Instant Tax Service Franchise Review

Introcosts. Training includes a comprehensive instant tax
To understand Instant Tax Service we must go backservice franchise training, year round support and both
to it's original beginnings. Fez Ogbazion, a young collegelocal and national advertising cooperatives.
student from Ethiopia was looking for the AmericanThe initial training is a 5 and a half day training at the
Dream. He started by looking to fulfill a need in thecompany headquarters.
community, one that would help people with what theyFranchise Costs
value most, their time.Instant Tax Service franchise has the typical costs
The need he saw was for a tax preparation serviceinvolved in franchising that includes an initial fee as well
that was local and not a stuffy boring place, rather oneas on going royalty fees paid to the company. The
that was relaxing and family friendly. This conceptinitial fee is $34,000 and has a 5 year renewable
started as instant Refund Tax Service, until he wascontract.
bought out by a competitor in 1999, which allowed himThe ongoing royalty fee is 20%, this means if your
the capital to begin Instant Tax Service. The companybusiness produces $10,000 in one month you would
began franchising in 2004 and today is the 4th largestpay $2000 back to the Instant Tax Service Franchise
tax preparation company in the country.company. This is a substantial fee and it comes off the
Franchise Benefitstop line sales, which means you pay that 20% before
As with any franchise system the benefits of openingyou pay your other expenses, thus even if you are
an Instant Tax Service Franchise includes the ability tooperating in a net loss you will pay that fee to the
access the system that has already been developed.franchisor.
This allows for you to focus on building and growingThe total estimated cost of the franchise is $39,000 -
your brand without the operational struggles of trying$89,000, which includes your fees, permits, leasehold
to fine tune your concept.improvements, equipment and other necessary items
Additional benefits include, national brand recognition,to open your business. As with any business you take
real estate partnerships allowing the franchisees toon high risk of failure, and with today's competitive
operate in smaller footprints, which reduces overheadmarket and uncertain economy this risk is substantial.