Toro Taxes Franchise Cost, Revenue & Review 2026
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 $56K – $192K. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $56K – $192K
- 23rd pct Financial Ser…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 25
- 32nd pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services avg · 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 $56K – $192K.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict B (Above average), verdict score 49/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Toro Taxes Franchise, LLC
- Ultimate parent
- None
- 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
- $3.3M
- 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
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost is about average for a financial services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 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
- $56K – $192K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $25K
- Middle of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- 10% of Franchisee's Gross Sales (excluding Business Divis…
- Ad fund
- -n/d
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Training fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 25.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Toro Taxes did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Toro Taxes unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
74%
Above the 30–60% band. Verify revenue is per-unit average
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: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 25.0% — above the Financial Services average of 17.0%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 212.5% CAGR over 3 years across 25 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 averages
How Toro Taxes Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- 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
- 0.0%
- Company-owned
- 0
- 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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 38
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- 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 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)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
Multiple stacked concerns: two litigation matters (an AAA arbitration where predecessor paid $126,000 over false financial-performance-rep claims by six franchisees, plus a Virginia AG matter), negative net worth of -$1.98M, financial_distress flagged, and no Item 19 disclosure on a small 25-unit system.
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
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 49 / 100 verdict
- 01HIGH2 litigation matters including regulatory (Virginia AG) and $126K FDD-disclosure settlement
- 02MINORNegative net worth -$1,977,353
- 03MINORNo Item 19 disclosure; financial_distress=true
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 2025 · 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 | 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 $56K – $192K. 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 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 25 total units in the United States, including 25 franchised units and 0 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 49 out of 100 (higher is better), 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.