Drake Software
and the providing of tax preparation services from the premises of the Franchised Business; and WHEREAS, Liberty has entered into a Software License Purchase Agreement with Drake Software, a North Car
From the filings
HQ-led decisions
Liberty Tax Service
Financial servicesSoftware purchasing at Liberty Tax Service is controlled at the corporate level, with Chief Executive Officer Scott Terrell and Chief Operating Officer Michael Miller among the key decision-makers. The franchise already mandates several systems, including Fusion AI and LINK Assist, and operates 1,663 total units across the US. For vendors, this represents a concentrated addressable market of 1,537 franchised locations, with an additional 126 company-owned units under direct HQ control.
For software vendors selling into US franchise brands.
Live signals
Total units
1,663
1,537 franchised
Unit growth YoY
-8.837%
vs prior filing
AUV
$165K
Item 19, 2025
Royalty
14%
of gross sales
Ad fund
5%
national + local
Initial fee
$25K
per unit
Investment range
$50K–$70K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
19%of gross sales (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.
Xero
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”)
Franchisor behaviours
What the franchisor requires
17 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 11 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 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 and/or (2) each independent franchisee association that has asked to be…
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.
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.
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 Service
Liberty Tax Service operates 1,663 total units in the US, of which 1,537 are franchised and 126 are company-owned. The brand’s average unit volume (AUV) is $164,860, and the royalty rate is 14%. Year-over-year unit growth declined by 8.837%, indicating a contracting footprint that may still represent a significant installed base for software vendors targeting tax preparation and financial services.
The franchise is part of LT Intermediate Holdco, LLC, and is headquartered in Virginia. Its operator footprint includes 156 mapped operators, with 6 multi-unit operators controlling between 2 and 9 units each. The top states by unit count are Texas (21), West Virginia (18), California (12), Wisconsin (12), and North Carolina (9). For a software vendor, the addressable market is the 1,537 franchised locations, plus the 126 company-owned units where HQ has direct purchasing authority.
Who controls software purchasing
Software purchasing decisions at Liberty Tax Service are centralized at the corporate level. The 2026 Franchise Disclosure Document names Scott Terrell as Chief Executive Officer, Michael Miller as Chief Operating Officer, William Harvey as Chief Legal Officer and General Counsel, Rory Walters as Chief Accounting Officer, and Kyle Sawai as Chief Marketing Officer. These executives form the buying center that evaluates and approves technology vendors.
Because the franchise mandates specific systems across its network, vendors should expect a top-down procurement process. Franchisees do not appear to have independent purchasing authority for core operational software. The presence of a Chief Marketing Officer and a Chief Operating Officer suggests that both marketing technology and operational platforms are evaluated at the HQ level.
Mandated and current tech stack
The 2026 FDD lists several mandated technologies. These include an Electronic Filing Identification Number, Fusion AI, IRS E-Services, IRS Efile Requirements, the Liberty Resource Center, LINK Assist, Marketing Central, and software for processing Financial Products. All are required for franchisees, meaning any vendor offering a competing or complementary product must demonstrate clear integration or replacement value against these incumbents.
Fusion AI and LINK Assist are specifically named, indicating they are likely core to daily operations. Marketing Central suggests a centralized marketing technology stack. The mandate for software that processes financial products points to additional compliance-driven tools. Vendors selling into this account should be prepared to address how their solution interoperates with or improves upon these existing systems.
Procurement, renewals, and timing
The FDD does not include an extract from Item 8 regarding procurement or supplier designation. Without that information, the specific procurement model—whether designated supplier, approved supplier, or open—remains undisclosed in the most recent filing. Vendors should inquire directly about supplier qualification requirements during initial conversations.
Franchise agreements have an initial term of 5 years and can be renewed for successive 5-year terms, provided the franchisee is not in default. These renewal cycles may create natural windows for software evaluation and adoption, particularly if the franchisor updates its mandated tech stack at the time of renewal. The recent year-over-year unit decline may also signal a period of operational consolidation where technology efficiency is a priority.
How to read the Liberty Tax Service FDD
The 2026 Liberty Tax Service Franchise Disclosure Document is embedded below. It contains the full legal and operational disclosures filed with state franchise regulators, including the executive team, unit counts, financial performance representations, and mandated technology requirements. Reviewing the FDD directly is the most reliable way to validate the information summarized here and to identify additional sales triggers, such as Item 19 financial data or Item 8 supplier terms.
For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize the highest-fit opportunities.
Questions vendors ask
Liberty Tax Service, answered from the filing
The 2026 FDD lists Scott Terrell (CEO), Michael Miller (COO), and Kyle Sawai (CMO) in leadership. Purchasing authority sits at HQ, not with franchisees.
Mandated systems include Fusion AI, LINK Assist, Marketing Central, Liberty Resource Center, and software for processing Financial Products, per the 2026 FDD.
There are 1,663 total units: 1,537 franchised and 126 company-owned. The network spans states including TX (21), WV (18), CA (12), and WI (12).
The 2026 FDD does not disclose a designated or approved supplier structure in the provided extracts. Procurement details are not publicly specified.
Franchise agreements run for 5-year initial terms and can be renewed for successive 5-year terms. Renewal cycles may create periodic evaluation windows for new software.
The 2026 FDD is filed with state franchise regulators. You can view it directly in the embedded PDF viewer below.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Liberty Tax Service files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
156 operators run 162 mapped locations. 6 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit150
2–9 units6
Top states by locations
| TX | 21 |
|---|---|
| WV | 18 |
| CA | 12 |
| WI | 12 |
| NC | 9 |
Ownership
The portfolio behind Liberty Tax Service
single_brand_holdco of Liberty Tax Service.
Related Financial services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.