in our area to finish the tax return. Can’t have me do it, because I told them NO.

  The large offices are using fraud as their money making where half of their money is made before Feb 20th of every year. It is called the Peak. It is huge and if EIC were dialed back, half of H & R offices, most of Jackson Hewitts and over 1/2 of Liberty office would cease to exist and the tax payer may save money.

• So John Hewitt takes credit for creating 800 millionaires?

  I wonder if he can name them?

  I guess he’d be willing to take the blame for creating hundreds of bankrupt debtors, also?

  That list would be a lot easier to verify.

  Here are the first 10 as a start:

  James E., Joplin, MO
  Ronald B. Ft. Valley, GA
  James P. Riverside, CA
  Shawn H., Alicia H. Fort Meyers, FL
  Robyn W. Chippewa Falls, WI
  Feroz M. Lawrenceville, GA
  Isaiah R. Sioux Falls, SD
  Katherine K. Petaluma, CA
  Robert G. Danville, PA
  Kenneth R. and Suzette R. Corvallis, OR

  There are many dozens more in PACER…

• BINGO!!!

  ANON SOURCE IS 1000000000% CORRECT!!!
  Take it from me as one that has been there, done that :(:(

  This is a lying, cheating, manipulating Franchise. Anyone that plunks down their hard earned $$ after these posts needs to seriously have their head examined.

  RUN AWAY! THIS IS A H-U-G-E SCAM WITH JTH LEADING THE PACK

  DO NOT, I REPEAT DO NOT SIGN THEIR CONTRACT. YOU WILL BE FOREVER CHANGED AND FOREVER IN THEIR DEBT. IT HAS BEEN MANY, MANY YEARS SINCE I SIGNED ONE 5 YEAR FRANCHISE CONTRACT AND ALL THESE YEARS LATER, LTS STILL HAS THEIR FIRM GRIP AROUND ME.

  ALL I CAN SAY IS RUN AWAY FROM THIS FRANCHISE AND GO ELSEWHERE. YOU WILL BE FOREVER GRATEFUL. I’VE SAID THE SAME THINGS FOR SEVERAL YEARS NOW. I K-N-O-W I HAVE HELPED CLOSE TO 100 PEOPLE THAT I KNOW OF, HOPEFULLY SEVERAL HUNDRED OR THOUSAND MORE FROM SIGNING THE BIGGEST MISTAKE OF THEIR LIVES.

• Franchizee is being too harsh. I believe that most tax preparers take their responsibilities seriously and do not willingly participate in fraud. I worked at HRB for over a dozen years and worked with many, many tax pros during that time. I only know of two who knowingly bent the rules (three actually, but the third was defrauding the company not the gov’t). What I did see a lot of was clients who couldn’t get their way so took their papers and left. You know they went elsewhere, this time knowing what the questions were and the “right” answers. The new preparer had no reason to doubt them and was innocently enabling their fraud.

  “Anyone who has done tax returns knows that only fraud will give you large numbers.” Franchizee, you have got to be kidding or seriously jaded by what you have experienced. Where I work now our numbers are too large and we do not take new clients and fire some each year. We do everything by the book, which might just be one reason why we are so popular. Every tax pro gets some new clients every year who sensed/knew their former preparer was bending the rules and became uncomfortable. They chose to go elsewhere because they didn’t want to cheat anymore. I would bet every Liberty office gets some of them every year.

  I agree with Franchizee that EITC fraud is rampant. I just disagree that it is the only way to make money in the tax biz. Be an expert in tax, treat your clients fairly, charge them reasonable prices, be there for them, and they will come. Most tax professionals are PROFESSIONALS. Don’t paint them all with the same brush just because you know some who act unprofessionally.

• The problem is that Liberty consciously teaches its franchisee’s how to take advantage of the EITC. This seems to be fraud to me.

  The computers that Liberty makes you buy are modified with what is best described a spyware that Liberty uses to keep tabs on the Zees. This is because Liberty wants to keep tabs on the amounts of fees received vs the number of tax returns on the computer network. If too many returns have a zero fee, Liberty gets all over their franchisee by performing store ‘audits’ or harassing them for more money and paperwork to justify the actual receipts. If you do your online banking with their computer, they are able to see your bank balances. They hacked into my computer are were able to shut down my access to their message boards as well as communications with other franchisees.

