As noted in Item 1, we have developed a strategic relationship with affiliate Community Tax that provides you the opportunity to refer clients to Community Tax for the provision of tax debt resolution and other tax-related services and receive a referral fee. In addition to Community Tax we have the following strategic alliance: On July 2, 2021, Xero, Inc. (“Xero”) and JTH Tax entered into a Xero Business Plan whereby JTH Tax selected Xero as the preferred cloud accounting software for its new small business offering. Xero and JTH Tax entered into a new Xero Business Plan effective December 27, 2023. JTH Tax has integrated Xero’s cloud accounting software platform to expand its services and launch a service for small business that includes monthly bookkeeping, payroll services and advisory services. Franchisees may participate in the Xero Partner Program to receive discounts or certain prices on Xero’s services and potential access to co-marketing funds. To participate in the Xero alliance, franchisees must sign a Stipulation for Bookkeeping, Payroll & Advisory Services in the form attached as Stipulation B-4 to the Franchise Agreement.
From the filings
Liberty Tax Service
Financial servicesLiberty Tax Service requires every office to run the tax-return-preparation software it provides, and Liberty (or its designated third party) is the sole approved supplier of that software, e-filing and Financial Products tools. CEO Scott Terrell leads a 1,537-office franchised system, though franchised-outlet count fell 8.8% year over year.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
14% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Franchisor behaviours
What the franchisor requires
20 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 12
Liberty may cause programs to run on your computer systems that may send information to Liberty and may make changes to the computer systems.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesItem 12
Upon Liberty’s request and at your own cost, you will submit to Liberty the following information for the Franchised Business.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
8. Percentage of Total Purchases You must purchase or lease virtually all goods and services necessary to establish and operate your franchised business from us or our designees, from suppliers approved by us, or in accordance with our specifications.
Is there a franchisee advisory council, association or committee?
YesItem 20
Exhibit J lists the names, addresses, telephone numbers, e-mail address, and Web address of (1) each trademark-specific franchisee organization associated with the franchise system being offered which we have created, sponsored, or endorsed
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 12
Liberty reserves the right to specify the service provider of the source of products and services authorized under this Stipulation.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During our last fiscal year, we and our affiliates received $0 from franchisee purchases of training materials, which is 0% of our total revenue of $88,038,000 during such fiscal year.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
7. Revenue Derived from Products, Services We and/or our Affiliates have contracted with a supplier that provides volume discounts, rebates and/or other cash payments to us based on volume purchases of supplies, products or services used by our 4-26 LTS FDD 31 4885-7779-0989 v.11 affiliated-owned offices and…
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
20Item 8
We estimate that required purchases and leases from us will be approximately 20% of the total purchases and leases that you will make while establishing and operating your franchised business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We reserve the right to seek reimbursement from you or the supplier for our reasonable cost of inspection and the actual cost of testing a potential new product or service.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
Additional suppliers may be approved if they apply for such status in writing to us and satisfy us that they are capable of meeting our specifications, criteria, quality standards and standards of reliability.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Transfer to Liberty all telephone numbers, email accounts, URLs, domain names, internet accounts, cloud server accounts, listings and advertisements used in relation to the Franchised Business
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 12
You agree to permit Liberty and/or Liberty’s agents the right to enter your Liberty Tax offices during normal, required business hours, without prior notice, to (1) observe the operation of the Franchised business and any other operations taking place at your Franchised Business and (2) inspect, audit, examine, and…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 12
Liberty may modify the Manual or any other manual, in order to adjust for competitive changes, technological advancements, legal requirements and attempts to improve in the marketplace.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You may not sign a lease until we approve the site for your office.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 12
You may not have a website for your Franchised Business, or utilize mobile apps or other digital marketing, without Liberty’s prior written approval.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase or lease virtually all goods and services necessary to establish and operate your franchised business from us or our designees, from suppliers approved by us, or in accordance with our specifications.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
All tax return preparation and processing computers must be purchased from our approved vendor and meet our specifications.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
You authorize us to debit your checking, savings or other account automatically for royalty and advertising fees, and other amounts owed or to be owed to Liberty and Affiliated Companies (“EFT Authorization”).
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Liberty may cause programs to run on your computer systems that may send information to Liberty and may make changes to the computer systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
In the event we determine there to be abusive tax returns practices related to the operation of your franchised business, we also have the right to require that you attend additional trainings that we may provide.
The filing answers no to 6 questions
- Is a minimum grand opening advertising spend required?Item 7
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?
- Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?Item 8
- Must the franchisee participate in a gift card program?Franchise agreement
- Does the franchisor require minimum staffing levels or specific roles?Item 11
The vendor opportunity at Liberty Tax Liberty Tax Service runs 1,663 US offices, 1,537 of them franchised and 126 operated by Wefile, in the financial services segment. Franchised-outlet count fell 8.8% year over year, and the mapped operator footprint of 154 operators across roughly 158 offices concentrates in Texas, West Virginia, California, Wisconsin and North Carolina.
Who controls software purchasing Liberty Tax's franchise agreement is tightly centralized on software. Every office must use the tax-return-preparation software Liberty provides, and Liberty, or its designated third party, is the only approved supplier of computer software for tax return preparation, electronic filing, and the provision of Financial Products. CEO Scott Terrell and COO Michael Miller lead the brand from headquarters.
Tech named in the FDD, and what is actually required Offices must also maintain the anti-virus, anti-spyware and firewall software Liberty specifies, and obtain a computer system meeting Liberty's specifications; processing and tax return preparation computers must be purchased from Liberty's approved vendor, and all other computer equipment may come from any vendor that meets those specifications. Liberty prohibits unapproved software and hardware inside the tax preparation office, and each office must establish an internet connection through a supported vendor. If Liberty provides or recommends a Debit Card source, currently NetSpend Corporation, offices must use that source for any Debit Cards they offer. Liberty selected Xero as the preferred cloud accounting software for its small business offering, which franchisees may join through the Xero Partner Program.
Procurement, renewals, and timing For the 1,411 franchise-owned offices that operated during tax season 2025 and remained active into tax season 2026, Item 19 reports average net prep fees of $164,860 on an average of 586 returns. Liberty may recommend an approved supplier for signs, furniture and office supplies without requiring purchase from that supplier. On renewal, offices can sign for successive 5-year terms if not in default of any franchise-agreement provision, with written notice at least 180 days before expiration and no renewal fee.
How to read the Liberty Tax FDD The 2026 Franchise Disclosure Document below spells out the exact tax-software and sole-supplier mandate language. Talk to FranCloud for a ranked list of financial-services franchise systems worth pitching next.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Liberty Tax Service, answered from the filing
Read the filing itself
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FDD alert
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Operator footprint
Who runs the locations
154 operators run 158 mapped locations. 4 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| TX | 21 |
|---|---|
| WV | 14 |
| CA | 12 |
| WI | 12 |
| NC | 9 |
Ownership
The portfolio behind Liberty Tax Service
Ownership: Liberty Tax Service.
Related Financial services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.