[polar21]

Has anyone considered purchasing a tax franchise? I can see myself being at a crossroads in the next couple of years of whether to continue working for the Big D, attempt to buy out a local practice, or buy a franchise. I want to hang my own shingle, but trying to strategically put myself in the best possible situation.

The only reason I would stick with the current gig would be the $$$.

[san4596]

I actually dislike all three of those. Sorry, I have had to amend way to many returns prepared by those, and to see the rediculous amount they charge. My neice went by Liberty with her 5 W2's, and they wanted to charge her $365. No other information to process her return. Just pages 1 & 2 of a 1040.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[san4596]

I actually dislike all three of those. Sorry, I have had to amend way to many returns prepared by those, and to see the rediculous amount they charge. My neice went by Liberty with her 5 W2's, and they wanted to charge her $365. No other information to process her return. Just pages 1 & 2 of a 1040.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[san4596]

Back to your question though, I would suggest getting in with a good local firm with the intent of becoming partner, or starting your own practice from the ground up.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[san4596]

Back to your question though, I would suggest getting in with a good local firm with the intent of becoming partner, or starting your own practice from the ground up.

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[polar21]

^That is the path I am currently on moonlighting at a local cpa firm (that I happen to know the owner really well). I just thought about the franchise route and wanted to pose the question.

Seems like these places are alot like the titlemax's of the world…

[polar21]

^That is the path I am currently on moonlighting at a local cpa firm (that I happen to know the owner really well). I just thought about the franchise route and wanted to pose the question.

Seems like these places are alot like the titlemax's of the world…

[sailorangel59]

They remind me of the Jiffy Lube's of the Accounting world. You can take your forms there, but you might want to double check your undercarriage to make sure all the bolts are actually attached accurately.

[sailorangel59]

They remind me of the Jiffy Lube's of the Accounting world. You can take your forms there, but you might want to double check your undercarriage to make sure all the bolts are actually attached accurately.

[studylongUstudywrong]

Anybody can fill out a tax return incorrectly.

I estimate that those franchises bill out at an average of $150 – 300 an hour and then pay their employees $10 – 16 an hour.

I agree that the quality of the work might be shabby but the business model looks fantastic. I have seen $350 bills and the client said that it took them 45 minutes. I think they also make good money on financing the refund advances. They make enough during tax season to pay rent year long……

So lets say you buy a couple and stay busy managing them Dec – Apr. Then comes June and you feel a little ting of guilt because you sold inferior products, danced on the sidewalk in HOT costume and did not pay fair wages to your employees….. If you netted 400K taking into account your annual rent, you might be able to justify it. LOL Also, a fantastic and knowledgeable store manager could make a big difference.

Everybody has to file a tax return every year.

I wonder who will be the first to open a tax prep franchise following the popular hot wing franchise where they were the cutoff shirts… LOL Hire attractive men and women who can operate turbo tax league software and see what happens.

Licensed Texas CPA

[studylongUstudywrong]

Anybody can fill out a tax return incorrectly.

I estimate that those franchises bill out at an average of $150 – 300 an hour and then pay their employees $10 – 16 an hour.

I agree that the quality of the work might be shabby but the business model looks fantastic. I have seen $350 bills and the client said that it took them 45 minutes. I think they also make good money on financing the refund advances. They make enough during tax season to pay rent year long……

So lets say you buy a couple and stay busy managing them Dec – Apr. Then comes June and you feel a little ting of guilt because you sold inferior products, danced on the sidewalk in HOT costume and did not pay fair wages to your employees….. If you netted 400K taking into account your annual rent, you might be able to justify it. LOL Also, a fantastic and knowledgeable store manager could make a big difference.

Everybody has to file a tax return every year.

I wonder who will be the first to open a tax prep franchise following the popular hot wing franchise where they were the cutoff shirts… LOL Hire attractive men and women who can operate turbo tax league software and see what happens.

Licensed Texas CPA

[studylongUstudywrong]

Sorry about the typos

Licensed Texas CPA

[studylongUstudywrong]

Sorry about the typos

Licensed Texas CPA

[impska]

It's hard to wrap my mind around those places. They charge at least as much (if not more) than local firms – even “higher end” local firms, but the person doing your return generally has less knowledge than your average intern. And I don't know who reviews them – their error rate is at least as high as people who try to do their own taxes with Turbo Tax.

And given that you can get the same results from Turbo Tax, I don't know why people bother with H&R Block et al.

That said, they probably make money. But you could make money by opening your own shop and taking an ad out in the paper and crafting a nice website/buying the right search terms. Still, I assume there are some advantages to being a franchisee – those places never seem to go out of business.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[impska]

It's hard to wrap my mind around those places. They charge at least as much (if not more) than local firms – even “higher end” local firms, but the person doing your return generally has less knowledge than your average intern. And I don't know who reviews them – their error rate is at least as high as people who try to do their own taxes with Turbo Tax.

And given that you can get the same results from Turbo Tax, I don't know why people bother with H&R Block et al.

That said, they probably make money. But you could make money by opening your own shop and taking an ad out in the paper and crafting a nice website/buying the right search terms. Still, I assume there are some advantages to being a franchisee – those places never seem to go out of business.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[polar21]

That is what I am trying to look at. Let's be honest, we are never going to be the most knowledgeable tax practitioners out there. So, if you are a non-franchised person opening your own shop or buying in to an existing local firm, you are buying into the relationships that have been built and the client base. If you go the franchise route, you are buying the advertising that the national brand does. If I said to you “Get Your Million Back America”, chances are you can tell me who the company is.

From a straight business standpoint, it seems like these places make an absolute fortune. Throw one of these places up in a low income area where computer literacy is low, and you can charge $100-$300 per return and finance the refund right back to them. Straight Cash Cow if you ask me.

[Author]

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