  My IT manager discovered all these spyware worms when I brought in my computer for being slow and with viruses. Liberty has hacked your computers with any software that they provide. This was true when they were using Taxwise software when I was having trouble with compatibility of files. Taxwise had told me that Liberty modified the software that they bought for us franchisees and that a lot of functionality within their software was missing. They also hinted that Liberty added monitoring software to their product as well.

  This is how this company treats its friends-its revenue stream. Forget the fact that you own this business-they do! You own an asset that cannot be sold.

• And the black helicopters are circling…#grassyknoll #fakemoonlanding #oyvey

• SaraEA – I am not jaded, I saw what happened. There were two Top Guns in my area and I saw first hand how they looked the other way.

  People have to realize, that 6-7 years ago, there was no due diligence for preparers, so these Top Gun’s were doing what they always done, just do the minimum. You have to realize the average tax preparer with LTS only has 1 week of training through a class call “Rapid Class”. These people are not professional at all. They are under the gun to follow a script and have that person’s tax return signed sealed and delivered in under 15 minutes. If you can’t type and talk at the same time, you were toast. The go through returns as soon as possible. People don’t have time to figure out if anything is correct, if they want to spend money with LTS etc.

  The processing areas are a total mess. All they do is make sure signatures are correct and may just glance at a return and ship it off. They will guarantee, letters for the summer and fall months of missed information and viola, get to charge the client again to fix their problem. Also, people get their returns done so early, that they forget W-2 and 1099, voila, they get another charge for an amendment.

  Our AD also a Top Gun told us that we don’t have to question anything the person tells us, just have them fill out the Client Data Sheet and that data sheet will keep you from getting in trouble with the IRS because you just followed what the person put on the paper and if they got a letter, you just show them you put in the tax return as they requested without using any reason whatsoever.

  However, most people with LTS are still using this premise and we are now seeing the fallout.

  Also tax preparers did not follow Circular 230 up until the last 5 years or so. Hewitt is running from behind.

  So, I have seen lots of defrauding of the government. Thanks to all the “free” tax classes from H & R Block, LTS and JH, EITC is fast becoming a Taxslayer, Turbo Tax and all the free tax programs huge problem. They are not using better screening to catch ridiculous claims.

  Of course this is going on, because look at the huge fraudulent EIC claims going out and then being recalled the following year. Someone is processing those returns and mainly some tax preparers who are paid.

• Yes, EIC is one of those lower income opportunities to commit fraud. The pressures on a struggling franchisee to “survive”, may lead to their turning a blind eye to those taxpayers who want to knowingly engage in this fraud.

  Liberty Top Guns have been charged with fraud, and Liberty Corp. collects the royalties for this. Since Liberty benefits from this, are they co-conspirators to this fraud? Maybe they are turning in their own and avoiding prosecution. Most Federal agencies require compliance from those whom operate under the umbrella of Federal programs. It is high time that Liberty, Block, JH, and other large tax firms are required to have ethics training and compliance programs. Incremental fraud, by one tax return at a time, adds up to millions or billions of dollars.

  Bottom line is this, stay away from any tax firm that does not espouse ethical values in their finished product. Firms like the one that Sara EA works for deserve kudos for doing taxes the right way.

• The key statement is 6 to 7 years ago. That means you have no current first hand knowledge. There is’nt much need to respond when someone says the tax preparers only get one week of training and the processing rooms are a mess – someone is processing, etc.
  There are over 700,000 tax preparers with a PTIN. Even though HR Block is the largest retail tax prep company, most tax businesses are run by independents. Take a look at the major brokers of CPA, accounting, and tax businesses and you will see the business is not controlled by the ‘big 3’.
  I am not 100 percent pro Liberty, but I can tell you I have first hand knowledge because I have trained for at least the last 11 years and it’s been at least ten weeks for most preparers.

  For the last 5 years its been continuing after that. I’ve got some very good tax preparers and some very nice, dependable wavers. Oh and by the way, we don’t practice tax fraud. I also pay my employees before I pay the company royalties.

