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ATAX franchise — is it worth it?

Business services · FDD-based assessment · registered 2024

Medium risk Growing network

ATAX offers a business services franchise with a relatively low initial investment ranging from $59,150 to $79,000.

Everything below is free, read straight off ATAX's registered filing. The $99 report is the part a single FDD can't give you: the fee and churn detail, and where every number lands against business services peers.

Get the full report — $99what's inside ↓
Total initial investment
$59,150 – $79,000
Top quartile for business services · median $103,547
Initial franchise fee
FDD Item 5
Royalty
14%
FDD Item 6
Item 19 earnings
Not disclosed
no franchisor earnings
Litigation (Item 3)
Disclosed
in Item 3
Outlet network
111 units
+13 last year
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The numbers above tell you what ATAX discloses. The report tells you whether that's good:

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Figures above are as disclosed in ATAX's most recent FDD (registered 2024). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-31426 — check it yourself. The Item 19 figures, where each number ranks against peers, and the litigation & churn detail are in the full report.

ATAX franchise profit — what the FDD discloses

Plainly: ATAX does not disclose franchise profit or revenue. Its most recent FDD makes no Item 19 financial performance representation, so there is no franchisor-backed earnings figure for ATAX — any number quoted elsewhere is an estimate, not a disclosure. The absence is itself worth weighing (many business services franchisors do disclose), and the full report reads the risk signals ATAX's FDD does contain — fees, litigation, and outlet churn — against peers. For brands that put earnings on paper, see Business services franchises with disclosed Item 19 earnings.

ATAX lawsuits & legal history (FDD Item 3)

ATAX's most recently filed Franchise Disclosure Document (2024) does disclose legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against ATAX itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. The full ATAX report lists each case with what it was about and how it ended, separates franchisee disputes from corporate and securities matters, and flags the ones a franchisee started — the split that actually matters, because franchisees suing their franchisor is the signal a buyer is looking for.

ATAX closures & failure rate

Before you sign, ATAX will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what ATAX's most recent filing shows, and whether it's normal for a business services of this kind.

The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. ATAX's latest tables show a growing franchised network. The actual closure and termination counts, and how ATAX's churn ranks against business services peers, are in the full report.

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What the fee, litigation and churn signals imply, every number ranked against business services peers, and the litigation and churn detail — delivered instantly, yours to keep.

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Who owns ATAX?

ATAX's franchise is offered by ATAX LLC (Unit) — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2024), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.

Business services franchises at a similar investment level

Anyone weighing ATAX is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.

Breakaway Ba$10,500 – $34,500WCH Service Bureau$54,599 – $75,299The Paterson Center$20,750 – $111,130Cyberbacker$51,850 – $84,800Ledgers - Unit$48,200 – $89,700 · Item 19 disclosedNovus Global$52,550 – $90,550Murphy Business$57,590 – $85,900 · Item 19 disclosedMoney Mailer$65,090 – $78,680 · Item 19 disclosedVR Business Sales Mergers & Acquisitions$59,305 – $85,780Booxkeeping$77,546 – $84,046 · Item 19 disclosedAnnex Brands Retail Centers$265,630 – $370,330 · Item 19 disclosedArea Representative$231,575 – $512,575 · Item 19 disclosed

ATAX franchise — frequently asked

Who owns ATAX — who is the franchisor?

ATAX's most recently filed FDD (2024) names ATAX LLC (Unit) as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.

How much does a ATAX franchise cost?

ATAX's most recently filed FDD (Item 7) puts the total estimated initial investment at $59,150 – $79,000 and a 14% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. The full report breaks down every fee line and benchmarks it against business services peers.

How much profit does a ATAX franchise make?

ATAX makes no Item 19 financial performance representation, so there is no franchisor-disclosed revenue or profit figure for ATAX at all — and profit would never be disclosed even where earnings are, because it depends on your rent, labor and how you operate. Any profit figure quoted elsewhere is an estimate, not a disclosure.

Does ATAX disclose financial performance (Item 19)?

No — ATAX's most recent FDD makes no Item 19 financial performance representation. Its absence is worth weighing; the report focuses on the verifiable risk signals instead.

Are there lawsuits against ATAX?

ATAX's most recently filed FDD (2024) discloses legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against ATAX itself, and a disclosure is not a finding of wrongdoing. The full report lists each case, separates franchisee disputes from corporate and securities matters, and flags the franchisee-initiated ones.

Is ATAX a good franchise to buy?

Nobody can answer that from ATAX's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against business services peers, which is what the full report is for. Our read on this filing is medium risk, stated free above. For $99 you get the figures driving that read, the actual Item 19 earnings (absent from this FDD — and how unusual that is for the category), where every figure ranks against peers, and the specific questions to ask the franchisor before you sign.

Decide with the numbers — $99

A ATAX franchise is a $59,150 – $79,000 decision you make once, on a ten-year agreement, usually with a personal guarantee behind it. For $99 you get an independent read of the document that decides it: what the absent Item 19 earnings imply, and how unusual that absence is for the category, every figure ranked against business services peers, the litigation split into franchisee and corporate matters, the churn behind the outlet count — and the questions to put to the franchisor before you sign. If it tells you nothing new, reply within 14 days and we'll refund it.

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Get a free email when something changes on ATAX or business services: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same registries every report is built on.

This report compiles and structures publicly filed Franchise Disclosure Document (FDD) data from state franchise registrations. It is not legal, financial, or investment advice, is not affiliated with or endorsed by any franchisor, and does not replace reading the full FDD or consulting a franchise attorney or accountant. All figures are as disclosed by the franchisor in its most recent registered FDD. Item 19 financial performance representations are made at the franchisor’s option and may be absent or limited.