Paramount Tax Accounting
Paramount Tax Accounting offers federal and state tax return preparation, planning, consulting, and accounting services. Known for comprehensive tax solutions, it operates in the competitive tax and accounting franchise market.
Paramount Tax Accounting franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Paramount franchise is estimated to be between $71,200 and $166,000. This includes between $60,100 and $67,000 that must be paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 for the first franchise unit and $25,000 per additional franchise. Honorably discharged veterans receive a 20% discount on the initial franchise fee. [p.12, p.68]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 10% of Gross Sales, which includes any auditing or consulting services fees if approved by Paramount Franchising and properly licensed [p.68, p.41]. Advertising expenses are not specified as a separate fee; instead, the company incurs these costs as they occur [p.130].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement generally allows for a 20-year period to operate using the Paramount Tax system [p.131]. However, this document does not specify whether the agreement can be renewed or under what conditions renewal might occur [p.166].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the reasons provided [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.155]. However, under the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.171]. Therefore, if the stated grounds for default or termination do not constitute 'reasonable cause,' those provisions may not be enforceable.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory meaning that Paramount Tax & Accounting will not open another outlet in your designated territory. This protection does not depend on achieving specific sales volumes or market penetration [p.35]. However, note that you do not have exclusive rights to develop, open, or operate Paramount businesses in the broader Development Area [p.111].
What training and ongoing support does the franchisor provide?
The franchisor provides comprehensive training materials including manuals, lectures, discussions, and on-the-job demonstrations [p.32]. Initial training is mandatory for the franchisee's principal executive and can be completed online or in-person at one of their corporate locations [p.74]. Additionally, there are pre-recorded training classes scheduled monthly [p.32], and attendees must watch at least 10 hours of specific online educational videos related to Paramount Tax & Accounting [p.32]. Ongoing support includes updates to the manuals available through various means including online [p.32].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the one provided in Item 19, and it does not authorize its employees or representatives to make such representations. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the goods and services that the franchisor has approved and requires you to offer. The franchisor can change these requirements at any time without limitation [p.41]. Additionally, you must purchase certain goods, supplies, inventories, or services exclusively from Paramount Franchising or sources designated by them, even if comparable items are available elsewhere [p.3, p.165, p.177].