Toro Taxes Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$55,600 - $192,300
Franchise Fee
$20,000
Min Cash Required
$30,000
Total US Locations
25
Business Summary
Toro Taxes Franchise, LLC offers an Area Representative franchise business where Area Representatives recruit and support single-unit Toro Taxes franchisees in specific geographic areas. Area Representatives are compensated with fees and commissions for successful franchisee placements and ongoing support. The core Toro Taxes businesses that these franchisees operate primarily provide individual and business income tax preparation, filing, and related financial services, as well as insurance and real estate brokerage services. Area Representatives are also required to establish a Latinx Training Center to provide training for single-unit franchisees.
Corporate History
Toro Taxes Franchise, LLC was established in Nevada on April 5, 2019, primarily to operate and franchise the Toro Taxes system. The company began offering its own single-unit franchises in July 2021 and area representative opportunities in January 2019. Its history traces back through predecessors; in January 2020, Toro Taxes Franchise, LLC acquired the rights from Toro Tax Franchising LLC, which had been established in October 2014 and operating under the Toro Taxes name since September 2015. The earliest predecessor, Toro Tax Services, Inc., was incorporated in California on September 10, 2012, and had previously offered licenses for Toro Taxes businesses. Additionally, in January 2020, Toro Taxes Franchise, LLC acquired most of the franchise assets of Los Taxes Franchise Corp., which had been offering tax preparation franchises since June 2016.
Financial Overview
Investment Range
$55,600 - $192,300
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$100,000
Minimum Cash Required
$30,000
Equipment Costs (Low)
$16,000
Equipment Costs (High)
$40,500
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Toro Taxes Franchise, LLC's financial condition is presented with a specific risk warning from the franchisor itself, stating it calls into question the franchisor's financial ability to provide services and support to franchisees. As of December 31, 2024, Toro Taxes Franchise, LLC had $809,849 in cash, increasing to $1,364,522 by April 9, 2025. The company generates substantial revenue during tax season. Its debt obligations primarily stem from selling future tax preparation fees to a financial services company, with payment terms allowing the company to defer obligations to the next year if needed, without a specific collection timeframe for the financial services company. Management's strategy for funding operations includes potentially selling notes receivable and increasing efficiencies to enhance cash flow, and management believes it can meet its obligations for the next twelve months.
Financing Details
Toro Taxes Franchise, LLC offers direct financing for a portion of the Area Representative Territory Fee. The franchisor may also provide indirect financing referrals through third parties, from which it may receive referral fees, but does not guarantee such loans. For direct financing, Area Representatives can finance $80,000 of the Area Representative Territory Fee over a 5-year term with a 12.9% APR, following an initial $20,000 down payment. Payments are $860 per month for 59 months, with a final balloon payment of $80,000 due in the 60th month. There is no penalty for prepayment. This financing is secured by a personal guaranty and a security interest in the Area Representative's franchise rights and business assets. Defaulting on the loan can lead to franchise termination and loss of investment. Borrowers waive certain legal rights and defenses upon default.
Performance Metrics
Total US Locations
25
Franchised Units
25
Corporate Units
0
Avg Square Footage
400
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Toro Taxes Franchise, LLC has disclosed two past litigation cases. The first involved an arbitration proceeding initiated in 2016 against the franchisor's predecessor, Toro Tax Franchising, LLC, by six Colorado franchisees. These franchisees claimed they did not receive proper FDD disclosure and were provided with false financial performance representations, seeking to end their agreements and receive damages. Toro Tax Franchising, LLC denied the claims, but the parties eventually settled. The settlement involved dismissing the proceedings, terminating the franchise agreements, and the predecessor paying $126,000 to the plaintiffs. The second case, from 2013, involved Javier Solis, an executive of Toro Taxes Franchise, LLC, and Los Taxes, Inc. (an acquired affiliate). This lawsuit, brought by the Commonwealth of Virginia, concerned the offer and sale of an unregistered franchise. Mr. Solis and Los Taxes, Inc. settled this matter by consenting to the Commissioner's authority and paying $3,000 in penalties and $500 for investigation costs, without admitting or denying the allegations.
