[NYSCPA]

Anyone have experience purchasing a Tax Franchise? What are the Pros and Cons? Was it worth it, etc?

[Recked]

I do not have experience, but franchises are usually serving walk in clients, some could be one time only, and some year after year.
Their reputations do not lie in excellent customer service or tax planning, etc.
You will have increased liability due to the nature of walk in clients that may or may not be attempting to lie/cheat on their taxes, especially the EIC crowd.
Due diligence and documentation requirements will be at a premium.

I would encourage you to find an aging sole prop who does not have a succession plan in place.
So many baby boomers are aging out of the market with no one to fill their shoes/take over their practice.
Sole prop is a bit more prestigious than a tax franchsie, and your growth is virtually unlimited.

[SeattleCPA]

I helped a CPA friend look seriously at this option and blogged about it here. You might find this post and the related one useful…

Lessons from Liberty Tax Service, Part 1

BTW I also agree with ReckedRacing's comment about buying a small CPA firm… but would caution many small CPA firms simply are not worth paying for.

[ForgottenOne]

The tax prep business is dying. The tax prep office is closing down left and right.

[Author]

Replies