Toro Taxes
Toro Taxes offers tax preparation services through franchised offices, focusing on individual income tax returns. Known for comprehensive tax solutions, it operates in the competitive tax services industry.
Toro Taxes franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Toro Taxes Office ranges from $17,835 to $79,150. This amount includes payments to the franchisor or its affiliates but does not include interest and financing charges, royalties, marketing development fees, lease deposits for real property, or additional operating expenses for the initial three months after opening [p.1, p.36, p.37, p.39].
What is the initial franchise fee?
The initial franchise fee is $40,000 [p.20]. This fee is fully earned by the company upon payment [p.20]. However, you can finance this amount with an initial deposit of $5,000 and a balance of $35,000 [p.20]. Discounts are available under certain conditions; for example, if paid in full or before the Discount End Date, it can be discounted to $25,000 [p.20], and if maintaining majority ownership, it could be further reduced to $15,000 [p.20].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of gross sales, specifically 10% from Bank Product Transactions and $30 per Non-Bank Product Transaction. Additionally, there's a Minimum Tax Season Royalty Fee Requirement of $5,000 during each Tax Season, except for the first one following the opening of your Franchised Business [p.30]. For advertising fees, franchisees pay an amount based on their gross sales, less any sales tax paid, recorded as revenue and recognized weekly [p.108]. There's also a DMA Marketing Fund Fee, which is 5% of monthly Gross Sales from Bank Product Transactions plus $15 per business tax return per month for Business Division Services [p.31].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.3], but it does provide an option to renew for one additional 10-year term under certain conditions [p.178]. To qualify for renewal, you must satisfy specific criteria including maintaining majority ownership and complying with the terms of your agreements [p.21].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but it requires the franchisor's approval. The franchisor may refuse a transfer for any good cause, which is defined but not limited to certain criteria [p.272]. Additionally, the franchisor reserves the right to exercise a first refusal to purchase the franchise if they choose to do so [p.176].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.275]. This isn't specified in the excerpts for specific grounds beyond legal requirements.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.56]. However, the franchisor will not establish another franchise office within your designated territory unless you are in default of your obligations [p.56]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides both initial and ongoing training. Initial training includes a mandatory program at their corporate facility in Las Vegas or another designated location, along with online On-Going Tax Training for up to three individuals free of charge during the first year after opening. For additional attendees, there are fees ranging from $250 per day for live sessions to $600 per person for Business Division Services training. Ongoing support includes access to information and support through franchise portals, continuing education sessions, and an annual convention with a registration fee not exceeding $500 per person. There may also be additional costs associated with travel, room, and board when attending these trainings or the convention. [p.53, p.54, p.274]
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 may provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document [p.66]. However, other than the provided financial performance representation, Toro Taxes Franchise, LLC does not make any representations about future financial performance of franchisees or existing outlets [p.71].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the Approved Services and Products as specified by the franchisor [p.10]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. The supplies you purchase according to their specifications typically represent about 75% of your total initial purchases and approximately 30% of ongoing operating expenses [p.40].