Toro TaxesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Toro Taxes franchise requires a total initial investment of $100K – $192K, including a $100K franchise fee and an ongoing 25.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $100K – $192K
- 53rd pct Financial Ser…
- Avg gross sales
- N/A
- 30th pct Financial Ser…
- Royalty
- 25.0%
- 44th pct Financial Ser…
- Units
- 25
- 26th pct Financial Ser…
- SBA default
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 25 to 18 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $100K – $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.
- Verdict F (Bottom Quintile) with a risk score of 95/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Toro Taxes Franchise, LLC
- Ultimate parent
- None
- Predecessor
- had been conducting business and offering franchises under
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Nick Maldonado
- CEO experience
- 2019 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NV
- HQ
- 6130 Elton Avenue, Las Vegas, Nevada 89107
- Auditor
- MM & Company, LLP
- Audited financials
- Franchisor revenue
- $3.3M
- vs $3.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- and predecessor Toro Tax Franchising
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Nick Maldonado
- Headquarters
- NV
- Founded
- 2019
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Area Representative Territory Fee | $20K | $100K | |
| Prepaid Rent and Lease Deposits | $1K | $3K | |
| Leasehold Improvements | $1K | $3K | |
| Furniture, Fixtures and Equipment | $3K | $4K | |
| Computer, Software and Point of Sales System | $2K | $4K | |
| Utility Deposits | $100 | $500 | |
| Insurance Deposits and Premiums | $500 | $800 | |
| Travel and Lodging for Initial Training | $2K | $5K | |
| Professional Fees | $5K | $15K | |
| Business Licenses and Permits | $500 | $1K | |
| Printing, Stationery and Office Supplies | $500 | $2K | |
| Build-out of a Latinx Training Center | $10K | $30K | |
| Additional Funds - Initial Period of Three Months | $10K | $25K | |
| Total initial investment | $56K | $192K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $100K – $192K
- Near category avg vs category
- Liquid capital req'd
- $10K – $25K
- Near category avg vs category
- Franchise fee
- $20K – $100K
- Near category avg vs category
- Royalty
- 25.0%
- percentage · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 25.0% of gross sales |
| Training fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 25.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Financial Services averages
How Toro Taxes Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +13.6%
- Net unit change last year
- 3-yr CAGR
- +38.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 7
- Terminated (3yr)
- 38
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 4
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Ceased ops
- 28.0%
- Units that stopped operating
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
Two cases disclosed: (1) Toro Franchisees v. Toro Tax Franchising, LLC - AAA arbitration case 01-16-0003-5186 involving six Colorado franchisees claiming improper disclosure, false financial performance representations, and seeking rescission. Settled for $126,000 paid in three installments with mutual release and non-disparagement covenant, no admission of liability. (2) Commonwealth of Virginia ex rel State Corporation Commission v. Javier Solis and Los Taxes, Inc. - Case Sec-2017-00026 involving unregistered franchise sale in Arlington, Virginia in 2013. Settled with $3,000 in penalties and $500 investigation costs paid to Virginia Treasurer, no admission of liability.
Largest disclosed settlement: $126,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy,” is supplemented by the addition of the following: No entity or person listed in Items 1 and 2 of this Disclosure Document has, at any time during the previous 10 fiscal years (a) filed for bankruptcy protection, (b) been adjudged bankrupt, (c) been reorganized due to insolvency, or (d)
Audited financials (Item 21)
Yes · MM & Company, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 95 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Designated Territory |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 20,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Clark County, Nevada |
| Jury trial waiver | Yes |
| Governing law | Nevada |
| Litigation count | 2 |
View Item 3 litigation summary
Two cases disclosed: (1) Toro Franchisees v. Toro Tax Franchising, LLC - AAA arbitration case 01-16-0003-5186 involving six Colorado franchisees claiming improper disclosure, false financial performance representations, and seeking rescission. Settled for $126,000 paid in three installments with mutual release and non-disparagement covenant, no admission of liability. (2) Commonwealth of Virginia ex rel State Corporation Commission v. Javier Solis and Los Taxes, Inc. - Case Sec-2017-00026 involving unregistered franchise sale in Arlington, Virginia in 2013. Settled with $3,000 in penalties and $500 investigation costs paid to Virginia Treasurer, no admission of liability.
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 0 hrs
- Training location
- Las Vegas, Nevada
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Toro Taxes · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Toro Taxes franchise?
The total investment to open a Toro Taxes franchise ranges from $100K – $192K, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Toro Taxes franchise owners earn?
Toro Taxes does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Toro Taxes's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Toro Taxes (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Toro Taxes franchise locations are there?
As of their most recent FDD filing, Toro Taxes has 25 total units in the United States, including 25 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Toro Taxes a good franchise to buy?
FranchiseVerdict rates Toro Taxes as a F-grade franchise with a risk score of 95 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.