  This business is hard because it’s competitive. Once you know what you’re doing,
  you can make it without a franchisee. Your choice.

  Everybody’s got some flies in the ointment. No need to be mean just to try to make a point.

• Guest2, I am glad to hear you say that you are doing it with properly trained people. And that you pay your people first. Retaining trained tax preparers is the only way to truly grow your business. It is great that you are keeping waivers. Additionally there are other owners that are doing it right.
  However there is a larger percentage of owners that are not doing what you are doing. They pay minimum wage, and a good portion of first peak preparers went through the Rapid (five day) course. After first peak they are encouraged to get rid of the rapid class preparers.
  The question I have is do you follow the liberty system 100%, or do you take what you think is the best, and forget the rest?

• We can debate the pros and cons of the tax business as a whole but I would like to get back to the subject of informing potential new buyers of a tax franchise.

  guest2 has confirmed one of my previous posts. He takes ten weeks to train his preparers. That is most likely done in the fall. Add those ten weeks to the almost fifteen week tax season and you have about 1/2 of the year focused on those two activities. So, don’t believe you only work this business from January to mid April.

  I like to often post about the 19% paid for royalties and ad fees. There are one of two things you will experience if you buy a Liberty territory. First, you will pay 14% royalties monthly of your tax prep revenue. You pay 5% monthly on your revenue for ad fees. Come May, if your 14% royalties did not meet or exceed your minimum contractual royalties, then you pay to meet the minimum. Second, if your royalties exceed the minimum you pay no extra in May. In the first case, you are probably struggling and need to grow your business to survive. In the second case, you are probably doing enough to continue on.

  When you are the struggling Zee, you become bitter to pay up to the minimum. If you are the successful Zee, you are paying Liberty Corp. for being good at running your tax business. Either way, in my opinion, you are giving your hard earned money to someone that provides tax software and tech support.

  Do taxes for a private firm that won’t make you sign a non-compete agreement to get a feel for this business, if you are interested in owning a tax business. Enroll in an EA certification training course too. Take all the tax training you can. Read the IRS publications on the many tax subjects. Don’t buy a tax territory and think now I am in the tax business.

• Question was not addressed to me, but i have some relevant experience: Most of my stores came through buying others out. I’ve bought good performing stores and lousy ones. I’ve found the same thing every time: the good stores owners were following the system wayyyyyy better then the bad ones. The bad stores were basically making up there own systems & policies. John tells everyone that no one has ever followed the system “100%;” not even the top performers.

  Semantics are important. Out and glad says “they are encouraged to get rid of the rapid class preparers.” That sounds harsh. The reality is this: after first peak, available hours go way down, until April. Fact is, you just don’t have enough hours to go around like 1st peak, So what does a prudent manager do? Give the hours to the most capable, so they will be there for the more complicated returns in April. All preparers, getting hours or not, are welcome to come in to the office at any time for training, study & certifications, and many do…that shows me something. I call on that “bench” all the time, but obviously the most capable are at the front of the line.

  My policy is that you can be a “rapid class” preparer for one season only. To return, you must complete the 10-week course and you must be certified as at least a “level 2” preparer (Liberty certifications of levels 1, 2 & 3.

  All snarkiness aside, I can say that the successful owners I know are all following the system at least 80-90% and the failing ones less then 50%.

  To all the allegations of corporate-encouraged fee gouging, what we are taught to do is be close to Block in the area. I have no interest in being the cheapest guy in town in any business. Customers will happily pay more if you’re worth it and they walk when you’re not, so it’s pretty much self regulating.

  Three years ago I got a personal note from John Hewitt that he thought my fees were too high (I wasn’t following the system). He was right…I lowered about 20%. My retention and referrals have increased significantly since then and my business has grown.

• It is not honest to indicate that following the “system” will make you a success.

• The trouble is giving credit for the system to the wrong person. The system was developed by the franchisees. The company has the ability to observe what works best because they see everybodys results. Out and glad I only follow about 75 percent. I don’t do free return weeks but we have some free returns. I have controlled b to b. Send a friend and referrals work better. I set the work schedule at beginning of season and stick to it. Preparers can count on reasonable hours. I know that a good preparer can do about 100 to 125 returns per season. If not, then you should figure out why not. I know that even urban stores can have a second peak. I can’t always but I try to get my monies worth out of the system. I use the webinars and trainings for all of us including marketers. They are provided by the company. I do work more than 4 months but part time off season. I can succeed without a franchise but it has taken me a few years to work it out. I consolidated all stores that were losing money.

