Risk Score
Pending analysis
Investment Range
$183,250 - $650,500
Franchise Fee
$50,000
Total US Locations
3
Business Summary
Tax Tiger Franchising, LLC offers franchises for businesses that provide tax resolution services and tax return preparation services to individuals and businesses. Tax Tiger Offices operate using a distinctive business format, systems, methods, and branding. These offices primarily assist clients in resolving federal or state tax delinquencies, often for amounts of $7,500 or more, through methods like Offers in Compromise or installment agreements. They also provide state and federal tax return preparation services. Franchisees or one of their employees must be an Enrolled Agent with the IRS, a Certified Public Accountant, or a Tax Attorney.
Corporate History
Tax Tiger Franchising, LLC was formed on December 15, 2008, as a California limited liability company. Its affiliate and predecessor, Tax Tiger, Inc. (TTI), a California corporation, was formed earlier on August 30, 2002. TTI operated a business similar to a Tax Tiger Office since October 2002. Tax Tiger Franchising, LLC began offering franchises for Tax Tiger Offices on April 30, 2009. The company's business is currently limited to operating as a franchisor and does not operate its own offices of the type franchisees will operate.
Financial Overview
Investment Range
$183,250 - $650,500
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
10%
Equipment Costs (Low)
$32,000
Equipment Costs (High)
$90,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights a special risk regarding Tax Tiger Franchising, LLC's financial condition, stating that it "calls into question the Franchisor's financial ability to provide services and support to you." Additionally, the Illinois Attorney General's Office has determined that, due to Tax Tiger Franchising, LLC's financial condition, the company may not be able to fulfill its obligations to franchisees in establishing their Tax Tiger Franchises. To address this, Tax Tiger Franchising, LLC has chosen to defer the payment of all initial franchise fees until the company has completed its initial obligations under the Franchise Agreement and the franchisee's Tax Tiger Franchise is open.
Financing Details
Tax Tiger Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
3
Franchised Units
2
Corporate Units
1
Avg Square Footage
2,000
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tax Tiger Franchising, LLC has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Tax Tiger Franchising, LLC has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Tax Tiger franchise, franchisees must notify Tax Tiger Franchising, LLC of their intention to renew between 220 days and one year before the current agreement ends. They must also remodel their office, pay a renewal fee of $6,000, sign Tax Tiger Franchising, LLC's then-current franchise agreement, and provide a general release of claims. Franchisees may be asked to sign a new contract with terms and conditions that are materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Tax Tiger Franchising, LLC provides franchisees with pre-opening assistance, including designating their territory, helping to locate and approve an office site within 90 days, and providing standards and specifications for leasehold improvements, design, signs, equipment, software, and marketing materials. Tax Tiger Franchising, LLC also conducts an initial training program for up to four people in Sacramento, California, or another designated location. Franchisees receive advice on selecting suppliers and are loaned a confidential Operations Manual. For ongoing support, Tax Tiger Franchising, LLC provides up to three days of assistance in the franchisee's territory around the opening of their first office. They offer telephone and email consultation regarding operations, sales techniques, and client relations, with an hourly fee for technical assistance. Tax Tiger Franchising, LLC also provides updates on the Tax Tiger Office system, makes the initial training program available for replacement or additional managers, and offers access to advertising and promotional materials. They also administer an Advertising Fund to promote the entire Tax Tiger system and review proposed transferees.
Initial Training Hours
80
Training Location
Sacramento, California
Ongoing Support
Tax Tiger Franchising, LLC provides ongoing support to its franchisees after they open. This includes up to three days of follow-up assistance and training in the franchisee's territory around the time the first office opens. Franchisees can also request telephone or email consultations regarding their office's operation and management, sales techniques, and client relations, though a fee is charged for technical assistance. Tax Tiger Franchising, LLC provides continuous updates on information and programs related to the Tax Tiger Office system and Licensed Methods. The initial training program is also available for replacement or additional Principal Managers, Enrolled Agents, CPAs, or Tax Attorneys, although a tuition fee and travel expenses apply. Franchisees also have access to advertising and promotional materials and their proposed advertising is reviewed for approval. Tax Tiger Franchising, LLC also administers an Advertising Fund to promote the entire system. Franchisees, their Principal Manager, or employees must attend up to three mandatory follow-up training programs or meetings each year, for which travel and living expenses are the franchisee's responsibility.
Franchise Requirements
Ideal Candidate Profile
Tax Tiger Franchising, LLC requires that the franchisee or one of their employees must be an Enrolled Agent with the IRS, a Certified Public Accountant (CPA), or a Tax Attorney. This individual must be responsible for on-site supervision of the operations of the Tax Tiger Office.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
Protected
Territory Size Requirements
Tax Tiger Franchising, LLC defines its franchise territories using streets, zip codes, Metropolitan Areas (as defined by the United States Census Bureau), other boundaries, or descriptions on a map. Each territory must contain a minimum of 500,000 persons.
Staffing Notes
Tax Tiger Franchising, LLC requires that either the franchisee or a designated Principal Manager successfully complete the mandatory initial training program to be responsible for the daily on-premises supervision of the Tax Tiger Office. Additionally, an Enrolled Agent, Certified Public Accountant, or Tax Attorney must be employed by the franchisee and supervise the operations of the office, as the IRS discusses tax resolution issues only with authorized agents. The franchisee is solely responsible for all employment decisions, including hiring, firing, scheduling, compensation, benefits, discipline, and supervision of employees. All employees are required to present a professional appearance and provide competent, courteous service. Franchisees must also ensure that employees comply with operational standards and may be required to attend designated technical training programs.