A Taxing Spin-Off

Posted on June 16, 2009 by Teanna Hart

The Tax Lady cometh.

Tax resolution attorney Roni Lynn Deutch - of daytime talk show commercial fame - is looking to stamp her name on return preparation shops throughout the Chicago area.

She plans to have 100 to 130 tax center franchises in the area within the next five years, part of a move to put 5,000 offices across the United States.

Capitalizing on her name - she says it’s second only to market leader H&R Block in terms of brand recognition for the industry, with about 33 percent of Americans recognizing it - Deutch aims to pull market share from Liberty Tax and Jackson-Hewitt tax centers.

The Chicago market will see the largest number of Roni Deutch Tax Centers, because folks here use professional tax preparers at a higher rate than do residents of larger cities, she said.

About 62 ercent of Americans hire tax professionals to prepare their returns, said Deutch, in town this week for an Internal Revenue Service tax forum.

The IRS expects that percentage to increase as tax laws get more complex. "This market is recession-proof, and it’s booming," she said.

Deutch founded her Sacramento, Calif.-based tax attorney firm, called Roni Lynn Deutch, a Professional Tax Corporation, about 16 years ago.

Each of the tax centers will be open from mid-January through April 15 to complete and file tax returns. The rest of the year, the centers will be required to be open one day a week, offering services such as accounting and payroll.

For each location, franchisees will pay between $39,000 and $93,000 - including a $29,000 franchise fee, which Deutch will waive for experienced preparers. The centers pay royalties of 13.5 percent to 14 percent, and each office will be able to support 35,000 to 45,000 taxpayers.

Deutch said she expects franchisees to make their offices pretty, fixing or buying new furniture and carpeting.

"My name is Roni Deutch. It’ll be on the door. And I’m very serious about keeping my brand name professional," said Deutch, who has signed 10 deals since she began selling the concept in June.

She expects to have plans for Chicago offices in place by October.

Center clients get a 10 percent discount on Deutch’s tax law services.