• Okay, good for Bloch, guest2, and Guest2. To those of you thinking about buying a tax franchise, beware, it takes a lot of your time and money. You will be consumed and eaten alive by things outside of your control. Lots of time and money and no guarantee of success.

  I guarantee that you will be way better off investing your money at a 1% return than if you invested it in a tax franchise.

• The problem is THIS FRANCHISE. The way that it has been run for the last 18 years. [It’s deplorable & frightening what they have been able to get away with.]

  To quote Ron Burley from the June/July issue of AARP magazine:
  (he is a consumer crusader against scammers, schemers & scoundrels)

  “After more than 20 years as a consumer advocate, I’m convinced the playing field isn’t level. Companies have unlimited time and access to skilled legal advice when drafting their agreements.”

  “And consumers, often with no legal expertise and limited time, are expected to fully grasp all the nuances and implications of highly complex contracts. Such distortions leave the customers without the product or service they expected, and the unsuspecting can even end up signing away many of their basic consumer rights.”

  In all my years in Corporate Tax, I have NEVER come across a company that has been so disorganized, bullying and downright evil to their franchisees, the same people who plunk down all this money so they can get abused by the Corporate staff of THIS company. Their computers have spyware in them-fact. They charge 1000000% for promotional materials and educational materials-fact. The computer help desk is useless-fact. The site selectors are also useless-fact.
  They teach unscrupulous practices-fact.

  Henry Bloch = Barf villa Barf villa = Henry Bloch
  One in the same

  Not only have they taught about EIC’s and Schedule C’s to franchisees, of course verbally, never in writing, but they are the ones going after the franchisees now. They call the IRS and report the fraud. Look at how many people all over the country have been negatively affected by this franchise. What does it tell you? You can easily get caught up in the hype and begin to believe their crap. That’s so dangerous.

  My wish is that people examine THIS franchise before buying. Do your due diligence, talk to ex-franchisees. There are thousands. Why are they out? Why do others stay? What’s REALLY in it for you? As someone who has been involved with this company since almost the very beginning and still tangled up with these a-holes, take it from me that one 5 year contract can change your life forever and not in a good way. Just ask a whole lot of questions BEFORE signing ANYTHING.
  And then run away. Don’t walk–run.

• Why are so many long time Liberty Corporate employees quitting? What do they know or are they not being treated right?

• bobknows – what do you think? Are they cashing out – retiring or just quitting? Not being treated right can be many things – pay and benefits cut or new management.
  bobknows what else?

• Henrybloch: You say all the right things but if you want to show real credibility you will tell us where your stores are located and if your an “Area Developer” as well as a franchisee…

  Quest2: Even though I have been out of the system for sometime there are experiences and facts that are still relevant today. 1) There is no advertising support. 2) After almost 20 years Liberty is still number 3 in a 3 man race. 3) It is not a nationally recognized brand. 3)

  Buyer Beware!!!

• bill…I don’t know how answers to your questions confer credibility, but I’ll play along anyway. My stores are in small-town America in the south. All of my stores, except 1, operate in towns where there is only one H&R Block, one McDonalds and no Starbucks.

  A relative of mine just finished their 2nd season with Liberty in a large mid-western city, they’re doing very well. Their plan is to leave forever their full-time employment in 2018 and they are on track to do that.

  Not an AD, although I’ve looked at it closely and continue to. My AD is phenomenal and one possibility is partnering with them in another area. My dilemma is that I really like what I’m doing now and don’t want distractions. Many are successful doing both (owning stores and being an AD), but for me I’d be most successful doing one or the other.

• Well Henry Bloch, that about covers it.
  Rural a stores = liberty is doing great
  Relative in urban area = liberty is doing great
  Area developer = “phenomenal” = liberty ad’s are great

  Only problem is that the answers you gave to bills questions did nothing to answer them. How many rural towns are there in the south? Very general and in no way answers his question.

