Exploring Tax Franchises: Federal Direct


Our Q.-and-A. series on franchising for preparers continues with Federal Direct Tax Services.

Full Name of the Franchise Division: Federal Direct Tax Services 

Best Way for Prospective Franchisees to Contact: (866) 357-2052 or support@federaldirecttax.com

How Many Franchises Do You Have? 262 independent offices

How Much Is This Up or Down From Last Year? Up approximately 24 percent from prior to tax season. 

How Many Franchises Do You Look to Add in the Next 12 Months? 75-100 new offices from the coming season.

What's the Initial Investment and Total Cash Requirement for a Franchisee? $299-$1,500. 

Is Financing Available? In-house financing available at 0 percent.

What Other Supports Do You Have For New Franchisees? Custom marketing programs directed at small-office ROI; audit and representation services and post-filing IRS resolution handling; tax training (IRS-approved CE provider, live weekly training webinars); tax software (choice of interview-based and professional tax filing products); IRS registration assistance (EFIN help and PTIN signup and compliance assistance); tech support (year-round software, hardware, and network support, virus cleanup, software installation, etc.); tax support (staff EAs, assistance real time); and site selection (analysis of prior-tax season filing information and demographics to help offices choose the best location).

Is There Anything You'd Like to Add? Federal Direct Tax Services tries to fill the “void” in [offering an] affordable alternative to purchasing a Big 3 franchise. With low cost of entry and encompassing programs, offices can and should expect profitability in Year One (most other franchises project this in Year Five). Small enough to offer personalized relationships and flexibility to assist offices in taking advantage of marketing suite of programs to reach specific local markets; no "one-size-fits-all" marketing and advertising campaigns.


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