THE FRANCHISOR, ANY
PARENTS, PREDECESSORS
AND AFFILIATES
We are TAX CENTERS OF AMERICA, INC. We are an Arkansas corporation
that was formed on September 23, 1997. We do business under the names TAX CENTERS OF AMERICA� and "TCOA". We do not intend to do business
under any other-names. TAX CENTERS OF AMERICA, INC. is called "us" or
"we" in this Franchise Disclosure Document, in this Franchise Disclosure
Document, "you" means the purchaser of a TAX CENTERS OF AMERICA franchise, and includes owners
or partners of a corporation, partnership or other legal entity that purchases
a franchise.
We license our franchisees in specified territories to
own and operate a TAX CENTERS OF AMERICA franchise under the name TAX CENTERS OF AMERICA� and "TCOA." We authorize our franchisees to
operate, promote and advertise businesses that offer highest quality tax return
preparation and filing to the public and to use our Method of Operation and
Service Marks in the process.
We and our principal officers
own and operate one Tax Centers of America business in Russellville, Arkansas. We retain the right to own or operate additional TAX CENTERS OF AMERICA offices
and franchises. We do not have any predecessors or affiliates.
Our principal place of business
is 1611 East Main, Russellville, Arkansas 72801. Our telephone number is (479)
968-4796. Our registered agents for service of process are listed in Exhibit D.
The tax return preparation industry is fragmented with
numerous tax services, refund anticipation loan businesses and related bank
loan and financing programs in North America. In addition, most certified
public accountants and many bookkeepers offer tax return preparation services.
Competing tax return preparation and refund anticipation loan companies include
H & R Block, Jackson Hewitt Tax Service, and Liberty Tax Service. For the
most part, these companies are large national or regional businesses. The Tax
Centers of America system also competes with other local, regional, national,
and internationally operated tax return preparation businesses. Your potential
customers will include individuals and businesses seeking assistance in
preparing and filing state and federal income tax returns. The business is
seasonal.
You must comply with various state and federal laws
that relate to the preparation and third party submission of local, state, and
federal tax returns and the related application for and funding of tax return
anticipation loans through banks and related bank products. These include IRS
Form 8633 and the Internal Revenue Code. You must learn about and follow all
Internal Revenue Service ("IRS") and state tax rules and regulations.
You must secure an Electronic Filing Identification Number ("EFIN")
from the IRS. You must qualify for and always maintain with the IRS the right
to file tax returns electronically.
In California, the franchisee is responsible to obtain
and maintain a tax preparer license pursuant to California law. To obtain the
license, the franchisee must fulfill certain tax preparation class hour
requirements and obtain a tax preparer''s bond, among other things.
Other than the reouirements and regulations outlined
above, we
are not aware of any regulations applicable specifically to the tax return
preparation business other than general laws and regulations, particularly
those related to taxes and income reporting, applicable to businesses in
general.
This Disclosure Document contains a summary of
some material provisions of the Franchise Agreement. However, the Franchise
Agreement itself expresses and governs the actual legal relationship between
you and us. We are willing to negotiate the terms of the Franchise Agreements
with our existing franchisees,