  The answers you gave sounded more right out of a liberty corporate sales flyer.
  But good on ya, you really are a great pumper for liberty and help to alleviate the concerns of insiders selling the stock like crazy and franchise sales slowing to a crawl.
  Liberty is great and anyone who says different or proves different is a sore loser. Rahhh rahhhh rahhhh yeaaaaa liberty!

• Why hasn’t anyone mentioned that jackson Hewitt has a ten year franchise agreement and royalty/advertising fees total 21percent. They are sending out mailers inviting accounting/tax offices to join them. Changed the color of their logo.

• Greg: I just signed on to respond and saw your post and it is so on point. Thank you!

  Guest: The site is called Liberty Tax Service complaints for a reason!

  Buyer Beware!!!

• This column needs to stay on top of the discussions

  Can’t wait for Liberty Tax Service to get their time in court and in jail
  Worst group of scoundrals ever
  Not even human
  Don’t even THINK about signing their contract
  Step away and go elsewhere
  This is not the place for your money or your future if you ever want to see your sanity again :(
  Do not give them one dime of your money. They are so not worth it.

• Ladies and gentlemen, just back from his 8 week sold out run at Betty Ford, please join me in a round of applause for the paranoid-delusional stylings of SanFranDan!!

• Barf villa (under the ‘Bloch’ disguise–what an original name, NOT)

  I’m a ‘she”
  This franchise is the WORST
  And guess what, thousands of people across this country agree with me.
  You can blow all the hot air you want. This franchise sucks and anyone getting involved in it will lose their shirt, their money and their freedom. Liberty, huh??? I’m at Liberty to tell you this franchise steals, lies, cheats, rips you off big time.

  Last time I checked, this forum says “Unhappy Franchisee”. Oh yeah, you’re the one happy one. Whoopie do. Good luck to you. You’ll need it. Just wait.

• Poor SFD…so much rage, so little time…haven’t heard from you in a while, I was beginning to think your real name was Juan Francisco Lopez-Sanchez, which would have made total sense…

• Bloch, if the only thing that you are here to do is run down the people that are posting legitimate problems that they have had with this company, GO AWAY.
  With your comments, it just goes to show how being in the Liberty System is corrupting people.
  Fact: Liberty has never been better than 3rd in the national tax business. In 2009 they started the hype of being #1 by 2020. How is that going? Liberty should have been #2 by now, and nipping at the heals of H&R Block. I have heard that this hype is gone now.
  Liberty touts that thy have the least expensive marketing ans franchise fees (19% total 14% to Liberty and 5 % for marketing). Jackson Hewitt is 22%, and they get national advertising. H&R is even higher. With Liberty you do not get national advertising. If you are lucky enough to get Liberty to negotiate a radio or local TV spot, you have to pay extra per store owned.
  Jackson Hewitt is helping their franchisee’, by giving subsidies if they are with in a 1/2 mile of a Liberty. JH is coming after Liberty. Liberty will help by giving out loans at 12% interest. Compare that with the normal interest rates from banks, or the interest rate that they give to John John, it will show you how helpful they are to the franchisees.
  Liberty would be nothing with out the franchisee’, but they will screw you over in a heart beat.

• Block has been heavy on TV for decades but they keep losing customers year after year (look at their numbers over the past 15 years). If national TV worked, Block would be the only tax business around because they have more cash to spend then anybody. Perhaps you haven’t noticed but the way we consume media is changing, particularly among our prime demographics.

  And if JH has resorted to subsidizing franchisees to somehow compete better with Liberty…doesn’t that tell you everything you need to know?

• Are you forgetting that Liberty is #3. Are you trying to tell me that in 5 years, Liberty will be #1?

  It is not going to happen.

• It’s a mistake to take Jackson Hewitt lightly. They have a new mailer out soliciting new franchisees. New look and new leadership. I would pay more attention for the coming season. Both need to make the territories cheaper. I received a mailer from jackson Hewitt at my Liberty office. Never happened before.

