ATAX Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 2007

Headquarters: Virginia Beach, Virginia

Estimated Number of Units: 125

Franchise Description: The franchisor is ATAX LLC d/b/a ATAX. An ATAX franchise business focuses primarily on income tax preparation, bookkeeping, payroll, and incorporation services, along with other business services.
Training Overview: The Initial Training Program currently consists of 24 hours of classroom training and 2 hours of on-the-job training. The franchisor holds initial training in Virginia Beach, another designated training center, or online, at its choosing. The franchisor requires that franchisees, or in the case of an entity their principals, attend initial training. Franchisees may enroll their management personnel upon the franchisor’s approval. The franchisor may elect to offer and require franchisees to attend, either live or electronically, additional training and seminars that it may offer.

Territory Granted: The territory will be for a specific geographic region that the franchisor defines by zip codes, natural, or political boundaries. A territory will normally include a population of 30,000 – 33,000 residents, as determined by the U.S. Census Bureau or mapping software that the franchisor feels is reliable. Franchisees will receive an exclusive territory, meaning a geographic area within which the franchisor promises not to establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks.

Obligations and Restrictions: Franchisees must personally supervise and participate in the day-to-day operation of the franchised business, unless the franchisor permits otherwise in writing. Franchisees must designate a business manager. If the franchisee is an individual, then the franchisee must serve as business manager. Franchisees and any business manager must pass a background check. However, the business manager is not required to have an equity interest in the franchisee, if it is an entity. Franchisees may offer for sale through the franchised business only an income tax preparation service and ancillary business services as specified by the franchisor and such products and services that it has approved in writing. Franchisees are required to sell all goods or services that the franchisor authorizes, unless prohibited by the franchisee’s applicable local law, or approved by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The agreement can be renewed for successive terms if franchisees are in compliance with their Franchise Agreement.

Financial Assistance: The franchisor may in its sole discretion provide financing for all or a portion of the initial franchise fee to franchisees. The franchisor offers a 10% discount to all active-duty service members and veterans. The franchisor also offer occasional promotions and discounts.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Construction & Leasehold Improvements	$2,500	$5,000
Furniture, Fixtures and Equipment	$4,000	$6,000
Interior & Exterior Signage	$2,000	$4,000
Rent and Security Deposit	$3,000	$5,000
Software and Software Support Services	$100	$1,000
Computer and Point of Sale Systems & Connectivity	$2,500	$4,000
Training Travel and Living Expenses	$1,000	$2,000
Opening Inventory & Supplies	$500	$1,500
Grand Opening Advertising	$1,500	$5,000
Permits and Licenses	$200	$500
Utilities	$450	$1,000
Initial Insurance Deposit / Advanced Premium	$400	$500
Professional Fees	$2,500	$3,500
Additional Funds – 3 months	$3,500	$5,000
ESTIMATED TOTAL	$59,150	$79,000

 
Other Fees

Type of Fee	Amount
Royalty Fee	14% of gross revenues, subject to a minimum annual royalty amount.
Minimum Annual Royalty Fee	Year 1: $5,000* Year 2: $7,500* Year 3+: $10,000* *The minimum annual royalty fee for Puerto Rico is reduced by 50%.
Local Advertising	$1,200/year minimum.
Unapproved Advertising Fee	$1,000 per incident.
Advertising Fee	3% of gross revenues.
Training Fee	There is no cost for training, but franchisees are responsible for all travel, dining, and accommodation expenses.
Insufficient Funds Fee	$50 per transaction.
Audit Fee	Cost of audit plus $50 per month late fee on any late payment.
Transfer Fee	$5,000 for a transfer of the franchise or a majority interest in it.
Interest Fee / Late Fee	12% per annum or the maximum permitted by law, if less.
Client Refunds and Interest and Penalties	The amount of any fee or interest and penalties the franchisor refunds to a client.
Management and Assistance Fee	The reasonable expenses plus 10% of gross revenues for the period in which the franchisor operates or assist in the operation of the franchised business.
Sales, Excise, or Gross Receipts Tax	Actual amount of tax paid.
Third Party Charges that the Franchisor Incurs on the Franchisee’s Behalf	Actual amount of charge.
Credit Card Processing Fee	Actual amount of third-party credit card processing charge.
Indemnity	Actual loss sustained.
Attorney Fees and Costs	Actual amount incurred.

The above information has been compiled from the FDD of ATAX. Year of FDD: 2025.
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