Bottom line
- Total investment $56K – $192K including a $100K franchise fee, 25.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Toro Taxes unit return on the cash you put in?
Unlevered ROIC · per unit
-27%
Negative
Overview
About
Toro Taxes franchisees operate tax preparation and filing services, likely serving individual and small business clients during tax season. Franchisees manage client intake, tax return preparation (using franchisor software/systems), and filing services while paying the franchisor 25% of net royalty fees and operating under brand standards.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Toro Taxes presents meaningful investment risk due to absent financial disclosure, active multi-state litigation, unprotected territory, unclear royalty economics, and modest unit growth coupled with going concern notices.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo disclosed average revenue or net income data (Item 19 missing) — impossible to validate ROI on $55.6k-$192.3k investment
- 02MINORAggressive 25% royalty structure on net fees creates unclear profit model and potential for margin compression
- 03HIGHActive litigation in two states (Colorado arbitration for rescission + Virginia unregistered sales lawsuit) indicates regulatory/compliance issues
- 04MINORUnprotected territory creates direct franchisee-to-franchisee competition and cannibalization risk
- 05MEDModest unit growth (13.6% YoY with only 25 total units) suggests limited brand traction and scale challenges
- 06MINOR5-year term is relatively short in tax services, creating renewal uncertainty and relationship instability
- 07HIGHGoing Concern disclosure raises questions about franchisor financial viability and ongoing support sustainability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Toro Taxes · FDD (2025) PDF