• Bloch, based on your last post, I find it hard to believe you are a Liberty franchisee. If you are paying 5% for advertising, from your supposedly successful stores, why would you defend the lack of national TV advertising? Because of the way we consume media? Maybe Block is losing customers because our labor participation rate is the lowest in years. Did you ever think of that? Or, what about the newer, younger taxpayers that have entered the labor force over the last 15 years that are tech savvy? These younger workers can probably do their own returns with on-line software, with no problems, and no tax prep fees to Block, JH, or Liberty. Big savings for this generation of taxpayers. These are my personal opinions. You can check out Block’s latest quarterly report and read why they feel they went down to 24.2 million returns worldwide.

  You see Bloch, Liberty would die for 24.2 million returns. John H. did once dream about that many returns by 2020. Sorry, it won’t work out that way. Block maintains their Number 1 grip on the tax prep market BECAUSE they do advertise so much. Name recognition is the main reason you buy a franchise. Guess what, Liberty and you can talk about changing demographics but that is a bogus reason for Liberty Corp. to not advertise nationally. They are stuck at Number 3 because they let the local franchisee’s put out a costumed waver and hype the long dead guerilla marketing strategy. Guess whom pays for this local advertising? Not Liberty. So, why buy a Liberty franchise territory? No real national advertising campaign and stuck at being Number 3 with no hope of any additional exposure unless you, the franchisee pays for it.

  Bloch, go away, you don’t make sense. Again, you can’t be paying 5% on these great money making territories you say you have and not think you could do even better if Liberty would advertise nationally on TV. What, have people stopped watching TV. So, that makes all the others that advertise on TV dunces and Liberty soooo smart? What a joke to give such a lame answer defending Corporate strategy. I don’t believe you are a Liberty franchisee with that thinking.

  For those of you thinking about buying a territory, understand this; Liberty does not pay for national advertising because the CEO and his cronies get rich from franchise fees, royalties, ad fees, bank fees, and interest on loans to franchisee’s. Why spend all this money on advertising? They don’t need their franchisee’s to get rich, because they are getting rich by taking all the monies from the franchisee’s. If a franchisee fails, so what. They get back the territory to resell and all the customers that the poor soul got for them while in business. Not a bad gig for Liberty Corp. A terrible, terrible result for the franchisee.

• Awesome points…except that Liberty has gained more new customers then either Block or JH every year since their inception in 1999. Look it up.

  When I grew up, I had four channels to choose from. Now I have hundreds. And a remote. And a DVR. And Netflix. Perhaps you watch commercials. I don’t know many that do. Liberty is pretty vocal about no national TV. At the discovery day I went to, John Hewitt spent 10 minutes discussing why. If national TV is your thing, why in the world did you ever get involved?

  As for getting to #1, it’s a pretty good rallying cry. Beats the heck out of “we’re gonna be #12!” I don’t know if we’ll get there or not but we’ve got thousands of great people working towards that…even if we don’t, Burger King, Dunkin, Marriott, Target & Hertz all have pretty good businesses without being #1.

  If you want to obsess over what you pay others, that’s fine. I obsess over what’s mine at the end of the day. I net 37% on nearly $1M in revenue (and growing…without national TV!). That’s after all year-round expenses, including those lowest-in-the-industry royalties to Liberty. I know many owners in that range or exceeding that. We all get the same system to work with. For the answer to why I succeed and you failed, look in the mirror.

  Anyway, it’s been a great amusement to me for the last few weeks, watching the same 5-4 chuckleheads choke on their own bile in their desperate attempt to blame someone else for their failure…but now I’m off for a 3-week, coast-to-coast jaunt on the trans-Canadian express, one of the world’s greatest train trips. Winners gonna win, haters gonna hate.

  To those of you truly looking at this site for information not affirmation, I highly recommend you put no stock in anonymous internet posters (including me). Talk face-to-face with real people. Liberty gives you contact information for all current and past franchise owners (even to the 4-5 constant anonymous posters here…assuming they’re not really Block or JH people.) Call them up, meet with them and decide for yourself.

  Parting advice: don’t waste time arguing with idiots…they will drag you down to their level and beat you with experience.

• Out and Glad:

  Your one line last night sums it up best:

  Liberty would be nothing without the franchisee, but they will screw you over in a heartbeat.