Bankruptcy History
Toro Taxes Franchise, LLC has no bankruptcy history to report for the franchisor or its key personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Area Representative Agreement, Toro Taxes Area Representatives must not be in default of their agreement or any other franchise agreement with Toro Taxes Franchise, LLC. They must own and operate at least one Toro Taxes business within their territory, and all owners and their spouses must be in compliance with their agreements. Area Representatives must provide 180 days of prior written notice and pay a renewal fee. Upon renewal, their rights will be limited to providing services for existing Area Representative System Franchisees and will not include the right to develop or sell new Toro Taxes unit franchises. They will also be required to sign a new contract with terms and conditions that may be materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Toro Taxes Franchise, LLC provides Area Representatives with a range of assistance. Before opening, this includes granting Area Representative rights and defining the territory, providing access to manuals, and lists of approved suppliers, signage, equipment, furniture, and fixtures. Toro Taxes Franchise, LLC will also identify the Area Representative on its website. Initial training, lasting 11-14 days for the Area Representative and one manager, is provided in Las Vegas, Nevada, without a tuition fee (though travel and living expenses are the Area Representative's responsibility). Toro Taxes Franchise, LLC offers site selection guidelines and requires approval of the Area Representative Office location. After opening, assistance includes telephone and email support, optional refresher training, and consultations regarding operating standards. Area Representatives also receive access to the current Unit Franchise Disclosure Document and approved franchise sales materials and benefit from Toro Taxes Franchise, LLC processing commissions. Toro Taxes Franchise, LLC establishes and approves marketing standards and vendors but does not assist with hiring or training the Area Representative's employees. Area Representatives are required to attend any annual conferences.
Initial Training Hours
58
Training Location
Las Vegas, Nevada or Online
Ongoing Support
Toro Taxes Franchise, LLC provides ongoing support to Area Representatives through a dedicated telephone line and email for communications during business hours. The franchisor may offer refresher training programs, seminars, and annual system conferences, which Area Representatives are required to attend at their own expense. Toro Taxes Franchise, LLC also offers consultations and communications regarding operating standards, procedures, and system requirements, and may conduct visits to the Area Representative Territory for guidance. Area Representatives have access to the current Unit Franchise Disclosure Document and approved franchise sales materials, receive commissions on fees and royalties collected from franchisees in their territory, and are provided with marketing standards and a list of approved vendors. However, Toro Taxes Franchise, LLC does not assist Area Representatives with hiring or training their employees.
Franchise Requirements
Ideal Candidate Profile
Toro Taxes Franchise, LLC is seeking Area Representatives who are business-minded individuals or entities with a Managing Owner personally responsible for the day-to-day management and operations of the Area Representative Business. The Managing Owner must be approved by Toro Taxes Franchise, LLC and successfully complete the initial training program. Ideal candidates should possess skills in marketing, promotion, recruitment, screening of prospective franchisees, and providing ongoing support to existing Toro Taxes franchisees.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
hands-on
Territory Type
non-exclusive
Territory Size Requirements
Toro Taxes Area Representative territories are determined by Toro Taxes Franchise, LLC based on population demographics and the number of unit businesses potentially developed within the area. There is no minimum territory size. The specific scope and size are mutually agreed upon at the time of signing the agreement and can be delineated by zip codes, counties, states, or a map. Depending on the agreement, Area Representatives commit to developing either 5 or 12 Toro Taxes unit businesses within their territory.
Staffing Notes
Toro Taxes Franchise, LLC requires Area Representatives to hire a sufficient number of employees to fulfill their obligations under the agreement. Area Representatives are solely responsible for managing, supervising, hiring, and training their employees. Toro Taxes Franchise, LLC emphasizes that Area Representatives are the sole employers of their staff, and there is no joint employer relationship with the franchisor. Employee requirements, including uniforms and branded apparel, are primarily for maintaining brand standards and system uniformity.