For a tax preparation service that was local and not a stuffy boring place, rather one that was relaxing and friendly to the family, he saw the need. This concept began as the Instant Refund Tax Service, until a competitor bought it out in 1999, allowing the capital to start the Instant Tax Service. In 2004, the company started franchising and is the 4th largest tax preparation company in the country today. The advantages of opening an Instant Tax Service Franchise, as with any franchise system, include the capacity to access the system that has already been developed. Without the operational struggles of trying to fine tune your concept, this allows you to concentrate on building and growing your brand. Additional advantages include domestic brand recognition, real estate partnerships that allow franchisees to operate on smaller footprints, reducing overhead costs. Click here to find more about Tax Shark are here
Training includes comprehensive franchise training for instant tax services, year-round assistance and local and national advertising cooperatives. The Instant Tax Service franchise has the typical franchising costs, which include an initial fee as well as royalty fees paid to the business. The initial fee is $34,000 and there is a renewable contract for 5 years. The current royalty fee is 20 percent, which implies that you would pay $2000 back to the Instant Tax Service Franchise company if your business generates $10,000 in one month. This is a substantial fee and it comes from top line sales, which means you pay that 20 percent before you pay your other expenses, so you will pay the franchisor that fee even if you are operating in a net loss. The total estimated franchise cost is $39,000 – $89,000, which includes your fees, permits, improvements to the leasehold, equipment and other items necessary for opening your business. As with any company, you take a high risk of failure, and this risk is significant with the competitive market and uncertain economy of today.