Tax prep franchise

Anyone care to share their opinions about Tax Prep Franchises.

Why do people go to them over a "typical" Tax accountant.

What is their competitive advantage? They're not the cheapest, but they are convenient. Do they succeed for the less connected and lazy, by just being near by?

While I do not know everything, it appears their tax preparers are pretty green. However there are some that I have come across that know their tax laws.

Anybody care to share?

My experience has been feedback from current and former clients, so take it for whatever it is worth.

1) Convenience

2) Location

3) Instant Refund, RAL paying for prep fee from refund etc.

Generally speaking they are located at strip malls where people shop for other things so it is convenient for many people to drop off and pickup. Then there are others who don't like to pay for tax prep out of their pocket and would rather have it deducted (including the excessive extra charges) from their refund. Most of these people are getting large refundable credits so they just don't care what it costs to walk away with a refund check or debit card and they are done.
These people are not looking for a tax expert to answer their complicated tax question or form a professional relationship for the long haul. It is more or less a transactional relationship!

I believe some of it is also intimidation. They "assume" that a CPA is expensive and have no idea what an EA is. The franchise stores appear friendly. The office is in the shopping center where they go to the grocery and the hair salon so they are used to seeing the sign. Or, it's in Walmart where they go every week. It's not a special trip

I echo Atman. I came across some research which said that the main reason people buy anything is ... convenience. It's not that the CPA is expensive, it's not that they don't know what an EA is. What they care about is that having their taxes done is convenient for them. So, if you're a CPA in a strip mall, you would get the clients that shop in the mall as well.

So, if you're a CPA in a strip mall, you would get the clients that shop in the mall as well.

A lot of self respecting CPA's don't want that type of clientele. You know the ones that rely heavily on EITC for their large refunds!