  That is the best line I’ve heard in a long time. So true!!!!!
  Think about it folks……….coming from people who have been there and done that. Do you REALLY want to put your money into a contract to a franchise that collects and collects and collects your hard earned money but screws you over any chance they get?

  THEY WILL AND THEY DO

  Sad but true:

  Your post is also spot-on. Liberty has your wallet from Day 1. It is never your business. You are locked in their grip for years & years. No matter how successful you are (and I was) they still make your life miserable every step of the way. Their “system” is NO system at all. Any one with a brain and some Tax experience can do this job with their eyes closed. It is dealing with Liberty that makes this job so unbearable. It is dealing with Liberty’s spyware in your computer. It is dealing with the lazy AD’s who sit on their ass and collect your money all day long while they’re out playing golf. It is the wavers who are high on drugs and deal on the street corner. It is the help desk that is never available during the height of the season to help fix the computer and you wait and wait and wait on the telephone for someone to help. It is buying all the education materials, advertising for “free” tax classes and spending your time in the Fall to hold class for what?? It is dealing with the Ad’s on Notices to Cure because you did something out of line. (For shame!) It is having your hard earned money intercepted right before your very eyes.

  For those looking to join a Liberty franchise, do your homework. If you are going to speak to current and past franchisees, DO NOT look to Liberty to give you those names. Find them on your own and see what they really think.

  It is expensive, no matter how you cut it. You pay franchise fees on top of royalties on top of salaries on top of tax classes on top of ANNUAL rent on top of electricity, telephones, heat, etc.,etc.,etc.

  JUST take that hard earned money and start your own. The money you make will go into your own pocket.

  Sad but true:

  Your last paragraph is also spot on. Perfect. When the franchisee fails, so what? They just re-sell it to some poor shmuck who willingly hands over thousands of $$ to Liberty Corporate. Maybe people interested in a franchise should find out how John Hewitt bought an island or was it a bank on an island? Tax haven, perhaps?
  He doesn’t care one iota about you or your success as a franchisee. As long as you have money to sign the contract, that’s all that matters.

  As far as Barf villa Bloch goes: Buh Bye, c ya

  I’m hoping for the best for Jackson Hewitt. He screwed them, now let’s watch them screw him. Yeah!!!

• Sad but true, it’s sad but true. Were is the national advertising? Brand awareness not only brings customers but also determines if your business has any value. What if you want to sell? Its hard to explain to a potential buyer why your profit’s so low. The company definately needs national advetising. Definately.

• Henry, to your first point, if Liberty has gained more new clients than block or jh each year then they should be well past jh and number two in the majors.
  But….you have to keep the customers to make that a reality. I believe that is part of libertys problem. People try me and don’t like me. The retention rate is the worst of the 3 big ones. Don’t believe me? Look it up. The numbers at this point would have put Liberty as number 2. But they are not.

• Henry Bloch is paying about $140,000 for software and tech support. By now, he should not need tech support because his booming tax business should have encountered all sorts of variations in tax returns and needs no tech help.

  So Bloch, you are a chump – $140,000 pretty much for software alone!

  Go away Bloch, you are not being honest about the future success of new franchisee’s whom are thinking about buying a Liberty franchise.

  Why do you care about what is posted on this site? Successful people should not gloat over others failures. You also ignore the fact that maybe many whom got out of their contracts with Liberty were successes. Maybe they realized that paying 19% for virtually NOTHING, was not worth being associated with Liberty. Do you get a discount off the $140,000 supposed royalties you owe, by posting on this site?

  To those looking into buying a Liberty territory; look at their financials and you will see store locations are going down in number. This means previous franchisee’s left Liberty. Ask them why? Also, ask why the tax guru was telling everyone why the ACA was going to be a boon to their business and it was not. Liberty has been back tracking for awhile and the future is not bright for them.

  Henry, you should get out now while the going is good for you!

• Look, it’s pretty evident Henry is john barrilla who was busted using the same IP address to post under other names as well.
  How can you tell? Look at how he chastises sanfrandan. Now go back and read john barrilla’s insults toward sanfrandan. Yup same person.
  He is not honest.
  In 1999 Liberty did not have more new clients than block or jh.
  He is just not an honest person.
  Anyone looking here to evaluate the value of a Liberty franchise should easily see this.