Toro Taxes Franchise Cost, Revenue & Review 2026
- Investment
- $18K – $79K
- Disclosed sales
- $64K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Toro Taxes is a tax preparation franchise serving individuals and small businesses, with a focus on the Hispanic market. Franchisees run local offices, preparing tax returns and offering related financial services.
FranchiseVerdict summary · 2026
A Toro Taxes franchise requires a total initial investment of $18K – $79K, including a $5K – $40K franchise fee. Item 5 conditions this fee. The figure shown is the lowest amount the filing discloses, and the filing ties that amount to a qualifying condition — so it is not necessarily what a first-time single-unit franchisee pays. Per the 2026 FDD, average unit revenue was $64K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $18K – $79K
- 5th pct Financial Ser…
- Avg gross sales
- $64K
- 0th pct Financial Ser…
- Royalty
- Set by a formula
- Units
- 194
- 59th pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $18K – $79K including a $5K franchise fee. Item 5 conditions this fee. The figure shown is the lowest amount the filing discloses, and the filing ties that amount to a qualifying condition — so it is not necessarily what a first-time single-unit franchisee pays.
- RETURNSAverage unit revenue of $64K/year (median $43K).
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- GROWTHNegative: net -13 franchised outlets in the latest year (18 opened, 1 closed); 48 signed but not yet open (Item 20).
- GROWTHSystem growing at 212.5% CAGR over 3 years with 194 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Toro Taxes Franchise, LLC
- Predecessor
- Toro Tax Franchising LLC (also Toro Tax Services, Inc.; Los Taxes Franchise Corp.)
- 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
- Nevada
- HQ
- 6130 Elton Avenue, Las Vegas, Nevada 89107
- Auditor
- MM & Company, LLP
- Audited financials
- Franchisor revenue
- $3.6M
- vs $3.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- and predecessor Toro Tax Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Nick Maldonado
- Headquarters
- NV
- FDD year
- 2026
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 48% below the typical financial services franchise.
Source: FDD 2026 · Items 5–7
Item 5 conditions this fee. The figure shown is the lowest amount the filing discloses, and the filing ties that amount to a qualifying condition — so it is not necessarily what a first-time single-unit franchisee pays.
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $5K | $40K | |
| Construction and Leasehold Improvements | $0 | $7K | |
| Furniture, Fixtures, Office Supplies and Equipment | $2K | $4K | |
| Scanner and Signature Pad Equipment Fee | $1K | $1K | |
| Signs | $810 | $1K | |
| Computer, Software and Point of Sales System | $3K | $5K | |
| Prepaid Rent and Lease Deposits | $1K | $3K | |
| Utility Deposits | $225 | $500 | |
| Insurance Deposits | $300 | $800 | |
| Travel and Lodging for Initial Training | $0 | $2K | |
| Grand Opening Marketing Expense | $1K | $3K | |
| Professional Fees | $1K | $2K | |
| Business Licenses and Permits | $500 | $2K | |
| Additional Funds - Initial Period of Three Months | $3K | $9K | |
| Total initial investment | $18K | $79K |
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
- $18K – $79K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $9K
- Top 40% of category vs category
- Franchise fee
- $5K – $40K
- Conditional fee
- Royalty
- The continuing Royalty Fee is an amount equal to the grea…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% |
| Training fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Total fee load | 25.0% of rev |
At 25.0% total fee load, roughly $16K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 76% below the financial services norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Toro Taxes until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$54K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Toro Taxes unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $64K
- Per unit, per year
- Median gross sales
- $43K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- calendar year 2025 (January 1 - December 31, 2025)
- Sample size
- 192 outlets
- vs category median 94 · large
- Range (low → high)
- $300→$502KCited, not corroborated — printed on page 71 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $64K/year in gross sales. Median is $43K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 25.0% — above the Financial Services median of 16.5%.
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units.
Operator retention
System expanding at 212.5% CAGR over 3 years across 194 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services medians
How Toro Taxes Compares
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 194
- Opened
- 18
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 48
- 0.25 per open outlet · Item 20 Table 5
- Projected new
- 45
- 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 12 · 11 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
11
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · MM & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Toro Taxes Franchise, LLC (established April 5, 2019); fiscal year ends December 31; Exhibit D: audited financial statements for December 31, 2025, 2024 and 2023.
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 60 / 100 verdict
- 01HIGH2 litigation matters including regulatory (Virginia AG) and $126K FDD-disclosure settlement
- 02MINORNegative net worth -$1,977,353
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 25.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 20,000 people |
| Online sales rightsℹ | 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
- Field support
- 0 hrs/yr
- On-site visits per year
- 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
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 $18K – $79K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD). Item 5 conditions this fee. The figure shown is the lowest amount the filing discloses, and the filing ties that amount to a qualifying condition — so it is not necessarily what a first-time single-unit franchisee pays.
What do Toro Taxes franchise owners earn?
According to Item 19 of the Toro Taxes FDD, the average gross sales per unit is $64K. The median is $43K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Toro Taxes?
Toro Taxes is franchised by Toro Taxes Franchise, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Toro Taxes FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Toro Taxes FDD and qualifies whose outlets they describe.
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 194 total units in the United States, including 192 franchised units and 2 company-owned units. 18 new units were opened in the latest reporting year.
Is Toro Taxes a good franchise to buy?
FranchiseVerdict rates Toro Taxes as a B-grade franchise with a verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.