Side-by-side comparison
| Tax franchise | Service bureau office | Fully independent | |
|---|---|---|---|
| Brand on the door | The franchisor's | Yours | Yours |
| Upfront cost | Franchise fee plus build-out, per the FDD | Software package | Software and everything else you choose |
| Ongoing cost | Royalties and marketing-fund fees, usually a share of revenue | Software renewal; disclosed fees on optional bank products | Software renewal and your own vendors |
| Your prep prices | Often set or guided by the franchisor | You set them | You set them |
| Software & bank products | Franchisor's system | Provided through the bureau | You choose and enroll yourself |
| Training & support | Structured system | Bureau onboarding and season support | Whatever you find and pay for |
| Territory & exit | Territory and non-compete terms in the agreement | Generally no territory; your clients stay yours | No restrictions |
When a franchise makes sense
A franchise can fit if you want a recognized national brand, a proven playbook for marketing and operations, and you're comfortable paying a share of revenue for them for years. Read the agreement for territory, required hours, pricing rules, renewal terms and what happens to your clients if you leave.
Under the FTC Franchise Rule, a franchisor generally must give you its Franchise Disclosure Document (FDD) at least 14 days before you sign or pay anything. The FDD shows fees, royalties, litigation history and, if the franchisor provides them, financial performance figures. Read it with an adviser before you commit.
When a service bureau makes sense
A service bureau fits preparers who want to build their own brand but don't want to assemble software, bank-product enrollment and training alone. You keep your clients and your pricing; the bureau provides the tools and the support. Because there's typically no royalty on your preparation fees, more of each fee stays with you, but you also do your own marketing.
Bureau offices still need their own PTIN for every preparer and their own EFIN to e-file. A bureau doesn't let you file under someone else's credentials.
When to go fully independent
Experienced preparers who already have clients, know which software they want and can handle bank-product enrollment themselves may not need either. The trade-off is that every system, vendor and support call is yours to manage, usually in February, when you have the least time.
Run the numbers for your situation
Royalties are usually charged on revenue, so their cost grows with your success. Software costs are mostly fixed. Use the startup cost calculator to build your own budget, and compare it against the fees in any FDD you receive. Examples are illustrative, not promises; see our earnings disclaimer.
Two ways to work with us
Run your own office: professional tax software with $0 upfront, launch help and local search setup to bring in clients. See pricing.
Run your own bureau: distribute software under your brand to a network of offices. See white-label tax software and the service bureau program.
Franchise vs. service bureau FAQ
Is a service bureau the same as a franchise?
No. A franchise licenses you the franchisor's brand and system in exchange for fees and royalties. A service bureau provides software, bank-product access, training and support while you operate under your own brand.
Do tax franchises charge royalties?
Typically yes, usually a percentage of revenue, often plus marketing-fund fees. The exact amounts are in each franchisor's Franchise Disclosure Document.
Can I switch from a franchise to my own office?
Check your franchise agreement first. Many include non-compete and non-solicitation terms that limit serving former clients nearby for a period after you leave.
Which is cheaper to start, a franchise or a service bureau?
A bureau office usually needs less upfront, mainly a software package, while a franchise adds franchise fees and ongoing royalties. Compare full first-year costs, not just the upfront price.
Do I still need an EFIN with a service bureau?
Yes. Each office that e-files needs its own EFIN, and every paid preparer needs a PTIN.
Sources
Program rules change; confirm current requirements with the IRS and your providers.