| If you
are set on working for yourself in the tax preparation
business but are not sure whether you should attempt it on
your own as an independent or buy a tax preparation
franchise, you should consider all the "pros and
cons". The costs and differences of owning a tax
preparation franchise vs. building your own business from the
ground up are many. We've listed a few here that you should
find interesting... |
| Item |
Franchises |
Independent
Businesses |
| Name
Recognition |
A primary reason
for purchasing a tax preparation franchise is the right to
associate with the franchise company's name. You will have
the right to use an established trade name, trade marks, and
logo. With an established franchise, you get the benefits of
marketing an established brand. The more widely recognized
the name, the more likely it will draw customers who know
its services. |
Because most
taxpayers have their tax returns prepared by the most
convenient preparer, usually within five miles of their
home, national name recognition may be of little or no
value.
You will need to establish
your own name. Your name will not be recognized nationally,
but customers will be aware of your local ownership. In some
cases this can be a big plus - especially if you have a
positive, high profile, in the community.
Should one office in the
franchise network become tarnished, you could lose
substantial business through no fault of your own. |
| Known
Service |
Your service will
be known by the public. This is a benefit if the franchise
network as a whole has a solid reputation, but is a drawback
if other franchisees have bad reputations. |
Ordinarily, it
takes a long time to establish a service and build up public
acceptance. However, most taxpayers are already familiar with
tax preparation and the process. |
| Training |
Training is
essential if you are changing careers or hiring tax preparer
employees, by providing you and them with the ability to use
technology, and you the skill required to operate a tax
preparation franchise. |
WorldWideWeb Tax
offers extensive, instructor led, online
training. This can result in a shorter learning curve. |
Established
Track Record
|
As a tax
preparation franchisee you become part of a proven system of
operation. You have history to learn from and to help you
predict your own future. |
Your particular
business will be unproven. However, WorldWideWeb Tax has
thousands of successful users coast to coast who share their
knowledge and experiences. |
| Advertising |
National
advertising will be undertaken by the franchisor and
generally, local advertising is up to you.
You often must contribute a
percentage of your income to an advertising fund even if you
disagree with how these funds are used.
|
Franchisees rarely
have any control over how the advertising dollars are spent.
How much of the fund is spent on national advertising? Is
any of the fund spent on advertising in your area? Do you
need the franchisor's consent to conduct your own
advertising?
As an independent business
you can select where and when the advertising budget is
spent.
WorldWideWeb Tax provides a
complete advertising and marketing
system, including co-op advertising and a free
web site. |
| On-going
Help & Support
|
You will have the
benefit of a trouble shooting service from the franchisor
when required. Field staff may also visit franchisees and
help prevent the build-up of problems.
As a franchisee, you will
generally receive valuable, ongoing business support,
including site selection, training, marketing, new
technology and more. Franchisers will assist you in
developing a business plan, in learning the best ways to
hire and manage personnel, and in how to profitably manage
your business. |
WorldWideWeb Tax
offers a full range of practice
management and technical
support programs. |
| Location |
The franchisor
will come on-site and select, or advise you, on the location
that is right for your tax preparation franchise business.
The franchisor may also assist directly in lease
negotiations. |
You are free to
make a good or bad choice of location. Best Bet: Locate your
tax preparation business where there's a lot of drive-by
traffic - as signage and banners will draw many taxpayers to
your business. Office buildings perform terribly. Strip
shopping centers perform fantastic. |
| Less
Risk |
Your chances of
failure are lower with a franchise operation, because of the
experience, expertise and proven resources that support you
in your business. Franchises succeed at the rate of 90%. |
Independent tax
preparation businesses rarely fail. Without the financial
burden of franchise costs and expenses, independents succeed
at the rate greater than 90%. |
| Ownership |
There may be
limitations on your ability to sell or dispose of the tax
preparation franchise business. The franchisor may have
rights to purchase and terminate your contract under terms
defined in the franchise agreement. Ordinarily, you own the
franchise business for a fixed period of time, with the
right to renew. |
You own your
business. You are totally free to sell or dispose of the
business to anyone, at any time. No one else has the right
to terminate the business. |
Escape Clause/Cancellation |
Depending on the
franchise agreement, there may be major legal issues
involved in a franchisee terminating the agreement. |
Our software is
purchased on an annual basis. While over 95% of our users
renew each year, you are free not to do so. There is no long
term obligation. |
